The latest edition of the Ericsson Mobility Market Report, released by Ericsson, predicts that four in ten mobile subscriptions will be on 5G by 2026. The report estimates that by the end of 2020, 5G will cover more than 1 billion people worldwide, accounting for 15% of the total global population. By 2026, 5G will cover 60% of the world's population, and the number of 5G subscribers will reach 3.5 billion. This means that global operators' 5G network deployment is about to usher in large-scale construction.
2020 is a year of large-scale 5G construction in China. By the end of the year, more than 700,000 5G base stations have been built. According to the plan of the Ministry of Industry and Information Technology, another 600,000 will be built in 2021. Under the great trend of 5G development, Ericsson has achieved outstanding results in the 5G market in 2020. At present, Ericsson has obtained 122 5G commercial contracts, of which 77 have been put into commercial use, becoming the world's largest 5G communication equipment manufacturer with 5G contracts and completed network commercial construction.
If a 2020 5G Achievement Award is to be awarded, Ericsson's certificate will definitely read: Ericsson's classmates have won the first place in the global 5G network construction in 2020, and they have achieved excellent results, which is hereby commended.
Technical strength determines market share
A report released by market research firm Dell'Oro Group in mid-December shows that since the third quarter, Ericsson's market share in 5G equipment manufacturers has risen sharply, up 10% from the second quarter to 30.7%, and a month-on-month increase of 48.3%. Among the six major communication equipment manufacturers, the growth rate was the highest.
As a 5G technology and market leader, Ericsson is involved in the deployment of 5G networks in all launch markets on four continents. So far, Ericsson has signed 122 5G commercial contracts around the world, providing equipment for 77 5G commercial networks that are already in operation in 40 countries.
The 5G market is fiercely competitive. Although there are many other factors, in general, technology and product strength are still the key factors in winning the market. In 2020, Ericsson will perform well in the 5G market. Ekang Bao, President and CEO of Ericsson, said that the major investment in R&D and the creation of leading technologies and products are the main factors for growth.
Ericsson is a leader in the field of 5G technology. In 2020, Ericsson has demonstrated comprehensive 5G comprehensive strength in the fields of 5G technology innovation and industry applications.
In terms of technological innovation, Ericsson's "Dynamic Spectrum Sharing Technology" has added a lot to its 5G market. With extensive and close collaboration with operators, terminal and chip manufacturers, this technology is in full swing in 5G commercial innovation. In China, Ericsson, Guangdong Telecom and OPPO successfully demonstrated the application of dynamic spectrum sharing technology in multiple scenarios, launched 5G commercial services using spectrum sharing technology in Hong Kong operator SmarTone, and completed the first domestic case with Sichuan Telecom in the 2.1GHz 5G commercial network environment Data calls based on 5G independent networking. In the global market, Ericsson's spectrum sharing technology has also been commercialized. For example, with the help of Swisscom and Telstra's 5G commercial network, the first data call connecting Bern, Switzerland and the Gold Coast of Australia is realized. Ericsson's dynamic spectrum sharing solution has won the GSMA Global Mobile Awards 2020 for its technological leadership.
Millimeter wave is a hot spot in the 5G market this year. In 2020, Ericsson has made frequent moves in millimeter wave, making new breakthroughs in speed and coverage. First, it successfully completed the first connection in Europe that broke the 2Gbit/s speed limit on the existing 5G commercial network at the beginning of the year; then completed the first domestic 5G millimeter wave commercial system and commercial smartphone test in Beijing in August, and completed the test with OPPO in September. The first domestic commercial system and commercial CPE 5G millimeter wave test; In December, Telecom Italia, Ericsson and Qualcomm applied 5G technology to fixed wireless access. In the scenario of 6.5 kilometers away from the site, the real-time network is based on the millimeter wave in the 26GHz frequency band. Wave Spectrum has set a transmission speed record of 1Gbit/s.
In addition, the 5G construction in the 700MHz frequency band, which has attracted much attention from the industry, will be officially launched globally in 2020. There are 14 700MHz 5G networks in commercial use worldwide, 11 of which use Ericsson equipment. On April 23, 2020, Ericsson assisted Vodafone Germany to realize the world's first 700MHz 5G network, and deployed 8,000 700MHz base stations within the year; in September 2020, it assisted Denmark's TDC to realize the first commercial network of 5G in Denmark, and 3,000 700MHz base stations quickly achieved nationwide coverage. Seize the market opportunity. In December 2020, Asia Pacific Telecom in Taiwan purchased Ericsson 5G equipment, and will completely replace the 700mhz equipment on the existing network. Broadcasting business is an important scenario of 700MHz. Under the guidance of China Radio and Television, Ericsson has cooperated with third-party commercial chips to achieve end-to-end verification. Statistics show that Ericsson's cumulative global shipments of 700MHz RRUs have exceeded 1 million. This record number not only means that Ericsson's products have obtained extensive commercial verification, but also shows that it has accumulated rich experience and in-depth insight into the wireless characteristics of 700MHz networks.
In the field of 5G applications, Ericsson is a pioneer in the industry, actively promoting 5G to empower vertical industries and stimulate and meet industry needs. Due to the rapid progress of China's 5G construction and extensive industry applications, Ericsson has launched in-depth cooperation with China's three major operators and partners in 5G applications. For example, in cooperation with Jiangsu Mobile, the Ericsson Nanjing factory has deployed a 5G exclusive network, which includes AR remote expert guidance/training and quality inspection, video surveillance, drone storage, industrial computer, AGV scheduling system, environmental monitoring, and assembly tightening monitoring. , machine vision guided assembly, intelligent line array scanning and forklift informatization and other 5G applications; cooperated with China Telecom in the Internet of Things to help China Telecom build an IoTA (DCP) global connection management platform; Kangdao Hongdao factory carried out in-depth cooperation, researched and explored the application scheme of 5G technology in the field of intelligent manufacturing, and jointly built a commercial operation-level 5G intelligent factory.
Of course, in the global market, Ericsson is also working with industry partners to explore the possibility of 5G empowerment. For example, Ericsson is working with Telenor and Sony to develop smart IoT medical devices; Ericsson is working with GroupeADP, HubOne and Air France to jointly deploy a 5G network for the future-oriented Paris airport to provide fast, safe and reliable wireless Internet.
Zhao Juntao, President of Ericsson China, said: "With the in-depth commercialization of 5G, the era of smart manufacturing and Industry 4.0 has arrived. Ericsson not only has a strong portfolio of products and solutions, but also has accumulated rich applications in various industries together with global leading companies. Cases and experience, committed to becoming the best partner for enterprise digital transformation."
Deeply cultivate the Chinese market
Since the end of the 1980s, Ericsson has actively participated in the construction of China's telecommunications industry. As the only system supplier that has gone through the whole process of building China's mobile communications from the first to the fifth generation, Ericsson has played an important role in the development of China's information and communications industry. In the 5G era, Ericsson is even more confident. Zhao Juntao said that Ericsson is fully engaged in China's 5G construction tide, and will provide services to more Chinese users with high-quality network connections.
During the two years of 5G construction in China, Ericsson, together with industry partners, has jointly promoted the further improvement of 5G standardization and the continuous maturity of the 5G industry chain. Actively coordinate Ericsson's global resources to support China's large-scale 5G network deployment. In the Chinese market, Ericsson has become the only foreign equipment supplier chosen by the three major operators in the 5G era. Figures show that in 2019, the Chinese market brought 7% of Ericsson's revenue. In the third quarter of 2020, this number has grown to 8.5%. The Chinese market is of strategic importance to Ericsson.
As for the development in China, Ericsson President and CEO Eikon Bao believes that China's openness and tolerance are the foundation for Ericsson's rapid development in the Chinese market.
"We are very much looking forward to witnessing and learning the development of 5G applications in China." Bao Yikang said that China is a large and large-scale market. More importantly, China is not only the center of innovation in the world in terms of 5G network technology, but also an important driving force for innovation in the application of 5G. Due to China's first-mover advantage, Chinese entrepreneurs and innovators have developed a variety of 4G-based applications, and have made great progress in the development of payment e-commerce and media. In the future development of 5G, due to the advantages of network construction and the needs of rich application scenarios, China's exploration in the field of 5G applications is in full swing. In the 3rd 5G Bloom Cup 5G Application Competition organized by the Ministry of Industry and Information Technology, the current focus on 5G cloud XR, industrial Internet, smart medical care, financial technology, smart business, epidemic prevention and control, 5G industry private network and applications, smart transportation, smart parks, There are more than 4,300 application solutions such as 5G application security, and many applications have now been implemented. The projects Ericsson supported operators to implement stood out from nearly 4,300 projects and won 8 awards. Among them, "Ericsson Nanjing 5G Smart Factory Project" jointly completed by Ericsson and Jiangsu Mobile won the third prize in the "Blooming Cup" National Finals. Nanjing Smart Factory is the first smart factory in Ericsson's global supply chain to achieve commercial deployment of 5G private network. The project started in 2016 and is a pilot demonstration project of the Ministry of Industry and Information Technology. The factory has started 5G transformation and upgrading since 2019, and has now completed the 10,000-square-meter 5G enterprise private network coverage in the factory area, which is connected with the factory's original IT system. Cloud AGVs, drones, AR remote guidance, industrial computers, AR/VR training, video surveillance and other applications connected to the 5G network have been put into use, greatly improving the digital operation level of the factory, which is a typical example of 5G-enabled intelligent manufacturing .
Advocate global 5G cooperation, win-win and fair competition
As a global leader in mobile communications, Ericsson firmly believes that only with the cooperation of the global industry chain can the entire mobile communications industry develop rapidly and healthily. From 2G to 4G, this is a development truth that has been proven by the market. At the beginning of 5G development, from technical standards to product research and development, the global industry chain has reached a preliminary consensus, and everything is developing towards a better trend.
However, in the past two years, the wind direction has changed suddenly, and some Western countries have begun to suppress China's 5G development on the grounds of security, which has seriously hindered the global 5G development. In this regard, Ericsson has repeatedly stated on multiple occasions that suppressing China's 5G development will hinder free market competition and transactions, and will delay the launch of new technologies, affecting global 5G development.
Yikang Bao has publicly stated in the media many times that to promote the development of the global 5G market, the industrial chain needs to be promoted together, and countries must be based on fair competition and market opening. Yikang hopes that Ericsson and Chinese companies can jointly develop the global 5G market. Regarding the unfair treatment currently faced by Chinese enterprises in the development of 5G, Ekang Bao said: "Ericsson has always believed in fair competition and open markets. We believe that all enterprises cannot do without fair opportunities to gain market access. It is precisely because of competition , openness, makes us a leader in the global 5G field."
For Ericsson, Chinese companies are competitors, but also important partners in a healthy ecosystem. "Huawei is indeed Ericsson's strongest competitor. In fact, the relationship between the two parties is not only competition but also cooperation. Although the two companies compete in products, they have extensive cooperation in promoting the formulation and development of global telecommunications standards. It is precisely because of the competition and cooperation between the two companies that the number of users using the same 3GPP standard worldwide has reached 8 billion." Bao Yikang said.
Ericsson understands that only by maintaining a sound ecological order for global 5G development can we have a bright future of the Internet of Everything.
Responsible editor: tzh