In 2018, at least 5 cities to develop 5G network construction, China is expected to lead the world

On November 21, the Ministry of Industry and Information Technology and several other departments officially released the "Notice on the 16th Branch Regarding the Printing and Distribution of the Role of Private Investment in Promoting the Implementation of a Strong Manufacturing Strategy." This notice revealed that private capital is being encouraged to enter the telecommunications sector, with further efforts to accelerate development and reduce costs. In the same month, the National Development and Reform Commission issued the "Notice from the General Office of the National Development and Reform Commission on Organizing and Implementing the Next-Generation Information Infrastructure Construction Project in 2018," which clearly stated that 5G network construction would begin in at least five cities the following year. This marked the first wave of benefits for the communications industry. What is the current level of China's 5G technology? Why should the 5G market include private players? Will the dominance of the three major operators be challenged? ![Image: 5G assumes the mission of changing society] The person in charge of the course of study explained that previous 3G had three systems, 4G had two, but 5G, as the next-generation wireless communication technology, will truly unify standards across spectrum, network, terminal, and applications. "In order to achieve greater network bandwidth, the past discrete spectrum divisions were not enough; they needed optimization and integration, extending to new frequencies. This supports higher bandwidth and lowers overall costs," an industry source told reporters. According to insiders, the biggest difference between 5G and previous wireless technologies lies in the target of service. "Previously, it was mainly for people, but 5G will realize the true interconnection of all things. With the maturity of 5G technology, industries like Industry 4.0, smart manufacturing, and healthcare will develop further. It can be said that what 5G aims to do is to change society and industry." Reporters were informed that the three major domestic operators have invested over 300 billion yuan in the 4G field and are still in the cost recovery phase. So why are they now pushing forward with 5G? Shen Gang, Deputy General Manager of the Corporate Development Department of China Telecom Shanghai, told reporters that due to China's rapid entry into a smart society, applications such as the industrial internet, artificial intelligence, and AR/VR are gaining popularity. Their large-scale use requires a new generation of networks. While 4G is sufficient for watching videos on the move, 5G focuses on solving high-density and low-latency connections between objects and their surroundings. For example, building an autonomous driving city requires 5G to enable seamless interaction between vehicles, traffic lights, road induction coils, and intelligent control platforms, with delays in the millisecond range. According to industry insiders, the key scenarios for 5G are large bandwidth, interconnected IoT, and low latency. The low latency and high bandwidth of 5G are its main advantages, reducing network latency from 10 milliseconds in 4G to just 1 millisecond. Although this delay may not be noticeable when downloading files or playing games, it is critical for driverless cars, which require millisecond-level responses. Taking Google’s self-driving car as an example, it needs to collect 1GB of data per second. Currently, these cars operate as standalone units, but future mass-produced models may rely on networked processing. If there is even a 0.1-second delay, it could lead to accidents. Hence, the low latency of 5G is essential. "In the era of the Internet of Things, a household may have over 100 devices needing connection, requiring a more efficient network system. I expect 4G and 5G to coexist rather than 5G replacing 4G entirely," Shen Gang noted. With the rise of the Internet of Things, the demand for IP addresses will surge, accelerating the commercial use of IPv6. Shen Gang mentioned that China is rapidly deploying IPv6 and aims to build the world’s largest commercial network within 5–10 years. By 2025, China expects to rank first globally in IPv6 network size, user base, and traffic. All networks, applications, and terminals will support IPv6, forming a leading next-generation internet technology system. 5G Businessmen Prompt, China Expected to Lead Globally Reporters learned that 5G’s large-bandwidth scenarios will lead in commercialization. South Korea plans to offer 5G services during the Winter Olympics next year, while Samsung has announced plans to build a 5G network with British operators. Compared to other countries, China appears more mature in its 5G strategy. Since 2009, China has been conducting 5G research and demonstrated a 5G prototype base station in subsequent years. In 2013, Huawei announced a $600 million investment by 2018 to research and innovate 5G technologies, predicting that users would enjoy 5G mobile networks by 2020. The first Global 5G Conference was held in Beijing on May 31, 2016, marking China's growing role in 5G. On November 17, 2016, the 3GPP meeting discussed the 5G short code solution, with Huawei's plan selected for the 5G standard. From trailing others in the 2G era to becoming one of the developers of the 5G standard, whoever controls the core 5G technology will shape the future. Grace, president of the GSMA, stated, “The first countries to formally apply 5G will be in 2020, and China is sure to be among them. In mobile communications, China is not only a leader but also an innovation-driven country.” Currently, the Ministry of Industry and Information Technology has started the third phase of 5G technology R&D experiments, focusing on product R&D, verification, and industry collaboration ahead of commercial use. It is expected that 5G commercial or near-commercial products will be introduced in June next year. China’s three major operators have also stated they will start 5G commercial trials in 2018 and aim for full commercialization by 2020. A representative from a private communications company told reporters that China’s telecom infrastructure is guided and promoted by the state. It is difficult for European and American countries to match China’s density and depth in base station, tower, and fiber optic cable coverage. “China has a solid 5G foundation and policy support. Based on 5G attributes, base station density will certainly be much higher than now. Although the ITU 5G standard hasn’t been finalized yet, some localities and companies have already begun preparing for 5G base stations and cloud architecture.” Industry experts believe that China is likely to be the first to enter the 5G era, confirming its plan to fully commercialize 5G networks by 2020. “Unlike the 3G or 4G era, we followed others. But in the 5G era, we lead.” Civil Funding 5G Layout, Accurate Positioning is Key To ensure a leading position in the 5G era, relevant government departments have strongly supported policies. Late last year, 16 departments, including the Ministry of Industry and Information Technology, issued a document encouraging private capital to enter the telecommunications industry. This is a clear example of policy support, allowing private capital to gradually enter the 5G industry chain. Recently, Guangdong-based Xin’an Computer System Chip Co., Ltd. introduced its independently developed EUHT (Ultra-High-Speed Wireless Communications) technology in Shanghai. It was reported that Shanghai Hong Kong Tongchuang and Xin’an Line established a joint venture to further develop EUHT’s core technologies and products. According to reports, EUHT is the first 5G technology successfully tested and implemented worldwide, three to five years ahead of the ITU timeline. With six years of research and three rounds of development, it was listed as a national special project. Its key features include high reliability, high capacity, and high speed, supporting low latency, low power consumption, and low cost, as well as precise positioning, calculation, and control. EUHT has passed application tests in high-speed rail, subways, intelligent transportation, and intensive coverage. In 2016, it began providing high-speed rail, subway, smart highways, and rural broadband wireless coverage in Beijing, Guangdong, Jiangxi, and Fujian. Leading domestic companies like Huawei and ZTE are also accelerating 5G R&D. Huawei’s senior technicians told reporters that technological maturity alone does not mean 5G is fully ready, as 5G construction requires a collaborative ecosystem. “Huawei is working with various industries to test different 5G applications, such as autonomous vehicle networking, VR live broadcasts, and drone delivery, each with unique business models.” The technicians emphasized that partners are motivators. Huawei’s open labs provide funding for partners to test and match scenarios, aiming to mature both the technology and the business ecosystem. Private capital can enter multiple links in the 5G industry chain. “For example, in VR sports events, operators, stadiums, event organizers, and broadcasters can collaborate. Private enterprises can act as wholesalers, purchasing telecom traffic to provide secondary services,” said Huawei’s senior technical staff. In the eyes of industry observers, the introduction of public funds can improve services for more users, but it won’t fundamentally change the communications industry. “The communications industry is capital-intensive, with long return cycles—typically five years or more. The 5G industry chain is long, with many players. Previously, it was the operator who bought equipment, built the network, and pushed the business. In the 5G era, any business or application involves operators, service providers, equipment vendors, and third-party partners. The industry chain will become richer, and private capital can find its own role within it.”

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