PUBLISHER: BuddeComm | PRODUCT CODE: 954102
PUBLISHER: BuddeComm | PRODUCT CODE: 954102
China forges ahead with 6G research and development
Notwithstanding the presence of three major operators (ostensibly in competition with each other), the development of China's mobile sector has largely been propelled by government policy. The telecommunications sector (and industry, given the large number of equipment manufacturers based in China) is seen as a critical element to support the country's economic growth as well as to be at the forefront of technological progress. This relatively progressive stance has helped China become the world's largest mobile market – at least in terms of subscriber numbers.
China's 5G subscription rate has grown considerably over the last two years, with market leader China Mobile increasing its user base by 50 million (a 30% increase) in just the fourth quarter of 2021 alone. China Telecom and China Unicom joined forces early-on in a 5G infrastructure sharing agreement. The two companies expect to increase the number of 5G base stations around the country by 250,000 in 2022, to reach 900,000 sites by the end of the year. With such growth, China is likely to account for two thirds of all 5G connections worldwide by 2025.
But the rapid take-up hasn't all been due to market forces. The MNOs were initially reluctant to invest in 5G, seeing little consumer demand for the higher speed service as well as a surplus of capacity on existing 4G networks. The government saw things differently however, and drove the state-owned operators to invest heavily in 5G. It may still be too early to determine whether that bet will pay off, yet China is not waiting around to find out; the country is powering ahead on 6G research and development (with South Korea and Japan being the two other countries already heavily invested in 6G) in the hope of gaining a strategic hold over emerging standards and potential intellectual property rights.