5G is gradually becoming a part of our daily lives. As the communication equipment, major telecom operators, and handset manufacturers get closer to this next-generation technology, they are expected to undergo significant changes and innovations. Industry insiders suggest that the entry barrier for 5G is much higher than for 4G, making it highly dependent on advanced technology. This shift may lead to a transformation in the landscape of smartphone manufacturers.
The arrival of 5G is steadily approaching. Reporters noted that since the start of December, various 5G-related concepts have been gaining momentum. On December 8, China Telecom announced the launch of its 5G pilot in Lanzhou. Earlier, on December 2, at the World Internet Conference, both Huawei and Qualcomm revealed their commercial timelines for 5G mobile devices.
From the era of 2G, 3G, to 4G, each upgrade in telecommunications has reshaped people's lives and created opportunities for companies across the supply chain, including equipment manufacturers and terminal vendors. As the "5G Change Society" era begins, the improvements in speed, connectivity, and access will trigger a wave of new technologies and applications.
Looking at the 5G industry chain, the upstream includes base stations, antennas, optical cables, chips, and RF components. The middle layer consists of telecom operators, while end users interact directly with devices like smartphones. Lin Zhihong, deputy general manager of MediaTek’s wireless communications division, emphasized that the entry threshold for 5G is significantly higher than for 4G, which makes it more technology-dependent, and could reshape the smartphone market.
As a core carrier of basic communication capabilities, telecom operators play a central role. A representative from China Telecom told reporters that 5G pilots have already started in cities such as Xi’an, Shenzhen, Shanghai, Suzhou, Chengdu, and Lanzhou, with small-scale networks being tested. Although full commercialization is expected in three years, the current level of interest and development shows no signs of slowing down.
On December 1st, the first standard for 5G non-standalone networking was finalized, and the system architecture and process standards for standalone (SA) networking were also completed. These milestones mark the commitment to achieving the full potential of 5G.
Yang Guang, deputy director of the Institute of Wireless and Terminal Technology at China Mobile Research Institute, explained that for mobile operators, the ability to “manage the cloud†has become crucial in the 5G era. From the terminal perspective, there are more connected devices beyond smartphones, such as sensors. In terms of infrastructure, 5G extends beyond human communication to connect objects, and when combined with AI, it can generate massive data and create more value.
Operators like China Mobile are focusing on four key areas: key technology research, standardization, industry promotion, and ecological construction. Industry promotion involves upgrading the hardware capabilities of partners, while ecological construction focuses on joint innovation and application development.
"The one who controls the standard controls the world." At present, the battle for 5G standard-setting is the main focus. Besides Qualcomm and Huawei, telecom operators are also a major player. China Mobile led the 5G System Architecture (5GS) project, marking the first time a Chinese company has taken the lead in designing a mobile network architecture.
It is inevitable that the mobile phone industry will face a surge beyond the carriers’ capacity to handle basic 5G communication. Yang Guang said that chip and terminal companies have been closely monitoring 5G and tracking the standards. Compared to previous generations, the time between standardization and product deployment has been greatly reduced. If the 2018 standard is achieved, commercial products could hit the market in 2019. However, the complexity of 5G upgrades remains a challenge.
The competition in 5G smartphone technology is fiercer than ever. In October, Qualcomm announced that it had implemented the first 5G data connection using the X50 baseband, achieving gigabit speeds through the 28GHz millimeter wave spectrum. Meanwhile, 5G phones equipped with Qualcomm technology are expected to be available in the first half of 2019. On the Huawei side, CEO Xu Zhijun stated that Huawei would launch a full-scale 5G network solution for large-scale commercial use in 2018, support global operators in deploying 5G networks, and release a 5G Kirin chip in 2019, along with 5G smartphones.
"In the low-frequency test phase, average user speeds exceed one terabyte per second. In the future, we are considering millimeter waves above 30 GHz, where peak speeds could reach 14G or 15G," said Yang Guang. However, due to the characteristics of 5G bands, concerns about signal coverage, hardware costs, and reliability remain, posing challenges for hardware manufacturers.
Lin Chih-hung mentioned that the cost of 5G phones is much higher than in the 4G era. Some technical challenges related to millimeter waves are still being addressed. From a market perspective, how quickly will 5G adoption take off? Technically, fewer manufacturers will be able to enter the 5G market. Additionally, the cost of 5G is layered over 4G, so device prices may not be cheap. Once the technology matures, companies that can adapt quickly will reshape the industry.
Currently, the benefits of 4G smartphones in mature markets are diminishing, and consumers are replacing their devices less frequently. 5G is expected to become a new driver for smartphone upgrades. Each generation of communication technology brings innovation, new opportunities, and accompanying risks.
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