China is expected to make total investments of 2.8 trillion yuan (US$411 billion) on 5G network during 2020 to 2030.
A 5G study published last week by the China Academy of Information and Communications Technology, the research arm of the Ministry of Industry and Information Technology (MIIT), forecast the combined 5G expenditure of China Mobile, China Unicom and China Telecom to hit a peak of 313.3 billion yuan in 2023.
The research unit also predicted that in 2025 the 5G market would account for 1.1 trillion yuan, or 3.2 per cent of the mainland’s gross domestic product for that year.
“We believe this paper represents the government’s official position in 5G, and its analysis largely explains why China will aggressively support 5G roll-out,” Jefferies equity analyst Edison Lee said.
Jefferies had earlier projected significant 5G capital expenditure for China Mobile, China Unicom and China Telecom, starting from 2019 and reaching an estimated total of 1.2 trillion yuan by 2025.