How much does a 5G base station cost? China Mobile's purchase order reveals the truth
China Mobile has completed the construction of the first phase of 5G projects and has achieved 5G commercial use in 50 cities. It has now fully launched equipment testing and procurement for the second phase of 5G projects, striving to reach 300,000 5G base stations by the end of 2020 and ensure that 5G commercial services will be provided in all cities above the prefecture level in the country within 2020.
That is to say, China Mobile still has nearly 250,000 5G base stations to be built in 2020. To this end, China Mobile's capital expenditure budget for 2020 is 179.8 billion yuan, of which 5G-related investment plans are about 100 billion yuan. On average, each 5G base station costs nearly 400,000 yuan.
At the same time, China Mobile recently announced the results of the centralized procurement of 5G Phase II wireless network main equipment in 2020, requiring a total of 232,143 5G base stations with a total procurement amount of 37.088 billion yuan. Based on this calculation, the price of a single 5G base station is 160,000 yuan.
In this procurement, Huawei, ZTE, Ericsson and China Information and Communications Technology (Datang) were shortlisted, with the purchase price ranging from approximately RMB 135,000 to RMB 161,200.
Among them, Huawei won bids for 133,040 5G base stations, with a winning ratio of 57.25%, far ahead. The unit price of its 5G base stations was also the highest among the four suppliers, reaching 161,200 yuan per base station.
It is worth mentioning that 5G is a large and complex system. In addition to the base station itself, it also requires the construction costs of the station building, core network transmission equipment, power supporting equipment, etc. If all these costs are added, the average deployment cost of a 5G base station will increase significantly, and China Mobile's 100 billion plan may just be enough.
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