Page 36 - Market Analysis Report of Optical Communications Field in China & Global market 2021

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breakthrough and 4G synchronization, and 5G is now in the towns as of the end of last year. 80% of Germany's population
leading stage. China's large-scale 5G network construction will benefit from 5G in 2021; At least 99 percent of Germany's
and user development have strongly promoted the large- population and 90 percent of its land area will be covered by the
scale development and quality improvement of the global end of 2025.
5G technology industry, rapidly reduced network and
terminal costs, and made a huge contribution to the global In France, an auction of 5G spectrum was completed at the end
commercialization and user popularity of 5G. of last year, and operators -- four in all -- have been asked to
ensure 75% coverage by the end of 2022.
In 2021, the general tone of China's 5G base station In Spain, vodafone, Orange and Telefonica have each been
construction is moderately ahead. The three major operators led awarded commercial licences after a spectrum auction.
by China Mobile have steadily promoted the construction of Telefonica, for example, had 76 percent of its population
5G networks, closely following the needs of different scenarios, covered by 5G by the end of last year and plans to shut down its
building on demand, in-depth coverage, and creating high- 3G network and reuse its frequencies to ensure that 5G coverage
quality 5G networks and plan to maintain high investment reaches 85 percent by 2025.
in 5G construction. They plan to spend a total of about 184.7
billion yuan on 5G expenditure in 2021, up 5.1 percent from The status of 5G in the US
last year. China Mobile, China Telecom and China Unicom The United States is the first country in the world to realize
plan to spend 183.6 billion yuan, 87 billion yuan and 70 billion the millimeter-wave frequency network. In addition to the
yuan respectively in expenditure this year, while 5G investment generally promising 28GHz band, the United States is also
reaching 110 billion yuan, 39.7 billion yuan and 35 billion yuan, actively promoting the commercial network deployment of
respectively. 24GHz/37GHz/39GHz/47GHz. The commercial deployment
of millimeter-wave has currently been carried out in New
York, Los Angeles, Chicago and other cities. All three major
U.S. operators already offer commercial millimeter wave 5G
services.

However, the U.S. lags behind China and South Korea in 5G
construction. The U.S. 5G network is currently dominated by
Figure 2: 5G expenditure of China's three major operators the NSA. Only T-Mobile has announced that it will partner with
in 2020 and 2021 (100 million yuan) core network providers Nokia and Cisco and withdraw from the
The three major operators have built 840,000 5G base stations 5G NSA network. According to the 5G download rate data of
in 2021, including 520,000 by China Mobile. Among them 19 countries and regions released by SpeedCheck in 2021, the
about 120,000 2.6GHz base stations have been built, and it US ranked 16th with a 5G download rate of 43.34Mbit/s, while
plans to purchase more than 400,000 700MHz base stations South Korea ranked first with a rate of 449Mbit/s. The key
jointly with China Radio International (CRI), and put them into reason for the slow speed of the 5G network in the United States
operation from 2021 to 2022. is that the low frequency band of 5G with good signal coverage
but low speed is used, leading to the lower number of 5G users
Heavy investment by operators has pushed the industry forward. than expected. Until the second quarter of 2021, none of the
However, in terms of the scale of 5G users, in 2021, the number three major U.S. mobile companies announced 5G subscribers.
of 5G mobile phone terminals connected in China will exceed By the end of 2020, 3G users will account for more than 6.3
392 million, accounting for more than 82% of the global total, percent of total mobile connections in the US, compared with
and the number of 5G package users will soon exceed 500 88 percent for 4G and about 3 percent for 5G, according to
million. Specifically, China Mobile, China Telecom and China data released by GSAM Intelligence. In 2021, 3G subscribers
Unicom have 251 million, 131 million and 113 million users of will shrink to 5.7 percent of total mobile connections, while
5G packages, with penetration rates of 26.5%, 36.2% and 37%, 5G connections will grow to around 14.5 percent. Further
respectively. Individual 5G users account for about a third of the reductions in 3G subscribers are expected to drive year-on-year
total, meaning there is still plenty of room for 5G commercial growth in 5G connections in the future.
use. It is expected that China's 5G penetration rate will exceed
50% by 2025, and the number of 5G users will exceed 900 2. In addition to China, global FTTH demand is still a market
million. growth point

The state of 5G in Europe: Struggling to catch up In the wake of COVID-19, people around the world are
Europe has many operators, but 5G has been relatively slow to increasingly aware of the need to work from home. Before
develop, whereas countries are taking 5G very seriously. the pandemic, more than 50 percent of respondents had no
In Germany, Deutsche Telekom has 5G services covering 5.5 work-from-home policy support, while almost 80 percent of
million people, 45,000 5G base stations and 4,700 German companies had one in place post-pandemic. However, at present,
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