5G penetrates into the B-end market and promotes the digital transformation of the industry

The core of 5G technology lies in the development of related intelligence, which is the key to promoting the formation of a digital society. The current perception of 5G applications in the C-end market is not obvious, while the B-end market is the main battlefield for 5G applications. Nowadays, all walks of life are deeply cultivating the 5G industry chain and actively taking the 5G express train. The development scale of 5G in the B-end market is gradually emerging.

Policies guide the advanced deployment of 5G infrastructure

In recent years, the CPC Central Committee and the State Council have attached great importance to the construction of new infrastructure such as 5G, and have put forward clear requirements for promoting the commercial deployment and large-scale application of 5G. From the "14th Five-Year Plan" proposing to "accelerate the construction of new infrastructure" to the 2022 "Government Work Report" clearly proposing to "build digital information infrastructure, promote the large-scale application of 5G, and promote the digital transformation of industries."

In addition, Xu Xiaolan, Vice Minister of the Ministry of Industry and Information Technology, also stated recently that the implementation of major projects and programs of the "14th Five-Year Plan" for the manufacturing industry and major technological transformation projects for energy conservation and carbon reduction in key areas will be accelerated, and basic telecommunications companies will be guided to moderately advance the deployment of new infrastructure such as 5G base stations, big data, and industrial Internet. Major foreign investment projects will be promoted to be implemented, striving to start construction early, put into production early, and achieve results early, and create more physical workload.

Build a solid foundation for new infrastructure and C-end users

More than 2,500 years ago, the Chinese philosopher Lao Tzu proposed that "Tao gave birth to one, one gave birth to two, two gave birth to three, and three gave birth to all things", which profoundly explained the creation of the universe and is more applicable to the current situation where the wave of digitalization is sweeping across thousands of industries. It can be said that today's 5G development has entered a critical stage of "three giving birth to all things".

This is due to: First, my country has deployed more than 1.6 million 5G base stations, accounting for more than 60% of the world, and the 5G SA network has basically achieved national coverage. According to the plans of several major operators, it is expected that by the end of 2022, there will be more than 2 million 5G base stations, with obvious network advantages, which is the basis for 5G to exert its application value and tap its growth potential. Second, according to data from the Ministry of Industry and Information Technology and the three major operators, as of the end of April 2022, there will be 413 million 5G users and 870 million 5G package users. According to data disclosed by Huawei, the number of global 5G users will be 700 million at the end of 2021, and it is roughly estimated that my country's 5G users account for about half. According to data from the Ministry of Industry and Information Technology and the three major operators, as of the end of March 2022, a total of 761 5G terminals in my country have obtained network access licenses, including 548 mobile terminals. The 5G terminal shelves are already "full of variety".

In general, at present, the foundation of 5G new infrastructure and C-end layout is already solid and reliable, and everything is ready.

5G penetrates into the B-end market and empowers industry development

my country has achieved fruitful results in the third anniversary of 5G commercialization. However, Wu Chao, director of CICC Securities Research Institute and chief analyst of TMT industry, also pointed out that the To B production end is a very important market. In the past, the application of mobile Internet was mainly on the To C end to change your life, but in the future, the main intelligent process should be on the production end.

In short, in the B-end market dimension, 5G is widely recognized by the industry that its value chain will advance into vertical industries and become the information infrastructure for the industry's digital transformation.

Wang Zhiqin, deputy director of the China Academy of Information and Communications Technology, said in a recent speech titled "5G Standards Help Scale-up Industry Applications": my country's 5G industry application development is entering the fast lane, and some pilot applications have begun to be replicated on a large scale. Compared with 2018, more than 50% of 5G commercial projects have been implemented and replicated in 2021, especially in some pilot industry applications, such as mining, electricity, steel, ports, etc., forming many replicable key scenarios.

This is indeed the case. The B-end market of 5G is particularly critical for telecom operators who are committed to the construction of new infrastructure and computing power cloud network. Take China Telecom, one of the three major operators, as an example. It is ahead of the industry in the integration and innovation of 5G+Industrial Internet. According to incomplete statistics, China Telecom and partners in various industries have explored more than 300 industrial Internet projects; built a total of 1,200 digital rural pilot districts and counties, 10,000 demonstration towns, and 100,000 demonstration villages across the country; helped science and technology fight the epidemic, and actively assumed the responsibility for the safe operation of more than 300 epidemic prevention platforms such as itinerary cards and health codes.