4G networks have traditionally been built on a closed infrastructure, so it was very difficult for beginners to break into the market of specialized equipment. With the advent of 5G networks that rely on the open architecture of the O-RAN, new players are eagerly preparing to redefine the market. Pegatron, better known as a contract manufacturer of Apple mobile devices, intends to try its hand at the 5G equipment market.
This direction, as noted Nikkei Asian Review, the Pegatron company became interested at the end of 2019. The development of equipment for private 5G networks has already invested $ 36 million, and the company’s staff has been strengthened by 200 specialists in this profile. The company intends to start developing the market from the segment of private 5G networks, since the corresponding equipment is somewhat easier to maintain and configure, and the competition from recognized market leaders in this case is lower.
Pegatron has already succeeded in an alliance with Microsoft to provide base stations for 5G networks that allow communication in natural disasters when the fixed infrastructure is damaged. To exchange information, such base stations can use a low-earth orbit constellation of satellites.
The Taiwanese company uses its own equipment for 5G networks at an enterprise in Taipei, as well as at a hotel in the Japanese capital. The latter platform is intended to demonstrate the capabilities of such equipment and to attract potential customers to a new type of Pegatron products. In general, the US sanctions against Huawei, which is considered the market leader in equipment for 5G networks, create favorable conditions for entry into the segment of new manufacturers.