With a view to commercialization in 2020, the commercial war of the new generation communication standard "5G" is becoming increasingly fierce. MITSUBISHI electric in Japan released special equipment for improving communication speed in September 4th. NEC and Fujitsu will also expand their business opportunities, but in the field of base stations as the main battlefield, Japanese companies need to face the world's top Huawei technology and other Chinese enterprises. On the one hand, the emerging power of flexible use of servers to reduce costs has also rapidly emerged, the communications infrastructure market is entering an unprecedented era of great competition.
MITSUBISHI electric 4 released the optical communication equipment used to exchange large amounts of data between 5G base stations. By converting electrical signals into optical signals, power consumption will also be reduced by 40% in response to the high-speed and large-capacity communications required in the 5G era.
The 5G equipment market is 26 trillion yen.
Worldwide, 5G will be commercialized around 2020, with a delay of only one-tenth of the current mobile phone, in addition to 100 times the actual speed of the current 4G. 5G is therefore considered to be the foundation of the "IoT" society.
For communication equipment enterprises, 5G is a big business war which has come again after a long time. As the world turns to 5G, the market for wireless base stations alone will be 4.188 trillion yen by 2023, while the market for terminals and other related equipment will be 26.14 trillion yen, according to Fuji Camille Research.
At present, China Huawei, Sweden Ericsson, Finland Nokia and other three major telecommunications equipment giants hold the world's eight components and are constantly forming a monopoly.
Among them, the most dynamic ones are Chinese enterprises. Only Huawei, which jumped to the top of the world base station market in 2017, and ZTE, which ranked fourth, expanded their share, according to UK IHS Markit. Compared with the competitors, the cost of the two enterprises is considered to be significantly cheaper. With this weapon of cost competitiveness, the two companies are expanding their share not only in emerging market countries, but also in developed countries.
However, the impact of trade frictions and "network security" problems have emerged, leading to the possibility of stalling Chinese enterprises. The Australian government decided in late August to ban Huawei and ZTE, two Chinese telecommunications equipment companies, from participating in the country's 5G construction. The worry is that important information is leaked through Chinese enterprises.
Emerging companies catch up with HUAWEI
For Japanese telecom equipment companies, Chinese companies are on the alert to bring "fishermen's profits", but on the other hand, with technological innovation, new competitors are emerging.
"Letian may choose a new base station company," the news circulated among Japanese telecommunications industry stakeholders in early August. Although Le Tian said it would "not announce the name of the company it chose", sources said Le Tian, in addition to Nokia, seemed to have chosen Altiostar Networks as a partner.
Altiostar is a newly established enterprise in 2011. Although not well known in Japan, its existence as an ideal state for changing base stations is gradually increasing its sense of presence worldwide.
Mobile phone base station generally has two major functions, that is, wireless signal processing and wireless signal receiving and sending. To achieve these 2 functions, the equipment of the same enterprise needs to be unified before. In contrast, Altiostar built a signal processing mechanism using a general server. Because no special equipment is needed, it also helps to reduce the cost of the base station.
Le Tian said it would create a nationwide network covering Japan with a significantly lower amount (less than 600 billion yen) than the three major Japanese mobile operators such as NTT DoCoMo and KDDI. Adopting the technology of emerging enterprises may be the reason behind them.
In related areas, in addition to Altiostar, emerging companies such as Mavenir Systems in the United States and ASOCS in Israel are also constantly entering. Altiostar, along with SK Telecom, a Korean mobile operator, is pushing for verification tests of base stations running on general servers, and is gaining ground in the world market.
Even the unstoppable HUAWEI is being caught up by new businesses. The more serious situation of Japanese enterprises need to combine with auto-driving and Internet of Things (IoT) services to promote strategic transformation.
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