China's telecom carriers to invest $43bn for 5G network

Boasting more than 1.3 billion subscribers, China is the world's biggest mobile phone market. © Reuters
BEIJING -- Major Chinese telecom service providers are prepared to spend roughly 300 billion yuan ($43.6 billion) by 2020 to achieve nationwide fifth-generation mobile communications coverage, boosting the chances of Chinese technology and services becoming de facto global standards.
The 5G technology will bring much faster data speeds than those offered by the 4G standard, and this telecommunications protocol also will be the first developed with the internet of things in mind. Hundreds of billions of devices are expected to exchange data as the internet of things takes hold, and mobile networks likely will serve as a key conduit.
Charging ahead
China Mobile Communications, which boasts over 800 million subscribers, will develop 5G-related technologies with more than 40 global companies. Participants will include top telecom equipment makers such as Sweden's Ericsson, Finland's Nokia and China's Huawei Technologies, as well as U.S. chipmakers Qualcomm and Intel. The presence of industry outsiders -- including General Motors of the U.S., Germany's Volkswagen and China's
Alibaba Group Holding and Haier Group -- reflects wide-ranging potential applications for these mobile services.
China Mobile has ended basic technology development and plans to begin field trials of 5G technology this year, aiming to commercialize services in select areas in 2018 and start upgrading over 1 million 4G base stations to handle the new standard in the following year. The company aims to spread 5G services nationwide in 2020.

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