5G construction speeds up across the country, and related industries welcome the best development period
Local governments are actively releasing policy dividends to
promote 5G network construction. Recently, Fujian, Guangdong, Jiangsu, Sichuan,
Guizhou and other places have intensively issued new infrastructure construction
plans for the "14th Five-Year Plan", and 5G construction has become a
top priority. At the same time, operators are also realizing the increase in
volume and price in centralized procurement.
With the continuous advancement of the current 5G commercial
deployment, a new round of domestic 5G construction is entering a period of
acceleration, and the performance of the industry chain will also usher in
continuous release.
5G new infrastructure plans in various regions are
successively released
Investment in new infrastructure construction has entered a
period of rapid expansion. Recently, the "14th Five-Year Plan" for
the new infrastructure of local editions has been released one after another,
focusing on the development of the digital economy, expanding 5G applications,
and accelerating the construction of industrial Internet and data centers.
Many provinces have listed plans for 2025: Guizhou Province
has made it clear that by then the scale of the big data industry cluster will
reach 300 billion yuan, and at the same time, 130,000 5G base stations will be
built in the province, and the number of 5G base stations per 10,000 people
will reach 33. The 5G network will be realized. Comprehensive coverage of
cities and towns, and in-depth coverage of key application scenarios; Jiangxi
Province stated that all districts and cities in the province have built
gigabit cities with more than 100,000 5G base stations, achieving full coverage
of cities and towns 5G networks and in-depth coverage of key application
scenarios; Sichuan The province stated that the number of 5G base stations will
reach 250,000, and the scale of data center racks will reach 500,000; Jiangsu
Province proposes that the number of 5G base stations will increase to 255,000,
and the number of provincial industrial Internet platforms will reach 100. Big
data centers are in use The number of standard racks reaches 700,000.
Operators start large-scale 5G centralized procurement
As the main force of 5G construction, operators are
accelerating the centralized procurement of 5G equipment in the near future.
Fiber optic cables are an important cornerstone of 5G
information transmission networks. On October 12, China Telecom released
information on the centralized procurement of outdoor optical cables in 2021,
with an estimated procurement scale of 43 million core kilometers; and in 2020,
China Telecom collected 75 million core kilometers of outdoor optical cables.
On October 11th, China Mobile's centralized procurement of ordinary optical
cables from 2021 to 2022 was also finalized. In the end, 14 manufacturers
including YOFC, Fortis, Hengtong, Zhongtian, and Fiberhome were shortlisted;
China Mobile's bid for the highest price limit of 9.86 billion yuan The average
transaction price exceeded 60 yuan per core-kilometer, while last year it was
about 40 yuan/core-kilometer, an increase of more than 50%. Collecting cable
production shows a situation where both volume and price are rising.
In addition to centralized procurement of optical fiber and
cable, operators have also conducted centralized procurement of 5G equipment.
On June 25, China Mobile issued a tender announcement for the centralized
procurement of 5G 700M wireless network main equipment, involving 480,000 5G
base stations. On August 1, China Telecom and China Unicom 2.1G 5G wireless
main equipment were collected and purchased. The total scale is about 242,000,
which has released the signal that the domestic 5G construction is accelerating
again.
5G industry ushered in new development opportunities
The 5G era is accelerating. According to the latest data
released by the Ministry of Industry and Information Technology, as of the end
of September, the number of 5G base stations in China has reached 1.159
million. By the end of this year, about 1.4 million 5G base stations are
expected to be built nationwide, covering all cities and developed towns above
the county level. In addition, in 5G construction, China has always adhered to
the principle of moderate advancement, continued to advance, and built 5G
applications in key industries through 5G virtual private networks and hybrid
virtual private networks.
Fan Meng, deputy director of the Industrial Investment
Research Office of the Planning Institute of the China Electronics Information
Industry Development Research Institute, said that the construction of new
infrastructure such as 5G, industrial Internet, artificial intelligence and the
rapid development of 5G, big data and other industries driven by it will
produce long-term, Large-scale investment demand has greatly stimulated
effective investment growth.
Soochow Securities stated that with the steady progress of
5G construction and the continuous increase in investment, major equipment
vendors will continue to benefit; with the continuous penetration of 5G, the
C-end business of operators has stabilized and rebounded, and the B-end
business revenue has rapidly increased, and investment opportunities in the
operator sector have been highlighted.
The gradual improvement of 5G networks will give birth to 5G
terminals and new application scenarios. Ultra-high-definition video, cloud
gaming, AR/VR, Internet of Things, Internet of Vehicles, industrial Internet,
etc. will usher in a rapid outbreak period. Communication equipment, the
Internet of Things, cloud computing hardware, IDC and other sub-fields are
generally optimistic about the industry, and the 5G industry is ushering in new
development opportunities.