The Zhitong Finance App learned that China Galaxy Securities released a research report saying that new ICT infrastructure in China's digital economy continues to accelerate, and demand in the ICT infrastructure market is highly certain; the shift from 5G “investment period” to “harvest period” brings about consolidation of 5G application expansion, and the corresponding sector is expected to usher in a steady recovery. High prosperity combined with low valuations is the key direction of stock selection. Recommended concerns: new infrastructure RF components Dafu Technology (300134.SZ), Tongyu Communications (002792.SZ); Industrial Internet of Things Yinghantong (688080.SH); communication module Guanghetong (300638.SZ); satellite application Huacai Navigation (300627.SZ), 3D communication (002115.SZ). Telecom operators: China Mobile (600941.SH), China Telecom (601728.SH), China Unicom (). 600050.SH
occurrences
Recently, the 2023 Global Mobile Broadband Forum was successfully held in Dubai. Focusing on 5G Advanced (5G-A), Huawei released the world's first full range of 5.5G product solutions. Through innovations in broadband, multi-frequency, multi-antennas, intelligence, and green, this series of products provides ten times the network capability compared to 5G. The entire network spectrum efficiency, energy efficiency, and operation and maintenance efficiency are optimal, and better supports industrial applications such as the Internet of Things, VR/AR, and satellite communications. Huawei announced that it is expected to launch a full set of commercial-oriented end-to-end 5.5G network equipment in 2024, marking the intermediate transition stage of 5G to 6G. The ease of use of 5G will reach a new level, and the industrial chain is expected to usher in a critical period of development and maturity.
New infrastructure continues to consolidate the digital intelligence connection base, new standards evolve, catalytic technology upgrades, and traffic increases
Information infrastructure and core technology are expected to be deployed ahead of schedule, and demand in the digital economy will stimulate the rapid development of the industry. Specifically, AAU, the largest 5.5G millimeter wave antenna array, is 10 times higher than 5G in terms of downstream and uplink transmission rates, achieving 10 megabyte continuous coverage; TDD has more frequency bands and more channel ELAA, greatly improving TDD coverage and energy efficiency. With more frequency bands, more services, and more connectivity, 5.5G is expected to move towards a higher level of self-intelligence.
In terms of new infrastructure construction, by the end of August 23, the total number of 5G base stations had reached 3.138 million, accounting for 27.5% of the total number of mobile base stations, maintaining global leadership. The scale of 5G services continues to grow, with 714 million 5G mobile phone users, accounting for 41.7% of mobile phone users, and the 5G penetration rate continues to increase. The DOU value remains high. Since this year (January-August), the cumulative mobile Internet traffic has reached 193.2 billion GB, an increase of 14.7% over the previous year. In August, the average mobile Internet access traffic (DOU) per household reached 16.98 GB/household/month, an increase of 11.7% over the previous year.
With the support of new infrastructure such as gigabit optical fiber networks and 5G, the development of 5G-A is driving market demand for communication connectors, and the degree of localization continues to rise. Communication infrastructure is the main focus of the connector market. The amount of RF connectors used is expected to grow exponentially, and the 5G infrastructure upgrade is expected to bring about a sharp rise in connector demand, volume and price. Overall, the ICT industry chain is expected to usher in new market opportunities, catalyze the blossoming and implementation of 5G applications, and 5G development is expected to usher in a wider world.
5.5G fills the 5G gap, 5G is easy to use to a new level, and the technological ecosystem evolves to expand new applications in the industry
From the perspective of industrial chain integration, 5.5 technology is expected to significantly improve the efficiency, operating costs, and safety of many vertical industries. The 5G upgrade has accelerated new businesses such as the Internet of Vehicles. The trend of connectivity and intelligence in the smart transportation market is clear, and long-term growth is strong. Satellite Internet is currently one of the most deterministic technologies for 6G. It is expected to start and lead the next round of communication infrastructure construction. On the basis of 5G, 6G will achieve the transition from the Internet of Everything to the Intelligent Connection of Everything. In terms of the industrial IoT sector, benefiting from the full coverage of China's 5G base stations and 5G signals, low latency may enable the rapid development of China's industrial Internet industry. It is expected that related factories and enterprises will continue to drive the development of the industry by reducing costs and increasing efficiency and improving security.