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China's telecom companies plan hefty 5G investments

Source: Xinhua| 2020-03-28 15:36:58|Editor: huaxia

Consumers experience 5G mobile phones at a business hall of China Mobile Beijing Branch in Beijing, capital of China, Oct. 31, 2019. (Xinhua/Shen Bohan)

The hefty investment came as the government has pledged to accelerate the construction of new infrastructure such as 5G networks and data centers to combat downward pressure on the economy.

BEIJING, March 28 (Xinhua) -- China's four major telecom firms are planning to spend 197.3 billion yuan (about 27.8 billion U.S. dollars) on 5G technology in 2020 as the country seeks to deploy "new infrastructure" projects to offset the economic impact of the novel coronavirus outbreak.

Leading telecom operator China Mobile plans to invest around 100 billion yuan in 5G-related projects this year, more than 4 times the volume seen in 2019. China Unicom puts the 5G investment at 35 billion yuan, China Securities Journal reported.

China Telecom will invest 45.3 billion yuan in 5G this year, while China Tower will pump around 17 billion yuan to the sector.

China greenlighted the commercial use of the superfast wireless technology in June last year, triggering a surge in consumer enthusiasm and an acceleration in industrial investment.

A consumer walks past a poster of commercial 5G applications outside a branch of China Telecom in Beijing, capital of China, Oct. 31, 2019. (Xinhua/Shen Bohan)

The hefty investment came as the government has pledged to accelerate the construction of new infrastructure such as 5G networks and data centers to combat downward pressure on the economy.

The Ministry of Industry and Information Technology (MIIT) said on Tuesday that it will support telecom operators to expand stand-alone 5G network coverage and capacity.

The country will also cultivate new consumption models, speed up the migration to 5G, and promote the development of "5G plus medical health," "5G plus industrial internet" and "5G plus car networking," the MIIT said.

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