5G CPE replaces fiber-to-the-home, and demand is booming in Europe, America and rural areas

2019 is known as the first year of 5G. In fact, since the second half of 2018, major operators around the world have started pilot work, and some operators even said that they will provide 5G network commercial services in 2019. From domestic news reports, we can see that since the second half of 2018, major major events, Spring Festival Gala live broadcasts, etc. have announced that they have used 5G networks. Since terminals that support 5G networks have not yet been officially launched, how can 5G networks be used? The answer is 5G CPE equipment.

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5G CPE can replace fiber-to-the-home

At present, if we want to enjoy high-speed Internet access services, the most ideal condition is fiber to the home. As long as the home is equipped with a gigabit optical modem and a gigabit router, 1000M broadband can be easily enjoyed. However, in reality, such ideal conditions are rare. In particular, ordinary home users have no awareness of the need to equip these devices. In fact, some areas are restricted by various factors and have not even built fiber optic networks, let alone high-speed Internet.

The emergence of 5G networks seems to have brought a new solution to the problem of fiber-to-the-home. After all, the ultra-high speed of 5G networks is close to or even exceeds the existing home broadband speed. Operators no longer need to pull fiber optic cables for users. They only need to equip the family with a 5G CPE device to provide high-speed Internet access services for the family.

Because the 5G CPE device is equivalent to a 5G router. It converts 5G network signals into WiFi signals for transmission, and the data received by the WiFi network is converted into 5G network signals for uploading. In this way, even if our smartphones and laptops do not support 5G networks, we can still experience the high-speed network brought by 5G.

European and American countries like it

The implementation of the "Broadband China" strategy has greatly improved my country's Internet access speed. Now, families in first-tier cities can even enjoy gigabit broadband Internet access services. In contrast, high-speed Internet services in Europe and the United States seem to be struggling. Especially in some sparsely populated countries, fiber optic networks are only concentrated in large cities, and even in the suburbs, there is no fiber optic broadband. There is no high-speed Internet access in remote areas.

The reason is that in Europe and the United States, operators are the main players in the construction of fiber optic networks. Once the cost is too high, the construction progress will be extremely slow or even shelved. According to relevant practitioners, the construction cost of one user of fiber optic broadband in Europe and the United States is about 2,000 yuan. Such high customer acquisition costs are a headache for operators.

After the 5G network is built, users no longer need to pull optical fibers. They only need to place the 5G CPE device in a place with a good 5G signal, and it can provide high-speed Internet connection for TVs, mobile phones, computers, smart home devices, etc. at home.

Combining microwave technology to bridge the digital divide

The combination of 5G and microwave technology can benefit rural and remote areas. Using microwaves for data transmission, the straight-line distance in the air can reach 30-50 kilometers, but the premise is that there are no buildings blocking it. Microwaves can be very useful in rural and remote areas. For example, if a microwave transmission base station is built on the top of two mountains, the villages and towns between the two mountains can receive 5G network signals. Operators can build very few base stations and transmit 5G high-speed networks through microwave technology.

Rural and township households in remote areas only need to install 5G CPE equipment to receive 5G signals transmitted by base stations, so that their families can enjoy high-speed Internet services. In this way, operators do not need to pull optical fiber to every household in remote areas. They only need to build 5G microwave base stations and combine them with 5G CPE equipment to provide high-speed Internet and narrow the digital divide.

Some people are already behind

Since 5G CPE equipment is so good, why haven't we heard of European and American countries doing this? In fact, European and American operators are also doing it, but the direction is different. Verzion and Netgear have launched a 5G router device with built-in Qualcomm 5G chip, which has not yet been officially commercialized. More operators have chosen the development direction of 5G portable routers, and the goal is to provide 5G Internet services for individual users.

In addition, most 5G routers and 5G portable routers in Europe and the United States use Qualcomm or Intel's 5G chips. At present, the demand for mobile phone 5G chips is strong, and Qualcomm's current production capacity is difficult to meet. Huawei's 5G CPE equipment uses Huawei's self-developed Balong 5G chip. Huawei's own chips are used in its own equipment, so there is no need to worry about production capacity issues, so it can quickly seize the 5G CPE market.

Conclusion

So far, all 5G network experiences in major events and exhibition areas have been made with 5G CPE devices. The demand in the overseas market will continue to remain high. Last time we talked about the 5G CPE device market being worth hundreds of billions of RMB, but now it seems a bit conservative. 5G CPE devices are revolutionary devices for operators and home networking, and they are the key to saying goodbye to fiber optics.