Chinas 5G acceleration: 3.1 million jobs are expected to be created in five years

category:Finance
 Chinas 5G acceleration: 3.1 million jobs are expected to be created in five years


Just three days after the Ministry of Industry and Information Technology announced that it would issue a 5G commercial license in the near future, the boot landed!

On the morning of June 6, the Ministry of Industry and Information Technology issued basic telecommunication business licenses to China Telecom Group Co., Ltd., China Mobile Communications Group Co., Ltd., China United Network Communications Group Co., Ltd. and China Radio and Television Network Co., Ltd. and approved four enterprises to operate the fifth generation digital cellular mobile communication business.

On the same day, the Ministry of Industry and Information Technology also revised the Catalogue of Telecommunication Services Classification (2015 edition). Under the category A of Basic Telecommunication Services and A12 Cellular Mobile Communications Services, the fifth generation of A12-4 Digital Cellular Mobile Communications Services was added. According to the description of its specific services, the fifth generation digital cellular mobile communication service refers to voice, data, multimedia communication services provided by the fifth generation digital cellular mobile communication network.

Since then, China has officially entered the first year of 5G commerce.

Strategic arrangements

Although the layout was very early, it was not until the 13th Five-Year Plan that 5G commercial products were really put on the agenda.

According to the timetable given by the Ministry of Industry and Information Technology, it will enter the 5G pre-commercial stage in 2019 and will be formally commercial in 2020. Obviously, the act of issuing licences to the four major operators has advanced Chinas 5G business by at least half a year.

According to the Statistical Bulletin of Communications Industry in 2018, the total number of mobile communication base stations in China reached 6.48 million in 2018, of which the total number of 4G base stations reached 3.72 million. By the end of December, the total number of 4G users had reached 1.17 billion, with the penetration rate approaching 84%.

In this process, 5G technology is becoming more and more mature. In January 2016, China launched the 5G technology R&D test in an all-round way, which is divided into three stages: key technology verification, technology scheme verification and system scheme verification. In September of the same year, at the end of the first phase of the experiment, seven key wireless technologies, such as large-scale antenna, new multiple access, new multi-carrier and high-frequency band communication, as well as four key network technologies, such as network slicing and mobile edge computing, were tested. The results show that these key technologies support Gbps user experience rate, millisecond end-to-end delay, million connections per square kilometer. Technical feasibility of diversified 5G scenario requirements.

The second phase of the experiment is based on the unified test platform, unified frequency, unified equipment and test specifications, and verifies the technical solutions of different manufacturers for different application scenarios of 5G mobile Internet and Internet of Things. Huawei, Ericsson, ZTE, Datang, Nokia, Shanghai Bell and Samsung participated in the test.

To this end, the IMT-2020 (5G) propulsion team has planned the worlds largest 5G test field in Huairou, Beijing, and completed the site planning of 30 stations, which can meet the needs of single station and networking performance test in the field. At the same time, the introduction of exhibition, MTK and other chip enterprises is Deutsche Technologies, Rhode and Schwartz, Datang Lianyi, Xinghe Bright Spot and other instrumentation enterprises, to carry out the docking test of the industrial chain.

On November 15, 2017, the official website of the Ministry of Industry and Informatization issued the Notice on the Use of 3300-3600MHz and 4800-5000MHz in the Fifth Generation Mobile Communication System. The Ministry of Industry and Information Technology (MIIT) said that the frequency utilization plan of the 5G system in the intermediate frequency band released in this paper can take into account the basic requirements of system coverage and large capacity, and is the main frequency band for the early deployment of the 5G system in China. The formal determination of 5G spectrum also makes China the first country in the world to issue a plan for the use of 5G system in the intermediate frequency band.

Quickly, the 5G technology R&D test ushered in the third phase of the test. According to Wen Ku, Director of Information and Communication Development Department of Ministry of Industry and Information Technology, this is a key step before 5G realizes 18-year-old adults. Through this stage of testing, it is expected that by the end of 2018, the main links of 5G industrial chain will basically reach the level of pre-commercial use.

With a good ecological environment, national policies, and the continuous accumulation and precipitation of technological strength of the industry itself, 5G has naturally achieved the first breakthrough, which is actually the evolution process from quantitative change to qualitative change. Zhou Jian told China News Weekly that with the accumulation of these years, the industrial system has been constantly improving, and China itself is in the stage of accelerated development, and 5G, which has been in the leading position, has entered commercial ahead of time, which is a process from water to canal.

More importantly, in Zhou Jians view, the world is undergoing a huge change, also known as the fourth industrial revolution or information revolution, which may change the basic mode of global economic and social development, restructure the industrial system, and rewrite the existing international industrial layout and order. It is also for this reason that all countries and economies should make strategic arrangements in terms of 5G layout.

Who will take the lead?

Its certainly an attractive cake - whoever gets the license first will be able to take the lead in this huge market.

At the same time that China has carried out three stages of 5G technology R&D experiments, Chinas three major telecom operators have also started their 5G layout. According to the latest information released by China Unicom, China Unicom has opened 5G test network in 40 cities in China, and established 5G application innovation alliance, with more than 240 enterprises joining. In addition, the Pioneer Program has been launched to create a trillion new markets for 5G applications and create a new future for 5G industries.

Yang Jie, chairman of China Mobile, introduced the companys 5G layout in more detail at the launch ceremony: as early as 2012, China Mobile launched 5G R&D, and carried out a lot of work around 5G scenario demand definition, core technology R&D, international standard formulation, industrial ecological construction and application business innovation. In standard-setting, we took the lead in completing the White Paper of 5G Vision and Needs. The eight key performance and efficiency indicators of 5G were adopted by the International Telecommunication Union (ITU) and became a global consensus. We also took the lead in 32 key standards projects in ITU and 3GPP, and became an important force in the formulation of 5G standards.

In terms of application innovation, China Mobile has set up 5G Joint Innovation Center for the whole world. At present, it has established 22 open laboratories, gathered more than 500 members, established three industrial research institutes in Xiongan, Chengdu and Shanghai, cooperated with leading enterprises in key industries, focused on nine major vertical industries, formed innovative application programs and end-to-end solutions, and has now launched application cooperation trials. Point.

Relatively speaking, China Telecom started relatively late and began to participate in 5G test at the end of 2017. However, many enterprises inside and outside the United Nations carried out 5G technology test and the construction of 5G test network in 17 pilot cities, and achieved some breakthroughs. At the same time, we have carried out abundant 5G application innovation practices with our partners. At present, we have covered 10 key application scenarios in vertical industries, including government, manufacturing, transportation, logistics, education, medical, media, police, tourism and environmental protection. We have more than 200 joint test customers.

In December 2018, the Ministry of Industry and Information Technology issued licenses to China Telecom, China Mobile and China Unicom for the use of low-frequency test frequencies in 5G systems. Among them, China Telecom and China Unicom obtained 3500 MHz band test frequency license, China Mobile obtained 2600 MHz and 4900 MHz band test frequency license, which effectively guaranteed the frequency resources that the three operators must use to carry out 5G system test.

How much capital is needed for 5G base station construction? In an interview with Chinese media recently, Ren Zhengfei, CEO of Huawei, described the construction of 5G base station as only a little big, 20 kilograms, as big as a suitcase containing documents. Therefore, the installation of 5G base station does not need tower and crane, and can be installed on poles, hanging on walls, or even put into sewers at will.

However, in order to meet the requirements of high traffic density and peak rate, 5G will adopt macro-micro heterogeneous ultra-dense network architecture. Previously, the industry has predicted that the distance between 5G small base stations is only 50-100 meters, or even smaller, so the number of stations will be several times that of 4G. According to CITICs research data, it is expected that the number of 5G base stations will be twice that of 4G in the future, and the investment of operators5G main body in network construction will probably reach 1.23 trillion yuan, an increase of 68% over the investment of 4G.

But Xiang Ligang, an observer of Chinas telecommunications industry, does not think that cost is a big problem for operators. Operators have never lost money. On the contrary, revenue has been increasing. It is precisely because of providing valuable services that 5G will inevitably bring more revenue opportunities and greater market space.

Data from the Ministry of Industry and Information Technology show that from January to April 2019, the business income of the telecommunications industry was 514.5 billion yuan, of which the business income of telecommunications was 446.3 billion yuan, an increase of 0.7% over the same period last year.

If its purely an enterprises own choice, I believe that under normal circumstances, the enterprise will certainly be willing to recover the market value of the previous generation of technology as much as possible before considering the next generation of technology. Zhou Jian, director of the Information Research and Promotion Center of the Ministry of Industry and Information Technology, said, But as a key infrastructure in the information revolution era or the new industrial revolution era, 5G is grabbing this strategic opportunity period. As a strategic arrangement, no matter at the national or enterprise level, especially the state-owned enterprises with social responsibility, it can not be purely from the perspective of short-term economic interests. Lets look at it.

In addition to the financial difficulties, another difficult problem facing telecommunications infrastructure construction is the location problem. It is not uncommon in the past to obstruct the construction of the base station because of the worries about the radiation of the base station or the neighbourhood effect. In the 5G era when the distance between the stations is greatly shortened, such problems may be more.

In response, Wu He-quan, academician of the Chinese Academy of Engineering, told China News Weekly that the electromagnetic radiation index of Chinese base stations is 10 times more stringent than that of Europe and the United States, but people still have concerns. Perhaps more guidance from the government is needed on this issue.

After obtaining the 5G license, China Unicom and China Mobile announced the next construction layout. Forty cities will first carry out 5G commercial use, mainly municipalities directly under the Central Government, provincial capitals and cities with separate plans, as well as cities such as Xiongan New District and Suzhou, which occupy an important position in the national strategy.

Does this lead to a digital divide between urban development and a more uneven regional development?

Although there are still many difficulties in the construction of base stations, the arrival of 5G commercial still brings infinite possibilities for peoples future. 4G changes life, 5G changes society, and the development of 4G has resulted in various scenarios such as mobile payment and shared economy, which have brought earth-shaking changes to the lives of Chinese people.

5G has the advantages of high bandwidth, low delay and wide connection. It will be deeply integrated with many vertical industries in the future. Previously, Huawei released the White Paper on Ten Application Scenarios in the 5G Era to explore the ten application scenarios that best reflect the 5G capabilities: cloud VR/AR, car networking, intelligent manufacturing, intelligent energy, wireless medical, wireless home entertainment, networked UAVs, social networks, personal AI assistance, smart cities.

At the Boao Forum in March this year, Miao Wei, Minister of Industry and Information Technology, also made an imagination about 5G scenario application, believing that 20% would be used for human-to-human communication and 80% might be used for communication between things, that is, mobile Internet of Things.

Ten years ago, China began to lay out the Internet of Things, but no breakthrough has been made so far. Will the arrival of 5G become a strong force in the development of the Internet of Things in China?

Zhou Jian believes that in order to form a scale of 5G commercial products in the future, the country should first make a good overall strategic layout and guidance, especially to optimize the policy environment and support innovation. Secondly, we should establish basic rules, abide by them together, treat them equally and avoid vicious competition.

Xiang Ligang calls the Internet of Things the Intelligent Internet, which is a new ability formed by mobile interconnection, intelligent induction, big data and intelligent learning. Mobile interconnection is its foundation. Without mobile interconnection, all the capabilities of the Internet of Things can not be brought into play.

The application scenario is inadequate, the terminal product has not yet formed a mass production scale, 5G commercial or will face the problem of chicken or egg first for a period of time. However, Xiang Ligang believes that there is no need to worry about this problem. With the network, there will be people to carry out all kinds of business based on the network, and there is no need to rush for a moment. At this stage, the most intuitive experience that 5G can bring to you is consumer business. With the increase of network speed and the loss of video cards, after having a good network experience, the next step is to develop intelligent material link technology.

Source: Responsible Editor of China Newsweek: Wang Xiaowu_NF