On June 18, the U.S. Federal Communications Commission (FCC) plans to ban Huawei, ZTE, Dahua, Hikvision, and Hytera. Five Chinese companies that are considered national security threats will be approved for use in U.S. telecommunications. The internet.

Faced with another suppression by the United States, Chinese companies issued responses to opposition on the same day. Among them, Hytera stated that its products “will not pose any threat to the national security of any country”, and said that the actions of the US Federal Communications Commission are inconsistent with the US government’s standard practices for assessing and mitigating risks.
For Hytera, the dedicated communications leader known as “Little Huawei”, what impact will this policy have? Lao Ji tried to interpret it.

Powerful challenger

We know that in today’s science and technology field, the US political circles have fallen into a very anxious situation, worried about China’s overtaking. Not long ago, on June 8, the U.S. Senate also specifically passed the “U.S. Innovation and Competition Act.” The bill set a budget of $250 billion, hoping to expand U.S. investment in high-tech industries in the next five years to maintain the United States. Competitiveness in this field.
The five Chinese technology companies banned by the US Federal Communications Commission this time are precisely the leaders in their respective segments: in the field of communications equipment, Huawei is the global leader, ZTE is the fourth in the world, and has achieved 5G and even 5G Advanced. Technology dominance; in the field of security video, the Chinese company Hikvision is a global leader, and Dahua, which is located in Hangzhou with Hikvision, is closely behind and dominates this fast-growing market together.
Although not as famous as Huawei and Hikvision’s big brothers, Hytera is also a very strong challenger in the segment of global private communications. It ranks second in the world and has already challenged the industry’s leader and Motorola Systems in the United States. (Hereinafter referred to as “Motorola”) poses no small threat.

We know that as early as 2012, Motorola at that time made a major split, sold its mobile phone business to Google, retained its dedicated communications-based business and reorganized it into the current Motorola, just thinking that it could stay there. Leadership in the field. However, Motorola is obviously happy too early. At this time, Hytera from China has begun to rise, with branches all over the world, and together with thousands of partners around the world, to provide governments and industry users in many countries and regions with their urgently needed special communication products and solutions. Program. After years of rapid development, Hytera’s technical standards and service capabilities have entered the first echelon of the global private communications field, and its catching-up with Motorola has become increasingly obvious. In overseas markets, Hytera beat Motorola many times to win the bidding of special communication network construction projects, such as Russia’s 2017 FIFA Confederations Cup and 2018 FIFA World Cup TETRA communication network construction projects. In the Chinese market, Hytera also defeated Motorola many times and won the TETRA communication network construction project of Shenzhen Metro Line 7, Line 9, and Line 11. It is precisely because of fear of the rapid rise of Hytera. Starting in March 2017, Motorola has initiated multiple lawsuits against Hytera in the United States, Germany, Australia and other countries, and filed high-priced compensation claims. This move by Motorola is very similar to the lawsuit initiated by Cisco against Huawei in 2003.

No ji tai lai

So, after encountering several heavy blows by American companies and the American government, can Hytera still survive and develop? In fact, we can see from the fact that Huawei has been suppressed by American companies and the government many times over the years, but the more frustrated it is, the more courageous it is in the war, we can see that Chinese technology companies have a tenacious ability to survive. So is Hytera. Since its establishment, Hytera has continued to maintain stable development, especially in the last 5 years, it has maintained an annual growth of about 20-25%. Operating income has increased rapidly from 1.2 billion yuan at the beginning of its listing in 2011 to 2020. 6.1 billion yuan. At present, Hytera has more than 8,000 employees worldwide, including more than 1,000 foreign employees, and has 10 R&D centers around the world. Hytera has been focusing on various vertical industries such as public safety and transportation. Together with more than 4,000 distributors and partners around the world, it provides dedicated communication products and services to users in more than 120 countries and regions around the world. It is understood that Hytera has established more than 4,000 dedicated communication networks around the world, successfully serving more than 15 million users worldwide. What Americans fear the most is Hytera’s technological innovation capability: Hytera continuously invests more than 15% of its revenue in product research and development every year. The research and development intensity is equivalent to that of Huawei, and it continues to launch new products and solutions: In 2014, Hytera began to invest in the research and development of PMR private network and LTE public network convergence solutions, and began the technology research and development and deployment of broadband systems. By 2017, Hytera has released a convergent communication solution, launching an overall solution for screens, tubes, and terminals, including a full range of products such as multi-mode terminals, broadband & narrowband converged systems, cross-network converged command and dispatch platforms, and intelligent application software. , To provide professional users with a smooth evolution of communication solutions from narrowband to broadband. In 2020, due to the dual impact of the epidemic and the international trade situation, Hytera’s operating income has declined, but the basic disk business of its main dedicated network has remained stable, and non-core businesses such as OEM have declined. Thanks to effective overall cost control, the company remained profitable throughout the year. After entering 2021, the global dedicated communications market has seen a recovery growth, and Hytera, which is ready, has realized the flying of domestic and foreign markets, and signed large contracts continuously. Hytera disclosed on February 1 this year that its subsidiaries have signed a contract for the maintenance service of the TETRA system with the Brazilian road police. The project is mainly to provide the Brazilian road police with a 30-month warranty for the TETRA system covering multiple states. Maintenance services, the total project amount is 49.602 million reais (approximately RMB 58.794 million). In addition, Hytera also signed a purchase order of more than 47 million yuan with an industry partner in a Central Asian country, mainly for the expansion and upgrade of the dedicated communication network of the dedicated communication customer in the Central Asian country. It is reported that this project is another major project of Hytera following the law enforcement recorder project in the country, providing strong support for customers’ daily and major security activities. Recently, Hytera also successfully signed a cluster network project with a customer in a North African country, with a project amount of nearly 50 million yuan. It will build the country’s first true digital cluster communication network in the country and set a benchmark demonstration project for the North African region. At the same time, it also signed a multi-mode terminal expansion with an industry partner in an ASEAN country. The project amount is nearly 40 million yuan. The broadband and narrow convergence communication network has covered its main areas, and the solution has played a key role in various major occasions. In the domestic market, Hytera also has frequent good news. On February 8 this year, Hytera disclosed that the bidding results of the “Procurement of Special Communication System Equipment and Services for Line 12 of the Fourth Phase of Shenzhen Metro Project” were announced. Shenzhen Hytera Technology Service Co., Ltd., a wholly-owned subsidiary of the company As the proposed bidder, the project amount is RMB 225.96 million. On March 2, Hytera sent another good news, providing professional wireless communication equipment and related services for the 15th Conference of the Parties to the United Nations Convention on Biological Diversity (“COP15”). The contractual estimated amount is 34,355,600. yuan. Judging from the performance this year, Hytera has already stepped out of a temporary trough and has begun another round of ascent.

The next blue ocean

If Hytera’s main battlefield was still in the narrowband private network market before, Hytera has now entered the 5G private communications market strongly, opening up a new blue ocean for future growth. Before the 4G era, limited by the network’s own conditions, the “skills” of dedicated communications could not be fully utilized. In the 5G era, the characteristics of large bandwidth (eMBB), high reliability and low latency (uRLLC) and wide connection (mMTC), especially the latter two, make it possible to interconnect everything, and the role of “dedicated communication” is prominent. In addition, the features and functions of 5G, such as slicing, full cloud, microservices, NFV (network function virtualization), and MEC (multi-access edge computing), also provide the possibility for more organizations and enterprises to flexibly deploy private communication networks. . As a result, countries around the world are extremely optimistic about the prospects of 5G dedicated communications. In China, the Ministry of Industry and Information Technology is simultaneously planning 5G industrial Internet dedicated frequencies and launching pilot construction of industrial 5G dedicated communications. In emerging market countries such as Europe and the United States and the BRIC countries, the demand from industry private networks will also grow rapidly, driven by 5G. According to Grandview Research’s forecast, the compound growth rate of the global 5G dedicated communications market during 2020-2027 will reach 37.8%, and the 5G dedicated communications market will also grow rapidly as the needs of vertical industry customers increase. Another research organization, ABI, predicts that by 2036, global 5G dedicated communication network expenditures will exceed 5G public networks. As the world’s leading provider of dedicated communications and solutions, Hytera has long seen the huge room for growth in 5G dedicated communications, and has invested in the development of a full range of products and solutions. As early as 2020, Hytera’s 5G core network passed the China Mobile 5G OpenUPF-N4 interface decoupling Class A threshold use case test and China Unicom’s white box UPF-N4 interface compatibility test. In December of that year, based on Hytera’s self-developed 5G core network and base station, it also opened up the data service First Call with standard 5G commercial terminals. In terms of 5G terminals, Hytera provides communication terminals and data transmission terminals. The communication terminals can provide 5G network access capabilities for different devices. The data transmission terminals can complete the collection and transmission of industrial equipment data based on the 5G network. As a result, in the field of 5G private communications, Hytera has assembled three major products: core network, NR base station, and terminal, and based on different industry customers and different application scenarios, it has created a very targeted 5G private network solution. 5G dedicated communications is becoming a new growth point for Hytera. Since 2020, Hytera’s PoC public network intercom products have successfully expanded the country’s largest property company. The 5G small base station products have passed the technical tests of many operators and will provide some customers with intelligent manufacturing 5G network coverage in 2021. And data transmission solutions, and signed framework agreements and product orders with a number of 5G solution manufacturers over 100 million yuan. Overseas operator business has also achieved orders and revenue breaks, including cooperating with a large Russian mobile operator to provide public-private integration platforms and terminals for government and enterprise departments, and cooperation with operator subnets in a South Asian country, with local operators in the Middle East In-depth cooperation to provide public network intercom solutions for mining users. From the positive business development in the past year, we can see Hytera’s unique advantages in 5G dedicated communications: due to years of accumulation on narrowband private networks, Hytera not only deeply understands the private communications needs of vertical industries such as public security and energy. , Can also provide public-private integration solutions for major clients in these industries and protect their past investments. Of course, the characteristics of 5G cloudification and microservices also provide good conditions for Hytera to enter more vertical industries, and even for smaller enterprises to build 5G dedicated communications. It is understood that by the end of June 2021, Hytera will release a series of new 4G/5G broadband products to further expand its business areas. At the Smart Leader China Travel Summit held this year, Hytera announced that it has built a “2+3+1” product strategy system, including: PDT/DMR, TETRA 2 narrowband cluster business, which is Hytera’s Basic disk; three new services: public-private integration, 4G/5G broadband, and intelligent integration of guidance, which are growth-oriented services; and one integrated application solution for full integration is Hytera’s comprehensive advantage. To sum up, the US suppression will not only be impossible to knock down Hytera, but will also encourage Hytera to accelerate the research and development of new products, step up the expansion of the global market, and fundamentally challenge the leadership of Motorola and other US companies in the field of private communications. status