As the window phase for deploying 5G network in 2018 approaches, the market’s passion of investing in 5G industry runs high accordingly. According to the Economic Information Daily, many institutions including insurance funds, securities companies, private funds and venture capitals at home and abroad have set up 36 investment funds specific to 5G industry worth about 10 billion yuan. Many analysts thougth that several Chinese and foreign network operators will officially make deployment in 5G industry in 2018, which means that global mobile network will step into 5G era. 5G will become an industrial investment topic across the world and will embrace a 5- to 10-year investment period.
At present, major operators in the world is positive in developing 5G. According to a report provided by telecommunication operator Ericsson, 78 percent of operators across the world which were surveyed are testing 5G, and 28 percent of surveyed operations indicated that they will start deployment in 5G network next year. The reporter found that over 10 Chinese and foreign operators such as Korea’s largest telecommunications company SK Telecom, Japan’s Softbank and Australian telecommunications giant Telstra Corp will begin to develop 5G in 2018, which is expected be put into commercial use by 2020.
In terms of Chinese operators, three major telecommunication operators in China, namely China Mobile Limited (CHL.NYSE; 00941.HK), China United Network Communications Limited (600050.SH) and China Telecom Corporation Limited (CHA.NYSE; 00728.HK) carried out 5G pilot in many cities including Beijing, Shanghai, Chongqing, Guangzhou, Nanjing, Suzhou and Nningbo. They plan to promote the pilot and start deployment in 5G network based on this in about 10 cities in provinces such as Jiangxi, Hainan, Shanxi, Shandong, Zhejiang and Hebei. The reporter learnt from the three major operators that they will practice commercial use of 5G network in 2019 at the earliest and in 2020 at the latest.
The industry viewed that as the first batch of Chinese and foreign operators begin to make deployment in 5G industry, opportunity of investing in 5G all over the world is coming. They will build 5G network in 2018. Based on previous experience, investment in 5G network by the above-mentioned operations won’t be less than that in 4G network and will exceed 100 billion US dollars in total. Chinese three major telecommunication operators may spend more than 300 billion yuan in network construction.
Besides network construction, 5G also means more investment opportunities. Huang Yuhong, deputy dean from research institute of China Mobile told the reporter that 5G will drive car networking, big data, cloud computing, smart home and unmanned aerial vehicle and other industries. These industries are quite mature in technology and application, but telecommunication capacity of 4G network curbs their development. Along with commercial use of 5G, this problem will be solved. The above-mentioned industries will see rapid development, and industries like artificial intelligence and intelligent manufacturing will spring up accordingly. Besides, chip, electronic component, software, intelligent hardware and other industries will see upgrade, enjoying tremendous investment opportunities.
It is widely believed that as operations from home and abroad made deployment in 5G network, telecom equipment manufacturers in China like Huawei and ZTE Corporation are expected to be the first to gain benefit from it and will be target chased by investors. Huawei, ZTE Corporation and other enterprises are rather competitive in global 5G industrial chain and are expected to become one of major participants of 5G network construction in the world. The industry predicted that China’s telecom equipment manufacturers will get 30-50 percent of share in centralized purchasing in the construction of 5G network. As more global operators invest in construction of 5G, China’s telecommunications operators will see increasing performance and bring generous returns to investors.
(By Vanessa)
At present, major operators in the world is positive in developing 5G. According to a report provided by telecommunication operator Ericsson, 78 percent of operators across the world which were surveyed are testing 5G, and 28 percent of surveyed operations indicated that they will start deployment in 5G network next year. The reporter found that over 10 Chinese and foreign operators such as Korea’s largest telecommunications company SK Telecom, Japan’s Softbank and Australian telecommunications giant Telstra Corp will begin to develop 5G in 2018, which is expected be put into commercial use by 2020.
In terms of Chinese operators, three major telecommunication operators in China, namely China Mobile Limited (CHL.NYSE; 00941.HK), China United Network Communications Limited (600050.SH) and China Telecom Corporation Limited (CHA.NYSE; 00728.HK) carried out 5G pilot in many cities including Beijing, Shanghai, Chongqing, Guangzhou, Nanjing, Suzhou and Nningbo. They plan to promote the pilot and start deployment in 5G network based on this in about 10 cities in provinces such as Jiangxi, Hainan, Shanxi, Shandong, Zhejiang and Hebei. The reporter learnt from the three major operators that they will practice commercial use of 5G network in 2019 at the earliest and in 2020 at the latest.
The industry viewed that as the first batch of Chinese and foreign operators begin to make deployment in 5G industry, opportunity of investing in 5G all over the world is coming. They will build 5G network in 2018. Based on previous experience, investment in 5G network by the above-mentioned operations won’t be less than that in 4G network and will exceed 100 billion US dollars in total. Chinese three major telecommunication operators may spend more than 300 billion yuan in network construction.
Besides network construction, 5G also means more investment opportunities. Huang Yuhong, deputy dean from research institute of China Mobile told the reporter that 5G will drive car networking, big data, cloud computing, smart home and unmanned aerial vehicle and other industries. These industries are quite mature in technology and application, but telecommunication capacity of 4G network curbs their development. Along with commercial use of 5G, this problem will be solved. The above-mentioned industries will see rapid development, and industries like artificial intelligence and intelligent manufacturing will spring up accordingly. Besides, chip, electronic component, software, intelligent hardware and other industries will see upgrade, enjoying tremendous investment opportunities.
It is widely believed that as operations from home and abroad made deployment in 5G network, telecom equipment manufacturers in China like Huawei and ZTE Corporation are expected to be the first to gain benefit from it and will be target chased by investors. Huawei, ZTE Corporation and other enterprises are rather competitive in global 5G industrial chain and are expected to become one of major participants of 5G network construction in the world. The industry predicted that China’s telecom equipment manufacturers will get 30-50 percent of share in centralized purchasing in the construction of 5G network. As more global operators invest in construction of 5G, China’s telecommunications operators will see increasing performance and bring generous returns to investors.
(By Vanessa)
Latest comments