5G Will Profoundly Change The Future Business Model, Which Is Still In The Stage Of Large-Scale Continuous Investment

China's 5g has been in commercial use for two years. Due to geopolitical influence, the domestic 5g equipment market has also experienced ups and downs.

"There are always fluctuations in business development. We hope to smooth out this fluctuation in a long period of time, maintain the business development of the enterprise, and also hope that the market share in China will continue to grow." on September 28, Zhao Juntao, President of Ericsson China, told several media, including the 21st century economic report, at the media communication meeting.

China has become 5g Innovation Center

From the financial report, Ericsson's overall sales in the second quarter of this year increased by 8% year-on-year, but the sales in China decreased by 60%. In this regard, many Ericsson executives pointed out that Ericsson's commitment to long-term investment in the Chinese market has not changed.

Zhao Juntao said: "it is a fact that Ericsson's market share in China has declined, but China is a very important market for Ericsson. This importance is reflected in China's large-scale commercial use in 2B, China's network speed and so on, which are in the lead in the world. In addition, based on China's 5g ecosystem foundation, China will become an innovation center of 5g."

Globally, 5g commercial deployment continues to accelerate. At present, there are 176 5g networks in the world, the number of 5g users has reached 490 million, and the number of 5g base stations has reached 1.5 million. Among them, China has built the world's largest 5g network. As of August this year, the total number of 5g base stations built in China has exceeded one million, covering all prefecture level cities in China, as well as more than 95% of County cities and 35% of towns and townships. The construction of 5g network has entered a new stage of intensive cultivation.

Globally, 5g's commercial deployment continues to accelerate- IC photo

5g infrastructure is in full swing, and equipment manufacturers are also updating iterative products. Ericsson has released a new mass MIMO product, the intermediate frequency Mini AAU product air 3268. It is reported that compared with the previous generation of products, the weight of air 3268 is reduced by about 40%, and the power consumption is reduced by about 10%.

But in Zhao Juntao's view: "5g economy has not really arrived, and it is still in the stage of large-scale network distribution. Globally, it is still in the early stage of commercial deployment. Now, the traffic of 5g is mainly video, but the operation mode of operators has not changed fundamentally. We believe that with the release of 5g's huge technical potential, the operation mode of operators will certainly undergo profound changes."

At present, 5g has expanded a lot of applications in the C-end and b-end, and the killer applications that we are expecting are still in the pipeline. Some people in the communication industry pointed out to the reporter of the 21st century economic report that the current 5g still has the problem of insufficient application of domestic demand, and it will take time for the popularization of vertical application of B terminal outside the mobile phone.

China also promotes the development of 5g application at the policy level. In July this year, ten departments including the Ministry of industry and information technology issued the "5g application" action plan (2021-2023). The relevant indicators of 5g application quantified in the action plan point out that, for example, in the field of personal consumption, it is necessary to create a batch of "5g +" new business, new mode and new business form of "5g +" new consumption, so as to significantly improve the user's sense of gain.

For vertical industries, 5g is required to have a penetration rate of more than 35% in large industrial enterprises, and realize large-scale replication in specific fields, further expansion of advanced technology pilot projects, and digital transformation and upgrading of traditional industries; Facing the field of people's livelihood, it is necessary to create a batch of "5g + smart industry" model projects, requiring each key industry to create more than 100 5g application benchmarks.

The cost will certainly come down after scale

Although it is still in the stage of infrastructure construction, Zhao Juntao said that 5g economy will surely come in the future. On the one hand, it will be terminal equipment, on the other hand, the industrial application of 2B. 5g to B has begun to enter small-scale commercial use, but the road to scale is still full of challenges, "How to go from demonstration to scale requires the cooperation of all parties in the industry. Now there are many successful cases, but many of them are customized. To make it large-scale, there must be standards. Just like in the production line, we should focus on standardization and standardization, and select industries with large-scale deployment possibility, such as Internet of vehicles." According to reports, Ericsson has provided a 5g private network for Shandong Zhongtong bus. This private network is for enterprises to conduct driverless test, and has made 5g private network planning in the factory area.

However, 5g still has many problems in the industrial field. One of the most concerned is the application cost. Before that, some manufacturing enterprises told reporters that the cost of laying 5g in the factory was quite high and the deployment was not intensive enough, so they would hesitate to consider the rate of return on investment. Zhao Juntao also said that the 5g digitization process of Chinese enterprises is outstanding, but the digitization of manufacturing industry is slower than that of service industry, because the investment cycle of manufacturing industry and service industry is different, "The depreciation process of an equipment in the manufacturing industry can be as few as a few years, but as many as ten or twenty years. Therefore, every investment should be made with great caution. Which 5g application should be used and how the economic return of 5g investment is particularly important."

But the good news is that the cost of 5g modules is falling, which is directly related to the overall cost of vertical scenarios. Zhao Juntao: "I think the module (cost) is falling very fast. The price of any kind of terminal and module depends on the scale. Without the scale, it is difficult to reduce significantly. For example, the Internet of vehicles is easy to form a scale, and its modules grow rapidly."

In addition, he also said that there are many standards in the manufacturing industry, including Siemens standard, AB standard, Intel standard, WiFi, Bluetooth and other non cellular methods. With 5g mode, each standard supports part of the equipment. Now let them communicate with each other, and the data has greater value.