Page 37 - Market Analysis Report of Optical Communications Field in China & Global market 2023

CEO of Vodafone, said at the 2022 Mobile World Congress that Commercial 5G has been launched in more than 10 countries
the European region will not achieve 5G coverage in the whole in Latin America. Operators are accelerating the deployment of
region until at least the next 10 years. According to the report 5G in the mid frequency (3.5 GHz) and low frequency bands to
of ECA (European Court of Auditors), most member states stimulate the growth of 5G contracts. It is expected that by the
are expected to be difficult to achieve the common goal of 5G end of 2022, the number of 5G contracts will reach 19 million,
development in 2025. By 2025, it is expected that only 35% of and it is expected that there will be more 5G contracts starting
mobile connections in Europe will be based on 5G technology, from 2023. By the end of 2028, 5G will account for 50% of all
lower than 51% in North America and 53% in Australia, Japan, mobile contracts.
Singapore, and South Korea.
As European operators gradually emerge from the impact of the Ⅱ. China's optical communication market
epidemic, around 90% of their investment in the future will be Accelerate the construction of new infrastructure and
directed towards 5G, and the situation is expected to improve. consolidate the foundation of digital China
According to GSMA data, European mobile operators will In 2022, the construction and application of new infrastructure
invest 145 billion euros from 2020 to 2025, of which about 90% such as 5G and gigabit optical networks in China will
will invest in 5G. accelerate, and the coverage and depth of the "dual gigabit"
In 2022, the signing growth of 5G in Western Europe is strong, network will continue to expand. China has built the world's
expected to increase from 32 million in 2021 to 63 million by largest fiber optic and mobile broadband network. As of the
the end of 2022. It is expected that from 2023, the number of end of 2022, the total length of China's fiber optic cable lines
4G contracts in Western Europe will decrease, while the number reached 59.58 million kilometers, a net increase of 4.77 million
of 5G contracts will significantly increase. By the end of 2023, kilometers compared to the end of the previous year, and the
the number of 5G contracts will reach nearly 150 million, and network transportation capacity continues to increase. The fixed
by the end of 2028, the penetration rate will reach 88%. Many network has gradually achieved a leap from 100 to gigabit. As
operators will implement 3G decommissioning in the coming of the end of 2022, the number of 10G PON ports with gigabit
years to achieve multiplexing of 4G and 5G wireless spectrum. service capabilities has reached 15.23 million, which is nearly
The speed of technology popularization and contract signing in double the level of the end of the previous year. 110 cities in the
Central and Eastern Europe is usually slower than in Western country have reached the standard for gigabit city construction;
Europe. This is due to the slow spectrum allocation process Mobile networks maintain a global lead in 5G construction.
and consumers' unwillingness to upgrade to more expensive As of the end of 2022, China has built and opened a total of
services. 4G is the leading technology and is expected to 2.312 million 5G base stations, accounting for over 60% of
account for 75% of all signed contracts by the end of 2022. the global total. While continuously deepening the coverage of
The growth of mobile contract numbers has stabilized and is prefecture level cities and urban areas, it is gradually extending
expected to approach zero in the coming years. However, as of to townships and rural areas as needed; The number of 5G
2024, the migration from 2G/3G to 4G in the region remains base stations per 10000 people reached 16.4, an increase of 6.3
strong. Starting from 2025, 5G will become the only growing compared to the end of the previous year.
signing type. The development level of 5G users in China is leading the
North America is in the midst of the second wave of 5G world. As of the end of 2022, the number of mobile phone users
construction and user adoption. The addition of intermediate in China reached 1.683 billion, with a population penetration
frequency spectrum provides many users with an excellent rate of 119.2 units per 100 people, higher than the global
multi band 5G experience. In 2022, the region's 5G adoption average of 106.2 units per 100 people. Among them, there are
rate continues to grow strongly. FWA, which enables high-speed 561 million 5G mobile phone users, accounting for 33.3% of
internet access for households and small businesses, has become mobile phone users, which is 2.75 times the global average
the main technology driving the growth of fixed broadband (12.1%).
in North America. 5G is also growing in the enterprise sector. The scale of gigabit users in China is rapidly expanding. As of
The wireless wide area network helps enterprises connect to the end of 2022, the number of fixed broadband access users
branches and serves industries with strong demand for ultra in China was 590 million, with a population penetration rate of
mobile. By 2028, the number of 5G contracts is expected to 41.8 units per 100 people, far higher than the global average of
reach approximately 420 million, accounting for over 90% of 20.8 units per 100 people. Among them, there are 554 million
all mobile contracts. fixed broadband users with access rates of 100Mbps and above,
4G is currently the main wireless access technology in Latin accounting for 93.9% of broadband users, far higher than the
America, accounting for 72% of all signed contracts by the end global average of around 65%; There are 91.75 million fixed
of 2022. The growth of 4G contract signing is strong, with an broadband users with an access rate of 1000Mbps or above,
increase of over 56 million in 2022. However, as users migrate 2.7 times the size of the end of last year, and the proportion has
to 4G and 5G, 3G signing is decreasing. Many operators increased to 15.6%.
will implement 3G decommissioning within the next two In March 2023, China released the "Overall Layout Plan for
years in order to reuse wireless spectrum for 4G deployment. the Construction of Digital China", proposing to accelerate the

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