[June 27, 2017] |
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New Study from GSMA and CAICT Forecasts That China Will Be the World's Largest 5G Market by 2025
Chinese operators are on track to launch commercial 5G networks by 2020
and are expected to establish China as the world's largest 5G market by
2025, according to a new study by GSMA (News - Alert) Intelligence and the China
Academy of Information and Communications Technology (CAICT). The new
study '5G in China: Outlook and Regional Comparisons', which was
published today at GSMA Mobile World Congress (News - Alert) Shanghai, explores the
near-term outlook for the testing and commercial launches of new 5G
networks in China and other advanced Asia markets, and the potential 5G
use cases for both the consumer and enterprise markets.
"Operators in China are collaborating closely with government and
enterprises to launch what will become one of the largest 5G deployments
in the world," said Mats Granryd, Director General of the GSMA. "In its
early phase, 5G will offer an enhanced mobile broadband experience that
will enable next-generation consumer services such as augmented and
virtual reality, while at the same supporting mission-critical
applications across a range of industry verticals."
China Prepares World's Largest 5G Deployment Mobile
operators in China plan to run a phased testing period for 5G networks
from 2017 to 2019 before launching commercially in 2020. Following
commercial deployment, it is forecast that 5G connections in China will
reach 428 million by 2025, accounting for 39 per cent of the 1.1 billion
global 5G connections expected by that point.
Chinese operators are expected to deploy 'standalone' 5G networks, which
will require the construction of new base stations to site 5G equipment,
backhaul links and a core network. However, the report notes that
another option being considered in several other Asia markets is to
deploy 'non-standalone' 5G networks that would run on existing
infrastructure supplemented by targeted small cell deployment in areas
of high density, allowing 4G and 5G services to run in parallel.
4G penetration is China has increased fivefold to 61 per cent over the
two-year period to March 2017 and there remains significant headroom for
4G growth. As a result, 4G and 5G networks are expected to co-exist in
China for a considerable perio of time. The rate of 5G network rollout
and adoption in China is also expected to be slower than it was for 4G,
which Chinese operators were able to deploy rapidly earlier this decade
within a mature 4G ecosystem. On capex, indications from the Chinese
mobile operators are that 5G investment will follow a more gradual path
and over a longer timeframe than 4G, roughly seven years, from 2018 to
2025 - with capex not expected to account for more than 25 per cent of
operator revenue prior to commercial launch.
5G Delivering New Consumer Services and Transforming the Enterprise In
their early phase, 5G networks will concentrate on boosting the capacity
of 4G networks to support rising cellular data traffic demands. 5G will
also enable enhanced mobile broadband (eMBB) services such as 4K/8K
Ultra-HD video and augmented reality (AR) and virtual reality (VR)
applications. Although some services will require devices with new form
factors, the smartphone is expected to remain the principal 5G interface
at launch. The first 5G smartphones are likely to be priced at a premium
to 4G models, as they will require an enhanced chipset and RF module
supporting multiple sub-6 GHz, and possibly extremely high frequency
bands (mmWave), as well as, potentially, a 4K or 8K screen.
Meanwhile, it is the enterprise space that is considered to offer
operators the largest incremental revenue opportunity. Operators are
collaborating with the broader mobile ecosystem and vertical industry
players to develop new services and business models that will utilise 5G
networks. 5G will support applications that require massive scale or are
mission-critical and therefore demand low latency. Key vertical markets
for 5G applications include automotive and transport, logistics, energy
and utilities monitoring, security, finance, healthcare, industrial, and
agriculture.
The new report '5G in China: Outlook and Regional Comparisons' is
co-authored by GSMA Intelligence, the research arm of the GSMA, and the
China Academy of Information and
Communications Technology (CAICT). The report is available to download
in English
and Chinese
language versions.
-ENDS-
About the GSMA The GSMA represents the interests of mobile
operators worldwide, uniting nearly 800 operators with more than 300
companies in the broader mobile ecosystem, including handset and device
makers, software companies, equipment providers and internet companies,
as well as organisations in adjacent industry sectors. The GSMA also
produces industry-leading events such as Mobile World Congress, Mobile
World Congress Shanghai, Mobile World Congress Americas and the Mobile
360 Series of conferences.
For more information, please visit the GSMA corporate website at www.gsma.com.
Follow the GSMA on Twitter (News - Alert): @GSMA.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170627006077/en/
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