Due to Huawei's massive publicity, and stressed that China Mobile starting next year 5G phone needs to support independent networking mode SA, SA therefore independent networking concern, however, the high cost of network construction 5G, 5G 4G network investment may be several times, resulting in three large operators rather cautious in advancing 5G independent networking mode when, SA independent networking mode is expected to take years to achieve.
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Operators tend to build 5G network cautious
In the three major carriers, China Mobile's two most powerful, is the net profit of China Unicom and China Telecom, and several times, on account of its hundreds of billions of cash reserves, China Unicom and China Telecom hundred billion debt calculation. From the financial strength, China Mobile is the most capable of quickly building 5G network, but it is also the first mobile phone companies to support the proposed SA mode, but the reality is not so.
In the early 4G network construction, China Mobile to invest hundreds of billions of generous 4G network, with a year on the construction of more than 700,000 4G base stations, showing that it was generous. However, in the 5G network construction, the enthusiasm of China Mobile has relatively 4G greatly reduced after June this year issued 5G license at the Ministry of Industry, it opened 387 million in 5G equipment bidding, is expected end of this year covering 40 cities, built about 50,000 a 5G base, we can see it in the 5G network construction is far better than 4G network construction early so radical.
The same can also be seen, much higher than the cost of network construction 5G 4G is high, since the early maturity lower 5G apparatus, high cost, and because the base station requires extensive 5G fiber transmission network supports wireless data rate of 5G 4G is nearly a hundred times, which all contribute to the construction cost is much higher than 5G network 4G network.
In contrast, China Unicom and China Telecom to build a more cautious attitude 5G network, which China Unicom has also invested in earlier this year over 250 billion yuan in building 4G network, hopes to further improve the coverage of 4G network, 4G networks continue to be in the case of huge investment, coupled with their own financial situation far less abundant China mobile, the construction of 5G network will move more slowly than the Chinese number.
After three operators hold for the construction of 5G network prudence, it has invested hundreds of billions of them in the past few years building a 4G network, but has yet to recover these investments, in particular to China Unicom and China Telecom LTE-FDD obtained licenses in 2015 only large-scale construction 4G network, which is much lower than the net profit of the recovery period China mobile 4G network investments longer, which have led to three operators reluctant to quickly build 5G network to avoid wastage.
SA independent networking slow progress
Operators do not want to aggressively promote 5G 4G network construction and network utilization moment does not have a certain relationship. Three operators of 4G networks, although from time to time outgoing network tight situation, but these cases occurred mainly in the cities, especially in first-tier cities, a high concentration of population, consumption of user traffic, leading 4G network overwhelmed urban areas, however, 4G network utilization is quite low in the vast rural areas, it is clear in such cases in rural scale construction on the economic benefits of 5G network is not cost-effective.
Three operators approach should be the first building in the city 5G network, using the 5G network of high-capacity, high-bandwidth 4G networks to ease the existing tension situation, but in the vast rural areas will continue to provide service with a 4G network. China Mobile's current 5G network construction is just that, it is expected this year, more than 40 cities to provide internal services 5G, 5G provide services in all prefecture-level cities next year, and then gradually spread to other cities and rural areas, the financial strength of China move like this, the other two operators are expected 5G pace of business is similar.
In fact the deep pockets of Chinese mobile operators also face the current unfavorable situation in the first half of this year's results show that net profit fell 14.6%, its net profit fell for the first time, poor performance and now it had to cost savings, while 5G network construction investment is huge it had to invest prudently to avoid continued sharp decline in net profit.
SA actively advocating independent networking is actually a communications equipment provider, they want to get good returns. With the peak of the global 4G network in the past, the global communications equipment manufacturers results showed poor results in 2018 show only four major telecommunications equipment manufacturers Huawei profitable, Ericsson, Nokia, ZTE were a loss, even profitable Huawei its communications equipment business (operator BG) also appears revenue fell 1.3%, 5G networks to large-scale construction SA independent networking will help them improve performance, but want to continue to use the original investment but operators We hope that the continuation of the original investment tends NSA non-independent networking, and the current global mainstream operators NSA is also non-independent networking.
It is clear that operators based on their own interests or the NSA will be non-independent networking 5G network construction, from the current development trend, at least the next 3--5 years, operators will give priority to non-independent networking. From 3G, 4G development can also be seen, 3G, 4G has yet to completely replace 2G, China's three major carriers have a significant proportion of non-users 4G subscribers, China Mobile ended in June this year there are more than 200 million 2G users network, China Unicom, China Telecom, respectively, about 100 million users using 2G / 3G network, can be expected in the next few years 2G / 3G / 4G and 5G will coexist in.
Bai Ming Technology think both operators or communications equipment manufacturers to advocate independent networking mode SA construction 5G network out of China's reality, even if it is early shouted SA independent network of China Mobile, which is also based on the actual NSA non-independent operation networking construction 5G network, 4G in the next few years is bound to coexist with the 5G, NSA non-independent networking mode will be the mainstream in the coming years, SA independent networking mode to be universal but also a long time.
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Bai Ming Technology BMtech007