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5G Construction Pressure Is A Major Trend For Cross-border Construction Of Power Grids

5G construction pressure is a major trend for cross-border construction of power grids

On August 8, 2018, the China Tower was officially listed on the Hong Kong Stock Exchange, becoming one of the largest IPOs in the world in recent years. In addition to China Mobile, China Telecom, China Unicom three major operators, including Gaochun Capital, Alibaba have participated in the investment. Among them, the three major telecom operators are both major shareholders and major customers of China Tower. At present, the market value of China's iron tower has exceeded 200 billion, and the development speed is very fast.


Tower sharing model from the United States


In fact, the iron tower sharing model is not the first in China, but the product after absorbing the American experience. The China Tower has used the sharing model of the American Tower. Since its establishment in 2014, it has achieved remarkable results. The American Tower Company has a long history and has a history of more than 19 years. At present, there are more than 110 iron tower companies in the United States, the largest of which are: American Tower (ATC), Crown Castle and SBA Communications. The three companies have a market share of more than 80%. At present, at least 60% of the global communication towers have belonged to the independent iron tower company. This also proves that the iron tower model is the most successful joint construction and sharing mode of the global telecommunications industry.


Before the establishment of the China Tower, the domestic towers adopted the modes of construction, operation and management of the three operators of China Mobile, China Unicom and China Telecom. After the establishment of the China Tower, it became a new model of construction, operation and maintenance, management, and sharing. This new model has effectively reduced the redundant construction of the tower, saved construction funds and resources, and better adapted to the requirements of market development.


Although the model of sharing towers originated in the United States, this model is growing faster in China than in the United States. So far, the number of towers in China's iron towers is about 1.9 million, which is much higher than the 200,000 in the United States, the originator of the tower model. According to statistics, at present, the number of towers per 10 square miles in China is 5.3, while that in the United States is only 0.4. From the per capita data point of view, China has 14.1 towers per 10,000 people, compared with 4.7 in the United States.


Grid integration is the further development of the sharing model


On April 24, 2018, the China Tower and the State Grid signed a strategic cooperation agreement, and the two sides launched a strategic agreement on “sharing the tower”. Since the construction cost of 5G network is much higher than that of 4G, network densification is further strengthened, and multiple base stations are needed to support it. The listing of China Tower and the addition of cooperation mode with the State Grid “Shared Tower” will accelerate China's communication tower. And the coverage of small base stations, thereby accelerating the deployment of China's 5G network.


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Power and communication share a tower, which can solve the problem of electricity and solve the problem of signal coverage. It is a cross-border development of the sharing model. The “shared tower” fully revitalized the stock tower resources of the power grid, saving communication operation costs and speeding up the progress of the network. The frequency of the grid operation is the low frequency band, and the communication base station transmission belongs to the high frequency band. The two are like parallel lines that never intersect. From the technical theory and communication equipment parameters, the electromagnetic field of the power line will not affect the communication equipment.


In fact, there are precedents for grid companies to enter the communications tower. As early as July 15 last year, Japan's Tokyo Electric Power Company publicly announced its support for 5G construction, opening power towers to operators to install 5G base stations and antenna equipment. Earlier, the UK's largest telecommunications operator EE also hung antennas and equipment on the power tower. The USG operator AT&T's AirGig project is also deploying 5G fixed wireless networks using off-the-shelf power infrastructure sharing.


Shared economic business brought by 5G


The way of co-construction and sharing brings obvious economic benefits to the entire telecom industry, and it also conforms to the development trend of mobile communication technology in the future. However, the development model of co-construction and sharing has also brought structural changes to the mobile communications market. Change will bring pain, but in such a change, both operators and equipment manufacturers will have a huge space for innovation.


For the post-4G and 5G eras, the density of base station construction has increased, and the number has doubled. The traditional construction mode must be changed. It is necessary to fully share the social resources such as lampposts, monitors, and power poles. To this end, the China Tower has also proposed a change in society. “Tower” is the “communication tower” and the “communication tower” is the transformation of “social tower” to promote open cooperation, share win-win, and move towards the 5G era.




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