BEIJING, May 14 (Xinhua) -- The investment in 5G network in China is surging up as the 2020 schedule when 5G is expected to realize commercial use is approaching.
According to incomplete statistics, more than 10 Chinese provinces and cities such as Zhejiang province, Jiangsu province, Beijing and Chongqing have issued 5G industrial planning schemes entering 2019. Meanwhile, the three major operators, namely China Mobile, China Unicom, and China Telecom have made plans to invest more than 30 billion yuan in 5G network deployment in 2019.
The upsurge of investment in 5G and other new infrastructure will continue in the next few years, with a total investment estimated at 1.2 trillion yuan, said industry insiders, adding that 5G industry is expected to directly contribute to about six percent of China's GDP in 2030.
-- Unprecedented investment
The three major operators' 5G investments as well as local 5G infrastructure construction are picking up full speed to meet the deadline of 5G commercial applications in 2020.
The three operators' investment in 5G is projected to total 34.2 billion yuan in 2019. China Mobile vows to construct 30,000 to 50,000 5G base stations in 2019, while China Telecom expects to build 20,000 such stations this year. China Unicom plans to scale up the 5G test in 2019 based on test results and equipment maturity.
Operators' 5G investment mainly goes to economically developed and populated areas, with Beijing-Tianjin-Hebei region, Yangtze River Delta region, Guangdong-Hong Kong-Macao Greater Bay Area, Sichuan and Chongqing as primary destinations, and densely populated cities like Zhengzhou, Hefei, Wuhan and Nanchang as secondary destinations, Zhang Yingqiang, researcher with China Center for International Economic Exchanges told the Xinhua-run Economic Information Daily.
Local governments are also quickening the promotion for the development of 5G industry.
Zhejiang province recently issued guidance on accelerating the development of 5G industry, making it clear that 30,000 5G base stations will be built by 2020, and 80,000 such stations will be set up by 2022 to cover all counties and major towns in the province with 5G signals.
Shanghai vowed to build over 10,000 5G base stations in 2019, and bring the total number of 5G base stations to 30,000 by 2021. It strives to realize full coverage of 5G in the city and build 5G network construction pioneer areas.
The construction period of 5G network may last more than eight years, with an investment totaling 1.2 trillion yuan and covering fields such as baseband chips, communications models, radio frequency devices, base station antennas, optical fibers and cables, network system equipment, and planning, construction, operation and maintenance of network, according to Feng Xiaohui, director of research department of the electronic information research center under the China Center for Information Industry Development.
Industry insiders believe that speeding up the construction of 5G-based new generation information infrastructure has become a strategic focus for local governments to foster new development momentum and gain an upper hand in competition.
-- New growth engine
Enjoying broad prospects and huge potential, the commercial use of 5G will become a new engine driving economic transformation, upgrading and sustained growth, said experts.
The total economic output and the added value directly driven by the commercial use of 5G is expected to reach 10.6 trillion yuan and 3.3 trillion yuan respectively from 2020 to 2025, while the economic output and the added value indirectly pulled up by the commercial use of 5G may total 24.8 trillion yuan and 8.4 trillion yuan over the same period, according to Zhang Chunfei, director of the regulation research department of the Policy and Economics Research Institute under the China Academy of Information and Communications Technology.
5G will significantly drive China's GDP growth in the next decade. By 2030, about six percent of China's GDP will be directly contributed by 5G industry, said Jing Ulrich, managing director and vice chairman of Asia Pacific at JPMorgan Chase, adding that among all network infrastructure, 5G will be the most important development area in the next five to ten years.
--Transformation of related sectors
The application of 5G will transform many consumer areas and industries.
5G will firstly be used in consumer sectors. It can greatly enhance the experience of communication service and boost the application of new technology products such as virtual reality (VR), ultra-high definition video, and artificial intelligence-based assistance, according to Feng Xiaohui.
In terms of industries, 5G network and technology, with high reliability, low delay, large capacity and high speed, can meet the needs of all walks of life such as smart healthcare, smart transpiration, industrial Internet and bring about industrial transformation, Feng said.
Digital economy-related industries driven by 5G is expected to become the key areas of investment in 2019, with investment in smart vehicles, smart healthcare, smart home and robots becoming trends, according to a 2019 report on the development of China's investment recently released by the Institute of Investment Research of the China Jianyin Investment Ltd.
In the meantime, accelerating the integrated application of 5G and other sectors has become the focus of local governments and operators.
For example, Beijing attaches importance to the incubation of 100 enterprises for the integrated and innovative application of 5G plus finance, logistics, industry and other fields.
Also, China Unicom mulls to build 200 5G demonstration projects and incubate 100 5G innovative application products. (Edited by Su Dan)
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