5G first city, Shenzhen and then step on the gas

What is Shenzhen playing at?

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Shenzhen again issued a “policy bonus”, this time or real money.

5G terminal (machine) enterprises to purchase Shenzhen 5G chip, up to 5 million yuan of subsidies …… enterprises actually completed transformation investment (including equipment, outsourcing technology and software investment) of more than 10 million yuan of technical transformation projects, to give its actual investment of 50% of the amount completed, up to 50 million yuan of funding ……

Recently, Shenzhen released a notice on the public consultation of “Shenzhen to accelerate the high-quality development of the 5G whole industry chain a number of measures (public consultation draft)” (hereinafter referred to as “a number of measures”), from the expansion of the 5G industry scale, promote the 5G industry chain strong chain complementary chain, build a good 5G industry ecosystem and create 5G industry application model city 4 aspects, put forward 24 specific initiatives to support the development of the 5G whole industry chain.

From the past, Shenzhen’s attention to the 5G industry is not the first time.

On September 11, 2019, Shenzhen issued the “Notice of the Shenzhen Municipal People’s Government Issuing Several Measures to Take the Lead in Achieving Full Coverage of 5G Infrastructure and Promoting High-Quality Development of 5G Industry”, proposing that Shenzhen should take the lead in achieving full coverage of 5G infrastructure and independent networking, and promoting the goal of high-quality development of 5G industry.

At that time, in order to reach the goal, the Shenzhen government supported the development of 5G industry through diversified support methods such as direct funding, loan subsidies and risk compensation. Subsidies were given to telecom operating enterprises that completed the construction targets of 5G base stations on time, and in principle, 10,000 yuan was awarded to each base station built by adopting the independent group network mode, with a maximum of 150 million yuan for a single telecom operating enterprise.

In addition to direct rewards in real money, Shenzhen also provides guarantees for resource elements such as electricity and land, including electricity for 5G base stations built by telecom operating companies and tower companies into the scope of cost reduction funding for commercial and industrial electricity in Shenzhen, and with reference to the funding standards for national high-tech enterprises belonging to advanced manufacturing industries or high-tech manufacturing industries above a certain scale, the electricity for 5G base stations will be funded for three consecutive years. Each year, the construction needs of 5G base stations that require independent land occupation are included in the annual construction plan, and all relevant units are handled in a timely manner according to their responsibilities.

The all-around strong subsidies and funding, as well as specific and micro-implementable programs, made this document from Shenzhen at that time considered a landmark event in China’s 5G network construction speed-up, along with the announcement of Telecom and Unicom to jointly build and share 5G networks in 15 cities.

Less than a year later, in July 2020, Shenzhen released another “Implementation Opinions on Accelerating the Construction of New Infrastructure” (hereinafter referred to as “Implementation Opinions”), which put 5G construction on the map again. But in this “Implementation Opinions”, there is a message worthy of attention.

Shenzhen district and two levels of joint planning to sort out the first batch of new infrastructure projects totaling 95, with a total investment of 411.9 billion yuan, of which 34 social investment projects, with a total investment of 244.7 billion yuan.

In other words, Shenzhen attaches great importance to the participation of social capital at the level of new infrastructure, which accounts for up to 60%, which has a very positive significance for Shenzhen to enhance its economic vitality, capital mobility and the participation of private enterprises to contribute to the social economy.

On August 17, 2020, the then mayor of Shenzhen, Chen Rugui, announced that as of August 14, 2020, Shenzhen had completed 46,480 5G base stations, making Shenzhen the first city in the country to have full coverage of 5G independent group networks.

At that time, Chen Rugui also set the next goal for Shenzhen: it will accelerate the construction of a first-class 5G innovation ecology, launch more 5G application scenarios, innovative industries and demonstration projects, and strive to build a global 5G benchmark city.

From previous documents, it is easy to find that Shenzhen’s support for the 5G industry is unparalleled in the country. This time, Shenzhen has issued another document, and the industry has once again issued an exclamation: all go to Shenzhen to start a business doing 5G!

This can not help but question, Shenzhen and released what good policy, will make the industry so excited, which are the opportunities?

Real money, a certain amount of land autonomy, Shenzhen brings what opportunities?
The same as the previous policy, Shenzhen this release of “a number of measures” behind the goal, can not be described as ambitious, but at the same time is not vague, for each goal, there are specific implementable plans, so that the relevant units in accordance with their responsibilities in a timely manner.

In this regard, the Thunderbolt has distilled the specific initiatives and subsidies for each aspect.

Expand the scale of the 5G industry
Several Measures proposes that cluster promotion agencies that have been awarded the title of National Advanced Manufacturing Cluster will be given a maximum 1:1 matching grant according to the funds allocated by the state. Encourage parks to cluster 5G industry chains, use 5G to improve management services, and identify and cultivate a number of 5G specialized industrial parks with staggered development and mutual promotion; provide subsidies for 30% of the actual investment in new software and hardware in parks, up to 50 million yuan.

At the same time, it will implement the 5G pilot enterprise cultivation project, and 5G enterprises with an annual output value of at least 10 billion yuan will be identified as pilot enterprises and given key support. Each district (new area) will be supported to grant a larger area of contiguous land to the leading enterprises and encourage them to carry out unified planning and management of industrial space, and give them certain land use autonomy.

The Measures also encourage enterprises to plow into various segments of 5G, and give a one-time incentive of RMB 3 million and RMB 2 million to those who have won the titles of national “single champion” demonstration enterprises and “single champion” 5G products, respectively, in addition to 1 million yuan, 500,000 yuan of incentives. For national, provincial and municipal “small giant” 5G enterprises, a one-time award of 1 million yuan, 500,000 yuan and 200,000 yuan will be given respectively.

Promote the 5G industry chain to strengthen the chain to complement the chain
The Measures point out that enterprises are encouraged to carry out technical research around key 5G components and chips such as base station baseband chips, base station RF chips, optical communication chips, server CPUs, server storage chips, etc., and strive to realize the localization and independent control of 5G network equipment chips. Encourage enterprises to carry out technical research and development around circuit components, connection components, sensing components, optical communication devices and other key 5G components.

Those who participate in 5G network equipment chip technology research or participate in 5G key components technology research can receive up to 30 million yuan in funding; 5G terminal (whole machine) enterprises purchasing Shenzhen 5G chips can receive up to 5 million yuan in subsidies; component enterprises investing in major industrialization projects will be funded at 30% of the total project investment, with a maximum of 30 million yuan.

Build a good 5G industrial ecosystem
Support the widespread deployment of 5G in the manufacturing sector. Support enterprises to use 5G technology to carry out digital, networked and intelligent transformation of manufacturing equipment, plant parks and management methods. For technical transformation projects in which the actual completed transformation investment (including equipment, purchased technology and software investment) is more than 10 million yuan, a subsidy of 50% of the actual completed investment, up to a maximum of 50 million yuan, will be given to the enterprises.

At the same time, build 5G industry support platform. Focus on fostering Shenzhen Future Communication Medium and High Frequency Device Manufacturing Innovation Center, Shenzhen Third Generation Semiconductor Research Institute, BRICS Future Network Research Institute, Pengcheng Laboratory, the Southern Branch of China Academy of Information and Communication Research and other research institutes to build 5G product certification, application testing, network performance testing, industrial testing and analysis and other public services and testing platforms.

Create a model city for 5G industry applications
In supporting the development of the downstream of the 5G industry chain, i.e. the “extended chain” part, the “Several Measures” mainly support the application scenario opening policy and post-subsidy. It is proposed to encourage enterprises to promote the research and development of multiform and multifunctional 5G terminals integrating AI, VR, ultra-high definition and other new technologies, accelerate the performance and application maturity of 5G terminals, and accelerate the implementation of 5G industry-grade terminals in industrial Internet, healthcare, education, ultra-high definition production and broadcasting, vehicle networking and other fields. Each year, a number of 5G innovative terminals will be selected and rewarded at 20% of their sales, up to 10 million yuan.

Encourage enterprises to build 5G open source platforms, promote 5G open source code sharing, and facilitate the rapid development of 5G applications. Support telecom operators, information software service providers, equipment manufacturers, and leading industry enterprises to increase the in-depth development of 5G applications in their own industries and fields, form standardized, customizable, and replicable modules, and provide 5G system integration services or professional services for a wide range of enterprises. The sales of service solutions will be awarded 20%, up to 10 million yuan.

In terms of total funding, “several measures” said that Shenzhen will invest 1 billion yuan per year for five consecutive years, and play the role of government funds such as the municipal government investment guidance fund, state capital reform and strategic development fund, infrastructure investment fund to guide. Support social capital to initiate the establishment of 10 billion scale 5G industry development fund, increase investment in Shenzhen 5G industry chain related enterprises, support and introduce eligible 5G industry upstream and downstream enterprises to list in Shenzhen.

Can Shenzhen make up for the short board of 5G chips in China?
Shenzhen’s large subsidies in the field of 5G chips as well as 5G modules have caused quite a stir in the industry.

Although China has significant advantages in network infrastructure and terminals, there are still many short boards in the upstream industry chain such as chips. A number of measures mentioned, around the 5G baseband chip, optical communication chip, RF front-end devices and other key and missing links of the industry chain to carry out targeted investment, to make up for the shortcomings of the basic materials and core components.

Among them, 5G network equipment chip has become a key breakthrough object. A number of measures” said, encourage enterprises around the base station baseband chip, base station RF chip, optical communication chip, server CPU, server storage chip and other 5G key components and chips to carry out technical research, and strive to achieve the localization of 5G network equipment chip independent control. Support enterprises to participate in 5G network equipment chip technology research on the surface, key and major projects, the maximum amount of funding is not more than 5 million, 10 million, 30 million respectively.

The application of 5G in the industry is inseparable from 5G modules. Cao Jiguang, deputy director of the Institute of Technology and Standards of the China Academy of Information and Communications Technology, believes that without modules, 5G can only be applied in the workshop through small stations; with 5G industrial modules, and 5G terminals can be combined to empower all aspects of industry and promote fundamental changes in the industrial field.

At present, more than ten domestic enterprises are developing and producing 5G industrial modules, but most of them are using Qualcomm and Huawei Heisi’s 5G baseband chips.

“The most central obstacle to the development of 5G industrial modules is the relatively high cost, the cheapest 5G module is nearly one thousand dollars, compared to NB-IoT, embedded inside the IoT terminal only a dozen dollars.” Cao Jiguang said at a forum this year, to reduce costs through scale and customization, “one is scale, the amount of production amortization costs, mainly for small and medium-sized enterprises, for the general 5G chip module; two is customized, functional simplification to reduce costs, mainly for vertical industries for deployment.”

Several measures” said that support module manufacturers for different 5G application scenarios of specific needs to carry out customized production, support the industrial Internet, intelligent medical, wearable devices and other pan-terminal scale applications, according to the total project investment of 30% to give funding, up to 10 million yuan. Encourage 5G application terminal enterprises to apply 5G modules on a large scale, and subsidize enterprises whose annual 5G module procurement amount reaches 10 million yuan or more by 30% of the procurement cost, up to 50 million yuan.

For such policy subsidies, industry insiders said, or will promote the development of domestic 5G chips and 5G modules forward, and ultimately achieve domestic independent control.

Shenzhen with boldness, more bottom
Shenzhen issued such a huge “policy red packet”, people can not help but sigh the city’s “boldness”.

In the opinion of the Lei Feng network, behind the verve, Shenzhen has its own bottom line.

At present, Shenzhen has become China’s first 5G independent group network city. China’s 5G commercial cities have more than 300, but most can only achieve hot spots and key areas coverage, in Shenzhen, 5G base stations have achieved contiguous coverage.

It is worth noting that Shenzhen 5G network is SA (independent group network). Telecom industry sources said that China is the first country to do national coverage of 5G independent group network, there is no successful experience abroad, so the challenge is very big, and Shenzhen has taken the first step out.

In addition, Shenzhen is China’s electronic information industry town, the total output value of the electronic information industry has long accounted for more than 1 / 6 of the country.

As a world-renowned “hardware highland”, Shenzhen has a large number of 5G technology leading enterprises and industry application leaders, and has strong competitiveness in 5G network equipment, key components, terminal equipment, application scenarios and other fields. Shenzhen can provide the fastest, most complete and advanced technical solutions for 5G upstream and downstream enterprises.

As early as 2019, statistics show that there are Shenzhen enterprises in all aspects of the 5G industry chain, and they are competitive in the country. In addition to Huawei and ZTE, which basically cover the entire industry chain of the 5G industry, Hesse Semiconductor and ZTE Microelectronics lead the industry in the field of chips, and companies such as Nikai are the leading companies in the field of core devices. It is worth noting that Huawei, ZTE, two leading telecommunications equipment companies are headquartered in Shenzhen.

In terms of science and technology innovation, Shenzhen’s R&D investment in 2020 exceeds 140 billion yuan, accounting for about 4.93% of GDP; the introduction of various types of talent is 4.5 times that of 2015; the total number of national high-tech enterprises is 3.4 times that of 2015.

In addition, Shenzhen currently accounts for more than 95% of the commercial main body of the private economy, 6 of the 7 world’s top 500 enterprises are private enterprises, in addition, the number of small and medium-sized board, the number of listed enterprises on the Growth Enterprise Market for 13 consecutive years in the country, of which more than 90% are private enterprises.

From this level, Shenzhen is not only the “high ground” for the development of scientific and technological innovation, but also in the landing of technology, Shenzhen can also provide more landing scenarios for enterprises, and the government also subsidizes the first trial and dare to test the enterprise.

It can be seen that the city of Shenzhen has enough sober self-awareness, and realistically combined with their actual development, play their own advantages, and maximize their own advantages, fully demonstrated the style of the early demonstration area of socialism with Chinese characteristics.

Why does Shenzhen want to play the chess game of 5G?
5G as the first of the new infrastructure, its importance is self-evident. But what kind of magic does 5G have that makes the Shenzhen government subsidize the development of 5G industry so much?

The fundamental reason is as the GSMA has judged: 5G is not only a better communication connection technology, but also enables new ICT technologies such as AI, cloud, big data and IoT to achieve intelligent connections. 5G networks combined with these basic industry digitalization, information and intelligent technologies not only greatly enhance their respective capabilities, but also effectively open up the information channel from the cloud to the terminal, providing thousands of industries with the ability to breakthrough business models, enhance user experience, and create new value.

The special feature of 5G network is that its propagation speed, which is nearly 100 times faster than 4G, will not only benefit consumers, but it will also be the underlying infrastructure for new technologies, new businesses and new lifestyles in the coming decades with its three characteristics of large bandwidth, low latency and wide connectivity.

5G’s large bandwidth, low latency and wide connectivity will allow data from cameras, sensors and other aspects of the city to be transmitted to the city brain in real time, which will allow traffic managers to monitor the operation of urban traffic in real time and effectively reduce traffic congestion in the city; police officers can also monitor the security situation of the city in real time based on data to ensure the long-term security of the city; in the home, people can also connect all the appliances in the house through the 5G network, just a word, you can complete your operation.

In the smart medical scenario, taking the 120 emergency as an example, the resident doctors can implement consultations with the accompanying doctors through the low latency feature of the 5G network, which will also effectively reduce the mortality rate of sudden diseases such as heart attacks, and in the telemedicine scenario, 5G can also allow remote surgery to be realized, effectively solving problems such as the difficulty for residents to see a doctor.

As IHS Markit pointed out in a report, “5G technology will drive the evolution of mobile networks from a communications technology to a general-purpose technology, which in turn will trigger changes in various industries and society as a whole”.

For Shenzhen, to sit at the “head” of the domestic smart city, it is clear that it is not enough to achieve full coverage of 5G independent group network in the whole area, but to let 5G penetrate into various industries and guide more enterprises to use 5G and other technologies to complete the digital transformation, so as to maintain the competitiveness of industries in the era of digital economy. The competitiveness of enterprises. And in this process, the importance of private enterprises need not be said.

The Seventh Party Congress of Shenzhen, which just opened yesterday, also set the goals for the next five years: the total economic volume exceeds 4 trillion yuan; the added value of strategic emerging industries exceeds 1.5 trillion yuan; the proportion of social investment in research and development reaches about 5% of regional GDP; the per capita disposable income of residents exceeds 90,000 yuan, and the annual average concentration of PM2.5 is less than 20 micrograms per cubic meter… …

The future is the era of digital economy, Shenzhen wants to achieve the above goals, as a new infrastructure 5G, in the process of Shenzhen “self-fulfillment” is particularly critical.

And a specific micro-implementation of the program, a real money subsidy policy, so that Shenzhen has become a “huge” magnet, attracting related enterprises to Shenzhen, will also make more talent gathered in Shenzhen.

This will not only let Shenzhen take the lead to achieve the goal, while through its demonstration, but also let the Shenzhen enterprises to the country, service other cities of the wisdom of the construction.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/5g-first-city-shenzhen-and-then-step-on-the-gas/
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