Some of the recent analyst reports indicate that 5G investment in China will be the center of the growth for the global 5G network, smartphone and component suppliers.
Greater China will account for 34 percent of 5G smartphone shipments in 2023, followed by North America at 18.8 percent and Asia Pacific at 17.4 percent, according to a Canalys report. Sale of 5G smartphone will reach nearly 800 million units in 2023.
China is expected to invest more than $150 billion in its 5G network through 2025, with 5G wireless systems accounting for three quarters of the mix, the latest Goldman Sachs report said.
The latest GSMA report said China is forecast to make an investment of $184 billion on 5G network by 2025. 28 percent of China’s mobile connections will be running on 5G networks by 2025, accounting for about a third of all 5G connections globally.
China’s $184 million investment in 5G network is significant because Asian mobile operators – including China — will be investing a total of $370 billion for building-out 5G networks between 2018 and 2025.
The main gain from the investment in 5G network in China will be to Huawei and ZTE, two China-based network vendors. But the restrictions to Huawei – imposed by United States — will pose challenges to the 5G roll out across the globe.
If China-based telecom operators do not grow their 5G network, it will have the potential to block the entry of cost-effective 5G smartphones into global telecom markets. Phone makers such as Samsung, LG, OPPO, Xiaomi, Viva, Apple, Nokia, among others, are keen to more in order to grow their 5G smartphone market in China.
Huawei said it received 50 5G network contracts from 30 countries and regions, and shipped more than 150,000 5G base stations worldwide.
Huawei’s 5G base stations are expected to grow to 500,000 by the end of this year, according to Hu Houkun, deputy chairman of Huawei. But the restrictions on Huawei will halt its revenue growth — impacting the entire 5G industry.
Huawei chairman Liang Hua in July said Huawei’s 5G base stations consume 20 percent less power than the industry average. Telecom operators are waiting for innovation from Huawei to cut down their Capex and Opex. Their first-choice is not the costly network from Nokia and Ericsson, if Huawei is available in the market.
Yang Chaobin, president of Huawei 5G Product Line, said Huawei has reduced the power consumption per bit of 5G, using a series of innovative technologies. Huawei focused on chips, effective process, modular design and artificial intelligence to reduce the power consumption of 5G base stations.
China has approved 5G commercial services in June, and is currently testing 5G across all major cities and provincial regions. China-based operators will start small-scale 5G services this year and large-scale commercial launch next year.
China is expected to set up 4.9 million 5G base stations by 2030. Huawei, ZTE, Nokia and Ericsson are eager to lead the 5G network market.
China Mobile has officially launched the 5G+ brand. China Mobile company plans to build more than 50,000 5G base stations and provide 5G services in over 50 cities across the country this year, said Yang Jie, chairman of China Mobile. China Mobile will provide 5G services in all cities at the prefectural level or above by 2020.
China Mobile aims to cut down the prices for 5G chips and terminals to meet the demand for affordable 5G smartphones, Yang Jie said.
China Telecom has carried out innovative 5G applications in over 10 industries since 2017.
China Unicom plans to provide 5G coverage in seven megacities and 33 major cities this year, said Li Guohua, president of China Unicom.
Research firm Ovum said 5G technology is forecast to achieve 37 million connections by year end 2020 and 156 million by end of 2021 and more than half a billion in 2022. Ericsson said 5G mobile subscriptions are expected to reach 1.9 billion in 2024. China will be the shining market for global suppliers of telecom network, components, smartphones and solutions.