Essence Securities released the communication industry research report on June 22, the summary of the report is as follows:

 

This week, the small and medium-sized board value once again closed, the Shenwan Communication Index rose for two consecutive weeks, and the outstanding performance stocks in the communication sector were active. Interim equipment, Starnet Ruijie, Fiberhome Communications, and Yilian Network were among the top gainers. It is recommended to grasp the rebound market, the industry leading stocks with real growth in performance and the second-tier blue chips. At the same time, the IoT industry policy is prosperous, the Ministry of Industry and Information Technology issued the NB-IOT construction guidelines, and clarified that the construction of 1.5 million NB-IOT base stations will be completed in 2020 to achieve nationwide coverage. It is recommended to continue to focus on the Internet of Things, 5G, optical communications, etc. Industry, medium and long-term layout.

 

Data Center: Operators accelerate data center construction, and cloud computing capabilities are radiated nationwide.

 

In recent years, data centers have become an important support for the development of Internet services. The three major operators, China Telecom, China Unicom and China Mobile, are the main force in the construction of data centers. Relying on the widely covered network infrastructure, China Unicom has built a cloud computing resource pool in 31 provinces across the country, with more than 250,000 core VCPUs, 20PB storage, total bandwidth exceeding 240G, and all resource pools are interconnected by DCI networks. And has SDN / NFV intelligent network architecture. Through the interconnection of high-speed, large-capacity, high-performance new-generation networks, China Unicom has the ability to radiate cloud computing services across the country. At the same time, the revenue scale of Unicom Cloud Data Co., Ltd. also increased rapidly, from more than 3 billion in 2013 to over 7 billion in 2015. We believe that the future of the data center as the core of the carrier network will become a necessary support for the continued rapid growth of Internet traffic.

 

5G: The global 5G standard is expected to complete the first version by the end of this year.

 

With the in-depth advancement of the ITU5G program, China's 5G pace has accelerated significantly, and China's 5G technology R&D trials under the responsibility of the IMT-2020 (5G) promotion group are being actively implemented. The 5G promotion group has played a major role since last year. The industry chain has jointly formulated norms, conducted tests, and shared results globally to advance the entire 5G standard. Recently, at the "2017 IMT-2020 (5G) Summit", the progress of the 5G standard has become the focus of attention of all parties. In 2017, the 5G international standard was officially launched, and the first basic version of 5G will be completed by the end of the year. The SBA architecture proposed by China Mobile will become the unified infrastructure of 5G network. In addition, the Ministry of Industry and Information Technology has accelerated the planning of 5G frequency, and recently publicly solicited opinions from 5G to use the 3300-3600MHz and 4800-5000MHz frequency bands.

 

Operators and equipment manufacturers are also actively promoting. Recently, 5G national trials have started 26GHz high frequency test and field test in Beijing Huairou. We believe that China's 5G progress may exceed expectations, and China may lead the global 5G network and the future direction of business development. It is recommended to focus on ZTE (main equipment supplier), Tongyu Communication (antenna faucet), intermediate equipment (high-speed optical module faucet), and focus on Fiberhome Communications, Guangxun Technology, and New Yisheng.

 

Internet of Things: The IoT industry policy is positive, and the Ministry of Industry and Information Technology issued the NB-IOT construction guidelines.

 

On June 6, the Ministry of Industry and Information Technology issued the "Notice on Comprehensively Advancing the Construction and Development of Mobile Internet of Things (NB-IoT)", and issued the task: 1. By the end of 2017, the NB-IoT base station will reach 400,000, achieving NB-IoT network. For the coverage of major cities such as municipalities and capital cities, the total number of connections of NB-IoT should exceed 20 million. 2. By 2020, the scale of NB-IoT base stations will reach 1.5 million, achieving universal coverage and deep coverage for the whole country. The total number of NB-IoT connections exceeds 600 million. 2017 is the first year of NB-IoT, and the three major operators have started commercial trials. We believe that the current industry policies are expected, and IoT applications are “fragmented” markets, but with operators supporting NB-IoT networks. The comprehensive coverage, more and more sub-sectors of the industry will be released, the accumulation of less, the formation of scale, the catalyst will continue in the future. It is recommended to recommend ZTE (NB-IOT base station and IoT main equipment), Yitong Century (suspension, IoT platform scarcity standard); secondly, focus on IoT modules and vertical industry applications, it is recommended to focus on Guanghetong (Internet of Things model) Group leader, deep cooperation with Ericsson China Mobile), Gold Card Smart (smart gas meter), Gao Xinxing (car network electronic license plate), Neusoft carrier (MCU and broadband carrier communication), Xintian Technology (smart meter), etc. .