Another Speed Battle for ‘Securing the 5G Technology’ in the Wired Communications Equipment Industry

Wired communications equipment makers have begun to secure fifth-generation (5G) communications technology. It is a strategy to prepare for advancement of the wired network which will support mobile communications infrastructure such as base stations, etc. It is
expected that they will start tests such as interworking with communications companies as early as the latter half of this year.
Dasan Networks and Ubiquoss Inc. will accelerate the development of 5G wired communications equipment. Dasan Networks plans to commercialize its TSN (Time Sensitive Network) technology. TSN realizes ultra-low latency communications, a core service of 5G, by enhancing the accuracy of packet transmission time. They plan to mount the virtual network functions (VNF) on the switch and router equipment for realizing ultra-high- speed data transmission and 5G service.
Ubiquoss Inc. responds to the 5G communications market by enhancement of its software defined network (SDN) technology, which maximized the network operation efficiency by separating software and hardware. It also started developing the access network backhaul equipment that supports the 5G communications to the subscriber unit.
Considering the characteristics of communications equipment, which is essential for interworking with the communications network, they carry forward equipment development cooperation and network interworking test with mobile communications companies. It is expected that verification of equipment compatibility and performance will begin in earnest from the second half of the year when communications companies will start to invest in 5G communications facilities. As communications equipment is not completed simply with a product development but it has to be linked with communications network to guarantee performance, commercialization of wired communications equipment is expected to be completed in line with facilities investment time of communications companies. As the time for investing in 5G communications equipment is imminent, technological development of wired communications equipment makers is expected to accelerate.
Successive 5G technology developments of wired communications equipment makers should be preceded by advancement of infrastructure for 5G communications at the wired network stage. Construction of 5G communications facilities is concentrated on wireless communications equipment such as base stations and repeaters. However, unless supported by a wired network, 5G services such as ultra-high-speed and ultra-low latency are virtually impossible. This means that it is essential to replace and upgrade the wired network equipment to process large amounts of data quickly.
The differentiation strategy from foreignequipment makers that started the advanced development of 5G wired communications equipment is a problem waiting to be solved. Foreign equipment makers such as Cisco, Nokia, and Huawei have secured a portfolio of 5G wired communications equipment and solutions for several years. As foreign equipment makers have made a massive investment in R&D and manpower, it is generally accepted that their equipment performance is more advanced. Price competition with Chinese telecom equipment makers such as Huawei is inevitable.
An official in the communications equipment industry explains, “Domestic wired communications equipment makers should find ways to survive between the technological prowess of Cisco and Nokia and the price competitiveness of Huawei. They should find ways to differentiate themselves, such as development of 5G equipment optimized for the domestic communications infrastructure market, etc.”

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