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    EY report: China projected to win the 5G race

    china.org.cn | Updated: 2018-06-15 10:47
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    EY releases its report "China is poised to win the 5G race" in Beijing, June 13, 2018. [Photo/EY]

    With the global unified standard set to be finalized in the next year or so, China has moved its target timetable for the commercial launch of 5G connections to the year 2019, to potentially become one of the first 5G-ready markets in the world, according to a report released in Beijing on Wednesday.

    EY releases its report "China is poised to win the 5G race" in Beijing on June 13.

    In their report "China is poised to win the 5G race," EY, a global leader in assurance, tax, transaction and advisory services, predicted that 5G users in China will reach 576 million by 2025, or over 40 percent of global consumption. The report also stated the country has the edge in the race to roll out 5G due to a series of national initiatives and instrumental support.

    5G refers to the 5th-generation wireless system that will bring about faster than ever download speeds, as well as streaming capabilities of virtual reality games and driverless cars, among other industry upgrades.

    China's 5G capital expense is expected to hit 1.5 trillion yuan ($223 billion) between 2019 and 2025, said EY. Proactive government support and industrial capital investments have helped shape a self-sustainable 5G environment in China.

    "China is determined to make 5G a top priority on its national agenda, striving to take a leadership role in the global landscape," said Steve Lo, the managing partner of EY's greater China Technology, Media & Telecommunications division. "It is also pressing for participation in the formulation of the international 5G standard to make China one of the main players."

    According to the report, however, early 5G networks will most likely be used to serve as hotspots to supplement existing mobile broadband technologies in first-tier cities, as 4G still has tremendous growth potential and will not be replaced in the short term.

    Deployment and uptake of 5G will likely be progressive in the domestic market, as it will be limited by the near-term supply of devices, equipment and compelling applications. In addition, said Lo, 5G will not entirely disrupt the telecom landscape and other industries in the adoption of 5G networks, with devices being the key factor.

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