Operators launch the second phase of 5G bidding, and the performance of industry chain companies may exceed expectations

On March 3, it was reported that in the context of accelerating new infrastructure such as 5G, the three major operators are about to launch the second phase of 5G bidding, which may be in April. China Telecom told the “Securities Daily” reporter that the specific bidding time needs to be subject to the announcement, which has not yet been disclosed.

“Judging from the current information, the timing of launching the second phase of 5G bidding in April this year is in line with expectations.” Jiang Han, an expert consultant on upstream finance and economics, told the “Securities Daily” reporter that the second phase of bidding means that 5G has entered the market. Another key node has practical significance for the popularization and development of the market.

In fact, the three major operators have previously stated that the goal of 5G base station construction this year will not change, and the construction of 5G networks will be accelerated. China Mobile has publicly stated that the goal of “building 300,000 5G base stations” in 2020 will not change, and this year will build 5G networks in cities above the prefecture level nationwide. At the same time, China Telecom and China Unicom strive to complete the joint construction task of 47 cities and 100,000 base stations in the first half of 2020, and strive to complete the national target of 250,000 base stations in the third quarter of this year, one quarter earlier than the original plan to complete the whole year The goal of building.

The reporter noticed that recently, the three major operators have begun to take active actions.

On February 26, China Mobile frequently purchased CDN-related projects, and Huawei, Fiberhome and other manufacturers won the bid. China Telecom has previously announced that the company is the first in the industry to complete the overall system performance verification of the 5G SA (standalone) core network commercial equipment. At the same time, the 5G end-to-end system function verification and inter-vendor interoperability testing have also been basically completed. On February 27, China Unicom announced that it will conduct single-source procurement for the first phase of the IT cloud resource pool server expansion project in 2020.

China Unicom told the “Securities Daily” reporter that considering the impact of the epidemic, the production capacity of some components will be affected. After the epidemic is over, batch orders will be placed, and the supply cycle of some manufacturers will be extended. China Unicom’s construction, procurement and other departments actively communicate with equipment manufacturers, accurately grasp the existing equipment capacity and supply cycle, plan ahead, and connect with needs in advance to ensure that equipment and materials arrive in time. It also worked with China Telecom to formulate a joint bidding plan for 5G wireless equipment, as well as a contingency plan for 5G equipment procurement, to drive major equipment manufacturers to accelerate production capacity recovery.

In Jiang Han’s view, the epidemic actually provides a better development environment for 5G. “During the epidemic, many Internet companies did not experience the decline in performance that everyone was worried about, but instead experienced substantial business growth, which is a feature that is completely different from other industries. Therefore, in the current environment, the development of 5G is different from that of some industries. The degree of matching is getting more and more attention.” Jiang Han said.

In fact, since the opening of the market this week, affected by the upcoming launch of the new 5G infrastructure and the bidding for the second phase of the 5G phase of the three major operators, companies related to the industry chain have performed well in the capital market. On March 2, the communication sector index represented by 5G rose strongly; on March 3, 5G concept stocks continued to strengthen.

Shuzhi Technology told the “Securities Daily” reporter that the communication business of the company’s smart light poles and tower operation sectors also benefited. In the secondary market, Shuzhi Technology’s stock price rose 4.81% on March 2, and continued to increase in heavy volume on March 3, closing up 1.07% on the same day.

Huaxi Securities analyst Sun Yuanfeng believes that due to the impact of the new crown pneumonia epidemic, although the base station construction of domestic operators is late, they will not be absent, and it is expected to exceed expectations in the end. The orders obtained by industry chain companies will be digested in the second and third quarters, and the bumpy performance caused by the epidemic in the first quarter will be successfully overcome.

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