China Grants 5G License For Commercial Use

The 5g license will surely give a highrise to the telecom industry. China is not lagging behind in this fact. The country grants the 5G license to its 4 state-owned carriers- China Mobile, China Unicom, and China Telecom. The Chinese Government grants the 5G license to state-owned broadcaster China broadcasting Network Corporation. These companies can now access full commercial deployment of 5G license across China and facilitate users to the high-speed data service.

This approval of 5G license of China Government accelerates investment in the telecom business. It will certainly benefit top players like Huawei. Huawei is now trying its best to overcome a U.S blacklisting that hampers their global business a lot.

Ministry of Industry and Information Technology, which issued the licenses stated that China is now inviting foreign enterprises (namely- Nokia, Ericsson) to participate in the 5G market. They also stated that Huawei, the Shenzhen-headquartered firm, captured nearly 30% of the world’s telecom sector revenue in 2018 now facing mounting security in the west. The US issued the ban on Huawei for accessing 5G license. According to the US, Beijing can manipulate Huawei system to spy on other countries and interrupt critical communication.

Huawei repeatedly denies US claim that it could be used as a tool of the Chinese intelligence department. Along with Huawei other telecom industry players like Samsung, Oppo, Xiaomi also planning to launch their 5G handset.

Chinese firms are selling a potential stake of its undersea cable division weeks after the Trump Administration blacklisted it from doing business with US organizations.

The acceleration of the 5G license will notably boost the domestic economy. This fact is explicitly stated by Neil Shah, research director at Counterpoint Research. He stated it will “drum up demand with upgraded technology experiences across devices, automotive, manufacturing leveraging 5G technology.”

Facilitation of 5G licenses in China expects to generate 6.3 trillion yuan ($947 billion) worth of economic output. About 8 million employment for China by 2030 according to a document released by China Academy of Information And Communications Technology.

Huawei claimed that it has obtained 46 commercial 5G licenses related contract in 30 countries despite the Trump Administration ban if from using US-based 5G services. The company said that they are perfectly prepared to play in the 5G market. However, the company does not reveal the details of the countries from which it managed to get a contract.

Huawei is intensifying trade war between US and China. President Donald Trump levied tariffs on $200 billion for Chinese goods and allows Beijing to hike duties on $60 for American products.

The telecom concerns prompt that Huawei is gearing up. It can be the world leader in telecom networking equipment and one of the top players in the phone manufacturing unit like Samsung and Apple.

5G is the next generation of network technology. It claims to give download speed 10 to 100 times faster than 4G LTE networks. 5G also promises its subscribers for wide coverage and more stable connection.


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