On October 8, the National Development and Reform Commission announced that it will organize the implementation of mobile Internet and the fourth-generation mobile communication (TD-LTE) industrialization special projects. The industry innovation application demonstration based on TD-LTE has become one of eight special projects.
"This releases a clear signal for the development of 4G. It also indicates that the issuance of domestic 4G licenses is not far off." An industry source said.
According to this person, because the 4G licenses need to be issued jointly by the National Development and Reform Commission and the Ministry of Industry and Information Technology, the Ministry of Industry and Information Technology has been in a "hot" state for a long time. The key party that issues 4G licenses, the Development and Reform Commission, has no practical policy support.
In the past two months, the government ’s position has become clear. At the Summer Davos Forum held in September, Zhang Xiaoqiang, deputy director of the National Development and Reform Commission, made it clear that "it is ready to issue 4G mobile communication licenses soon."
Miao Wei, Minister of the Ministry of Industry and Information Technology, made a clear statement at the Beijing Communications Exhibition at the end of last month, "4G licenses must be issued before the end of the year."
Communication industry has become the main force of "restarting growth" strategy
What's interesting is that Zhang Xiaoqiang's position on the 4G license was expressed in the forum to "restart growth" in Davos in summer.
He said, "The State Council announced new measures to expand the consumption of various information products, including mobile phone networks and mobile communication products. We are preparing to issue 4G mobile communication licenses soon, and we will also focus on developing high-tech industries."
This means that from the national macro level, mobile phones and mobile communication products have become an important pillar to restart growth. However, from the perspective of the development of the communications industry, operators have experienced a slowdown in profit growth, and equipment manufacturers have experienced a decline in profits or even losses. "Everything is rising, the communication tariff is declining, and the communication industry is going downhill." Many people hold such a pessimistic attitude.
But Guo Yanyan, head of market strategy and operations at the Shanghai Bell Marketing and Communications Department, believes the industry is too pessimistic about the communications industry.
"If you compare the communications industry to one person, the entire industry is moving from childhood to adulthood. Growth is no longer so obvious, but there are still innovations."
In his view, the communication industry is closely integrated with the lives of ordinary people. It is no longer possible for people's lives to leave communication, and natural needs already exist. Although tariffs are declining, data traffic is increasing rapidly. After the arrival of the 4G era, there will be more new demands and applications.
The National Development and Reform Commission clearly mentioned the goal of this special project: to focus on mobile smart terminals and to improve the core technology development and industrialization capabilities of mobile smart terminals. Promote the innovative demonstration application of TD-LTE technology in key areas, and drive the rapid development of the TD-LTE industry. The National Development and Reform Commission requires that "the opportunity to develop the global mobile Internet be seized."
Operators challenge equipment manufacturers to fight 4G bidding
While waiting for 4G licensing, operators and equipment vendors have already started competing in the bidding for 4G equipment.
Prior to this, Tencent Technology had taken the lead in disclosing that China Telecom started the tender for LTE equipment in August. Recently, the results of this tender have been announced. A participating manufacturer revealed that 8 of the 10 shortlisted vendors have finally gained share. The general proportion is that ZTE won 32%, Huawei won 29%, and Shanghai Bell won 16%, and the shares of these three manufacturers are already close to 80%. The rest are divided by companies such as Ericsson, Nokia Siemens Networks and Datang.
The problem of the ratio of TD-LTE and LTE FDD networks in China Telecom's mixed networking that had been suspenseful before was finally determined to be 3: 7.
Compared with China Telecom's 4G equipment bidding, China Mobile's (Weibo) 4G bidding competition is fierce and has many twists and turns. After games of various forces, China Mobile adopted the strategy of "a bowl of flat water".
Domestic manufacturers Huawei and ZTE each accounted for 26%. International manufacturers Ericsson, Shanghai Bell and Nokia Siemens each accounted for 11%. The rest are distributed by Datang, Putian, Xinyoutong and Fiberhome. Compared with the past, the share of international equipment manufacturers has increased significantly.
But this is not the end. On the contrary, for operators, the next step is full of challenges.
One is on scale. "From a global perspective, there are very few networks as large as China. For Chinese operators, such a large-scale network deployment has great challenges." Guo Yanyan said.
Another challenge comes from the frequency band. The 4G spectrum has been fragmented and fragmented, and operators can only adopt a hybrid network layout. Guo Yanyan believes that LTE networks have fewer available frequency bands than networks such as 3G, and can only migrate to higher frequency bands. The penetration rate of the high frequency band is relatively poor, which requires equipment providers to do some targeted planning and design.
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