1. Development Status
With the rapid development of economic globalization and information networking, breakthroughs are continuously being made in modern communication technologies. The modern communications industry has become the field with the highest integration level and fastest growth potential in the global economy. In recent years, Nanjing's modern communications industry has shown good development momentum and significant agglomeration. The industrial chain has formed gradually, and the industry scale is continuously growing, which means it is gaining an increasingly larger proportion of the entire electronic information manufacturing industry.
In 2015, Nanjing's communications and network industry accomplished the sales revenue of RMB 107 billion, with a year-on-year growth of 19%. The city had more than 200 communications and network enterprises, of which 70 were equipment and terminal manufacturing enterprises, more than 100 were supporting software enterprises, and 30 were value-added services enterprises. In 2015, top 10 enterprises achieved the sales revenue of RMB 64.26 billion, with a year-on-year growth of 20.5%, accounting for 60% of the total industrial output. Compal Communications, Nanjing Ericsson Panda Communications, and Huawei Technologies each achieved sales revenue of more than RMB 10 billion.
2. Development Advantages
(1) Cutting-edge technologies in China Nanjing has enterprise groups with powerful technical strengths, such as Panda Electronics Group, Huawei Technologies, ZTE, and Linkage Group. It also has a number of national scientific research institutions with powerful scientific research strengths, such as CETC’s 14th Research Institute and 28th Research Institute. Currently, Nanjing has the leading technology R&D capability in China in the following fields: core technologies for 3G mobile communications, antenna and microwave technology, satellite communications, telecommunications business operation support and service software systems, air traffic control systems, and urban emergency command communication systems.
(2) A variety of communication products With solid development foundations, Nanjing’s modern communications industry has preliminarily formed an industrial chain from communications software to communications equipment manufacturing and then to communications terminal product series. Major products include all types of mobile phones, communication base stations, stored program control (SPC) exchanges, satellite communications systems, and communications software. The production capacity of all types of mobile phones is 120 million pieces, accounting for about 15% of the national production capacity. The production capacity of wireless base stations is 1.5 million signal channels, and the market share of communications software accounts for 40% of the national market share.
(3) Great competitiveness of leading enterprises. By the end of 2015, Nanjing had about 50 scalable communication equipment manufacturing enterprises, and the competitiveness of dorminant enterprises was strengthened continuously. Panda Electronics Group has one of the largest satellite communications R&D and production bases in China. Wireless base stations from Nanjing Ericsson Panda Communications account for more than 25% of China Unicom’s 3G business and more than 30% of China Mobile’s. Nanjing Putian’s cable distributor products rank No.1 in the industry in China. Linkage Group has a 30% market share in the communications management software field, ranking No.1. The mobile phone production capacity of Compal Communications and Inventec Appliances is 70 million pieces and 35 million pieces, respectively.
3. Development Goals and Priorities
Development goals: By 2020, achieve the sales revenue of RMB190 billion in the modern communication industry with an average annual growth of 12%, and build Nanjing into a city where the communication industries are highly clustered. Develop internationally and domestically leading brands, technologies, and products with independent intellectual property. Moreover, build China (Nanjing) Wireless Valley into the world's first-class and China's leading wireless mobile communication R&D center and industrialization base.
Development priorities: Focus on the development of four major communications product groups combined with Nanjing’s industrial development.
(1) Mobile communications product group Center on 3G mobile communications to develop base station system equipment, communication exchanges, mobile phones, and other terminal products. By 2018, achieve sales revenue of RMB 60 billion from mobile communications products and generate an annual production capacity of 0.2 billion mobile phones and 1.7 million signal channels. Major enterprises include Nanjing Ericsson Panda Communications, Compal Communications, Inventec Appliances, Gaotong, Jiatong, TFO, and FiberHome Technologies.
(2) Satellite communications product group Fully utilize satellite orbits and frequency resources to develop new operating frequency ranges, integrate the transmission of all types of digital business transmissions, and develop mobile satellite communications systems. By 2018, achieve sales revenue of RMB 15 billion and generate a domestic production and sales capacity of 3000 (sets) satellite communication system devices and supporting components. Major enterprises include Glarun Group, CEC Panda, Toptry Group, Zhongwei Industry, and Tongfang Industrial.
(3) Dedicated communications product group (including IP communications) Develop products centered on an integrated multichannel (IP communications, satellites, short waves, ultrashort waves, and wireless access) platform. By 2018, achieve sales revenue of RMB 16 billion from dedicated communications products and systems. Major enterprises include 60th Research Institute of People's Liberation Army General Staff Department, LES Information Technology, Changjiang Machinery Group, Daqiao Machinery, and Nanjing Putian.
(4) Communication chip and software product group The development of "military and civilian integration" and "military-into-civilian" technologies is an important breakthrough that will strengthen the R&D of dedicated communication chips. The goal is to develop high-end universal and dedicated chips to eventually form high-performance communications products with all of the core technology and independent intellectual property rights. By 2018, achieve sales of RMB 6 billion from communication chips. Major enterprises include Glarun Group, the 55th Research Institute of CETC, and SeuComm.
Accelerate the development of products that are adapted to 3G mobile communication and take 4G mobile communication into account. The products include business operation support and service software, network and system management software, information security management software, and communications middleware. Develop the next-generation network system and equipment represented by softswitch technology. Grasp the development of embedded software for modern communications, vigorously develop mobile phone software and communications software combined with Internet, and fully support enterprises such as Linkage Group, Huawei Technologies, ZTE, and ZTEsoft.
4. Supportive Policies
Decision on Accelerating the Cultivation and Development of Strategic Emerging Industries issued by the State Council: Seize opportunities and accelerate the cultivation and development of the next generation IT industry and other strategic emerging industries.
Nanjing Implementation Plan for Made in China 2025: Center on the construction of a modern industrial system and accelerate the industrial transformation and upgrade. On the industrial basis of Nanjing, target at information communication equipment, master core technologies of the future network, and propel large-scale development and promotion of core information communication equipment.
5. Primary Vehicles
Focus on developing China (Nanjing) Software Valley, China BeiDou Navigation Satellite (Nanjing) Industry Base, and China (Nanjing) Wireless Valley as Nanjing's three major bases of the modern communication industry.
With communications software as the featured industry, China (Nanjing) Software Valley will build China’s best communication software industry base with Huawei, ZTE, the 14th Research Institute of CETC, Nanjing Putian, and ZTEsoft as the core, and accelerate development of a powerful independent innovation capability and a cluster of large, medium, and small-sized software enterprises.
China BeiDou Navigation Satellite (Nanjing) Industry Base is planned to occupy an area of 1500 mu (about one million square meters) and will focus on building "one park and one center." "One park" is built on the planned land of 1000 mu (about 666,666.7 square meters) in the high-end manufacturing industry area of Nanjing New & High-Tech Zone. It centers on terminal equipment manufacturing, and will focus on bringing in chip development, functional modules, component manufacturing, terminal manufacturing, and other related upstream and downstream enterprises of the industrial chain. "One center" is built on the planned land of 500 mu (about 333,333.3 square meters) in the Nanjing Software Park (state-level) within Nanjing New & High-Tech Zone. It mainly features R&D, testing, certification, and operation services.
The core zone of China (Nanjing) Wireless Valley occupies an area of 450 mu (about 300,000 square meters) and consists of six research centers and one comprehensive test field for mobile communications. It will build a wireless communication industry base covering all types of technical research centers, public testing platforms, and wireless communication technology R&D and production enterprises. With the core providing technical support, China (Nanjing) Wireless Valley will transfer technological achievements to enterprises at the outer layer through small-scale, pilot tests at the middle layer, thus becoming an "energy valley" that agglomerates high-end communications technology.