On June 25, 2021, the 5G 700M wireless network main equipment bidding centralized procurement bidding announcement was released. Entrusted by China Radio and Television Network Co., Ltd., China Mobile Communications Co., Ltd. represented China Radio and Television Network Co., Ltd. and China Mobile Communications Co., Ltd. to conduct the bidding. The purchased products are 5G 700MHz macro base stations, and the purchase scale is about 480,397 stations.
Announcement of winning candidates
On July 18, 2021, the winning candidates were announced and released. The total amount of the winning bids is about 38 billion yuan. The bidding quotations and winning conditions are as follows.
Standard package 1. 190061 station 5G 700M macro base station:
Standard package 2, 190061 station 5G 700M macro base station:
Standard package three, 100275 station 5G 700M macro base station:
Judging from the above winning bids, Huawei and ZTE won the first and second places in the three bid packages, and Nokia, Datang and Ericsson won the third place in the three bid packages respectively. The shares of each company are calculated based on the number of sites, as follows:
Huawei won the first place with a 60% share, and ZTE won the second place with a 31% share, with a combined 91%. The remaining 9% is divided up by Nokia, Datang and Ericsson, and Ericsson is the most surprising.
Ericsson is a Swedish company. On October 20 last year, the Swedish government banned Huawei and ZTE from participating in its 5G network construction for so-called “security reasons”. At that time, the Swedish Post and Telecommunications Authority (PTS) announced that it would prohibit companies participating in the subsequent 5G spectrum auction from using Huawei or ZTE 5G equipment, and the Huawei or ZTE equipment in use must be replaced by early 2025.
Huawei has appealed the unfair decision. On June 22 this year, the Stockholm Administrative Court ruled on the case, dismissing Huawei’s appeal and ruling that the Swedish government’s decision was not illegal, that is, the “Huawei 5G ban” was upheld.
In view of the above actions of the Swedish government, many people predicted that Ericsson would be out of the competition before the bid opening and excluded Ericsson from the Chinese market. On the eve of the opening of the bid, Ericsson’s CEO also said that he no longer has hope for the Chinese market, and Ericsson cannot expect to win the Chinese 5G bidding contract as before.
Ericsson’s winning the bid is indeed unexpected, but at the same time Ericsson’s winning the bid can also be understood as what China did for Sweden and other western countries. China is tolerant and open to all countries in the world. Second, Ericsson’s winning bid is very small, and its products are in the Chinese market. The impact is almost negligible.