2019 is a key year for the commercial use of 5g terminals. As we all know, terminals are an important part of the 5g industrial chain and the key to affecting users’ perception of 5g experience. With the issuance of 5g license, promoting the maturity of 5g terminal has become an urgent and important task in the industry.

Recently, the Research Report “forecast of smartphone sales in 88 countries worldwide by technology by 2024” released by strategy analytics predicts that 5g devices will have a slow start in 2019 and take off in 2020. The report points out that 5g mobile phones will account for nearly half of all mobile phone sales in five years. Ken Hyers, director of strategy analytics, said: “South Korea currently leads the 5g competition, but China plans to quickly become the global 5g leader. Whether it can provide low-cost 5g smartphones is very important for China to achieve this goal next year.”

Short time and heavy tasks are severe challenges for the industrial chain. However, as basic telecom operators, China Telecom, China Mobile and China Unicom have already continuously adjusted their strategies to promote the industrial chain to launch 5g commercial terminals as soon as possible to meet users’ demand for 5g.

5g terminal strategy of three operators

Strategy analytics predicts that the sales of 5g devices will account for less than 1% of the total sales in 2019, and the share will be close to 10% by 2020. High price and network quality are the biggest concerns of early consumers. Operators must continue to expand the coverage of 5g network to make 5g more attractive to consumers. As the builders of network infrastructure, the three operators have already announced their own plans.

The issuance of 5g license and promoting the maturity of 5g terminal has become the primary task in the industry

In terms of network construction, China Telecom adheres to the target networking direction of SA, hopes to strengthen cooperation with all parties in the industry, accelerate the pace of 5g construction, strive to take the lead in starting SA oriented network upgrading in 2020, and open up 5g differentiated network capabilities such as SA based edge computing and network slicing to the outside world; China Mobile has accelerated the construction of the world’s largest 5g network, comprehensively improved the quality and service capacity of 5g end-to-end network, and continued to promote the development of 5g technical standards; China Unicom put forward the “7 + 33 + n” 5g deployment plan, opened 5g test network in 40 cities in China, customized 5g network secondary network in n cities, and built various industry application scenarios to provide partners with broader test scenarios.

In terms of terminals, China Telecom will adhere to the all Netcom strategy, cooperate with R & D to promote the maturity of 5g industry, establish 5g terminal R & D alliance, and jointly promote 5g all Netcom to become a global standard; Jointly invest resources to promote the growth of 5g scale, and will introduce more attractive terminal incentive policies to reduce costs with all parties so that users can afford and use them; At the same time, it will enrich the types of 5g terminals according to user needs.

Lu Liangjun, deputy general manager of China Telecom Marketing Department, clearly put forward three terminal demand strategies of “excellent performance, universal modules and rich experience” to the industrial chain at the “China Telecom Intelligent Terminal Technology Forum”. In terms of performance, China Telecom promotes the uplink and downlink capacity and peak rate of high-end terminals; Actively promote 5g terminals to support Wi Fi 6 and give full play to the advantages of dual Gigabit. In terms of experience, China Telecom promotes the maturity of portable VR terminals; Promote 5g terminals to support general ar capability; Upgrade voice service, fully popularize volte, and push 100 yuan volte mobile phone; Promote and support new functions of SA and focus on low delay service support. In terms of modules, China Telecom accelerated the commercial maturity of general 5g modules. At the end of the year, the first 5g module was commercial, focusing on innovative terminals such as vehicle, UAV and robot, enabling vertical industries.

China Mobile focuses on the development of 5g terminals and adheres to the product strategy of “three more and new”: it supports multi-mode and multi frequency bands, promotes the development of multi-mode and multi frequency terminals, and synchronously supports NSA / SA (non independent networking / independent Networking); Develop multi terminal forms, comprehensively guide individuals, families and industries to accelerate the launch of innovative terminals, and make terminal preparations for the integration and development of 5g with various industries; Provide multi-user options, promote the rapid downward exploration of 5g chip and terminal prices, and create more than 100 terminal products for consumer and industrial markets; Create new industrial ecology, incubate 5g applications, and build 5g personal and industrial new ecology. It is worth mentioning that in order to promote the rapid maturity of 5g terminal industry chain, China Mobile has jointly developed 5g terminal technology scheme, carried out technical research, organized scale test, developed private brand terminals, and launched the first 5g mobile phone of domestic operators – Pioneer x1.

China Unicom has put forward the “four modernizations” to promote the popularization of 5g terminals, that is, 5g mobile phones, universal mobile phones, popular prices and ubiquitous terminals. China Unicom should build a new ecosystem of terminal industry chain of “two leaders + four platforms + four capabilities”, focus on the intensive and Internet transformation of products, cooperation, channels and marketing methods, and take 5g terminal as the starting point to build a full life cycle production and operation support system of 5g terminal integrating “cooperative ecological network”, “marketing operation network” and “intelligent delivery network”, Create differentiated 5g terminal new operation.

“The 5g mobile phone strategies of the three major domestic operators basically converge. First, the three operators agree that SA and sa mobile phones are the development direction of the 5g era. They develop full-mode and full band mobile phones and are downward compatible with 2G / 3G / 4G networks, that is, the same mobile phone can be used by three operators; second, they plan the terminal price in combination with the network construction, that is, when the 5g network construction is in place In addition, in addition to general mobile phones, operators also emphasize the development of 5g pan intelligent terminals and industry terminals, such as CPE terminals, 5g smart homes, 5g wearable devices, etc. ” Jin Feng, an industry expert, believes that.

5g terminal “subsidy” is nothing

For the development of terminals, it was recently reported that the three operators originally planned to subsidize 5g mobile phones in the early commercial stage of 5g network, so as to attract users to use 5g network, but judging from the latest progress, 5g terminal subsidy activity is no longer possible. Some insiders believe that the reason why 5g terminals are not subsidized is that the investment cost of 5g base stations is high and the marketing cost is compressed. In fact, operators have begun to reduce marketing costs as early as 2014.

And recently, it is rumored that government departments coordinate the three operators to cancel mobile phone subsidies and various marketing competitive gifts at the same time. Jin Feng said: “the simultaneous reduction of various expenditures of the three operators is to improve their profits and leave room for the ‘speed-up and fee reduction’ to be carried out again.” he believes that this can also avoid the vicious competition after the implementation of the full number carrying network transfer.

Thus, the price of communication services can really return to value. “Today, when communication services have become universal services and terminal manufacturers have strong capabilities, reducing mobile phone subsidies and making the market law more pure will not affect users’ purchase, nor will it affect the development of manufacturers’ R & D and manufacturing,” Jin Feng said.

It will take time for 5g mobile phones to become popular

As Lu Liangjun said: “5g lets us once again stand in the opportunity window of upgrading and switching. There is market space, business space and improvement space for 5g terminal development.”

For 5g mobile phones alone, Samsung is currently the leading brand of 5g smart phones. Ville petteri ukonaho of strategy analytics said: “Mainly due to its strong sales in Korea and by expanding its share in 5g markets such as the United States, Samsung has successfully taken the lead in the 5g smartphone market. Of course, LG, Huawei, ZTE, oppo, vivo and Xiaomi are also the first batch of 5g smartphone manufacturers in the market. The rise of 5g handsets in 2020 will be a turning point in sales. All major smartphone manufacturers, including apple, are developing Develop 5g mobile phones and launch more devices in 2020. “

However, the consensus in the industry is that 5g mobile phones are important and pan intelligence has a broader application scenario. 80% of 5g applications lie in the industrial Internet and 20% are used for consumer Internet. According to Lu Bin, an expert in the communication industry, the popularity of 5g smart phones still has a long way to go.

Lu Bin said that from the perspective of operators, there is already a 4G network with good network coverage and basically meeting 90% of the business needs of mobile Internet. Therefore, making full use of 4G network is the basic and key. From the perspective of satisfying consumer Internet, it is not necessary to build a full coverage 5g network on a large scale at the current stage. The huge investment cost is unbearable for operators, and it is not necessary for consumer Internet business needs. At present, many consumer mobile Internet applications use 4G + 5g dual networks to meet the needs of consumer mobile Internet, which is more in line with the actual needs. Lu Bin believes that “the development of 5g smart phones needs to be combined with the deployment of 5g network, which is closely related to the maturity of terminal industry chain and the decline of cost. The paths of 5g smart phones and 4G smart phones are very different.”

Standing at the 5g outlet, the terminal industry will mature, and the industrial chain will face many challenges. However, with the decline of price and the expansion of 5g available network, 5g mobile phone sales will eventually surge.

        Editor in charge: Tzh

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