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China Unicom and China Telecom may build 5G network jointly

via:C114中国通信网     time:2018/12/10 14:09:03     readed:424

This time, with the official release of the Ministry of Industry and Information Technology (MIIT) 5G test frequency license, the legendary merger of China Unicom and China Telecom may not take shape eventually, but a 5G network will come true.

1. No Chinese radio and television figures were seen in the 5G low and medium frequency band test license issued by the regulatory authorities.

On the same day that China Mobile hosted its global partnership in 2018, the official media reported the news of the "5G test spectrum release of the three major operators". Newspapers contain test bands obtained by three major operators. The results of nationwide 5G test frequencies obtained by the three operators are as follows: China Telecom obtains 5G test frequencies resources of 3400MHz-3500MHz (100MHz); China Mobile obtains 5G test frequencies resources of 2515MHz-2675MHz (160MHz), 4800MHz-4900MHz (100MHz), of which 2515-2575MHz (60MHz), 2635-2. 675 MHz (40MHz) and 4800-4900 MHz (100MHz) bands are new bands, 2575-2635 (60MHz) MHz bands are the existing TD-LTE (4G) bands of China Mobile, and China Unicom has obtained 3500 MHz-3600 MHz (100MHz) 5G test frequency resources. The frequency resources of the 5G system test frequency license issued by the Ministry of Industry and Information Technology are generally balanced. Taking into account the 5G frequency requirements of existing basic telecommunication operators, it is conducive to promoting fair competition and sustainable development of operators.

Spectrum resource is the core resource of mobile communication development. Spectrum planning is the starting point of industry and determines the pattern of industry development. The division result of 5G test spectrum has long been expected by the industry. For such distribution results, the majority of the industry believes that this is also a combination of three practical advantages, and help to play a realistic advantage of the results. However, for China Radio and Television, which has been boiling a long time ago and is rumored to have a 5G license, the test frequency band has not been obtained. Of course, for China Radio and Television, the network construction is still in its infancy compared with the three major basic operators, whether or not it has obtained the test license of low and medium frequency band. Therefore, even if the medium and low frequency test permission is obtained, the probability of the final physical test is not large.

2. Technology permitting and financial requirements, China Unicom and China Telecom jointly build 5G network

With the upgrading of communication technology to 5G era, China Telecom's CDMA has been unable to evolve. From the point of view of complete technology, China Telecom can only deploy 5G network in other formats. This time, China Unicom and China Telecom acquired 3.5 GHz adjacent. Therefore, if China Unicom and China Telecom choose to build a network in the 3.5 GHz band, because the spectrum of the two companies is adjacent, and the existing filters and PA equipment, all support the 200 MHz bandwidth, that is, a set of wireless devices can simultaneously transmit the 5G signals of China Unicom and China Telecom operators. Since then, the possibility of the two operators choosing to build a 5G network will be greatly increased.

In addition, considering the cost of network construction, China Unicom and China Telecom choose to build 5G network jointly. Different 2G, 3G and 4G networks of 5G need to build base stations intensively. Therefore, the two networks have limited financial resources. Before the actual problem of 4G investment has not yet been recovered, there is also a realistic demand for joint investment in network construction. In addition, the large sharing of the tower also provides convenient conditions for the network cooperation between the two. As long as they are willing to share the reserved core sites, 5G network deployment can be started efficiently.

3. The track has been decided. How likely is the merger of China Unicom and China Telecom?

If China Unicom and China Telecom have the realistic demand of technology and capital cost to build 5G network, what is the possibility of merging the two? We believe that the merger needs of the two will be a realistic choice with all kinds of merger rumors in the early stage. Especially in the current macro situation at home and abroad, the possibility of this realistic choice will only grow. Among them, the international macro-situation is that the trade war under the "US priority" has begun to spread around the world, and ZTE has been sanctioned and assigned to the "Ombudsman".HUAWEIBy "pulling the blacklist" for example, to seize the 5G global leading edge is no longer the competition of the telecommunications industry, but the leading position of the whole industry and the whole industry chain with information and communication as the core. After all, 5G changes society completely different from 4G in changing life. 5G involves the same industrial revolution as steam revolution, electric revolution and information revolution. Earlier this month, South Korea announced the start of 5G commercial use, and the United States also conducted a trial commercial use. Therefore, it is imminent to compete for the 5G first-mover advantage and the 5G fast development advantage. This requires that China comply with the changes of the international situation, first expand and then balance the development of the industry. Therefore, from the perspective of international competition and national strategy, the merger of China Unicom and China Telecom is a natural trend.

In terms of domestic industry competition, whoever is the leader is "contradiction among the people". Moreover, under the pressure of international competition, the realistic demand of fully supporting the industry to become bigger and stronger is far greater than the demand of asymmetric regulation and rebalancing in order to avoid a dominant industry. In addition, recent merger information shows that the merger and reorganization of other industries in the state-owned enterprise system is also accelerating. According to the latest news, China Railway's restructuring plan has been approved and the four major engineering bureaus will soon be back in their arms. Three barrels of oil will face major reforms and the National Oil and Gas Pipeline Company will come. It can be done that different industries in China are beginning to build domestic cohesion in order to further strengthen global competitiveness. Therefore, from this point of view, the merger of China Unicom and China Telecom also has domestic policy basis. In addition, even if we do not consider the international and domestic situation, only from the perspective of frequency band and technology, and even if China Unicom and China Telecom do not merge in the legal sense, all kinds of strategic cooperation between them starting from the joint construction of 5G network can be completely achieved. It can be said that there are realistic requirements for policy to allow the two to merge, and spontaneous cooperation is also a realistic demand for both.

Global 5G deployment has begun, and domestic 5G test has entered the implementation stage. It can be said that even if the 5G era has not yet arrived, it also puts forward higher requirements for regulators and practitioners. In addition, in order to seize the global leading edge and fully support the national strategy, the merger and reorganization within the licensing industry should be an optional content on the premise of maintaining a certain degree of competitiveness. Operators can "release water and raise fish" for other industries, and the state should also support the "water storage cohesion" of the communications industry. Starting from the joint construction of 5G network, China Unicom and China Telecom are expected to join hands to meet new challenges.

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