In five years, China's 5G connections will exceed 800 million, and these markets are willing to "upgrade"
Author: gold leaf
GSMA research shows that in 2030, 5G upgrades and the new services they bring will contribute more than 600 billion US dollars to the global economy each year.
This will account for about 2.1% of the expected revenue growth of all industries and sectors in the next ten years.
The new crown pneumonia epidemic has highlighted the importance of network connectivity, and mobile networks, especially 5G, have played an important role in maintaining social and economic operations.
During the 2021MWC (World Mobile Communications Conference) Shanghai Exhibition that opened on the 23rd, the organizer GSMA (Global System for Mobile Communications Association) released the "China Mobile Economic Development 2021" (hereinafter referred to as the "Report"), which pointed out that China has already over 990 million people use mobile Internet services.
It is estimated that by 2025, this number will increase by another 200 million.
At the same time, the report stated that China continues to maintain its position as one of the world's leading markets for 5G technology.
It is estimated that by 2025, China's 5G connections will exceed 800 million.
GSMA President Mats Granryd mentioned in an online speech on the 23rd that 5G will bring unprecedented opportunities to big data, artificial intelligence, Internet of Things, and intelligent interconnection.
By 2025, operators will invest 1.1 trillion US dollars in 5G networks.
Si Han, President of GSMA Greater China, told CBN reporters that only China can successfully hold the MWC world premiere in February this year because China has implemented effective epidemic prevention measures and has a strong mobile ecosystem. Shanghai is also a global 5G. One of the leaders of development.
5G-related investments will help the global economy overcome the impact of the epidemic and initiate economic recovery in the post-epidemic era.
GSMA research shows that in 2030, 5G upgrades and the new services they bring will contribute more than 600 billion US dollars to the global economy each year.
This will account for about 2.1% of the expected revenue growth of all industries and sectors in the next ten years.
The benefits of 5G in the next ten years will be concentrated in the manufacturing, service and retail industries.
These industries account for nearly one-third of the 600 billion US dollars in the global economy.
The report shows that in 2020, China will add more than 200 million 5G connections, accounting for 87% of the global 5G connections.
In 2020, despite the outbreak of the epidemic, Chinese operators have deployed about 600,000 new 5G base stations and announced plans to deploy more 5G base stations in 2021.
At the opening ceremony of 2021MWC, Deputy Minister of Industry and Information Technology Liu Liehong said in his speech that the new generation of mobile communication technology represented by 5G is booming, becoming an important driving force for high-quality economic development and profoundly changing people's production and lifestyle.
China actively promotes the development of new generation mobile communication technologies and industries.
Up to now, the cumulative number of 5G base stations built nationwide has exceeded 718,000, accounting for about 70% of the world's total.
The 5G network in independent networking mode has covered all cities across the country.
The number of 5G terminal connections exceeds 200 million. At present, the number of 5G smartphones on the market in China has reached 218, and the sales of mid-to-high-end 5G mobile phones above 2,000 yuan have accounted for more than 90%.
The rapid transition of 5G means that China's 4G application has reached its peak.
The report shows that in 2020, the 4G penetration rate will decline for the first time. As more and more consumers turn to the increasingly popular 5G services, 4G will maintain a downward trend in the next few years.
Although affected by the epidemic, the willingness of most markets to upgrade to 5G has risen instead of falling.
The willingness of the Chinese market is particularly strong.
China's 5G growth has benefited from the support of policies, operator deployments, and terminal ecosystems.
According to the report, from the perspective of operators, China Telecom and China Unicom have jointly built and operated more than 320,000 5G base stations nationwide. This is the world's largest 5G commercial network construction and sharing agreement, covering more than 300 cities.
As of September 2020, this move has helped operators save 60 billion yuan (about 9.3 billion US dollars) in capital expenditures.
It is expected to help operators save another 270 billion yuan (approximately US$41.8 billion) in the next five years.
From the perspective of consumers, according to the GSMA "Consumer Focus Survey 2020", Chinese consumers are more eager to upgrade to 5G than consumers in other markets around the world.
This is due to the increase in sales of 5G equipment.
Data show that China's sales of 5G smartphones in 2020 will be 163 million, accounting for nearly 53% of total smartphone sales.
By 2025, 4G will account for 53% of China's total connections, while 5G will account for 47%.