Taiwanese factories are in possession of the niche market A better chance at grasping 5G orders
Date: 2019-03-14
News Type:
As 5G networks become a reality, and with the O-RAN Alliance strongly advocating the use of white-box equipment, related business opportunities are freely available, while Foxconn, Quanta, Accton, and Alpha Networks and other Taiwanese manufacturers each have their own niche, with a great chance to snatch orders.
The O-RAN Alliance is certain that the next generation of wireless network systems will be built on a virtual basis, and so believe it is necessary to build up standardized and white-box hardware in order to establish an open and iCloud-based platform.
In recent years, Quanta and Accton have both played a rather crucial role in the network data center supply chain built by the Internet industry, and they have provided servers and switches, boosting the growth of operations in these years.
Foxconn is actively rushing into Mobile Edge Computing (MEC) and the Cloud of Radio Access Network (Cloud-RAN). As for Alpha Networks, it has, in addition to small base stations, been actively deploying gNB (5G base stations) and Cloud-RAN so that it can take advantage of any future business opportunities. Accton also pointed out that the white-box needs for telecommunication should begin to ship.
Alpha Network’s Chairman, Li Chong-wang, said that in the foreseeable future there should be a very large number of white-box RANs defined by supra-large telecom operators. As for general operators, they would mainly be working on customized RAN, while the primary target markets for Alpha Networks would still be ODM and OEM. When the Open RAN market starts to mature, it should wait for the best timing to get into the white-box market.
Institution investors believe that in the past Taiwanese manufacturers were mostly OEM partners of Netcom brand players such as Ericsson, Cisco, and Nokia. It is expected that telecom operators will help promote 5G from core networks, MEC, and base stations. With the purchase of white-box products, it should help Taiwanese manufacturers such as Foxconn, Quanta, Accton, and Alpha Networks have the opportunity to directly cut into the market of telecom customers and seize white-box business opportunities. (News source: Economic News).
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