One of New Infrastructures:5G

5G refers to the fifth generation of mobile communication technology, which is an extension of 4G.  It is hundreds of times faster than 4G in transmission speed, reaching 10Gb/s, equivalent to the download speed of 1.25Gb/s. 5G is a fusion body to provide a bound between people, substance, and both two in a high-speed and safe way.

Mobile communication began in the 1980s and has become a basic style of information internet for our society through over 30-year development, which is making a profound influence on our lifestyles and is counted as an essential point of national economic development and international competition. 5G has already become a global hotspot to research and development.

Global development of 5G

Both the US and South Korea open 5G commercial utilization in April 2019. By September 2019，South Korea possessed 90,000 base stations of 5G with 3,000,000 users which is more than the US keeping 80,000 the stations and 10,000 users due to the limitation of the relevant material. In China, it started in 2013 and grow up with three periods of research and test. Until October 2019, 5G was used in the commercial field. A total of 198,000 the stations with over 50,000,000 users in China.

It is predicted that 5G in the commercial field will make vast direct profits and indirect profits reaching 90,000 billion USD and 15,000 billion USD in 2030 with a CAGR of 29 percent and 24 percent.

5G Industry Chain

The midstream of the 5G industry chain is the equipment network, including the main equipment supplier, base station, and antenna, and the network. With the development of 5G construction, the number of 5G base stations will increase significantly. 

Macro Base Station Goes First

The base station plays a key role in the transmission network of 5G and the macro base station will take the place of the single station due to its small-area coverage to promote the increase of macro base station. The number of the station in the future is about 1.5 times than that of 4G under the era of 5G. We keep the opinion that the number of base stations in 2023 will be the peak with 1.4 million, whose market scale reaches 830 million USD with a CAGR of 34.1 percent.

The construction of the 5G base station has a direct promotion to the optical fiber for two reasons. The first is that there is more consumption of optical fiber owning to a higher frequency and more intensive base stations. The second is that direct connection between optical fibers is an important way to solve network delay. It is predicted that the market scale of optical fiber will be 20.7 billion USD. However, people at present are pessimistic about this sector. Because the demand for optical fiber shows a declined tendency for the optical fiber market monopolized by China Mobile with high permeability and 5G construction has uncertainty for the pulling of optical fiber. Besides, many domestic companies of optical fiber are expanding their production capacity and will release their supply intensively, much possible to have a certain impact on its price. We agree with the above to some extent but still held our confidence in the development of optical fiber due it is regarded for 5G as an indispensable part possessing configuration value. We choose several companies to be considered.

Massive MIMO Becomes the Mainstream with Base Station Antenna Reforming

However, 5G is still in the stage of infrastructure construction at this stage. The 5G construction is just laying the foundation and further dividends have not yet been stimulated. In the future, with the maturity of 5G facilities, more enterprises will come in to take a share, and the trillion market will be activated step by step under the assistance of 5G.