The commercial use of 5G is kicking off. The Communication Development Division of the Ministry of Industry and Information Technology (MIIT) held a meeting on reviewing the standardization of 5G in the third phase on the first working day of 2018. It is expected to officially release the regulation and prepare for the commercial use of major sectors in industrial chains by the end of the year.
The third phase of the experiment on 5G focuses on the research and development of products and industrial synergy before the commercial use of 5G. It will conduct tests on the intersection of single stations, networking, systems, chips as well as other equipment in the industrial chain. It will promote major sectors in industrial chains prepared for commercial use.
Ready for commercial use by year-end
Based on the current progress, China is playing an important role in the preparation of international standards on 5G.
China has completed the third phase of the research and development of 5G technologies and its network structure and other technologies have become international standards, indicated MIIT minister Miao Wei on December 25.
China initiated the third phase of the research and development of 5G technologies in November 2017. The MIIT issued a circular, requiring preparing plans and standards on tests and setting the targets, contents and indicators on the tests in the third p-hase.
Insiders indicated that the official regulation is expected to be released within one month after the meeting.
The MIIT will speed up in the establishment of the core technology system in information industry in 2018. It will advance the R&D and application of 5G, promote the maturity of industrial chains and shore up weaknesses in 5G chips and high-frequency devices to complete the third phase of tests and establish unified 5G standards in the world.
Guosen Securities believes that 5G technologies will enter a new development period in 2018. It will be technically prepared for the commercial use of 5G technologies. It will also conduct the test on the commercial use of products in the second half of 2018 to solve problems in actual use.
Time for investing in 5G
As the time for commercial use approaches, 5G, as a revolutionary and influential general technology, will have profound influence on industries and will bring huge economic benefits. Investment opportunities in industrial chains will emerge during the process.
Firstly, the infrastructure, including equipment manufacturing and system integration, will benefit. Optical fibers and cables, base stations, radio frequency and optical sectors as well as comprehensive communication manufacturers will benefit. Besides, the mobile terminals, including mobile phones and vehicles, as well as value-added services and contents will also benefit. With the upgrading of communication technologies, value-added services and contents will see rapid development with different technologies.
According to an economic report on 5G released by a research institute entrusted by Qualcomm, 5G will bring products and services of 12 trillion U.S. dollars in 2035. The value chain of 5G can generate an output of 3.5 trillion U.S. dollars. Shenwan Hongyuan indicated that the global communication industry is under the window for the establishment of 5G standards and full commercial use. It is expected that it will initiate a long investment period for 5G in 2018.
Translated by Star Zhang
Latest comments