Rédaction Africa Links 24 with Guardian Nigeria
Published on 2024-04-03 03:20:14
The impact of 5G technology on the Chinese economy is expected to be significant, with projections showing that 5G’s contribution to GDP in China could reach nearly $260 billion by 2030. This represents 23 per cent of the overall yearly economic impact of mobile in China. Furthermore, by 2030, it is anticipated that 5G connections in China will make up almost a third of the global total, with 5G adoption in the country reaching close to 90 per cent. This rapid adoption rate positions China as one of the leading markets globally for 5G technology.
Mats Granryd, the Director-General of the GSMA, expressed enthusiasm for China’s commitment to the GSMA’s Open Gateway initiative, which aims to drive the growth and maturity of 5G technology. As China surpasses one billion 5G connections this year, there is optimism for further investment and advancements in technologies such as 5G-Advanced, 5G New Calling, and 5G RedCap. These innovations are expected to enhance user experience and unlock new revenue streams for operators in the country.
The 5G market in China is evolving rapidly, leading to an increase in connections and a broader economic impact. The speed of network deployments and the growing device ecosystem are driving faster adoption of 5G technology than initially anticipated. Currently, more than 800 million mobile connections in China are utilizing 5G technology. It is projected that this year, the proportion of 5G connections will surpass 50 per cent and become the dominant mobile technology in the country. By the end of 2024, the total number of 5G connections in China is expected to exceed one billion.
With China boasting 1.28 billion unique mobile subscribers and a penetration rate of 88 per cent, mobile’s overall contribution to the Chinese economy was valued at $970 billion in 2023, accounting for 5.5 per cent of GDP. The mobile ecosystem supports nearly 8 million jobs in the country and contributes $110 billion annually through taxation. Meanwhile, operator revenues reached $225 billion in 2023. By the end of the decade, it is forecasted that the annual economic contribution from China’s mobile sector will surpass $1 trillion.
In conclusion, the growth of 5G technology in China is expected to have a significant impact on the country’s economy, with projections showing substantial economic contributions and advancements in the mobile sector. China’s enthusiastic commitment to driving the growth and maturity of 5G technology through initiatives like the GSMA’s Open Gateway is positioning the country as one of the leading markets for 5G globally.
