LightTrends

 

Huawei and 5G Dominate the Agenda at Optinet China 2019

 

LightCounting Releases a Research Note Summarizing Highlights From the Optinet China Conference and Tradeshow Held in Beijing on June 12-13

 

Optinet China has been ´┐Ż´┐Żbringing together the top experts of the Chinese telecom industry for the last 25 years. The event added a session on Cloud datacenters last year and this is now a “must attend event” for suppliers to this market segment as well. Presentations from Alibaba, China Mobile and the datacenter business of China Telecom were among the highlights of the conference in 2019. Notably many more start-up companies and investors were in attendance at the event this year.

Commercial deployments of 5G in China officially started on June 6, as the government issued the relevant licenses to the operators. This was a surprise for China Telecom and China Unicom, which were not expecting to get licenses until early 2020. The Chinese government is clearly expediting the process. Having large infrastructure programs is critical for boosting economic growth and 5G is one of the key initiatives.

Dr. Wei Leping, co-chairman of Optinet China stated that a total of 80,000-100,000 5G stations will be built in more than 40 cities in 2019. By 2020, there will be 600,000 to 800,000 metro cell stations built in hundreds of cities. In 2021-2027, there will be millions of metro cell stations and tens of millions of small base stations deployed.

While China Telecom and Unicom were caught by surprise and are now rushing to finalize plans for their first commercial 5G deployments, China Mobile was expecting to get its license early and had all the plans in place for commercial 5G deployments in 2019. Huawei got the lion’s share of business from the first contracts awarded by China Mobile. Module vendors are ramping shipments of 25G single channel transceivers for optical fronthaul and 50G BiDi for backhaul in line with LightCounting Market Forecast, published in April 2019.

New business opportunities enabled by 5G remain unclear, but commercial deployments will proceed regardless. Competition among service providers will force China Telecom and Unicom to try to catch up with China Mobile, which is going full speed ahead with commercial 5G deployments now.

LightCounting clients can access full text of the research note at: https://www.lightcounting.com/login.cfm

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