Barriers to entry are getting lower and lower
Previously, the global communications equipment market has long maintained the oligopoly of Sweden's Ericsson, Finland's Nokia and China's Huawei.
The scope of "Open RAN (O-RAN)" is very wide. There is less and less competition in the market of communication equipment, and all communication operators are worried about it. In particular, Huawei's price offensive is very strong, and it has also put forward a proposal to replace the existing equipment with new equipment for free. We are not in a competitive situation. However, in the discussion of security, Chinese products from some countries (Huawei, etc.) are difficult to become a choice.
Some people think that the black box of specific suppliers from top to bottom of the communications infrastructure is uncomfortable. As a result, the movement of O-RAN is expanded, and the standardization of interfaces (connection specifications) between devices is constantly developing. The wireless control device behind the antenna (formerly a special-purpose machine, run by a general-purpose server) is developing towards software. Barriers to entry are getting lower and lower.
Once the open development takes place in the computer industry, the competition will become active and the performance and cost will be improved. As an industry, it will also develop in a sound direction.
In this medium-term business plan, the global 5G business plans to grow rapidly from 41.7 billion yen in sales in 2020 to 190 billion yen in 2025.
In the past, just like paying telephone exchanges to communications companies, there was a big difference in specifications between those paid to NTT in Japan and those paid to overseas companies.
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The full text of this article can be read in the free Oriental Economic ID registration. The following report was released in the digital special "the Challenge of NEC going to Japan".
NEC, the reason why the long-cherished "5G base station" won overseas orders
Received the latest public report from Yasuhiro Nakagawa by email (author's concern)
