What structural opportunities will the 4G industry bring to the communications industry?

We expect that 4G will bring structural opportunities in the communications industry, the industry chain related listed companies will benefit in the second half of 2013 began to gradually release the results in the second half of 2013 and the first half of 2014 or beyond the performance of the market, but compared with 3G, the 2013-15, operators of each year's total investment year-on-year growth is 4G the single peak annual investment of less than 3G, so the 4G will bring investment opportunities or will be weaker than 3G.

First, 4G licenses issued during the year, moving in advance

1, 4G basic concepts (TD, FDD)

4G is the fourth generation of mobile communication technology and its abbreviation, the user is able to download speed of 100Mbps, 2000 times faster than dial-up Internet access, upload speed can reach 20Mbps, and can meet the requirements of almost all users for wireless services. In addition, 4G can be deployed where DSL and cable modems are not covered, and then extended to the entire area. It is obvious that 4G has incomparable advantages.

In the initial stage of 4G technology in the industry, there are three main competing technologies: the original European 3GPP camp LTE, promote the original American 3GPP2 camp promoted by the UMB and IEEE802.16 of the US working group and WiMAXForum to promote WiMAX technology. Because UMB technology in the standardization phase was too high monopoly, industrial scale reduced, has been abandoned by the industry. At present, there are two types of 4G technologies approved by the International Telecommunication Union: LTE and WiMAX. The latter did not get the favor of operators and equipment manufacturers, facing the development dilemma. Therefore, what we call 4G generally refers to LTE.

In LTE, FDD-LTE and TDD-LTE are evolved in two ways, namely frequency division duplex (FDD) and time division duplex (TDD). Due to the differences in wireless technology, the use of different frequency bands, as well as the interests of manufacturers and other factors, LTEFDD support camp is more powerful, standardization and industrial development are ahead of LTETDD. As of January 8, 2013, there are 145 LTE commercial networks in 66 countries worldwide, of which 132 are LTE-FDD networks and 13 are LTE-TDD networks. Terminal support, there are 83 operators worldwide released a total of 560 LTE products, this figure is three times last year, of which there are 151 smart phones. There are 115 terminals supporting LTETDD, and now 29 terminal manufacturers have launched LTETDD terminals.

And TDD-LTE was put forward by China, which is generally called TD-LTE.TD-LTE and is catching up with it. The Global Mobile Suppliers Association (GSA) released the "global LTE-TDD market development status" report, determine the investment and is testing the TD-LTE network operators have 38, 23 countries located in Oceania, North America, Europe, Asia, Africa, South america. According to research institutions Ovum predicts that by 2016, the global number of TD-LTE connections will account for LTE 1/4; ABIResearch also predicts that the global TD-LTE users will increase from 2012 at the end of 1 million to 139 million in 2017. Looking at the maturity of the industry chain, it is much better than before the TD-SCDMA commercial. The industry agreed that the TD-LTE technology and industry have matured and have the basis and conditions for scale development, and the gap with FDD-LTE has been shortened to 6 months.

According to the industry's general estimate, FDD-LTE and TDD-LTE equipment difference is about 10%-15%, or even lower, they can individually network, can also be in different frequency band joint networking, complement each other.

2, the Ministry of industry and the three operating attitudes and policies

In March 5, 2013, the National People's Congress to participate in the discussion of the Qinghai delegation, MIIT minister Miao Wei said: "the license of 4G estimates this year can be issued, we will support the timely introduction of the policy, the construction and development of 4G network". Fully reflect the government's very positive attitude towards 4G.

In December 5, 2012, China Mobile Worldwide Developers Conference, China Mobile CEO Li Yue said the release time of the problems in the dialogue 4G license, China Mobile recently held a press conference in Hongkong, you can clearly answer this question. This is the first time China Mobile high-level 4G licenses issued for the issue of time to make a clear statement. To attempt to reverse the disadvantage 3G era as soon as possible, has started the construction of the scale TD-LTE trial network China Mobile, longing for the Ministry of Industry issued 4G licenses as soon as possible to enable them to regain the 2G era dominating target. China Mobile chairman Xi Guohua publicly suggested that the domestic TD-LTE industry can be basically mature during the year, so this year the issuance of 4G licenses this time point is appropriate. As a result of 3G license reasons, China Mobile to promote the most active 4G, plans to build more than 200 thousand TD-LTE base stations in 2013, the network covers more than 100 cities, 4G terminal procurement will be more than 1 million. Meanwhile, China Mobile launched the largest 4G smartphone experience in Guangzhou, Shenzhen, Shanghai mobile will also be launched in the near future 4G commercial trial.

China Unicom chairman Chang Xiaobing's attitude towards 4G licenses has changed greatly. Last year in the interim results conference, said the development of 4G technology is too early, this year's "two sessions" period, said that the government hopes to issue 4G licenses as soon as possible. This change of attitude seems to indicate that the issuance of 4G licences is imminent.

China Telecom head Wang Xiaochu is no longer on the issuance of 4G licenses said publicly in 2012 talk ambiguously, the results of the conference: "China Telecom hopes to get a FDDLTE license, if the government departments shall not be issued FDDLTE licenses, the China Telecom will consider renting a network to China Mobile, and even other operators with TD technology to build a TDD network, because I believe that cooperation is a separate building more efficient".

At present, by the global operators and equipment manufacturers attention, support TD-LTE network has more than 10 manufacturers, terminal chip manufacturers reached 17, more than 20 test instrument manufacturers, the industry chain of the world famous enterprises are actively engaged in commercial TD-LTE products research and development. By the end of 12, 12 TD-LTE commercial networks had been launched worldwide, with 28 operators signing 43 Commercial Equipment contracts and 63 running test networks. Although TD-LTE has been blooming all over the world, China has not yet issued TD-LTE licenses, and only one China Mobile operator has undertaken TD-LTE pilot work in the country, lagging behind the global commercial process. Therefore, the issuance of 4G licenses as soon as possible in order to compete in this field of discourse, but also 4G licenses will be issued as soon as an important promoter.

3, 4G license may release time, release order

According to the two statements made by the minister before and after the Ministry of industry, we expect that the issuance of 4G licences should be relatively definite during the year. As for the specific point, it needs to consider the issuance of licenses, stimulating effect on the economic development of China's manufacturing industry competitiveness in the international market and the evolution operator costs and other factors, we forecast in October is expected to issue 4G licenses. The problem of 4G network construction, the main investment in Mobile has "jump start", the specific point in time the license does not affect the pace of network construction.

With regard to the ownership of licences, the industry has the following speculations: 1. All TD-LTE licences issued; 2. China Mobile, TD-LTE, China Unicom and telecom FDD-LTE; 3. China Mobile and telecom TD-LTE, Unicom FDD-LTE, 4. TD-LTE licences will be issued within 2 years, and FDD-LTE licences will be issued in a later period.

4, according to the 3G license issued before and after the market reaction, we predict 4G impact on the industry huge

In 2012, the overall performance of the global telecommunications industry was sluggish, and the operators and equipment business performance showed a downward trend. In the ecology of communication industry, the development of equipment providers mainly depends on the investment of operators, while the investment power of operators is influenced by their own profits, competition and technological upgrading. In 2012, operators in the old business model, profitability decreased significantly, and then affect the downstream equipment business performance, resulting in communication companies generally feel the industry "cold winter."". We believe that the issuance of 4G licenses will be a great benefit to the communications industry, the whole industry chain is tantamount to a booster injection. In 2013, the performance of the whole communications industry is expected to be improved.

Review history, 3G licenses issued before and after, the communication equipment sector eye-catching performance. In 2008, the communications equipment industry outperformed the market by 70 points throughout the year. In January 7, 2009, the 3G licence was issued, and in the next two years, the communications equipment industry was ahead of the market for most of the time.

Operators investment growth, equipment factory business performance high growth, support communications equipment sector outperformed the market. In 2007 3 operators reorganization resulted in investment in 2007 postponed to 2008, 3G in 2009 began construction led to 2009 large amount of investment, 2008-2009 operators and investment growth of 37.89% and 36.59% 3G, the equipment investment is 150 billion yuan. Communications equipment sector performance and telecom operators investment amount of basic synchronization, in 2009 when the 3G investment peak appeared, the annual performance of communications equipment also reached 50.39% growth rate.

Back to the 4G, the three operators, China Mobile because of relatively weak and high-end users of its 3G network competitiveness continue to loss, through the network to regain the market a new initiative, enthusiasm for building the supreme power of the strongest. As the main force in the 2013 4G network construction, in 2013 3G6.2 mobile base the size of the original plan of 67 thousand expanded to 110 thousand, and the group of listed companies total capital expenditure or exceed market expectations, will significantly promote the performance of the company to improve the relevant equipment. China Telecom chairman Wang Xiaochu also publicly said that the progress of 4G construction will not be slower than moving. Although Telecom capital expenditure in 2013 there is no 4G investment plan, but if 4G licenses issued in advance, then Telecom will be appropriate investment, become new market investment. With China's WCDMA licence, China Unicom can upgrade to HSPA+ and is not expected to invest in the construction of 4G networks in 2013.

The downstream communications company, 4G network construction will bring the whole industry chain boom, RF devices, network planning, network optimization, host station maintenance and engineering, transmission equipment, small base station company will be in the construction period have benefited, and the network to be mature, mobile terminal, content providers and operators will along with the development opportunities, to achieve a performance improvement. Due to the restriction of the environment, in 2009 compared to the three operators at the same time, large-scale construction of 3G network, the 4G network construction pace may be slightly slower than 3G, and showed the characteristics of step by step, should be moving in the 2013, three operators in capital expenditure growth rate may be lower than the 2009 investment in the peak year, but 4G related industries will continue as of 2013 the structural hot spot, become the communications industry's main investment.

Two, 4G investment scale: in 2013 for the construction of mobile main

We expect that the total investment of 4G's main equipment will be about 100 billion yuan in 2012-2016 years, and the overall investment will be relatively stable. 4G will bring structural opportunities in the communications industry, the industry chain related listed companies will benefit in the second half of 2013 began to gradually release the results in the second half of 2013 and the first half of 2014 or beyond the performance of the market, but compared with 3G, the 2013-15, the annual total investment operators increase little 4G single peak the investment amount is less than 3G, so the 4G will bring investment opportunities or will be weaker than 3G.

1, China Mobile investment status and future forecast

(1) 2012-2014 year 4G base station construction plan;

China Mobile 2012 annual report mentioned: 2012 new TD-LTE base station about 20 thousand, plans to build more than 200 thousand TD-LTE base stations in 2013, and by the end of the year, the network will be commercially available.

At the beginning of 2013, China Mobile's TD-LTE network construction scale scheme 200 thousand -40 10000 base station, eventually identified 200 thousand base station scale networking solution that China Mobile in the mass start on the cautious, the original plan to carry out the first quarter of this year, the TD-LTE network equipment bidding has been postponed to the two quarter. If the 2013 TD-LTE network construction smoothly, we believe that in 2014 the total number of TD-LTE base stations will not only be the first estimate of 350 thousand, a conservative estimate, in 2014 the number of new base stations 150 thousand.

(2) increase in capital expenditure;

In March 14th, China Mobile announced the 2012 annual report, the 2013 capital expenditure reached 190 billion 200 million yuan, an increase of 49%, taking into account the group TD - SCDMA and broadband investment, we expect to move overall capital spending in 2013 is expected to exceed 220 billion yuan, the scale of investment is higher than the 2009 3G peak construction years. And put TD-LTE investment into listed companies, showing the determination of China Mobile firmly building 4G network.

According to our recent research and communication, scheduled for 67 thousand base station TD-SCDMA6.2 phase (beginning in January 2013) has been expanded to 8.4-10 million base stations, mobile group 2013 capital spending exceeded expectations.

(3) focus of mobile investment in 2013: 4G mobile communication network and transmission network

In the year 2013 to move to the mobile communication network will invest about 80 billion, if the construction of 3G network, the wireless network investment will be more than 100 billion, of which TD - LTE investment is about 41 billion 700 million. Due to the high frequency section of the 4G network, is expected to complete the 4G mobile network coverage, base station construction scale to reach more than 500 thousand, 2014 - 15 years of base station construction scale is expected to remain high. In 2013 the mobile transmission network investment reached 58 billion 900 million, an increase of 65%, exceeding market expectations, we expect the next 2 - 3 years of transmission network investment will still maintain sustained growth.

2, Unicom, telecom investment forecast - refer to overseas 4G investment scale changes

Unicom: smooth upgrade to 4G network

In the face of 4G license issuance time accelerated, China Unicom chairman Chang Xiaobing finally show attitude. Last month, Chang Xiaobing in Hongkong to attend the 2012 results conference, made it clear that: "after management research, China Unicom will unswervingly follow the existing technical line, that is, FDD 4G network."".

He also believes that China Unicom has no reason to simultaneously operate FDD and TDD two standard 4G network, China Unicom will smooth through the evolution of technology, the existing 3G base station upgraded to 4G. In the future, even if we invest in 4G network construction, we will also control the level within 10 billion yuan.

Beginning in 2010, China Unicom requires new WCDMA base stations must support the gradual evolution to FDD-LTE. China Unicom currently has a total of 331 thousand 3G base stations, all upgraded to HSPA+'s 3.75G network last year, with a peak rate of 42Mbps.

This is also the face of the 4G licence issued most "calm" reasons. China Unicom's HSPA+ base station in the past two years to upgrade the FDDLTE, just add a motherboard, update RF antenna and software, "a base station upgrade, 2 technical personnel will be able to get a night."". This is what 4G said: "there is no reason for Unicom to operate both FDD and TDD two types of 4G network, China Unicom will smooth through the evolution of technology, the existing 3G base station upgraded to"."

Telecommunications: the most tangled, but the new network is inevitable

Compared with China Unicom, the most tangled is China Telecom. Because of its adoption of the CDMAEV-DO3G system does not support the smooth transition to FDD and TDD, in contrast, FDD-LTE industry chain is relatively mature, China Telecom evolution to the FDD-LTE will be less difficult. China Telecom such as the choice of network construction, we must build. And for the support of independent intellectual property rights, the government may consider allowing China Mobile and China Telecom to operate TD-LTE at the same time, so as to make it become the international mainstream technology as soon as possible. This is the China Mobile said do not want TDD to run by an operator, the reason of China Telecom "minhla dark pull".

However, China Telecom 3G network has not yet profitable, such as continue to invest heavily in the country to build a new 4G network, no doubt the pressure is enormous. It is also testing the political wisdom of Wang Xiaochu, the head of the China Telecom". Wang Xiaochu said publicly on 2012 results conference: "China Telecom hopes to get a FDDLTE license, if the government departments shall not be issued FDDLTE licenses, the China Telecom will consider renting a network to China Mobile, and even other operators with TD technology to build a TDD network, because the letter of cooperation is more efficient than single construction".

FDD is also compatible with the CDMA network technology has been mature in the world, such as the United States first operators Verizon the middle of this year will be completed in the United States 4G network coverage by Ericsson and Alcatel lucent to provide equipment and technical services. However, if the choice of TDD/FDD dual-mode, in addition to technical uncertainties exist, China Telecom must also select 3 or 2 CDMA/TDD/FDD (FDD using the current CDMA spectrum), different spectrum. At the same time, in practical terms, a single TDD base station compared to FDD base station coverage of small, China Telecom in the base station deployment will be constantly on the run".

We believe that the most likely is that the China Telecom to deploy FDD network in key city, rent a China Mobile TDD network in rural areas such as wide area coverage, and building -- but it is also beginning to cover rural market in China Mobile TD-LTE network.

Referring to the US 4G investment, a smooth upgrade also requires large-scale investment

Verizon and AT& T is the two largest mobile operators in the United states. 3G era, Verizon is CDMA standard technology, similar to China Telecom, and AT& T uses WCDMA system, similar to China unicom. Since the CDMA system can not smoothly evolve to 4G, Verizon chose the new LTE-FDD network in 2009, and the capital expenditure of the 2009 year wireless network increased by 9.86%, and maintained the growth momentum for 3 consecutive years. Using 4G concept marketing, the number of Verizon mobile users increased from 70 million 20 thousand in 2008 to 85 million 450 thousand, an increase of 22.03%. In order to compete for customers, AT& T in 2010 on the one hand, the original WCDMA network upgrade to HSPA+, and began to upgrade, the construction of 4G network, the wireless network in 2010 capital spending increased 50%, and in 2011-12 year capital expenditure keeps continuous growth.

As China Mobile has begun to build a larger scale 4G network, 4G licenses will be issued in the year, and in order to avoid the loss of high-end customers, China Unicom, Telecom's 4G network construction will be no later than 2014. Referring to the United States, we forecast the future capital expenditure plan of China Unicom and telecom.

Due to the small technical differences between TD-LTE and LTE-FDD, and the high rate of equipment sharing, it is assumed that the investment scale is similar. Comparison of Verizon investment growth, taking into account the China Telecom base for a total of three operators (at least 330 thousand base stations), we predict that the telecom 4G network construction will start in 2014, 2014-15 is the peak year for investment in mobile communication network, 2015 capital expenditure is expected to reach more than 35 billion.

Although Mr Chang said China Unicom technology through the smooth evolution of the existing 3G base station upgrade to 4G.. In the future, even if we invest in 4G network construction, we will also control the level within 10 billion yuan. The same is a smooth upgrade, AT& T construction 4G network maintained the last three years, wireless network capital spending is growing, and in the first year, a substantial increase of 50%. We predict that China Unicom 4G network construction will be launched in 2014, 2014-15 years for investment peak year, of which, 2015 mobile communications network capital expenditure is expected to reach more than 35 billion.

3, the total investment scale - Mobile based in the past two years

We expect the number of construction of LTE-FDD base station in 2014 -2016 years were 40 thousand, 70 thousand and 50 thousand, the main equipment investment amounted to 4 billion 300 million yuan, 6 billion 650 million yuan and 3 billion 750 million yuan; the number of construction of TD-LTE base station in 2013 -2016 years were 200 thousand, 200 thousand, 220 thousand and 160 thousand, the main equipment investment were 27 billion 500 million yuan, 21 billion 500 million yuan, 20 billion 900 million yuan and 12 billion yuan. Among them, LTE-FDD wireless equipment investment amounted to 14 billion 700 million, TD-LTE wireless equipment investment amounted to 85 billion 650 million yuan.

Three, 4G industry chain and sub sectors benefit order

1, 4G industry chain structure

According to the understanding of the communications industry, and operators in the bidding plan, we will build a mobile communication network is divided into: planning stage, the main construction period and application period. At the same time, the investment timing of 4G segments was predicted: the network planning and design will be the first to benefit from the 4G scale to carry out construction, after the main construction period is 4G, RF devices, main equipment, transmission equipment, network coverage and optimization, operation and maintenance will in turn benefit; in the network construction scale, application enter the 4G, mobile phone terminal operators and finally benefit.

2, planning period: network planning earliest benefit

Network planning and design can be divided into consulting and planning, feasibility study and design steps, generally includes five stages: topographic survey, feasibility study, preliminary design drawings, construction drawings design, preliminary design review and acceptance. Completion of the project usually takes 6-12 months. Wireless network planning and design of the overall cost of about 4% of the total investment of the project, LTE fees due to new technology will be floating.

At present, the main participants in design of communication network planning in China, from the origin and background of the shareholders can be divided into three categories: one is the three operators under the Design Institute; two is the various third party Design Institute of state-owned background; three is the third party private design company.

China Mobile Design Institute is the two unit of China Mobile, which will bear the planning and design work of almost all base stations in the early stage of TD-LTE. Due to staffing restrictions, in cooperation with the general shift of hospital units together to complete the network planning and design, Fuchun communication is its divided by the maximum amount of business partners. Fuchun communication about 70% of the revenue from the mobile market. The other relates to network planning and design of the listed company are: 1) Guomai, about 40% of revenue from mobile, but the design, mainly from the 2G/3G stock market and the optimization of operation and maintenance; 2) Jiesai technology, network planning business mainly from China Unicom, is currently actively developing in mobile market. We are optimistic about the Fuchun communication because of mobile 4G investment benefit, and the expected performance this year is expected to double growth.

3, the main construction period

RF devices: revenue, scale and gross margin rise into the channel

The RF device is the core component of the mobile communication base station, including RF devices and RF structure, wherein the mobile communication base station RF devices including filter, duplexer and multiplexer; mobile communication base station RF structures primarily for RF devices cavity, cover plate and shell etc..

RF device based customers (HUAWEI, Ericsson, ZTE, etc.) are in the upper reaches of the main equipment and therefore belong to the early period of construction. The RF device manufacturers are mainly in Wuhan where the valley and rich technology, production capacity ranks in the forefront of the world. In 2012, the global communications industry downturn, the radio industry revenue scale and gross margin both decline. With the global industry rebound, ultra mobile 4G investment is expected to bring new incremental, RF manufacturers this year is expected to bottom out, in which the revenue scale is expected to be greatly increased, the gross margin will also rebounded with the capacity to recover. Recommendations concern the rich technology, the company improve production yield will increase the overall gross profit margin, and strictly control the cost, performance is expected to significantly reverse.

Main equipment: 4G investment focus, the overall profitability is expected to increase

4G era, the main equipment includes RRU, BBU and so on. Among the listed companies in China, ZTE has the most comprehensive capability, followed by Datang and beacon fire. With the 2013 global telecom equipment investment rebound, the main equipment manufacturers revenue growth will increase. The experience of the 2012 trough network construction and fierce price war, the main equipment manufacturers focus from the "face" regression "lining", the price war basically stopped, a recent project or even improve the bid price, the overall profitability is expected to increase.

There are mainly three kinds of mobile TD-LTE base station construction in 2013 200 thousand: 1) 3G base station directly upgrade, specifically for the replacement of a piece of substrate, a set of software upgrade, adding a pair of optical fiber; 2) is the original site in new, 2G/3G room, ancillary equipment, just add 4G main equipment; 3) new the new, namely to build a new base station, including the main equipment, base stations and ancillary equipment.

Industry official said: "after accounting for up to TD-SCDMA, the four phase of the project, BBU RRU and 89% outdoor equipment, about 83% of the 60% antenna can be directly upgraded to support TD-LTE TD-SCDMA, with the subsequent expansion project, will further enhance the proportion of direct upgrade equipment, because this upgrade will be an important way of rapid deployment of TD-LTE network." As of the end of 2012, China Mobile has more than 280 thousand TD-SCDMA base stations in the country built, the basic realization of continuous TD network coverage of domestic cities, county-level city and county's urban areas, the urban area coverage rate reached 80%.

Recently, media reports, mobile 2013 200 thousand TD-LTE base station, mainly for the F band. We expect that the new 200 thousand TD-LTE base stations, mainly from the direct upgrade and the site of the new, of which the 3G base station directly upgraded mainly, accounting for about 70% of the share. According to our grassroots research, some provinces 3G base station upgrade or will reach 80%. Taking into account the mature development of the TD-LTE industry chain, China Mobile will purchase a new batch of main equipment to enhance the enthusiasm of foreign manufacturers to participate in TD-LTE. This part of the market share is about 30%. Due to the lower proportion of the new site, the base station supporting equipment will be reused with 2G/3G, the majority of the investment TD-LTE will flow to the main equipment manufacturers, related supporting vendors benefit little.

For equipment manufacturers, the base station upgrade gross margin was significantly higher than the base station new. ZTE accounted for mobile 3G market share of about 30-40%, the 3G base station upgraded to 4G, will help improve the company's consolidated gross margin.

Transmission and ancillary: investment exceeding market expectations

4G construction process, in addition to wireless devices, transmission and ancillary equipment is also the focus of investment. 4G network will greatly increase the capacity of wireless networks, and the data need to be carried to the wired network for transmission, so the bearer network and backbone network will also be the focus of construction and investment.

From the investment structure, in the overall network construction, accounting for about 60% of the network investment of 20%-30%. To the United States AT&, T, for example, by the end of 2012, plans to invest $14 billion over the next 3 years, the construction of 4G networks, including LTE (wireless) investment of $8 billion, the cable network investment of $6 billion.

From 2013 China Mobile capital spending point of view, its mobile communications network (including LTE) investment growth rate of 42.51%, better than market expectations, transmission network plans to invest 58 billion 962 million yuan, an increase of 65.29%, far exceeding market expectations.

We believe that, in the domestic 4G construction, regardless of TD-LTE or LTE-FDD, it is necessary to support the network, backbone network, and related equipment also has greater demand. As the amount of data in the wireless network increases, the network load will continue to increase, so later there will be expansion or upgrade needs. The construction of the wired network will start later than the wireless investment, but it will last longer.

Related company, main equipment: ZTE, Fiberhome; equipment: Japanese sea communications, xinhaiyi; fiber optic cable: Hengtong photoelectric, ZTT, Ding photoelectric optical device: Accelink technology.

Small base stations: new increments, the market size to be verified

In the LTE era, the network architecture of operators is changing from traditional macro cellular to distributed base stations, which will greatly promote the small base station market. According to forecasts released by ABI in 2012, LTE small base stations will sell more than LTE macro cells in 2014.

Small base stations can be networked in a variety of ways, in residential buildings, home base stations, through home broadband Internet connections, and in office buildings, small base stations through enterprise broadband and Internet connections. Finally, connect to the mobile network via the internet. Equipment manufacturers are also developing strategies to small base stations, have begun to establish a corresponding product line.

At present, China Mobile is still on the small base station test, there is no bidding starting point, the future deployment scale are uncertain. Listed companies, provide such products ZTE, boomsense technology etc..

Network operation and maintenance: shift, need to consider comprehensively

Telecom operators will face a large-scale LTE network construction, users of telecommunications network availability and effectiveness of the dual requirements. If the network appears unstable and unstable, it will seriously affect the user's perception of the use of telecommunications services. The importance of telecom network operation and maintenance is self-evident, and it is a very important basic support work for Telecom operators. In addition, the increase in the network size, and background control operating costs, operators need to increase network maintenance outsourcing proportion, to reduce investment and network operation risk, improve the quality of the network, and improve the overall level of service.

The coexistence of 2G/3G/4G multi standard network promotes the operators' demand for network optimization, operation and maintenance services. But because of the substitution of distributed base station and the indoor distribution of the traditional repeater, part of network optimization equipment manufacturers or will face the network optimization coverage equipment revenue decline, service revenue has improved the situation, need to consider the comprehensive analysis.

4, application period: benefit the latest

Terminals: multimode trend is obvious, antenna demand is expected to increase. In March 14th, at the launch of the flagship smartphone GALAXYS IV New York, Samsung announced its launch of a Chinese led TD-LTE system. According to insiders, Apple Corp iphone5S smartphone released later this year will also support TD-LTE. We expect the emergence of truly mature, commercially available TD-LTE smartphones in the three quarter of this year.

Terminals and related industries will begin to benefit after 4G scale applications. Related to listed companies are: ZTE, Zhuo wing technology, master Bader, sunway communication, among them, because the future of mobile phone needs to support multi-mode (TD-LTE, LTE-FDD, GSM etc.), the antenna is expected to increase demand, good speed, such as mobile phone antenna Sunway communication company.