China’s 5G combined with cloud creates growth opportunities

China 5G cloud
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After building the world’s largest 5G network with 2.3 million 5G base stations by the end of 2022, China is on track to add over 600,000 5G base stations and reach 2.9 million by the end of 2023, according to new Omdia research.

Co-sharing of 5G networks

A key milestone in terms of China’s co-building and co-sharing of 5G networks recently took place in May 2023 through the 5G network collaboration between all four service providers in China. Under the organization and guidance of the Ministry of Industry and Information Technology (MIIT), the four major mobile operators in China– China Mobile, China Telecom, China Unicom, and China Broadnet, jointly announced the launch of what they claimed was the world’s first 5G inter-network roaming service trial. The service enables customers to access other telecom operators’ 5G networks and continue using 5G services when outside the range of their original operators’ 5G network. 

Ramona Zhao, Research Manager at Omdia said: “Omdia expects inter-network roaming to improve operators’ 5G network coverage, particularly in rural areas. Driven by better 5G network coverage, 5G will overtake 4G’s leading position and become the largest technology in China’s mobile market by 2026. By the end of 2028, we anticipate 5G will account for 65.1% of the total mobile subscriptions (including IoT connections).”

China a 5G pioneer

Omdia deems China a 5G pioneer in terms of many areas, including technology innovation, network deployment, and 5G use cases.

Driven by the increasing 5G adoption, Chinese service providers’ mobile service revenue and reported mobile (non-IoT) ARPU have all achieved year-on-year (YoY) growth in 2022. China Telecom reported an increase of 3.7% in its mobile service revenue; China Unicom’s mobile service revenue saw a YoY increase of 3.6%, while China Mobile’s mobile service revenue also increased by 2.5% YoY.

Digital transformation demand

Owing to the digital transformation demand from various state-owned enterprises, cloud services are also considered a growing business for Chinese service providers.

“Omdia recommends that Chinese service providers innovate more applications through the integration of cloud and the 5G network. This will be vital to enable the digital transformation of various industries and the acquisition of new revenue streams,” concludes Zhao.

Related article: China’s fast 5G growth, now accelerating to 5G-Advanced

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