Page 37 - Market Analysis Report of Optical Communications Field in China & Global market 2018

Based on the test, 174 28G small cells are required in 100,000 square meters in global smartphone shipments. In addition, Europe, the Middle East
to meet the 5G service standard. Accordingly, 1 square kilometer needs and Africa also saw a 3.5 percent decline, also a major factor in global
about 1740 small cells. So, in 5G era, small cells will have massive demand. smartphone shipments.
Figure 5 4G & 5G Small Cell Deployment The 5G mobile phone is likely to bring new development opportunities to
the industry. 5G mobile phone bandwidth can reach 20Gbps (1000 megabits
per second, or, 1Gbps), mobile phone application data, photos, video and
other large files, cloud disk backup or download will be extremely fast.
Consumers who buy 5G mobile phones can feel the obvious difference
in download speed. In addition, 5G will also bring more entertainment
innovation experience for mobile phone.
Global smartphone sales are expected to reach 1.68 billion units in 2022,
based on a compound annual growth rate of 2.8 percent. Driven by the
launch of 5G smartphones in 2019, 5G devices will account for about 18
percent of global smartphone shipments in 2022.
Figure 8 Smartphone Shipments in China (Unit: Million)
2.Demand for optical modules will surge.
The increasing number of small cells deployed by 5G network, undoubtedly,
drives the surging demand of optical modules. This means that the total
demand for optical modules and the size of the market in the 5G era will rise
sharply compared to 4G. It is expected that, the total volume of 5G optical
modules will be 1.64-4.2 times that of 4G, the 5G market scale will be 2.9-6.8
times of 4G's.
Figure 6 5G Single Base Station Optical Module Requirement
(based on 10G calculation)
5. Global 5G Schedule
At present, U.S. operators have promised to start and operate 5G networks
as soon as possible, and the United States is expected to be one of the first
countries (regions) to achieve 5G all-commercial use. Verizon, one of the
U.S. telecom operators, said 5G will enter homes later in 2018 through fixed
broadband services, but timetable of mobile 5G networks will keep pace
with that of chipmakers. Another operator T-Mobile, however, will launch a
5G package in 30 states (cities) in 2018. Operator Sprint is deploying MIMO
antennas in six cities. AT&T has launched 5G evolution technology in more
than 100 states (cities).
3.Demand for optical fiber in 5G era will be 16 times that of 4G. China is rapidly becoming the world's largest concentration of mobile
Large-scale commercial deployment of 5G application, eventually is based Internet companies, and is likely to become one of the world's first countries
on a large number of small base stations to link each corner, and these to use a 5G network. Senior managers in China Mobile said the company
small base stations will require a large number of MBH (Mobile Backhaul) has now launched large-scale experiments in several cities, with more than
and MFH (Mobile Fronthaul). The backhaul and fronthaul require more 100 5G base stations built within 2018 and 1000 5G stations by 2019. By
data centers, as well as higher throughput interconnections and internal the end of 2018, China Mobile will be conducting 5G tests for industry
connections. Therefore, the future 5G deployment will become the main customers, although official commercial use may take until 2020. The other
driving force of the optical communication market. two operators (China Unicom and China Telecom) are also very consistent
with the pace of the launch of the 5G, together set to achieve 5G official
The demand for optical fiber in 4G era is 25 times that in 3G era, and it is commercial by 2020.
estimated that the demand for optical fiber in 5G era will be 16 times higher
than that in 4G era. Over the years, Japan has been testing the commercialization of 5G network.
Figure 7 5G Optical Fiber Demand Prediction In June 2017, ZTE signed an agreement with Japanese operator SoftBank to
conduct 5G trials below 6GHz in Tokyo's metropolitan area. Japan’s telecom
NTT DoCoMo, who have signed a deal with Nokia to obtain some technical
support, has also been testing 5G technology since 2016. The detailed
information about how to achieve the 5G network’s official commercial has
not unveiled yet.

During the Pyeongchang Winter Olympics, Korea’s telecom KT planed
to launch its commercial 5G network by March 2019 and will share
infrastructure costs with K Telecom and LG U+ in order to accelerate
deployment. In addition, Southeast Asian countries may need more base
station support to achieve the arrival of 5G network.
Europe's first 5G trial was much later than the rest of the world due to lack
of regulation and low investment. Huawei 5G base station has just obtained
4.5G Commercial is expected to promote the demand of smart European certification, but the region’s 5G official commercial plan is still
phone. far from being expected.
The statistics showed that worldwide smartphone shipments totaled 1.462 Figure 9 The Most Beneficial Application of 5G Feast
billion in 2017, of which devices powered by the Android operating system
still accounted for the bulk of the market at 85.1% with 1.244 billion shipped
a year and devices powered by the iOS operating system is equipped with a
market share of 14. 8%, annual shipments of 215 million units. Compared
with the first two mainstream operating systems, smartphones from other
platforms shipped only 2.2 million units in 2017, accounting for 0.1% of the
market.
Compared with 1.47 billion smartphone shipments worldwide in 2016,
shipments fell 0.5 percent in 2017. China's smartphone market saw a 5
percent drop in shipments last year, an important reason for the decline
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