China Academy of Information and Communications Technology: 5G is expected to create more than 3 million jobs in 2025
At present, the fourth industrial revolution characterized by digitization, networking and intelligence is booming. 5G, as a key new infrastructure supporting the digital transformation of the economy and society, will promote the outbreak of large-scale innovation, opening a new era of breaking through restrictions and accelerating progress. new digital age. Countries around the world generally recognize that 5G will become a major opportunity for industrial, commercial and social growth, and have issued strategies and policies to seize the dominance of 5G network construction. 2020 is the final year of my country’s decisive victory in building a moderately prosperous society in an all-round way, and it is also a critical year for the commercial deployment of 5G. In the prevention and control of the new crown pneumonia epidemic, 5G networks and applications have been tested for the first time, and the pace of integration and development of 5G and various fields of my country’s economy and society is expected to accelerate. We should seize the favorable opportunity, give full play to the advantages of the system, concentrate our efforts, accelerate the construction of my country’s 5G network, promote the solid implementation of 5G applications, and build 5G into an important engine for accelerating China’s digital transformation process and contributing to high-quality economic development.
Countries around the world seize 5G development opportunities
The development of 5G has been a general consensus of all countries in the world. Seizing the opportunity of 5G development is an important means to occupy the commanding heights of international competition and win new advantages in future national strategic competition.
(1) Major countries accelerate the strategic layout of 5G development
The US government has promulgated new policies and bills many times in recent years to make a comprehensive layout for 5G development. In October 2018, the US Federal Communications Commission released the “5G FAST” plan to release spectrum resources to the market, promote the construction of 5G network infrastructure, optimize relevant laws and regulations, protect the security of the industry chain, and encourage operators to invest and provide services. In January 2020, the U.S. House of Representatives successively passed three bills, the “Promoting U.S. 5G International Leadership Act”, “Promoting U.S. Wireless Leadership Act”, and “Securing 5G and Beyond” Act, intending to strengthen the U.S. in 5G-related international standard-setting agencies. leadership in ensuring the precise implementation of national strategic goals.
In April 2019, South Korea released the “5G+ Strategy for Innovative Growth” to expand investment, encourage infrastructure creation, and support overseas expansion, aiming to build the world’s best 5G ecosystem. As early as 2016, the European Union released the “5G Action Plan”, which regards 5G technology as a strategic opportunity. Member States and all parties in the industry work together to formulate a 5G timetable, and comprehensively promote 5G standard research and development, spectrum allocation, network construction, and commercial pilot programs. Guide EU countries to formulate their own 5G development routes.
(2) Countries around the world are accelerating the construction of 5G networks
The four major US operators have all started 5G commercial use, focusing on deploying millimeter-wave frequency band services, and are expanding to medium and low frequency bands. Among them, T-Mobile has used the 600MHz spectrum to open a nationwide 5G network in December 2019, and the low-frequency network covers more than 5,000 cities and towns in the United States and more than 200 million people. AT&T plans to commercialize 5G networks based on the 850MHz frequency band in all U.S. cities in the first half of 2020.
The three major operators in South Korea, KT, SKT, and LG U+, launched 5G networks at the same time in April 2019 and seized the first commercial launch of 5G in the world. The number of users exceeded 5 million, covering 93% of the Korean population. In Europe, major telecom operators have launched 5G services in more than 10 countries, and 5G networks in Switzerland and Monaco have achieved coverage of about 90% of their own populations.
As of January 2020, 5G commercial networks have been deployed in 378 cities in 34 countries around the world.
5G is a strategic infrastructure for high-quality economic and social development in my country
5G is the key infrastructure for comprehensively building the digital transformation of the economy and society, reshaping the traditional industrial development model, and expanding the space for innovation and entrepreneurship. 5G network construction has a strong spillover effect, which will drive investment growth, promote information consumption, and gradually penetrate into all sectors of the economy and society, becoming a new engine for economic growth.
First, continue to drive investment growth and hedge against economic downside risks. As a whole, my country has entered the late stage of industrialization, and the contribution of traditional infrastructure construction to the development of the national economy has become increasingly weak. The construction of new infrastructure such as 5G will provide new impetus for economic growth. According to the forecast of the China Academy of Information and Communications Technology, it is expected that the cumulative investment in 5G network construction will reach 1.2 trillion yuan by 2025. At the same time, “5G + Industrial Internet” is conducive to promoting the internal network and information transformation of industrial enterprises. It is estimated that the investment scale of network transformation alone is expected to reach 500 billion yuan in the next five years. In addition, the construction of 5G network will also drive the upstream and downstream of the industrial chain and application investment in various industries. In the face of the impact of the epidemic and the downward pressure on the economy this year, accelerating the pace of 5G network construction will play a key role in optimizing the investment structure and stabilizing the growth rate.
The second is to promote industrial transformation and upgrading and change the mode of economic growth. As an important part of the new infrastructure, 5G network will not only drive the development of the entire ICT industry chain, but also extend from the field of information and communication to vertical industries such as industry, transportation, energy, and agriculture, and accelerate the digitization, networking, and intelligence of traditional industries. Transformation, to promote the quality, efficiency, and power changes of economic development. According to the “China 5G Economic Report 2020”, every unit invested in my country’s 5G industry will drive 6 units of economic output, with significant spillover effects.
The third is to stimulate the potential of information consumption and promote stable economic growth. Building a high-quality 5G communication network will not only directly promote the consumption of products such as 5G mobile phones, smart homes, and wearable devices, but also foster products such as ultra-high-definition (4K/8K) video, virtual reality/augmented reality (VR/AR) immersive games, The consumption of new services such as smart education and telecommuting has further driven the rapid growth of information consumption and has become a new driving force for expanding domestic demand. Preliminary estimates show that by 2025, the cumulative scale of information consumption brought about by 5G commercial use will exceed 8.3 trillion yuan.
The fourth is to increase new employment opportunities and release the vitality of the digital economy. 5G will create a large number of jobs with high knowledge content. While 5G will drive employment in the mobile communication industry, it will also spawn new information service jobs such as industrial data analysis, intelligent algorithm development, and 5G industry application solutions, and cultivate a flexible employment model based on online platforms, thereby providing a large number of employment opportunities for the society. According to calculations by the China Academy of Information and Communications Technology, it is expected that by 2025, 5G will directly create more than 3 million jobs.
my country’s 5G network continues to empower, and integrated applications bloom
2020 is a critical year for my country’s 5G network construction. As of the beginning of February this year, the three major operators have opened about 156,000 5G base stations across the country. The smooth progress of network construction has driven the upstream and downstream of the industry chain to show a good development trend.
(1) The 5G industry ecology is gradually maturing
With the joint efforts of all parties, the foundation of my country’s 5G industry has been continuously consolidated, and commercial products have become more mature. As of the beginning of February, 43 5G mobile phone terminals have been connected to the network in my country, and the price of mobile phones has dropped to the range of 3,000 yuan. 5G base station chips have generally adopted the 7-nanometer process, and the power consumption of a single base station has been reduced from the initial 5 kilowatts to 2-3 kilowatts, and the operation and maintenance costs have been significantly reduced. The four operators will accelerate the evolution of 5G networks from NSA (non-standalone) to SA (standalone). China Mobile has launched SA equipment tenders, and strives to achieve commercial use of SA networks within this year.
The performance of components such as chips continues to improve, promoting the rapid and healthy development of the 5G industry. Huawei’s HiSilicon Kirin 990 chip was launched, becoming the world’s first 5G SoC mobile phone chip. Qualcomm released the world’s first 5-nanometer baseband chip, which has further improved its performance in terms of speed, power consumption, and stability. Huawei HiSilicon has cooperated with Changhong Holdings to leverage the advantages of HiSilicon 5G module middleware to launch the world’s first commercial 5G professional module for the industry, which will be widely used in 5G 8K TVs, 5G industrial production lines, and intelligent transportation. In the field, accelerate the large-scale commercial use of 5G in thousands of industries.
(2) my country’s 5G applications are developing in depth
It is generally believed in the industry that 5G applications are distributed according to the “28 laws”, that is, the communication between people only accounts for about 20% of the total application, and 80% of the applications are communication between things. It can be seen that 5G will focus more on empowering and empowering vertical industries. Since the beginning of this year, the breadth, depth and technological innovation of 5G application practice in my country have been significantly improved. All walks of life are looking for the integration point with 5G, and 5G application is changing from a single business exploration to a systematic application scenario. New products, new formats and new models for industry applications are emerging, and are steadily advancing from application pilots to industrial ecology. In terms of application fields, there are many applications in medical and health care, media entertainment, industrial Internet, and Internet of Vehicles, which have gradually become the pioneer application fields of 5G.
The prosperity of 5G applications needs to be based on network support, and applications that leave the network are like castles in the air. The informatization foundation and development path of each vertical industry are different, which objectively forms certain barriers to integration. Only by clarifying the applicable scenarios of 5G and consolidating the basic capabilities of the network can China Unicom connect the “information island”, break the industry barriers, and finally bloom the flower of integrated applications.
(3) 5G applications help epidemic prevention and control resumption of work and production
The 5G integration application has played a major role in the prevention and control of the new crown pneumonia epidemic, and has gathered a consensus on digital transformation, which is expected to accelerate the pace of integration and development of 5G and various economic and social fields. In response to the epidemic crisis, 5G remote diagnosis and treatment, 5G intelligent medical robots and other applications have moved from experiment to practice, which has played a positive role in epidemic prevention and control; 5G+4K live broadcast, remote office, remote teaching and other applications have also played a role in epidemic prevention and control and isolation period. It has played an important role in promoting the safe and orderly resumption of work and production of enterprises.
The epidemic has stimulated the wide application of 5G technology, which has made Chinese people feel the efficiency improvement brought by 5G on a large scale for the first time. Mass popularization kicked off. With the arrival of the resumption of work and production, 5G will play an important role in a broader and deeper level, providing strong momentum for steady economic growth.
Seize the critical period of 5G network construction in 2020 and accelerate my country’s 5G development
This year is a critical period for 5G network construction. It is expected that more than 550,000 5G base stations will be opened nationwide by the end of the year, achieving continuous outdoor coverage in prefecture-level cities, key coverage in counties and towns, and indoor coverage in key scenarios. Accelerating the construction of 5G, especially independent networking, and increasing the supply capacity of the network side will build a solid foundation for the digital transformation of the economy and society, and better support and ensure the smooth operation of my country’s economy and society.
(1) Coordinate the promotion of 5G network construction and ease the pressure on operators to build networks
While accelerating the construction of high-quality 5G networks, effective measures should be taken to promote the construction of 5G networks in a coordinated manner to ease the pressure on operators. The first is scientific layout, deepening joint construction and sharing. Operators are encouraged to further strengthen cooperation, avoid duplication of investment, build 5G networks more efficiently, and reduce construction and operation costs. Second, encourage product R&D innovation, reduce power consumption of 5G equipment, reduce operator network operating costs, and achieve green and healthy development. Finally, we should increase cross-industry resource coordination and infrastructure opening, promote the further opening and sharing of public infrastructure to communication infrastructure, strengthen support for the construction of communication infrastructure, and create a favorable policy environment.
(2) Accelerate the improvement of 5G network capabilities and focus on driving industry maturity
The construction of 5G network has entered a critical period, and the scale construction of the network is driving the gradual development and maturity of the industry. This year, my country will focus on accelerating the construction of 5G independent networking, and strive to achieve commercial SA network within this year. Key network technologies such as network slicing and edge computing will take root, further demonstrating the core capabilities and value of 5G. In this regard, the industry must gather strength, accelerate the development of 3GPP series standards, strengthen core technology research, improve and optimize the functional performance of 5G independent networking equipment, and accelerate the maturity of the 5G end-to-end industry chain.
(3) Optimizing and improving the quality of 5G networks to meet market demands in a timely manner
At present, the number of 5G users in my country exceeds 10 million, the sales of 5G terminals and users are developing well, and the network demand is strong. With the continuous enrichment of network access terminals, inclusive prices will promote the popularization of 5G terminals, and the number of users will increase significantly. The network is the foundation for the development of terminals and users. If network deployment is not strengthened, end users will face the embarrassing situation of no network available. In order to further expand the scale of 5G users, guide enterprises to increase the supply of related products and services, and release the potential of information consumption, it is necessary to accelerate the construction of high-quality high-quality networks with wide coverage, and focus on building, optimizing and improving 5G networks in hotspot areas and main application scenarios to fully meet the needs of consumer market demand.
(4) Grasp the construction of key 5G scenarios and “anchor” quasi-support industry applications
Network construction is an important cornerstone of industrial development, and large-scale application is the key driving force for industrial growth. At present, it is urgent to accelerate the application innovation to inject vitality into the 5G development and lead the scale development of the 5G industry by promoting both construction and application. Network construction needs to support industry applications as the “anchor”, identify applicable business scenarios, meet the needs of differentiated network construction in the industry, gradually enrich application scenarios, and accelerate the penetration of 5G converged applications into key industries. Taking the epidemic response as an opportunity, promote the increase in the supply of applications in e-commerce, e-government, online education, online entertainment, etc., and improve the supply capacity and quality of 5G applications.