What opportunities do 5G networks bring to 25G optical modules?

The 4G network is mainly composed of three parts, namely EPC (core network), BBU (baseband processing unit) and RRU (radio frequency remote unit). In the 5G network architecture, it divides the original 4G BBU into CU (centralized unit) and DU (distributed unit), taking full advantage of the virtualization and centralized control of base station deployment. At the same time, the 5G network combines the physical layer functions of the RF part and baseband part of the 4G network with the antenna part to form a multifunctional AAU. As a result, the existing 4G infrastructure only covers forward and backpass, while the upgraded 5G network infrastructure adds medium pass on top of 4G.

In 5G networks, CU and DU separated from BBU structure will enhance the overall demand for optical modules in 5G era, which is expected to reach 1.8 times of that in 4G era. According to Lightcounting's market report, demand for 25G optical modules has skyrocketed over the past few years with the unprecedented expansion of the wireless front-end market. By 2020, 25G and 100G optical modules are ready for mainstream deployment in hopes of keeping up with the rapid pace of 5G commercial services and applications.

By then, the demand for 25G optical modules is expected to reach 1 million, while the market demand for 40G optical modules will gradually decline. Major operators are expected to make aggressive preparations for infrastructure and systems to facilitate the transition from 4G to 5G by 2021, when the demand for 25G optical modules is expected to reach 2 million. In the future, the demand for 25G optical modules in data centers, wireless networks, access networks and transmission networks will rise to a new critical point.