Looking back to 2020 and looking forward to 2021, Sihan Chen, President of GSMA Greater China, shares her insights into China’s 5g market and the global 5g market through the latest research of GSMA think tank.
China is the first novel coronavirus pneumonia to impact on the economy and mobile industry. But at this moment, looking forward to the future, the market prospect of China’s mobile industry is strong, and 5g is one of the important engines.
According to the global mobile trends 2021 report released by GSMA think tank, in the first quarter of 2020, the negative growth of average service revenue of China’s mobile operators was only 0.8%. Considering the impact of epidemic prevention and control and restrictions on commercial activities, this is a particularly tough achievement.
The epidemic reflects the importance of a strong and resilient mobile network. Globally, especially in China, mobile industry provides the possibility for flexible office, online learning and telemedicine. The mobile industry ensures online payment and ensures the operation of important services and economic development.
The epidemic has increased the use of digital and cloud services. This helps to accelerate the development of a wide range of services in the mobile industry. For example, China Unicom’s industrial Internet service and China Telecom’s business in medical, distance education and business services.
According to the report, the service revenue of Chinese operators in the third quarter of 2020 is considerable. The recovery of epidemic situation, the use of 5g package and the upgrade of data flow package jointly promote this result.
The price range of 5g mobile phones for Chinese consumers is relatively large. Some smartphones sell for less than 2000 yuan (300 dollars). The price of 5g data in China is also very attractive, and the average price per GB is usually cheaper than 4G.
Chinese consumers are one of the most willing consumers in the world to upgrade 5g. The GSMA think tank’s survey on digital consumer trends found that 62% of Chinese consumers said they planned to upgrade to 5g packages in 2020, an increase of 12% over 2019.
What is most impressive is that 5g is one of the new national infrastructures in China. In fact, China now has most of the world’s 5g connections (more than 75%). China’s huge population, the reduction in the cost of 5g mobile phones and the fact that China has nearly 720000 5g base stations are the key reasons behind this number. In short, China’s 5g infrastructure construction ranks first in the world.
There are four mobile operators with 5g licenses in China, including China Mobile, China Telecom, China Unicom and China Radio and television (CBN), which are the latest operators. Among them, China Radio and television hopes to cover 95% of China’s urban, rural and rural population with 5g network. With the opening of 5g networks in Hong Kong, Macao and Taiwan, the total number of 5g connections in Greater China is expected to exceed 200 million by the end of 2020.
Currently, 113 mobile operators have launched 5g networks in 48 countries. After the slow growth of 5g network launch in January and February this year, the launch speed of 5g network began to accelerate from March, with an average of 8 new networks launched each month. In contrast, in the same period of 2019, the number of network launches per month is less than six.
Most of 5g networks are launched in developed markets led by China, South Korea and the United States. Of course, countries such as South Africa and Brazil are also entering the 5g era. However, as the utilization rate of 4G in these countries is still rising rapidly, the development scale of 5g network is still small.
According to the report of regional focus, China, q32020 (China market insight in the third quarter of 2020) released by GSMA think tank, another thing that makes Chinese operators different is 5g independent networking. For example, in June 2020, China Telecom and ZTE jointly announced the launch of China’s first commercial large-scale MIMO 5g independent group website. It will help expand network capacity in high-rise cities.
Many industrial applications requiring high security, low latency and high reliability need 5g independent networking support. In addition, it also includes the application cases of vertical industries such as manufacturing, transportation and health care.
In view of China’s emphasis on 5g independent networking, we expect that China will be in an advantageous position to lead the market development of independent networking.
Independent networking solutions are especially beneficial to the characteristics and needs of the enterprise market, such as network slicing, enterprise private network and edge computing. It will also promote the development of more compatible independent networking ecosystem in terminals and applications.
2021mwc Shanghai & 5g Innovation Zone
Gsma5gin (5g Innovation Zone) exhibition area aims to show the style of industry subverters, new business models, pioneers and innovators in 5g field. Next year, MWC Shanghai’s 5g Innovation Zone will have five theme exhibition areas: Yishan to the United States, innovative enterprises, 5g industry applications, speed 5g and XR. The audience will experience the most cutting-edge technology, the most revolutionary commercial and industrial applications, and gain the most forward-looking trends and insights.
5g is shaping the future, and China will continue to be at the forefront of this change. All walks of life are undergoing in-depth transformation. Connectivity will help global recovery and help us tide over the epidemic.
Editor in charge: Tzh