- Profits for companies in China’s telecommunications sector have reached colossal levels in the first five months of 2022.
- Total inflows are around $100 billion and are split across various sectors such as cloud, 5G, and data centers.
- In the field of fifth generation networks, the greatest gains are reported with more than 400 million mobile connections spread across most of the country.
The People’s Republic of China’s telecommunications industry had an outstanding first half with strong gains. Revenue between January and May was estimated at CNY 665 billion yuan, or about $99.46 billion. On an annual basis, growth was 8.5%
The information was recently published by the local agency Xinhua citing data from the Ministry of Industry and Information Technology. Among the main winners were emerging companies, including bigdata, cloud and other services. These sectors should continue to experience strong growth for the rest of the year.
At the same time, the growth of the three major technology companies in the Asian country stands out. These telecommunications operators are China Telecom, China-Mobile and China Unicom. They achieved a combined growth of 34.3% on an annual basis of CNY 128.3 billion yuan. This amount is equivalent to 19.3% of all sector revenues between January and May 2022
China’s telecom industry continues to thrive
The accelerated growth of the Chinese telecommunications industry is one of the most promising factors for this technological and economic powerhouse. Its Western rivals are increasingly concerned about the rise of new technological developments in China. At the same time, companies in the sector continue to consolidate even beyond the borders administered by Beijing.
This It should be noted that growth has significantly exceeded pre-pandemic levels (6.4%). The latter indicates that the sector should continue its dazzling development in the coming months of this year. It is important to note that the closure measures due to the Covid-19 epidemics this year did not particularly affect this area.
Since March, authorities have shut down major ports and major cities like Shanghai along with all their businesses. This had a huge impact on China’s trade and economy as a whole. However, the very characteristics of the telecommunications business, based on Internet technology, allowed it to circumvent the problems of confinement..
Other sectors of China’s telecommunications industry that have benefited from strong revenues are data centers and the Internet of Things (IoT). With the big size reached, the authorities expect that medium-sized local companies can soon expand overseas, keeping the traditional giants company.
5G connections and their link to Chinese industry
Another point to keep in mind is that China is consolidating its leading position in the adoption of fifth generation or 5G technology. At the end of May, the country had 1.7 million base stations for 5G connections. This represents 16.7% of mobile network stations in the entire Asian nation.
According to official data, in the first five months of 2022, the installation of 275,000 base stations was carried out. Thus, the technological superpower concluded this phase of the year with more than +400 million subscribers to fifth generation network services. These would be figures available from service operators in that country.
Similarly, Chinese operators in the 5G industry saw net growth of more than 30 million subscribers in May alone. Among these, China-Mobilethe world’s leading operator by number of subscribers, stood out with 18.25 million 5G subscribers.
The firm’s total 5G account count closed at 495.19 million subscribers in May. This is considerable growth compared to the 221.95 million subscribers it had last May 2021. The rival of this operator, China Unicom, got figures in May of 4.93 million subscribers and up to that month, its total number of customers closed at 179.70 million. The other company China Telecomclosed with 7.04 million in May and totaled 224.47 million until this month.
5G growth expectations are met
Growth plans for China’s telecommunications sector appear to be moving forward unabated. In this regard, in the first quarter of the year, 400 million 5G connections were achieved across the country. This represents more than 30% of all existing mobile phones in the country.
“To consolidate China as the country with the largest and best communication capacity in the world, the Communist Party plans to reach 3.64 million base stations by the end of 2025.”
Likewise, as EPF reports, the authorities expect that by the end of the year the base stations will reach two million units. To get an idea of the magnitude of the growth, it should be noted that in 2021 alone, 654,000 stations were reached nationwide. With such a build-up of infrastructure, 5G connections are practically within reach of all provinces.
According to the authorities, the Chinese telecommunications industry is still booming. With this, 5G networks would cover all cities at the prefectural level; more than 98% of urban areas at the county level and 80% of areas nationwide at the municipal level.
Despite the colossal development that this means, the authorities do not want to relax their efforts to increase coverage. Consolidate China as the country with the largest and best communication capacity in the world, the Communist Party plans to reach 3.64 million base stations by the end of 2025. This translates to tripling the country’s already immense 5G capacity in a short time.
Large telecom range
According to the plans of the authorities of the Asian nation, by the end of 2025, almost 900 million people should have 5G. This would equate to around 25 base stations of this network technology for every 10,000 people. Currently, there are five stations per 10,000 inhabitants in this country.
Of all mobile connections in China, 52% are expected to be fifth-generation by the same date. Another important fact is that by the end of 2022, the growth of connections would be 60% higher than those existing during the first quarter.. With this, Beijing is moving away from Western nations in terms of communication, both in terms of the quantity and quality of services.
China’s technology and service industries as well as all spheres of production require high-speed connections. To this end, the deployment of 5G is taken very seriously by the authorities. Thus, it can be said that the fifth generation network is one of the pillars to consolidate the plans for long-term economic and commercial world domination.
To get a complete picture of Beijing’s dominance in this area, it should be noted that the US authorities, in the same race, authorized the investment of 1.5 billion dollars to develop the network until 2026. The China has so far invested 50 times that amount in its local 5G and plans to invest another $100 billion over the next five years, according to data compiled by EPF.
5G for emission reduction plans
A fundamental aspect of the use of 5G technology is the application to uses related to the reduction of carbon emissions. In this regard we note that the country aims to reach its peak of coal consumption before 2030 and, subsequently, begin a long process of reducing consumption. This would culminate in 2050-2060 with China becoming a greenhouse gas neutral nation..
The importance of this goal is that it is the most populous nation in the world and its exit from polluting spaces would be a great help. With China, the balance would tip in favor of the transition policies carried out around the world.
With these goals in view, the 5G industry for emissions reduction in China is crucial. Authorities are currently using the network to create campaigns to guide citizens to reduce their consumption. “5G is the most energy-efficient wireless communication technology today. It has been integrated into many industries to promote society’s green transformation,” Huawei senior executive Devin Duan said in January.
Minimum power consumption is one of the priorities that 5G would effectively solve. For example, smart batteries are one of the most promising developments. “5G can be applied to power supplies to form smart batteries that can intelligently manage electricity and heatWu Feng of the Chinese Academy of Engineering told the Global Times.
He adds that “with such intelligent management, the total battery life will increase significantly to further support large-scale energy storage, especially for clean energy.”