The Ministry of Industry and Information Technology (MIIT) said in a letter on October 10 that licenses for low-frequency test frequencies in 5G systems had been granted. Next, the Ministry of Industry and Information Technology will actively guide the basic telecommunications operators to do a good job in 5G system test base station deployment, and promote the healthy and rapid development of China's 5G industry.

　　In fact, the 5G industrial chain and local governments have already acted. Recently, 5G construction plans in Hunan, Hubei, Beijing, Shanghai, Tianjin, Haikou, Taiyuan and other places have landed one after another.

　　Leading enterprises are an important force to promote 5G construction. Last week, Hubei Mobile signed a cooperation agreement with Huawei and China Information Technology Group, which will invest 1 billion yuan to build 2,000 5G base stations in the province in 2019. It is expected to complete commercial tests before the opening of the Wuhan Military Games.

　　According to the agreement, in the 5G construction plan of Hubei Mobile Company in 2019, China Cisco Group is mainly responsible for technical support and scale networking core equipment, and Huawei is the main supplier of communication hardware.

　　Previously, Tianjin Municipal Government signed contracts with several operators and China Rail Tower Company. In the next three years, Tianjin will build no less than 10,000 5G base stations through co-construction and sharing.

　　Local government 5G planning is also continuing to land. On November 9, the "Three-year Plan of Action for Shanghai to Promote the Construction of a New Generation of Information Infrastructure to Promote Urban Energy Level and Core Competitiveness (2018-2020)" issued by the Shanghai Municipal Government put forward that 10,000 5G base stations will be deployed in 2020, taking the lead in commercial use.

　　On November 14, Taiyuan Planning Bureau issued the "Taiyuan 5G Communication Base Station Special Plan" (2018-2035). The short-term planning period is 2018-2020, and the long-term guidance is 2035. It plans to build about 124,000 macro base stations in the city.

　　On November 19, the Beijing Municipal Government issued a circular entitled Beijing's Action Plan for Further Optimizing Business Environment (2018-2020). The document proposed that the overall requirements of the state's "Speed-up and Fee-Reduction" should be implemented, the construction of optical network cities should be accelerated, the fixed broadband network will have Gigabit access capacity in 2020, and 5G coverage in key areas should be achieved.

　　Wang Zhiqin, head of China IMT-2020 (5G) Promotion Group and Vice President of China Information and Communication Research Institute, said: "Local governments attach great importance to 5G and have raised it to the level of infrastructure, hoping to improve production efficiency and promote economic development through it."

　　Tianfeng Securities believes that all localities actively respond to the call, making the domestic 5G process as a whole consistent, the pace and intensity of 5G investment is expected to exceed expectations.

　　Jin Haitao, chairman of Qianhai Ark Asset Management Co., Ltd. and chief executive partner of Qianhai Mother's Fund, pointed out that 5G investment needs large-scale investment. The future 5G base station volume will be twice that of 4G base station, and the investment requirement of 5G network construction for operators will be at least 1.5 times that of 4G.

　　According to the calculation of Guoxin Securities, the growth of 5G key performance indicators needs the support of doubling the number of base stations. From the perspective of continuous coverage, the number of 5G base stations may be 1.5 to 2 times of that of 4G. At the same time, the improvement of 5G performance requires ultra-dense networking to improve spatial reuse, so small base station technology emerges as the times require. This technology can effectively increase the network density and solve the problem that 5G signal can not be covered indoors. According to estimates, the market size of 5G small base station can reach 250 billion yuan, and the next investment opportunity of 5G will be generated in the base station system.