5G infrastructure is being rolled out globally. According to recent reports, ZTE is expected to launch 5G services as early as 2019 and is currently working on developing the necessary supporting chips. Recently, China Mobile, Qualcomm, and ZTE have formed a strategic partnership to co-develop next-generation smartphone technology standards. This collaboration aims to enable seamless, ultra-fast communication, paving the way for innovations such as autonomous vehicles, virtual reality in education, and nationwide telemedicine services.
As the country with the largest population and the most internet users, China is making a significant bet on 5G. The widespread deployment of 5G networks by the three major telecom operators is set to accelerate the nation’s digital transformation, turning many futuristic tech concepts into reality much sooner than expected.
ZTE, based in Shenzhen, and its main competitor Huawei are among the world's top providers of telecommunications equipment. They are at the forefront of 5G development and industrialization in mainland China. International organizations responsible for setting global 5G standards are expected to release initial specifications in the coming year, with final versions planned for 2019. This will prepare the ground for commercial 5G services by mobile network operators in 2020.
China’s potential to lead in global innovation may largely depend on its progress in 5G technology. At the Global 5G Conference in Hong Kong on the 29th, ZTE’s senior vice president stated that China Mobile might roll out 5G services ahead of schedule in 2019, as it pushes forward with the development of the next-generation mobile network.
In the second half of this year, ZTE set up a 5G network at Guangzhou University to test future network capabilities. ZTE executives mentioned that 5G chips could be released next year, with the first 5G smartphones following soon after.
Countries around the world are preparing for the large-scale rollout of 5G infrastructure. ZTE, Huawei, and their international rivals Ericsson and Nokia are all facing significant challenges and opportunities.
Edison Lee, a securities analyst at Jefferies, recently noted that China’s smart city initiatives will greatly benefit from high-speed 5G networks, enabling AI-driven public safety, traffic management, and disaster response systems. Major Chinese internet companies are also expected to introduce more advanced consumer services in the future.
Li pointed out that both ZTE and private company Huawei are likely to gain the most from the government’s increased investment in 5G.
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