On Thursday, China gave the state indication to its major mobile carriers to start rolling out 5G services. It is in the effort to move ahead in the global trade race for introducing the super-fast telecommunications system, resulted in growing tensions with the US over technology and trade.
Major companies, including China Telecom, Mobile, Unicom and Radio and Television have obtained the license. The license was issued by Country’s Ministry of Industry and Information Technology (MIIT).
Race for 5G
5G is the next generation cellular technology which will enable the download speed stated to be 10 to 100 times faster than the current 4G LTE networks.
According to a research report by the China Academy of Information and Communications Technology, it is predicted to generate 10.6 trillion yuan (close to 1.54 trillion US dollars). Moreover generating three million jobs between 2020 and 2025.
China’s race against other countries to move 5G on a large scale, getting the way for advancement in technologies like artificial intelligence and autonomous driving.
The US-China trade war
The US and China have been competitive from the past year over the trade war, resulted in tariffs of billions of dollars to one another’s goods. Even U.S. President Donald Trump has commented about the ongoing trade battle: “The race to 5G is on and America must win.”
U.S. and South Korean carriers, in particular areas in their own countries, launched 5G services. American carriers focus on introducing 5G to one city at a time, industry executives say China is instead focused on a nationwide coverage in 2020.
It is said that issuing licence cannot guarantee networks to start rolling out 5G services in coming days. Although, many Chinese companies have indicated that they will begin this year.
A trading global company which represents mobile networking, GSMA, mentioned in a recent report about the 5G rollout in 2020 which will cover a wide range.
Greater than North America and Europe combined, as a result, according to the association, China will be accounting for the highest number of 5G connections around 2025. The GSMA expects China to complete 460 million 5G connections over this year.