5G penetration rate will reach 48% in 2025, creating 540,000 jobs

The “China 5G Economic Report 2020” completed by a joint research group composed of experts from China International Economic Exchange Center, China Economic Consulting Co., Ltd. and China Academy of Information and Communications Technology was released at the “China 5G Economic Seminar” held yesterday. According to a report released in Beijing on the 13th, in 2020, 5G commercial use will drive investment of 900 billion yuan (RMB, the same below) in China and create 540,000 jobs.

The report pointed out that China’s 5G industry development has five unique advantages:

First, the national level attaches great importance to 5G development. The government has incorporated 5G into the national strategy as one of the priorities for implementing the national innovation strategy. As of September this year, provinces across the country have issued more than 40 5G policy documents. Beijing, Hebei, Shanghai, Zhejiang, Jiangsu, Jiangxi, Hubei, Hunan, Henan, Guangdong, Shenzhen, Chengdu, Chongqing and other provinces and cities have released policy documents such as 5G action plans and implementation opinions.

Second, consumers are actively embracing the new 5G technology. About 53% of the Chinese consumers surveyed said they are very interested in the new technology and will be the first to buy a new product whenever there is a new product, which is much higher than the global average of 29%. 5G application scenarios have a positive attitude.

Third, China will be the world’s largest 5G market. By 2025, China’s 5G users will reach 816 million, accounting for about 48% of mobile users; China will occupy 30% of the world’s connections and become the world’s largest 5G market. The report believes that by 2030, in terms of direct contribution, the total output and economic added value that 5G will drive will be 6.3 trillion yuan and 2.9 trillion yuan respectively; in terms of indirect contribution, the total output that 5G will drive Exports and economic added value were 10.6 trillion yuan and 3.6 trillion yuan respectively.

Fourth, 5G industry fund investment has been launched, and the current target scale of 5G-related industry funds has reached nearly 100 billion yuan.

Fifth, the 5G industry chain has an international competitive advantage. China took the lead in launching 5G technology research and development experiments, accelerating the process of 5G equipment research and development and industrialization. The key elements of China’s 5G industry development have been completed, including frequencies, chips, terminals, operators, etc.

The report believes that the 5G commercial process also faces five challenges:

One is the lack of communication between the communications industry and related industries. The communication industry is still the main force in promoting the integration of 5G and applications. The participation of related industry customers, competent authorities, local governments, industrial parks and application industry links is limited. limited.

Second, 5G network construction and operation are facing new challenges. Under the same coverage, the number of 5G mid-band base stations will be about 1.5 times that of 4G. Due to the high cost of 5G equipment in the initial stage, the investment scale of 5G network will be 2-3 times that of 4G. In addition to wireless networks, the deployment of 5G networks also includes transmission networks and core networks. The cost of the transmission network converted to a single base station is about 50,000 to 100,000 yuan (RMB), and the single-city construction cost of the 5G core network in the initial stage of deployment is about 10 million to 30 million yuan (RMB).

In terms of operation, the initial power consumption of a single base station is 3 to 4 times that of 4G. 5G construction still has problems such as large demand for site resources, difficult site selection, difficult property access, and high rent.

Third, it is difficult for ordinary consumers and industry users to see the long-term benefits and rewards of 5G. The market return and cost investment of operators and related industries are not clear, and a profitable business model has not yet been formed. This is manifested by the low willingness of C-end consumers to pay, and the reluctance of B-end industry users to pay for 5G before seeing the return on investment. Pay for connection.

Fourth, 5G lacks compound high-end talents. 5G has become a hot spot in the high-tech field. Its low-latency and high-reliability features will greatly promote the development of applications in fields such as drones, autonomous driving, and intelligent production, requiring a large number of system planning, application development, and service talents. 2019 is the “first year of 5G commercial use”. In different fields, the demand for talents in 2019 compared with 2018 will increase by 20%-80% respectively. In the future, the demand for talents in related positions will continue to rise.

Fifth, the supply of the policy environment and the demand for 5G innovation need to be coordinated. 5G will bring new service content and business models, which are required in terms of intellectual property policies, capital policies, regulatory policies, resource allocation, talent support, laws and regulations, and pricing mechanisms. The government makes corresponding adjustments.

The Links:   SKD110-18 NL2432HC17-02B

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