The Ministry of Economic Affairs announced a new alliance between US Company Cisco and a team of Taiwan local Netcom Equipment Manufacturers (Zhibang, Mingtai, Zhiyi, Asahi, Zhonglei, Text, Shenbo Communication, Coiler Corporation, Uda Technology, Huadian Networking).
This alliance aims to create the first 5G Open network test in Taiwan and launch a live demonstration center in Taoyuan, Taiwan. This business opportunity will focus on developing 5G telecom white-label equipment.
During the rollout of 3G and 4G technology, telecom operators were constrained to purchase equipment from telecom equipment manufacturers such as Ericsson and Nokia. However, the emergence of 5G open network architecture allows telecom operators to use cloud-based and virtualized technologies. This exceptional feature opens the opportunity for telecom operators to purchase standardized equipment to build base stations. As a result, operators will have the opportunity to reduce construction costs and access new suppliers to buy equipment.
In 2018, the Rakuten group received the fourth telecom license in Japan and decided to use open network architecture to roll out 5G telecommunications services. They teamed up with different companies, including design collaboration with Cisco to build the core network, Quanta’s Werder technology to develop edge computing servers, and Zhonglei Electronics, manufacturer of 5G small base stations.
Taiwan Ministry of Economic Affairs is confident that Taiwanese manufacturers can take advantage and play a crucial role in 5G network open architecture technology. After decades of development, Taiwan’s Netcom industry has reached a mature degree of know-how manufacturing switches, small base stations, routers, gateways.
Through the business model created by Cisco( 5G open Network architecture) and the close cooperation with the international organizations O-RAN, TIP, etc., a new blue ocean market for 5G for Taiwanese manufacturers can be open.
The 5G open network architecture created by Cisco is based on its corporate network and information security technology, including features such as cloud and virtualization, which is beneficial to the openness and standardization of base station interfaces, access, and transmission of radio networks.
Chen Zhiwei, senior vice president of Cisco China and general manager of Cisco Taiwan, said that he looks forward to working with government and private industry partners in Taiwan to build an experimental platform that is critical to future 5G industrial applications and help Taiwan’s industry.
Source: Technews Taiwan Website. To review the original article in Chinese, visit the below links: