The new round of 5G construction blueprint is being drawn up, and the "multiplication effect" highlights the acceleration of industrial transformation

According to the "5G Industry Development White Paper (2020)" recently released by the China Academy of Information and Communications Technology, the scale of my country's 5G communications industry has reached 225 billion yuan, a year-on-year increase of 133.2%. It is worth noting that the 5G construction plan for 2021 is being accelerated. It is reported that many parties are currently stepping up the formulation and release of the 2021 5G construction and industry development plan to promote the further coverage of 5G networks in provincial capitals, cities, counties and large towns. The continuous improvement of 5G base station coverage will help the outbreak of 5G terminals, and accordingly, it will also drive the continued rapid development of the entire related industry chain such as antennas and radio frequencies.

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With multiple efforts, 5G construction will accelerate next year

Facing the coming 2021, many parties have launched a new round of 5G network construction planning.

The national level is strengthening top-level design, and various supporting policies are being released intensively around 5G construction and development. Su Wei, deputy secretary-general of the National Development and Reform Commission, said that the basic network system in the central, western and eastern regions will be further improved to promote the overall acceleration of 5G construction, improve coverage quality and level, and continuously enhance user experience.

At the local level, 5G construction goals are becoming clearer. For example, Shanghai recently issued the "Shanghai "Dual Gigabit Broadband City" Acceleration Three-Year Action Plan (2021-2023)", which clearly states that on the basis of the full deployment of 5G SA, 5G SA will be fully commercialized in 2021, with deep outdoor coverage in the central urban area and suburban urbanized areas. In addition, Zhangjiakou also proposed the 2021 5G base station construction goals and core coverage areas.

At the operator level, 5G plans are being rolled out one after another, with a focus on accelerating 5G network construction in "downstream" markets such as central urban areas, counties, and towns.

Applications flourish, 5G efficiently connects thousands of industries

The acceleration of 5G network construction has led to an "explosion" in the upstream of the industry chain. According to data released by CCID, in 2019, the scale of the basic device layer in China's 5G communication industry structure reached 100.58 billion yuan, accounting for 44.7%; followed by the operator-led operation and maintenance service layer and the scene application layer aimed at implementation, which reached 68.63 billion yuan each, accounting for 30.5%; the terminal layer and the main equipment layer did not explode first in the early stage of network construction. With the gradual deepening of 5G network construction and the continuous improvement of 5G commercialization, the scale of the industry will expand day by day.

Industry experts pointed out that from the upstream industry's base station RF, optical module and other communication equipment manufacturing industries, to the midstream network construction, network planning, design and maintenance, to the downstream terminals and application scenarios, the entire ecosystem involving basic network equipment vendors, wireless network providers, mobile virtual network providers (MVNO), etc., will enjoy the tens of trillions of yuan in economic dividends brought by 5G.

In terms of 5G integrated applications, due to the multiplier effect of 5G communications, it is estimated that by 2030, the GDP driven by the 5G industry will reach 5 trillion yuan.

C-end and B-end applications go hand in hand to explore new business models

Thanks to the large-scale coverage, 5G applications are in full bloom. 5G applications include two categories: consumer-oriented services (TO C) and industry applications (TO B).

Sun Meiyu, director of the ICT Research Office of the Radio Management Institute of the China Academy of Information and Communications Technology, pointed out that 5G C-end applications are expected to usher in an explosive period in 2021. With the continuous innovation of technologies such as VR/AR, the C-end user experience will be richer, smart terminals such as mobile phones will also be fully upgraded, and the corresponding business model will be further improved.

She also said that the construction of 5G private networks for the Industrial Internet will become one of the important areas of concern for all parties in the industry in 2021. In terms of urban management and electricity, the integration of B and G terminals has also spawned a series of new applications, new models, and new formats, and the demonstration effect will be more prominent in 2021.

The industry believes that the integrated development of 5G and the industrial Internet is an inevitable choice for technological evolution. The integrated development of the two will create a high-quality information network, improve the level of intelligent infrastructure, and support the development of the real economy.

In short, from the issuance of 5G licenses last year to the full launch of commercial use, all of this is just the starting point of the 5G industry. In 2021, 5G will usher in greater development space, and the industry also needs continuous innovation to implement it.