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Original Title: 5G Spurs Increased Capital Expenditures, Operators Will Invest Nearly US $ 210 Billion To Build Networks
5G spurs an increase in total capital expenditures for Chinese carriers.
During the 2021 Shanghai World Mobile Communications Conference (MWC), the GSMA officially released a research report “China Mobile Economic Development 2021”, which predicts that from 2020 to 2025, China’s domestic mobile operators will invest nearly 210 billion US dollars in network construction. % of them are invested in 5G.
GSMA stated that the expansion of 5G applications in China has benefited from the active deployment of networks and the growth of endpoint ecosystems.
Chinese consumers are more eager to upgrade to 5G than consumers in other global markets. This is due to the continuous increase in the share of 5G equipment sales in China: in 2020, 5G smartphone sales will be 163 million, accounting for almost 53% of total smartphone sales. By 2025, 4G will account for 53% of China’s total connections, while 5G will account for 47%.
With the continued growth of 5G turnover, the revenue trend of operators is improving. GSMA predicts that by 2025, the total revenue of Chinese domestic operators will reach a compound annual growth rate (CAGR) of 2.0%, reversing the negative growth trend during 2014-2019.
On December 15, 2020, Vice Minister of Industry and Information Technology Liu Liehong declared that my country has built the world’s largest 5G network, with a total of 718,000 5G base stations built, and promoted the construction and use 330,000 5G base stations shared.
The construction of 5G networks is constantly advancing according to the principle of moderate advance. According to Xinhua News Agency, at the 2021 National Industry and Informatization Labor Conference held on December 28, 2020, Minister of Industry and Information Technology Xiao Yaqing stated that in 2021, my country will advance construction and application of 5G networks in an orderly manner. way and accelerate 5G coverage in major cities. Build and share together, and build over 600,000 5G base stations.
5G is entering a critical stage of integration and innovation. Xiao Yaqing said that it is necessary to take 5G construction as traction and coordinate the deployment of data centers and computing power facilities. At the same time, focus on 10 key industries, form 20 typical industrial application scenarios, pilot industrial 5G private networks, and publish 5G millimeter wave frequency plans for some frequency bands in due time.
As of January 2021, there are 144 commercial 5G networks in 57 countries around the world, and the number of 5G connections reaches 235 million. Although the epidemic is raging and the willingness of most markets to upgrade to 5G is increasing rather than falling, no market is as enthusiastic as China. The GSMA report shows that 62% of Chinese consumers intend to upgrade to 5G in 2020, far more than in other countries.
In terms of 2B, mobile operators vigorously seek market opportunities in vertical industries In vertical industries like manufacturing, transportation, and healthcare, people’s enthusiasm for 5G solutions is increasing. The development of the enterprise and government 5G market is mainly based on independent networks (SA), to take advantage of the unique capacity advantages of 5G, such as high reliability and low latency communications (URLLC), network outage, etc.
