China’s 5G sector prospers with millions of subscribers in the first half of 2020. Mainland China phone operator China Telecom closed its H1 with 37 million new customers, looking to grab nearly 80 million in the 5G domestic market within China.
China’s authorities push for 5G technologies, and implementation in their territory means earnings for domestic companies that cater to telecommunications demand in an indigenous market where many buoyant competitors face each other. From service providers like China Telecom to phone and infrastructure manufacturers like Huawei or ZTE, the Chinese market is fertile ground for 5G.
In the last months, Chinese authorities set up a branch within their executive branch to cater to all things 5G, the newly-formed 5G ministry seeks to bolster the Chinese government in telecommunications sectors. To do so, they must rely on domestic consumption of their goods and services as well as the offer of high-quality goods and services at competitive prices.
The 5G segment is where China Telecom looks to invest, as the company seeks to increase average data usage from their users as they provide them with solid and resilient networks. The Chinese telephone operator made a significant investment acquiring eighty thousand 5G base stations, bringing their total to 210.000 operative base stations by the end of June 2020.
China Telecom decided to implement 5G standalone architecture to their networks seeking to enhance cloud computing and the strengthening of their technological advancements. With China Telecom’s 2019 launch of the first commercial standalone network in Shenzhen, the company pushed the accelerator in its intentions for implementing a regional network of these characteristics for commercial use.
With more than 400.000 base stations and one hundred million 5G users, China ranks amongst the top countries with access to these high-speed networks, and with an entire division of Chinese government seeking improvement of their technological and communications capacities, China is very well embarked in doubling the number of operative base stations and users by the end of 2020.
At the center of China’s push for 5G in the commercial sector is Huawei, currently at the center of many government oversight probes for their unethical corporate practices and cybersecurity standards. The Federal Chamber of Communications of the United States of America slapped with a heavy hand a set of drastic sanctions upon Chinese 5G manufacturers as they consider that the equipment these companies manufacture poses a security risk to the US. After the American move, British authorities banned Huawei’s 5G equipment in their networks, France shunned the Chinese manufacturer and countries like Singapore and Russia look towards Ericsson and Nokia to satisfy their 5G needs.
The Chinese government is enthusiastic in protecting their national companies’ interests abroad, despite heavy sanctions and trade restrictions, ZTE and Huawei dominate the 5G scenario offering competitive prices and geostrategic advantages to markets in Asia, Africa, the Middle East, and Europe.