Telecommunications Manufacturing Professionals Eye Fantastic 4G Showcase: NEPCON China 2014

21 Feb 2014

NEPCON South China,    Visitor Rre-Registration, Exhibits, NEPCON South China 2013 On-site Preview

China’s Ministry of Industry and Information Technology (MIIT) issued 4G licenses to China Mobile, China Telecom and China Unicom on December 4, 2013, marking the dawn of the 4G era in the country.

Shortly thereafter, the National Industry and Information Conference was held in Beijing. The meeting stressed the need to promote information-driven consumption in the coming year, including accelerated 4G development, which would see commercial 4G coverage in over 300 cities by the end of 2014, covering over 30 million users.

Getting a 4G license is a huge advancement for telecommunications operators, equipment manufacturers, mobile phone makers and Internet companies. The MIIT and the Chinese Academy of Science predict that the initial phase of 4G infrastructure build up will generate an RMB 500 billion (USD 82.3 billion) investment. With commercial coverage in place, the 4G wave would extend to up- and down-stream industries, as well as the mobile Internet. The ICT industry could see a sea change, including tremendous impact on OS, chips, smart gadgets and related applications. The total value of the 4G market has the potential to exceed RMB 1 trillion (USD 164.4 billion).

“This is a tremendous opportunity,” said a senior MIIT official to People’s Daily reporter Wang Zheng. “Faster 4G development is strategically crucial for information-driven consumption (as part of overall domestic consumption) and as part of the national innovation strategy.” The 4G wave provides higher speed connection, shorter delays, and overall lower costs. It also promotes mobile connectivity. Users will be able to have a better high-speed connection experience, and the potential for mobile internet business is massive. Applications that will benefit from 4G include mobile productivity, e-commerce, logistics, and smart homes, among others. Many more emerging businesses and services will grow as they leverage the newly available 4G connection.

In China, major market opportunities in applications, smart end equipment, OS and chips more or less cover a whole supply chain of innovation and technological breakthrough. “The deployment of 4G technology will effectively promote industry growth in three ways,” said the MIIT official. “Firstly, the 4G infrastructural build involves huge procurement of network equipment and equipment upgrades. This will strongly stimulate the growth of device manufacturers in China. Secondly, new mobile phones and devices will emerge, driving development among mobile device manufacturers, who will compete to provide better, more sophisticated products. Thirdly, with higher-speed connectivity, software providers will strive to develop better apps, thus promoting enhanced service,” added the official.

China is on the cusp of widespread 4G adoption. Electronics manufacturers and device makers are preparing for a major wave of manufacturing activity. NEPCON China 2014, which starts on April 23, will focus on 4G equipment manufacturing and applications.

4G Holds Tremendous Promise for Telecommunications Equipment Makers

While the heat of infrastructural buildup from 3G deployment is still there, China’s three major telecommunications operators are unleashing a new wave of buildup for 4G infrastructure, including huge numbers of base stations to be built up. Given the huge market potential, telecommunications equipment makers have already begun intense competition in the field of 4G LTE. Industry insiders are saying that 4G base stations will now be built in greater numbers than their 3G counterparts. As many as 1.4 million+ 4G base stations could pop up.

Chinese operators are set to launch full 4G services within a year. Major telecommunications equipment makers – among them, Ericsson and Huawei – are eagerly waiting the emergence of this major market, all of them vying for a bigger part of it. Huawei and ZTE led in the TDD-LTE procurement bidding by China Mobile (26% each). Ericsson, Shanghai Bell and Nokia Siemens followed with 11% each.

China Mobile 4G Bidding Results by Equipment Maker

  

Quicker 4G commercial deployment is under way globally. Since the end of 2013, China has seen a large wave of 4G deployment with the issuing of licenses to major operators. 2014 is a crucial year during which to win market share. In the 3G era, Chinese telecommunications equipment makers grew rapidly. Some are even among the top 5 global players today. Huawei’s 2013 revenue outstripped even that of Ericsson, a long-time industry leader. In the 4G era, the Chinese equipment makers are starting in a better position to win big in the world’s largest telecommunications market.

Local and international telecommunications equipment makers are fighting to get a foothold in the Chinese 4G market, including major investment into TD and FDD. At the same time more investment is incoming. 4G offers even better opportunities for equipment makers than the 2G and 3G eras ever did. According to analysts, with the upward scalability of 4G infrastructure buildup, the global telecommunications equipment industry is expected to gradually recover following 2013, and steady growth is predicted for the next few years. Apart from the biggest 4G procurement market represented by China Mobile, further bidding to be initiated by China Telecom and China Unicom are both huge opportunities for global equipment makers.

Smart Phones/Gadgets in the 4G Era: A Huge Boost for Equipment Makers

The 4G wave is just beginning, with investment currently concentrated on infrastructure. Mobile phones and other consumer devices are yet to see their share of procurement, as mobile phone makers begin to anticipate the hyper-competition to come. Overall, there are still relatively few mobile phone makers (just 11) on the 4G R&D scene. A huge wave of mobile phone replacement may well start in the next year, providing a massive boost for manufacturers.

To ensure that TD-LTE spec phones can roam in most 3G/4G networks abroad, China Mobile requires at least 5 mode/10 band specs. The company is making even more stringent efforts to ensure better compatibility. That is to say, a mobile phone will need to be compatible with LTE-TDD, TD-SCDMA, GSM, TE FDD, and WCDMA – as well as 10-band LTE.

According to Xi Guohua, China Mobile Chair, who spoke at the China Mobile Global Partner Conference in Guangzhou at the end of 2013, the company is set to sell over 100 million TD-LET end user devices in 2014. Also, China Mobile would provide even bigger subsidy for end device makers in 2013, given the year’s subsidy of RMB 27 billion (USD 4.5 billion).

TCL COO and China Sales President Wang Jiyang said that over 60% of TCL phones sold abroad in 2014 will be 4G products; in China 4G products will account for over 50%.

“In 2014, 4G shipment will account for a third of the total,” said Mr. Wang. TCL will closely follow the moves of the three major operators, while China Mobile’s planned LTE shipment will account for 50% of the China total. “TD-LTE smart phones will be available on the market from Q1 of 2014,” added Mr. Wang Jiyang.

NEPCON China 2014 to Focus On New 4G Opportunities

As the biggest SMT and Electronics manufacturing event in Asia, NEPCON China is the established barometer for local manufacturers. At the three-day event, a range of new technologies, products, and solutions will be showcased, covering SMT, electronics manufacturing automation, ESD, purification, soldering, test and measurement, barcodes, Electronics manufacturing services, and other SMT and electronic manufacturing-related applications. The event will also provide a one-stop procurement platform for modern Electronics manufacturers seeking upgrades and enhancements, while on-site industry insights and market intelligence will provide key direction for businesses.

The NEPCON series of events are major industry showcases, not only providing insights on development direction, but also satisfying the needs of diverse visitors and exhibitors. Given rapid momentum of 4G expansion, NEPCON China 2014 will provide a range of interactive sessions (including forums) to hear the voice of the industry and provide better services to customers and exhibitors alike. Also, for trade visitors (telecommunications equipment makers, test equipment providers, mobile equipment makers, digital computing players, and other 4G players), the event will work hard to invite exhibitors to create business match-making that serves the need for 4G procurement.

NEPCON China 2014 will take place at Shanghai World Expo Exhibition and Convention Center from 23 to 25 April, 2014. Across an exhibition area of 25,000 sqm, over 500 top companies from 22 countries and regions will feature and demo products. The “Big Players for the Future” feature will include many industry leaders, including Fuji Machine, Hitachi, JUKI, Panasonic, Samsung Techwin, ASM (Siplace), Yamaha, Universal, Europlacer, Mydata, ASYS, DEK, Speedline, Kurtz ersa, Nordson, BTU, Rehm Thermal, DEK, Henkel Loctite, Indium, KIC International, OK International, AIM, Tamura, Musashi, Heller , ZESTRON, Agilent, Dage, Parmi, Koh Young, Mirtec, Omron, Shimazu, TRI, Scienscope, Magic Ray, and ViTrox. More than 21,000 trade visitors are expected onsite.

4G is the start of a revolution in the entire Electronics manufacturing industry. Reed Exhibitions, organizers of NEPCON, have designed an event capable of becoming a one-stop industry platform that leverages the full opportunities of the 4G wave. The show is a platform that demonstrates state of the art products and technologies, facilitates procurement and promotes information sharing.

News Source: NEPCON China 2014  

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