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.