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China is set to launch fifth-generation (5G) network spectrum plan and to issue 5G operating licenses in late 2018 or early 2019.

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Oct. 26 (NBD) -- China is set to launch fifth-generation (5G) network spectrum plan and to issue in late 2018 or early 2019 5G operating licenses.

Currently, at least 89 5G-related spectrum auctions are due to take place this year, according to a report on global status of 5G spectrum released by the Global mobile Suppliers Association in July this year.

Worldwide, the U.S. will start commercializing 5G in high-band millimeter-wave spectrum at the end of 2018, and other countries including the UK, South Korea, Japan and Australia are to enable the commercial use of C-band spectrum for 5G starting from 2019.

According to a new market research report published by the world's second largest market research firm MarketsandMarkets, the market size of 5G is expected to grow from 53.93 billion U.S. dollars in 2020 to 123.27 billion U.S. dollars by 2025, at a compound annual growth rate of 18 percent during the forecast period.

The commercialization of the promising technology could bring new opportunities to multiple markets. 

For the global smartphone market, the new technology is expected to revive the smartphone sales.

Data from International Data Corporation shows that smartphone vendors shipped a total of 342 million units in the second quarter of 2018, down 1.8 percent as compared to 348.2 million units for the same period of 2017. The drop marks the third consecutive quarter of year-over-year decline for the market. 

As 5G is believed to reshape the entire market, both mobile operators and smartphone vendors are making deployment in the 5G field to scramble for more market shares. 

U.S. telecommunications giant Verizon now offers 5G broadband service in four U.S. cities while another carrier AT&T will bring its 5G to 12 U.S. cities this year, reaching at least 19 cities in early 2019.

In China, the three top mobile operators - China Mobile, China Unicom and China Telecom - have announced their 5G testing programs. China Mobile plans to carry out field tests in the cities of Hangzhou, Shanghai, Guangzhou, Suzhou, and Wuhan, and build over 100 base stations in each city. 

Mobile phone makers, such as Sony, LG, OPPO, vivo, Huawei and Xiaomi, are scheduled to launch 5G smartphones in 2019.

The Internet of things (IoT) sector, as one of the major 5G application scenarios, will also embrace the rapid growth after 5G comes.

The 5G technology that features wide coverage and open framework enables all things to be interconnected with each other, being indispensable to the development of IoT. 

CCID Consulting predicted the number of IoT connections directly driven by 5G will hit 12.45 billion in 2020-2025. 

 

Email: zhanglingxiao@nbd.com.cn