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The country’s three state-run telecom operators launched services for the next-generation wireless technology on Friday.
China Mobile (CHL), China Telecom (CHA) and China Unicom (CHU) are all offering 5G plans that start at 128 yuan ($18) for 30 GB of data per month, giving Chinese internet users access to the ultra-fast service.
5G commercial services are now available in 50 cities, including Beijing, Shanghai, Guangzhou, and Shenzhen, according to the Chinese state news agency Xinhua. In Shanghai, nearly 12,000 5G base stations have been activated to support 5G coverage across the city’s key outdoor areas.
Other countries including the United States and South Korea launched 5G services in select areas earlier this year. But China’s commercial network is the biggest, according to Bernstein Research, giving the county more influence over the technology’s global evolution.
“The scale of its network and the price of its 5G services will have a pivotal impact throughout the supply chain,” Bernstein analyst Chris Lane said in a research note earlier this week. This generation of mobile technology is the first time that China will assume a major leadership role. But despite its ambitious plans for 5G, China had not been expected to launch commercial networks until next year, long after the US, South Korea, and the UK.
Coverage is already available in major cities like Shanghai and Beijing and will extend to more than 50,000 base stations before the end of the year. All three operators are sharing infrastructure in order to increase the pace of rollout and save costs.
Analysts have attributed the accelerated timeline to the ongoing trade tensions with the US and its hostility towards Huawei. By launching 5G earlier, China will create demand for technologies from the likes of Huawei, ZTE, and Xiaomi. Longer-term goals for the Chinese government are to assume leadership in enterprise applications and fields in AI and edge computing.
“China will have 36 percent of its mobile customer base on 5G by 2025,” said Tim Hatt, Head of Research of GSMA Intelligence. “Because of its huge population, this translates into 600 million subscribers – roughly 40 percent of the entire global 5G market by that time.
“Expect this to act as an increasing force of gravity for a domestic supporting ecosystem of handset manufacturers, chipmakers, network equipment suppliers, and content producers that reduces reliance on foreign companies.
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