Suddenly going crazy! A quick look at what 5G-A driven by low-altitude economy is all about

On March 29th, the 5.5G concept saw unusual movement in the afternoon, with Shenglutongxin up by the daily limit of 10cm, Canqinkeji and Shuobeide up by 20cm, and Sanwangtongxin up by over 15%.

On the news front, on March 28th, China Mobile launched the world's first 5G-A commercial deployment in Hangzhou, announcing the first batch of 100 cities with commercial 5G-A networks and plans to expand to over 300 cities nationwide by the end of the year, creating the world's largest commercial 5G-A network.

In addition, the Shenzhen Industrial and Information Bureau recently issued a notice regarding the "Shenzhen Ultra Broadband Pioneer City 2024 Action Plan". The document clearly states the deepening of 5G-A application innovation. More than 10 pilot 5G-A integrated applications will be implemented in areas such as low-altitude economy and smart transportation, forming a number of 5G-A pioneer application cases.

5G-A Commercial Acceleration

5G-A, short for 5G-Advanced, is based on the evolution and enhancement of 5G.

In terms of positioning, it is a necessary transition and connection from 5G to 6G in communication technology, playing an important role in "bridging the past and the future". On March 8, 2024, the Minister of Industry and Information Technology stated that there will be moderate advance construction of information infrastructure such as 5G and computing power, strengthening 5G evolution, supporting 5G-A development, and increasing research and development efforts for 6G technology.

In terms of performance, compared to 5G, 5.5G will achieve nearly a 10-fold improvement in network performance in multiple areas, including: increasing the downlink peak rate from 1Gbps in the early stages of 5G to 10Gbps, and the uplink from 100Mbps to 1Gbps; reducing latency, improving positioning, and enhancing high reliability by 10 times, with network latency evolving from 10 milliseconds to 1 millisecond; and reducing the carbon dioxide emissions per Tera Byte of data transmitted in mobile networks by 10 times.

In terms of industry progress, during the Mobile World Congress in Barcelona in February 2024, nearly 60 global operators and industry partners joined the GSMA 5G Futures Community; China Mobile announced that it will launch commercial 5G-A deployment in over 300 cities in 2024, aiming for full commercial use of 5G-A by 2026; ZTE demonstrated a panoramic plan and achievements for the 5G-A era, and released the top ten new products for 5G-A; Huawei globally released a full range of 5.5G product solutions for all scenarios.

Guolian Securities pointed out that with the six major elements of standards, business, products, terminals, commercialization, and policies in place, 5G-A will officially start commercial operation in 2024. The Middle East has already achieved large-scale commercial use of 5G-A, while operators in Europe, Asia-Pacific, Latin America, and other regions are actively verifying the capability of 10Gbps in preparation for the commercial use of 5G-A in 2024

5G-A Driving the Construction of Low Altitude Communication Network

On March 15th, the Shenzhen Industrial and Information Technology Bureau issued the "Shenzhen Ultra-Fast Broadband Pioneer City 2024 Action Plan", focusing on "5G-A leadership, network convergence, integrated space, and application priority". The document explicitly proposes deepening the innovation of 5G-A applications. More than 10 pilot projects in areas such as low-altitude economy and smart transportation will integrate 5G-A applications to form a group of pioneering 5G-A application cases.

China Merchants Securities pointed out that the "sensing integration" of 5G-A provides a new approach for detecting aircraft in low-altitude management.

By analyzing the direct/reflected/scattered wireless communication signals to perceive the external environment, functions such as positioning, ranging, speed measurement, and imaging are achieved. Furthermore, compared to general radars, the frequency of 5G-A bands is lower, making it easier to bypass obstacles and achieve better coverage in situations with many buildings.

The detection distance of the integrated sensing base station can exceed 1.5 kilometers, with a detection accuracy reaching the sub-meter level, meaning that within the coverage range of the base station, the error between the perceived target position and the actual position is less than 1 meter.

In addition, 5G-A rationalizes the transformation and full utilization of existing 5G base stations, avoiding redundant construction of low-altitude private networks and greatly reducing management thresholds. Academician Wu from the Chinese Academy of Engineering stated, "Without changing the elevation angle of 5G base station antennas, the height of low-altitude detection space is nearly 600 meters. This will avoid redundant construction of low-altitude private networks and help cities identify and manage 'low, slow, small' flying objects."

华西证券 (Huaxi Securities) pointed out that the air traffic control system required for the development of low-altitude economy relies on infrastructure such as mobile communication networks, Internet of Things, and cloud computing to form an integrated intelligent interconnected low-altitude digital service system of communication, perception, and computation. Communication technology support mainly involves wireless communication technology and satellite communication technology, assisting aircraft in achieving low-altitude interconnection, positioning navigation, and decision perception.

Currently, China Mobile has led the completion of the technical verification of "5G-A Trusted Access for Low-Altitude Internet of Things Drones", achieving three industry "firsts": the first introduction and capability adaptation of new drone identification on the terminal side, the first completion of drone trusted identification recognition, mapping, authentication authorization, and full lifecycle management on the network side through upgrade to support UAS network functions, and the first docking with the core network capability open platform on the flight control platform side to achieve binding of identification and operational information, realizing a fundamental change in the manageable and controllable access of 5G-A drones end-to-end.

Industry Chain Analysis

China Merchants Securities stated that considering the technical characteristics and industrial changes of 5G-A, wireless main equipment and network equipment suppliers, antennas/arrays, small base stations, and optical modules benefit:

1. Wireless and network equipment suppliers are deterministic core beneficiaries, and the increased dominant position of Chinese companies in standards will drive the overall participation of the domestic industry chain in the global 5G ecosystem. Relevant companies include ZTE Corporation and FiberHome Communications

2. MIMO multi-antenna technology, applications in ultra-high frequency and even millimeter wave bands, will lead to a surge in demand for RF antennas, RF connector devices, and cables. Related companies: Comba Telecom, Tongyu Communication, Sunwave Communication, Sijia Technology, Mobif Development, Kingnet.

3. With the development of 5G construction, the "macro cell + small cell" network coverage mode is becoming popular. Small cells are expected to become the mainstream technology for indoor distribution and network optimization. Related companies: Hengtong Optic-Electric, Comba Telecom, Cambridge Technology.

4. The increase in the number of base stations and the upgrade of 5G technology will bring about a significant increase in the quantity and speed of inter-base station optical modules. Optical module manufacturers will benefit greatly from the construction of 5G base stations. Related companies: Fibocom Communication, Gigalight, Borchip Technology, Gigalinx, Xinyisheng, DeckLink.

5. Supporting equipment. Related companies: Inovance, Inspur Information (Electra Group), Jialitu