China 5G new infrastructure has achieved remarkable results. By the end of 2020, China has built more than Ten thousand 5G base stations are in a leading position in the world.
5G is an important part of new infrastructure construction. With the support of all parties, and the joint efforts of telecom operators, telecom equipment manufacturers, component manufacturers, telecom design and construction companies.
5G new infrastructure
The network is the foundation of the digital economy, and the network is the embodiment of the country’s comprehensive strength. The construction of 5G new infrastructure is of great significance. How to continue to develop 5G network construction and 5G application promotion? Talk about your own thinking.
The acceleration of digital transformation has increased the urgency of 5G new infrastructure.
During the new crown pneumonia epidemic, various online applications such as online office, online meetings, online teaching, online shopping, online entertainment, etc. have exploded globally. To some extent, the explosion of these online applications has brought about a leap in the global digital transformation.
In the course of such an outbreak, the networks of all countries in the world have withstood unprecedented tests. Countries with sound network coverage have fully demonstrated their network advantages, and some countries have suffered network paralysis under the impact of huge data traffic.
The acceleration of digital transformation has increased the urgency of countries around the world to increase network capabilities. 5G, which was already hot, has become even more heated.
Affected by the new crown pneumonia epidemic, some countries temporarily suspended 5G frequency auctions, and now they resume the auction process. The sky-high price auction of radio frequencies that has not been seen for many years has reappeared. For example, the United States is launching a 5G frequency auction. This time the auction is for frequencies ranging from 3.7 to 3.9 GHz, with a total of 280 MHz. The total auction price has exceeded US$80 billion, setting a record. This reminds us of the lively scene when 3G licenses were auctioned in Europe 20 years ago. I thought that the frenetic auction would never be there again, but I didn’t expect it to happen again yesterday, showing the enthusiasm of 5G.
China wireless network is not only large in scale but also good in coverage quality, which played an important role in the fight against the epidemic. China 5G new infrastructure is in a leading position in the world, and 5G application development has also achieved remarkable results. In order to support high-quality economic development and promote digital transformation, we still need to continue to expand the scale of 5G networks.
5G construction costs and operating costs will fall
It is undeniable that the current 5G construction costs and operating costs are still relatively high. However, the experience of previous mobile communication technology upgrades tells us that the cost of mobile communication networks will drop rapidly as the technology matures and scale expands.
In fact, the price of 5G mobile phones has dropped significantly. The average price of 5G mobile phones in the initial stage was more than 4000 yuan, and now there are thousands of 5G mobile phones. It is foreseeable that the cost of 5G network equipment will drop as quickly as 5G mobile phones.
In view of the large power consumption and high operating costs of 5G networks, on the one hand, it is necessary to further improve 5G network technology, and on the other hand, telecom operators can reduce energy consumption by implementing intelligent network operations.
The traditional telecommunications network has always been designed to meet the peak demand during busy hours, and the full capacity is fully utilized regardless of day and night. The goal of intelligent network operation is to not only ensure the smooth flow of the network, but also save costs, and dynamically adjust the network according to actual usage conditions. This can greatly reduce the energy consumption of the network, and it is also an improvement and promotion of the operation and maintenance of the telecommunications network.
The industry application of 5G needs to establish a new business model
Industry applications are currently the focus of 5G applications. This is because the technical performance of 5G is particularly suitable for industry applications, and the network coverage required by industry applications is relatively concentrated, which can provide 5G network conditions in a relatively short time.
The industry application of 5G has been greatly developed, but it still lacks scale. Now it is necessary to establish a new business model as soon as possible to rapidly expand the scale of 5G industry applications.
In the past, consumer-oriented mobile Internet applications emphasized commonality, and the goal was to promote them on a large scale. The industry application emphasizes individuality, and every enterprise hopes to have differentiated 5G applications. In this way, tens of thousands of companies are repeatedly developing 5G applications, affecting the progress of 5G application promotion. Therefore, it is necessary to establish a new business model suitable for applications in the 5G industry, and on the basis of ensuring individuality, enhance the reproducibility and promotion.
The consumer-level application potential of 5G is endless
The development of 5G consumer applications is crucial. In terms of the technical performance of 5G, the high speed and low latency of 5G can enhance the technical level of consumer applications and create unprecedented new applications; in terms of the investment benefits of 5G, the construction and operation of a 5G network with comprehensive coverage requires a huge investment It is necessary to maximize the use of 5G networks. The large scale of consumer-grade applications will bring a huge number of applications, which can make full use of the capabilities of 5G networks.
At present, the 5G applications that have been developed in the entertainment field have fully demonstrated the development potential of consumer-level 5G applications. Taking cloud games as an example, cloud games concentrate all the logic operation and screen rendering of the game on the cloud platform, and connect to the user terminal in real time through the 5G network using video streaming. All three 5G operators in South Korea have launched cloud games, which are very popular among consumers. According to the GSMA survey, the proportion of gamers who switch to 5G phones is 10% higher than the average.
But the consumer-level applications of 5G go far beyond the entertainment industry. The industry is more optimistic about the application of 5G in the Internet of Things.
Currently, there is relatively few 5G Internet of Things services for consumers, and I look forward to a rapid breakthrough. I hope that innovators who are aspiring to make a difference in 5G applications, but also hope that more investment funds will enter this field.
The tipping point of the outbreak of 5G applications is likely to be mobile phones
After 3G came out in 2000, people have been asking what is the use of 3G? It was not until 2007 that smartphones detonated 3G applications. So, where is the tipping point of 5G applications?
It’s probably still a cell phone.
The key is whether the mobile phone can become a connection tool between people and things? ,
5G mobile phones are maturing rapidly, consumers expect 5G mobile phones to bring new functions, and manufacturers are also working hard. Smart phones have been moving in the direction of the Internet of Things, and some new features that help connect with objects are emerging. For example, configuring a laser rangefinder on a mobile phone can accurately measure the size of an object and the distance between objects, thereby bringing some new applications related to this.
For 5G mobile phones to become the controller of IoT applications, improvements in the operating system must be made. The design ideas of Huawei Hongmeng system have adapted to the needs of the Internet of Things and should be strongly supported.
Operator’s strategic choice
Telecom operators are the protagonists in the construction and operation of 5G new infrastructure and have heavy responsibilities. However, telecom operators are facing severe challenges. At present, the market value of the three telecom operators in China has fallen below their net assets.
On the one hand, the public utility characteristics of telecom operators are getting stronger. Mobile communication has become a necessity for people’s lives. The homogeneity of competition among telecom operators and the slowdown or even cessation of revenue and profit growth are all obvious characteristics of public utility companies.
On the other hand, the effects of network traffic are almost entirely transferred to the value of service providers and content providers. Internet companies have always valued traffic based on traffic, and in the valuation of telecom operators, almost no contribution to the growth of network traffic is reflected.
Telecom operators need to strengthen themselves, otherwise they will be unable to support the huge capital expenditures required for long-term network upgrades in the future.
In fact, although the telecommunications industry has become more and more characteristic of public utilities, the telecommunications industry is still very different from general public utilities. For example, the demand for public utilities generally grows relatively smoothly, while the demand for mobile communications has maintained a rapid growth trend. Over the years, although voice traffic has been declining, the rate of increase in data traffic has far exceeded the decline in voice. With the development of the digital economy, the rapid growth of data traffic will continue to exist for a long time. In addition, the service life of the facilities of public utilities is generally relatively long, and the mobile communication network needs to be constantly updated.
Although telecom operators are facing challenges, their strength is still there. During the peak period of mobile communication development, telecom operators adopted conservative bookkeeping methods such as rapid depreciation, so that telecom operators have sufficient financial strength to cope with changes in the business environment. Telecom operators still have a beautiful balance sheet, and they have huge potential in increasing revenue and reducing expenditure.
Telecom operators need to start a new revenue growth engine and need to extend their value chain. Many telecom operators in the world are exploring extension strategies. Some have entered the field of Internet services, some have acquired traditional media, and some are committed to cloud services, but they have few successful experiences.
Telecom operators have been working hard to transform, and now it has become more urgent. 5G new infrastructure is gestating a new network business model, which is a new opportunity for telecom operators to participate in traffic management and achieve transformation.