5G investments in Mainland China to reach US$411 billion by 2030

Network equipment and smartphone suppliers, internet companies and application developers, and telecommunications operators are expected to benefit the most from the investments.

By Adrian M. Reodique
June 27, 2017


 

The total investment on 5G mobile networks in Mainland China is expected to reach 2.8 trillion yuan (US$411 billion) over the 2020 to 2030 period.

Network equipment and smartphone suppliers, internet companies and application developers, and telecommunications operators are expected to gain the most from the 5G investments.

These are according to a 5G study by China Academy of Information and Communications Technology, the research unit of Ministry of Industry and Information Technology, as reported by South China Morning Post on 19 June 2017.

The study also predicts that the 5G market would account for 3.2 percent of the mainland China's gross domestic product in 2025.

Telecommunications equipment and handset makers are expected to generate about 17.5 trillion yuan of 5G-related revenue during the 2020 to 2030 period.

As for e-commerce, internet companies and application developers, they are estimated to generate 10.7 trillion yuan in 5G-related revenue in the same period.

Meanwhile, the study predicts that China Mobile, Unicom and China Telecom will generate 7.9 trillion yuan in combined 5G-related revenue from 2020 to 2030.

Promoting the development and launch of 5G is one of the key components in China's 13th five-year plan, which aims to help the country become the leading digital country globally by 2020.

In line with that, more than 100 cities in China participated in the nationwide trials of 5G telecommunications equipment last October. The 5G technologies being tested include massive multiple-antenna systems capable of handling more users and increased capacity to support greater mobile data usage.

Besides that, Qualcomm, China Mobile and ZTE announced in February that they plan to conduct interoperability testing and over-the-air field trials based on the 5G New Radio (NR) specifications developed by 3GPP in the later part of the year. This aims to drive the mobile ecosystem towards rapid validation and commercialisation of 5G NR technologies at scale. 

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