Is the 5G Roll-Out in China Already Facing A Road Block?
China, alongside America and Europe, has been touted to be one of the biggest markets for 5G. According to a recent IDTechEx research report, 5G Technology, Market and Forecast 2019-2029, there will be over 120 million 5G subscribers in 2022 and 1.5 billion by 2029 in China, about half of the total number globally. However, the report also forecasts a possible slowdown of the Chinese market in coming years.
According to the market research, three main telecom carriers in China (China Mobile, China Telecom and China Unicom) announced their capital expenditure (capex) plan for 2019. The 5G capex is lower than expected. China Telecom is expected to spend 9 billion CNY ($1.34 Billion USD), slightly higher than China Unicom's plan of 6-8 billion ($890 Million USD). Market leader China Mobile did not disclose any number, but it is likely to be around 17 billion CNY ($2.5 Billion USD). In total, the capex for 5G is estimated to be 34 bn CNY ($5 Billion USD) in China in 2019, which is much lower than what was expected (50-100 bn CNY in 2019 and over 250 bn in 2020). Click here to read more.