Goal of 5G network construction in 2021: build more than 1 million NEW 5G base stations

2020-12-30

Goal of 5G network construction in 2021:build more than 1 million NEW 5G base stations

According to relevant ministries anddepartments, local governments and telecom operators, various parties areintensifying efforts to formulate and work out2021 5G construction andindustrial development plans, for further expanding 5G network coverage toprovincial capitals, cities and counties, as well as large towns.

They will increase financial support, setup a 5G industry development fund, and guide non-governmental capital to investin information infrastructure. With the support of a series of policies, morethan one million new 5G base stations will be built next year, which isexpected to initially achieve nationwide coverage, the industry said. Theapplication of 5G high-tech video, 5G+ industrial Internet and other key areaswill be further expanded, and greater potential will be unleashed instabilizing investment, promoting consumption and cultivating new drivers ofgrowth.

Multiple parties step up the formulationof 5G construction targets next year

Liu Liehong, vice minister of the Ministryof Industry and Information Technology (MIIT), said the construction of 5Gnetworks will be steadily promoted in accordance with the principle ofappropriate advance. Now the ministry is working out plans for base stationconstruction next year with operators together.

The building goals at the local level arealso clearer. The three-year Action Plan for Acceleration of Shanghai's"Double Gigabyte Broadband City" (2021-2023) was recently released inShanghai. It is clear that based on the complete deployment of 5G SA, 5G SAwill be fully commercialized in 2021, with deep outdoor coverage in urbancenters and suburbs.

The 5G plans of state-owned telecomenterprises are coming out, focusing on accelerating 5G network construction incentral urban areas and "sinking" markets such as cities, countiesand towns. For example:

1. China Mobile

By 2021, it will basically achieve goodcoverage of 5G in cities, counties, urban areas and some key towns across thecountry, improve the layout of 3+3+X data centers, and increase the installedcapacity to 1.08 million.

2. China radio and television

In 2021, 5G networks will be expanded tocover provincial capitals, cities and counties, as well as large towns throughjoint construction and sharing.

3. China Unicom

It is proposed to ensure that the scaledeployment of 5G network will be completed within about three years, basicallyrealizing the regional 5G network coverage in major urban areas, expressways,railways, key counties and big towns.

By October this year, China had opened morethan 700,000 5G base stations and more than 180 million terminal connections.

Wu Hequan, an academician of the ChineseAcademy of Engineering, said that the cost of base station construction will befurther reduced as commercial use accelerates, and 5G construction will beaccelerated comprehensively in 2021, with more than 1 million new 5G basestations expected to be built nationwide.

Policy financial support continues

The National Development and ReformCommission will support local governments to increase support for 5G networkconstruction in terms of site resources acquisition and financial subsidies.

At the local level, Hubei said it willallocate 200 million RMB every year to subsidize the construction of 5G macrobase stations for three consecutive years, and meanwhile, arrange specialgovernment bonds to support the construction of 5G base stations. The Guangdongprovincial finance ministry will coordinate relevant special funds to support5G network construction, technological innovation, industrial development anddemonstration applications.

Social capital will be further mobilized.For example, Shanghai proposed to guide social capital to invest in informationinfrastructure construction and set up a 5G industry development fund.Guangdong has made it clear that 5G enterprises and major projects meet theinvestment scope, and the provincial industrial Development fund and innovationand Entrepreneurship Fund should increase their investment and financing.

Accelerating application deployment isstill the key

Wu Hequan pointed out that currently thereare various types of 5G terminal development, but there is no one that refreshesusers. For 2021, the development of UHD, VR and other related content needs tobe speeded up. Meanwhile, 5G+ industrial Internet is still in its infancy, sointegrated applications need to be speeded up.

Notably, the deployment associated withfacilitating applications is accelerating. On December 7, The National Radioand Television Administration released the Radio and Television Technology IterationImplementation Plan (2020-2022), proposing to improve the 4K/8K ULTRA HD videotechnology standard system, promote the landing of 5G high-tech video, andlaunch new high-tech video products and applications.2020-2022年)

Local governments have also frequentlyplanned key application areas of 5G in the future, for example:

O Tianjin will actively promote thein-depth integration of 5G with smart cities, smart manufacturing and smarttransportation;

O Beijing will carry out demonstration applicationsof 5G UHD live video streaming, automatic driving, automated logistics andother typical scenarios;

O Guangdong will carry out trials anddemonstrations of 5G applications in key areas, including 5G+ smart cities, 5G+smart education and smart healthcare, 5G+ industry, and 5G+ smarttransportation.

Expanding fusion applications will alsofurther release the multiplier effect of 5G. It is estimated that by 2030, theoverall GDP driven by 5G will reach 5 trillion yuan, with further development inareas such as manufacturing, transportation and finance, according to therecent White Paper on 5G Industry Development (2020) released by ConsultantSadie.

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