China’s investments in 5G technology are expected to exceed one trillion yuan (145 billion US dollars) over the next five years. This information released Chinese newspaper People’s Daily this week. The newspaper draws on estimations by the Global System for Mobile Communications Association (GSMA).
Another 5G study published by the China Academy of Information and Communications Technology (CAICT) forecasts that the country’s three domestic network operators, namely China Mobile, China Unicom and China Telecom, spend more than 220 billion yuan on 5G equipment in 2020 alone.
Strong driver of economic development
It is estimated that the commercial use of 5G will drive more than 10.6 trillion yuan of direct economic output from 2020 to 2025, said Liu Duo, head of the CAICT. The report “The Mobile Economy of the Asia-Pacific Region 2019”, published by the GSMA, states that the mobile economy will continue to grow in the coming years. China is currently testing the 5G network in all major cities and provinces ahead of next year’s commercial launch. It is predicted that 28 percent of the country’s mobile phone connections will be handled over 5G networks by 2025. This will account for about a third of all 5G connections worldwide at this time, the report said.
5G as key technology for economy and society
5G technology brings high bandwidth, low delays and broad connectivity characteristics. This makes it a key technology for digital transformation for the economy and society, said Yang Jie, Chairman of China Mobile. The deep integration of 5G technology with other technologies such as cloud computing, big data or artificial intelligence will truly realize comprehensive interaction, Yang added. China Mobile will build 50,000 5G base stations nationwide in 2019 and offer commercial 5G services in over 50 cities. The services will be offered in all cities at and above prefecture level by 2020, Yang said.
5G in over 40 Chinese cities by the end of the year
China Telecom announced the commercial launch of 5G in more than 40 cities by the end of this year. The first shipment of 10,000 5G terminals has already been delivered by smartphone manufacturers. These include Huawei, OPPO, Vivo, ZTE, Xiaomi, OnePlus, Samsung and TCL. They come at a price of several thousand yuan. By the end of 2020, 5G mobile phones for 1,000 to 2,000 yuan will be launched on the market. This means that the 5G end market will reach a bandwidth of tens to hundreds of millions, the report said, citing data from CAICT and GSMA.