The dawn of the era of commercial 5G is on track for the 2020 timeframe, and China is hoping to lead the way. According to CCS Insights, China will account for more than half of all 5G users by 2022. China is also expected to dominate through 2025, at which time it might represent 40 percent of global 5G connections, according to the GSMA.
China 5G Investments
China’s total investments in 5G mobile networks should reach 2.8 trillion yuan (US $411 billion) between 2020 to 2030, which could represent the country’s most expensive telecommunications build-out in history.
Mainland China is already the world’s largest smartphone market, and it also boasts the largest 4G market, with 843.7 million 4G subscribers. Based on a 5G study published by the China Academy of Information and Communications Technology, the research arm of the Ministry of Industry and Information Technology (MIIT), China’s aggressive investments in 5G infrastructure will be key to China’s status as the world’s largest 5G market in the next decade.
China 5G Collaboration
China 5G players such as China Mobile, Huawei, and ZTE have become significant leaders in the 5G market, thanks to a sense of global collaboration — another important aspect of China’s 5G lead.
China Mobile’s cooperation with Ericsson reaches back to late 2015, when the companies began testing 5G radio technology, architecture evolution toward 5G, Internet of Things (IoT), and global knowledge- and experience-sharing.
In June 2017, Huawei completed tests on 5G radio technology, adopting 5G New Radio (NR), massive multiple-input, multiple-output (MIMO), and other technologies to achieve over 6-Gb/s of single-user downlink throughput and over 18-Gb/s of cell peak rate. Huawei partnered with multiple vendors in the spirit of industry collaboration.
The Impact of China 5G
The China 5G market is heading toward a significant financial boom. According to Business Insider, the impact could account for 3.2 percent of China’s entire GDP in 2025, generate 8 million jobs, and add 2.9 trillion yuan in economic value by 2030. As hungry consumers demand more and more 5G services, the country expect a huge increase in the number of new companies, employment opportunities, and equipment sales.