0% found this document useful (0 votes)
194 views48 pages

The Mobile Economy Report China 2023 PDF

bbbh

Uploaded by

viennachingching
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
194 views48 pages

The Mobile Economy Report China 2023 PDF

bbbh

Uploaded by

viennachingching
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 48

The Mobile

Economy
China 2023
The GSMA is a global organisation unifying the mobile
ecosystem to discover, develop and deliver innovation
foundational to positive business environments and
societal change. Our vision is to unlock the full power of
connectivity so that people, industry and society thrive.
Representing mobile operators and organisations across
the mobile ecosystem and adjacent industries, the GSMA
delivers for its members across three broad pillars:
Connectivity for Good, Industry Services and Solutions,
and Outreach. This activity includes advancing policy,
tackling today’s biggest societal challenges, underpinning
the technology and interoperability that make mobile
work, and providing the world’s largest platform to
convene the mobile ecosystem at the MWC and M360
series of events.

We invite you to find out more at gsma.com

Follow the GSMA on Twitter: @GSMA

GSMA Intelligence is the definitive source of global mobile


operator data, analysis and forecasts, and publisher of
authoritative industry reports and research. Our data
covers every operator group, network and MVNO in every
country worldwide – from Afghanistan to Zimbabwe. It is
the most accurate and complete set of industry metrics
available, comprising tens of millions of individual data
points, updated daily.

GSMA Intelligence is relied on by leading operators,


vendors, regulators, financial institutions and third-party
industry players, to support strategic decision-making
and long-term investment planning. The data is used as
an industry reference point and is frequently cited by the
media and by the industry itself.

Our team of analysts and experts produce regular


thought-leading research reports across a range of
industry topics.

www.gsmaintelligence.com

[email protected]

Copyright © 2023 GSMA


Contents
Executive summary 3

1 The mobile industry in numbers 10

2 Mobile industry trends 26

2.1 Operators home in on the 5G enterprise opportunity 27

2.2 Dedicated 5G momentum builds 29

2.3 Innovation underpins China’s digital ambition 31

2.4 Fintech presents opportunities for mobile industry players 33

2.5 China shifts to a circular economy 35

3 Mobile industry impact 38

3.1 The mobile industry’s impact on the SDGs 39

3.2 Mobile’s impact on disaster management and response 41

4 Mobile industry enablers 42

Safeguarding 5G momentum and setting the


4.1 43
stage for 6G evolution
Executive
summary

5G underpins China’s
digital ambitions
China’s economy is on the road to recovery, following
the easing of Covid-19 restrictions from late 2022.
Mobile connectivity served as a lifeline throughout
the pandemic and will play an even more crucial
role in enabling the safe return to social interaction
and the restart of many economic activities. To this
end, authorities across China have outlined plans
to integrate digital technologies, underpinned by
advanced mobile connectivity, into every aspect
of society to sustain China’s competitiveness
in an evolving global economy. In 2022, mobile
technologies and services generated 5.5% of China’s
GDP – a contribution that amounted to $1.1 trillion of
economic value added.

5G will underpin future mobile innovation and


services, building on current deployments and
adoption. The number of 5G base stations in China
exceeded 2.3 million at the end of 2022, including
approximately 887,000 built during the year. China
will be the first market with 1 billion 5G connections,
reaching the milestone by 2025. By 2030, 5G
connections in China will reach 1.6 billion, accounting
for nearly a third of the global total. The technology
will add $290 billion to the Chinese economy in 2030,
with benefits spread across industries.

Authorities have outlined


plans to integrate digital
technologies, underpinned
by advanced mobile
connectivity, into every
aspect of society

Executive summary 3 / 46
Key trends shaping the
mobile ecosystem
5G enterprise services to see greater The mobile industry shifts towards
commercial scale in 2023 circularity
Mainland China is the largest 5G market in the Across the telecoms ecosystem, sustainability has
world, accounting for more than 60% of global 5G extended beyond corporate social responsibility
connections at the end of 2022. With strong take- (CSR) to become a core strategic priority. Industry
up of 5G among consumers, the focus of operators players are increasingly adopting a model of
is now increasingly shifting to 5G for enterprises. production, service offering and consumption
This offers opportunities to grow revenues beyond that involves sharing, leasing, reusing, repairing,
connectivity in adjacent areas such as cloud services refurbishing and recycling existing materials and
– a segment where operators in China have recently products for as long as possible. This circular
made significant progress. approach is important for networks to operate in a
more sustainable and energy-efficient way, and for
the industry to make progress towards realising its
Dedicated networks on the rise climate goals.
Private and dedicated wireless network solutions are
back in vogue, as 5G’s enhanced capabilities move
Fintech presents opportunities for
deployments beyond low-profile, niche offerings.
Manufacturing and mining are two sectors where
mobile industry players
demand for private and dedicated 5G networks in China has developed a lead in fintech services
China looks particularly strong. A number of use over the past decade, driven by investments in
cases are currently in testing or live operation, an expanding portfolio of products and surging
including mobile robotics, automated guided public demand for electronic payment options. As
vehicles (AGVs) and drones. For growth to continue, fintech innovators increasingly leverage emerging
solutions need to become cheaper as well as easier technologies (such as big data, AI and cloud
and faster to install and operate. This will drive computing) to enable more complex and customised
demand for pre-integrated solutions. solutions, operators have an opportunity to play a
greater role in fintech.

Innovation underpins China’s digital


ambitions
China’s digital ambitions are driven by a combination
of external and internal factors, notably a
slowdown in growth of the real economy. The
digital ecosystem, including start-ups, will be at
the forefront of efforts to realise China’s digital
Mainland China is the
ambitions, with innovation and investments driving
the creation of new solutions across the focus areas largest 5G market in the
of China’s 14th Five-Year Plan (2021–2025) and the
Long-Range Objectives Through the Year 2035.
world, accounting for
more than 60% of global
5G connections at the
end of 2022

Executive summary 4 / 46
China: key mobile industry
milestones to 2030

1.3 bn mobile
1 bn 5G connections 70% 5G adoption 80% 5G adoption
subscribers

1.65 bn smartphone 4G adoption falls 1.5 bn 5G


45% 5G adoption
connections below 30% connections

1.8 bn mobile 2G & 3G adoption 1.3 bn mobile internet 4G adoption falls


connections fall to near-zero subscriptions below 20%

2023 2024 2025 2026 2027 2028 2029 2030

85% mobile internet 1.7 bn smartphone 1.6 bn 5G


1.2 bn 5G connections
penetration connections connections

5G adoption 1.4 bn 5G 88% 5G


65% 5G adoption
overtakes 4G connections adoption

1.73 bn
4G adoption falls 90% smartphone
75% 5G adoption smartphone
below 50% adoption
connections

Policies for growth


and innovation
Spectrum availability and effective licensing are Successful spectrum licensing has always been
critical to encourage the investment required to about long-term planning. Putting in place the right
expand mobile access, meet growing demand for resources for 6G is no different. The mobile industry
data services and enhance the quality and range is already studying how 6G will shape the future of
of services offered. In 2023, all eyes will be on mobile. For regulators, ministries, operators, vendors
Dubai, where the ITU’s World Radiocommunication and researchers, spectrum policy for 6G is becoming
Conference 2023 (WRC-23) will take place in increasingly important. 2023 marks the beginning
November/December. WRC-23 offers the chance of a long journey, as new studies begin when the
to expand the availability of affordable 5G services WRC-27 cycle starts.
and ensure future growth and innovation. It is an
opportunity to build a spectrum roadmap into the
2030s, address the digital divide and ensure 5G can
benefit billions of people.
Spectrum availability and
effective licensing are
critical to encourage the
investment required to
expand mobile access

Executive summary 5 / 46
The Mobile Economy China

Unique mobile
subscribers

2022
1.29bn 87% 89%

1.33bn
2022 2030

2030 Penetration rate


Percentage of population
CAGR
2022-2030 0.4%

Mobile internet
users

2022
1.17bn 79% 89%

1.33bn
2022 2030

1.7%
2030 Penetration rate CAGR
Percentage of population 2022-2030

SIM connections 4G Percentage of connections


(excluding licensed cellular IoT) (excluding licensed cellular IoT)

2022
1.74bn 2022
64%
2030
1.87bn 2030
12%
Penetration rate
Percentage of population
118% 125%
2022 2030
5G Percentage of connections
(excluding licensed cellular IoT)

CAGR
2022-2030
2022
36%
0.9% 2030
88%
Smartphones Licensed cellular
Percentage of connections
(excluding licensed cellular IoT)
IoT connections

2022
81%
93% 1.8bn
2022 Total
connections

3.6bn
2030

2030

Operator revenues Operator capex


and investment

2022
$207bn Total
revenues
$291bn
2023 2030

2030
$219bn Over
95% on 5G

Mobile industry Public funding


contribution to GDP

2022
$1.1tn 5.5% of GDP
2022 $110bn
$1.3tn
Mobile ecosystem contribution to
public funding (before regulatory
2030 and spectrum fees)

Employment

3 million jobs 3 million


jobs
Directly supported by the mobile ecosystem in 2022 supported
indirectly
Mainland China

64+36+Q 12+88+Q
Technology mix* Subscriber penetration
<1% 12% 2022 87%
36%
2030 89%

2022 2030
Smartphone adoption
2022 81%
64% 88%
2030 93%
3G 4G 5G

Hong Kong, SAR China

10+65+25Q 4+96+Q
Technology mix* Subscriber penetration

10% 4% 2022 94%


25%
2030 94%

2022 2030
Smartphone adoption
2022 86%
65% 96%
2030 93%
3G 4G 5G

Macao, SAR China

4+95+1Q 5+95+Q
Technology mix* Subscriber penetration

1% 4% 5% 2022 91%

2030 93%

2022 2030
Smartphone adoption
2022 92%
96% 95%
2030 94%
3G 4G 5G

Taiwan, Province of China

72+28+Q 4+96+Q
Technology mix* Subscriber penetration

4% 2022 95%
28%
2030 96%

2022 2030
Smartphone adoption
2022 85%
72% 96%
2030 96%
3G 4G 5G

*Percentage of total connections


Note: Totals may not add up due to rounding

Executive summary 8 / 46
01
The mobile industry
in numbers
Unique mobile Unique mobile subscriber growth is beginning to
plateau in China as the mobile market approaches

subscribers in China
saturation. China will see an additional 41 million
subscribers by 2030, taking the mobile penetration

will total 1.33 billion


rate to 89%.

Mobile adoption has largely peaked among the adult

by 2030 populations in urban areas. As a result, the majority


of new subscribers in the coming years will be young
users and rural populations subscribing for the first
time.

Figure 1
China: mobile subscribers and penetration
MIllion, percentage of population

89%
1,350

87%

1,300

1,250

1,200

2022 2023 2024 2025 2026 2027 2028 2029 2030

Source: GSMA Intelligence

The mobile industry in numbers 11 / 46


There were 1.17 The mobile internet usage gap in China has narrowed
markedly in the last five years – from 37% in 2017 to

billion mobile
20% in 2022. More people rely on the internet for
many daily activities, especially in the wake of the

internet subscribers
Covid-19 pandemic.

The usage gap in China is greatest among the elderly,

in China in 2022, mainly due to low levels of digital skills. According


to the China Internet Network Information Center

equivalent to 79% (CNNIC), internet penetration among those aged 60


years and above was 43% in 2021. Video content and

adoption social media platforms, such as WeChat, are among


the main services bringing the elderly online.

Figure 2
Mobile internet adoption by region, 2022
Percentage of population

4% 1% 1% 1% 5% 3% 4% 6%

14% 16% 17%


20%
28% 35%
41%
47%
55%

60%

85% 83% 79%


67% 62%
55%
49%
39%
23%

Global Europe North China CIS Latin Asia MENA Sub-Saharan


America America Pacific* Africa

Connected Usage gap Coverage gap

*Excludes China
Source: GSMA Intelligence

The mobile industry in numbers 12 / 46


5G will overtake 4G 5G adoption continues to rise, following new network
deployments and more affordable devices. China's

in 2024 to become
5G base stations exceeded 2.3 million at the end
of 2022, including around 887,000 built during the

the dominant mobile


year.1 Chinese-made devices were among the 1,431
commercially available 5G devices globally as of the

technology in China
end of 2022. 2

4G and 5G dominance in China means legacy


networks (2G and 3G) are now being phased out.
While most users have been migrated to 4G and
5G, legacy networks continue to support various
IoT services. However, some estimates suggest that
legacy networks could be almost entirely shut down
in China by 2025.

Figure 3
China: mobile adoption by technology
Percentage of total connections

100%

90%
5G 88%

80%

70%

60%

50%

40%

30%

20%

10%
4G 12%

0% 3G 2G 0%
2022 2023 2024 2025 2026 2027 2028 2029 2030

1. "China's telecom industry reports steady expansion in 2022", english.gov.cn, January 2023
2. 5G-Ecosystem January 2023 Member Report, GSA, 2023

The mobile industry in numbers 13 / 46


China to be among China will be the first market with 1 billion 5G
connections, reaching the milestone by 2025. 5G

leading 5G markets
connections in China will reach 1.6 billion by 2030,
accounting for nearly a third of the global total.

globally, with 88% 5G adoption in China will be considerably higher than


the global average of 54%. Although 5G adoption in

adoption by 2030 mainland China will marginally lag some of its peers
by 2030, Hong Kong, Macau and Taiwan will have
similar adoption levels to the global leaders.

Figure 4
5G adoption in 2030
Percentage of total connections 5G connections
(2030)

GCC Arab States 95% 89m


US 95% 392m
South Korea 95% 61m
Germany 94% 118m
UK 93% 85m
Japan 92% 168m
France 91% 65m
China 88% 1,647m
Global average 54% 5,285m

Source: GSMA Intelligence


Smartphone Industry data indicates that smartphone sales
volumes contracted in 2022, partly due to Covid-19

connections will
controls and the resulting slowdown in the economy,
as well as a global shortage of chips. However, the

total 1.73 billion in


outlook is upbeat as China reopens and exits its zero-
Covid policy.

China by 2030, Over the period to 2030, China will record an


additional 300 million new smartphone connections,

accounting for 93% taking the total to 1.73 billion. 5G will be a key driver
of new smartphone sales, as consumers upgrade

of connections from previous generations.

Figure 5
Smartphone adoption
Percentage of connections (excluding licensed cellular IoT)

93% 93% 93% 94% 96%


89% 91%

84% 85% 86% 86%


82% 81%
73%

US UK Japan Germany China France South Korea

2022 2030

Source: GSMA Intelligence

The mobile industry in numbers 15 / 46


Smartphone data Mobile traffic growth in China is driven by a
combination of factors, notably live video streaming,

traffic in China to
live e-commerce and online gaming. By June 2022,
around 68% of internet users in China had used a live

more than double


streaming service. 3

5G is also a key growth driver of mobile data

over the period to traffic, as evidenced by the technology’s growing


share of overall mobile data traffic. According to a

2028 GSMA Intelligence survey, 5G subscribers are more


interested than 4G users in adding services and
content to their mobile contracts.4

Figure 6
Mobile data traffic per smartphone
GB per month

North America Western Europe China

2022 17.4 2022 19 2022 18


Increase 3.2× Increase 2.7× Increase 2.6×
2028 55 2028 52 2028 47

Global average

2022 15
Increase 3.1×

2028 46

Source: GSMA Intelligence based on Ericsson Mobility Report November 2022

3. Statista
4. Analysing the behaviour of early 5G users: 10 things to know when planning consumer 5G strategies, GSMA Intelligence, 2022

The mobile industry in numbers 16 / 46


Licensed cellular IoT China recorded 1.84 billion cellular IoT connections
in 2022, according to the Ministry of Industry

connections in
and Information Technology (MIIT), making it the
first major economy to record more cellular IoT

China to double to
connections than mobile users. NB-IoT accounts for
the largest proportion of IoT connections in China.

3.6 billion by 2030 MIIT data shows that water meters, gas meters,
smoke detectors and tracking each account for over
10 million connections. Agriculture, streetlights and
five other use cases have crossed the 1 million mark,
while public services, connected vehicles, smart retail
and smart home applications dominate end-user
services, with a combined 1.4 billion connections.

Figure 7
China: licensed cellular IoT connections
Million
China will account for 67%
of the global total in 2030.
Europe and the US will
jointly account for 21%

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0
2022 2023 2024 2025 2026 2027 2028 2029 2030

Source: GSMA Intelligence

The mobile industry in numbers 17 / 46


Revenue growth is Diversification of services has become a strategic
imperative for operators amid slowing growth from

set to moderate in
core communications services. Gaming, financial
services, cloud and security are among the leading

China over the


areas in terms of operator activity.

China's transition to enterprise digital services (cloud,

coming years as 5G data centres, digital transformation and 5G) has


become a significant growth driver for operators,

adoption reaches with China Telecom and China Mobile reporting


digital enterprise and cloud services revenue growth

maturity of 17% and 40%, respectively, in the first nine months


of 2022.

Figure 8
China: mobile operator revenue and year-on-year growth
Billion

$225

8.0%
$220

$215

$210

$205

-0.2%
$200
2022 2023 2024 2025 2026 2027 2028 2029 2030

Revenue Annual growth (%)

The mobile industry in numbers 18 / 46


Operators in China Following extensive 5G network buildout over the
last few years, resulting in record capex intensity in

will spend $291


China, overall capex will begin to trend downwards
in the coming years as operators turn their focus to

billion on their
generating returns on investment.

networks during
2023–2030, with
most on 5G

Figure 9
China: mobile operator capex
Billion

$45

$40
19%
$35

$30
15%
$25

$20

$15

$10

$5

$0
2023 2024 2025 2026 2027 2028 2029 2030

Capex Capex as % of revenue

Source: GSMA Intelligence

The mobile industry in numbers 19 / 46


The mobile sector In 2022, mobile technologies and services generated
5.5% of GDP in China – a contribution that amounted

added $1.1 trillion of


to $1.1 trillion of economic value added. The greatest
benefits came from the productivity effects, which

economic value to
reached $720 billion, followed by the rest of the
mobile ecosystem, which generated $160 billion.

the Chinese
economy in 2022

Figure 10
Total economic contribution of the mobile industry in China, 2022
Billion, percentage of GDP
$720 $1,100

Mobile 3.6%
ecosystem

5.5%
$100
$160 0.5%

$120 0.8%

0.6%

Mobile operators Rest of mobile Indirect Productivity Total


ecosystem

Source: GSMA Intelligence


At the end of the Figure 11

decade, mobile’s Economic impact of mobile in China

economic
Billion

$1,270
contribution will
reach $1.3 trillion $1,100

By 2030, mobile’s contribution will reach


approximately $1.3 trillion in China, driven mostly by 2022 2030
the continued expansion of the mobile ecosystem
and verticals increasingly benefitting from the
improvements in productivity and efficiency brought Source: GSMA Intelligence

about by the take-up of mobile services.

The mobile Mobile operators and the wider mobile ecosystem


provided direct employment to around 3 million

ecosystem in China
people in China in 2022. In addition, economic
activity in the ecosystem generated 3 million jobs in

supported 6 million
other sectors.

jobs in 2022

Figure 12
Employment impact of the mobile industry in China, 2022
Jobs (million)

3.1

5.9

2.9

Direct Indirect Total

Note: Totals may not add up due to rounding


Source: GSMA Intelligence

The mobile industry in numbers 21 / 46


The fiscal In 2022, the mobile sector in China made a
substantial contribution to the funding of the public

contribution of the
sector, with around $110 billion raised through taxes.
A large contribution was driven by services, VAT,

mobile ecosystem
sales taxes and excise duties, generating $40 billion,
followed by employment taxes and social security at

reached $110 billion


$30 billion.

in 2022

Figure 13
Fiscal contribution of the mobile industry in China, 2022
Billion

$30

$20
$110
$20

$40

Services VAT, sales Handset VAT, sales Corporate taxes Employment taxes Total
taxes and excise taxes, excise and on profits and social security
duties customs duties

Source: GSMA Intelligence

The mobile industry in numbers 22 / 46


5G will add almost 5G is expected to benefit the Chinese economy by
$290 billion in 2030, accounting for more than 22%

$290 billion to the


of the overall economic impact of mobile. Much of
the benefit will materialise over the next five years.

economy in China Towards the end of the decade, 5G economic


benefits will level off as the technology starts to

in 2030 achieve scale and widespread adoption.

Figure 14
Annual global 5G contribution by industry in China
Billion

$350

$300

$250

$200

$150

$100

$50

$0

2022 2023 2024 2025 2026 2027 2028 2029 2030

Services (public administration, finance, healthcare, education) Manufacturing

ICT Utilities management, construction, oil and gas, agriculture

Source: GSMA Intelligence

The mobile industry in numbers 23 / 46


Manufacturing and 5G is expected to benefit most sectors of the Chinese
economy, depending on their ability to incorporate

services will benefit


5G use cases into their business. In 2030, 57% of the
benefit is expected to come from the manufacturing

the most from 5G


sector, and 23% from the services sector, driven by
applications including smart factories, smart cities

in 2030
and smart grids.

Figure 15
5G contribution by industry in China, 2030
Percentage of total benefit

Utilities management,
construction, oil and 12%
gas, agriculture Services (public
administration,
23%
finance, healthcare,
education)
ICT 8%

57% Manufacturing

Source: GSMA Intelligence

The mobile industry in numbers 24 / 46


02
Mobile industry
trends
2.1
Operators home in
on the 5G enterprise
opportunity
Demand for 5G services continues unabated in
China, with the number of 5G connections reaching
545 million (32% of total connections) at the end
of Q3 2022. Mainland China leads the way on 5G
adoption, closely followed by Taiwan and Hong Kong.
The three markets rank among the top seven markets
globally for 5G adoption. 5G is also making progress
in Macao, where the government issued 5G licences
with eight-year terms to China Telecom and CTM at
the end of 2022.

With strong consumer adoption of 5G, the focus of


operators in China is increasingly shifting to 5G for
the enterprise. 5G networks offer various benefits
to enterprises, enabling a range of new use cases.
Accordingly, operators are reshaping their enterprise
strategies to better serve customers. This includes
a shift in their 5G value propositions towards edge
computing and network slicing as deployments of 5G
standalone (5G SA) networks expand.

Mobile industry trends 27 / 46


5G enterprise services to continue growth in 2023
In 2021, the MIIT launched the “Set Sail” Action • China Telecom reported that its industrial
Plan for 5G applications, which outlined targets digitalisation business, which includes cloud,
for China’s 5G industry to reach by the end of data centre and smart solutions, grew 19%
2023. This includes a goal of 3,000 dedicated year-on-year to CNY59 billion ($8.7 billion) in
5G network deployments and a target for H1 2022. The new contract value for 5G B2B
large industrial enterprises to reach 35% 5G projects has grown 80% year on year, as the
penetration. Fuelled by the government’s operator focuses on scalable and replicable
ambition, operators in China have made strong use cases in sectors such as 5G city, healthcare
progress: and manufacturing.

• China Mobile reported a 40% uplift in • China Unicom’s enterprise revenue reached
digital transformation revenue in H1 2022, CNY37 billion ($5.5 billion) for the first six
underpinned by growth in 5G solutions for months of 2022, representing a year-on-year
vertical sectors, mobile cloud and smart home increase of 32%. 5G industry applications
services. The operator has signed agreements accounted for more than 10% of total
for more than 11,000 5G commercial projects, enterprise revenues for the operator, driven by
representing a contract value of CNY16 billion strong uptake of 5G virtual private networks.
($2.4 billion).

Convergence of 5G and cloud provides opportunity to diversify revenues


Growth in revenue sources beyond connectivity Revenue beyond connectivity as a percentage of
in China is being driven by cloud and other value- total revenues varies significantly among operators
added services for enterprise customers. Almost a globally, at 15–40%. 5 This is to be expected as there is
quarter of operators’ incremental revenue beyond no ‘one size fits all’ in terms of strategy and timeline
connectivity in China came from cloud in 2020. for diversification. In China, operators are making
significant progress on revenue diversification.
As operators advance the use of cloud technologies
However, revenues beyond connectivity as a share of
in their 5G networks (a priority for 66% of operators
total revenues still rank among the lowest due to their
according to the GSMA Intelligence Operators in
large mobile businesses, which dominate the revenue
Focus Network Transformation Survey 2022), cloud
mix.
offerings for enterprise customers will continue to
grow. This will allow operators to build on their early
success in the cloud market. For example, China
Mobile had signed more than 3,500 major contracts
for cloud services as of the end of June 2022.
These generated revenues of over CNY13 billion
($1.9 billion).

5. Operator revenue diversification: growth beyond core continues as Covid-19 spurs digitisation, GSMA Intelligence, 2021

Mobile industry trends 28 / 46


2.2
Dedicated 5G momentum builds
Private wireless networks are not new, having edge computing), it demonstrates growing demand
been deployed on LTE spectrum for several years. from enterprises in China for greater customisation,
However, until recently, installations have mostly been control and security with regard to connectivity.
low-profile, niche offerings that lack the capabilities
State support and collaboration between mobile
that 5G now offers. Private wireless solutions are
operators and local equipment vendors (e.g. Huawei
back in vogue as they are a key means of monetising
and ZTE) has underpinned growth in private 5G.
5G in the enterprise segment.
To maintain momentum, solutions need to become
China has been at the forefront of dedicated 5G cheaper as well as easier and faster to install and
developments globally. In May 2022, the MIIT claimed operate. This is driving demand for pre-packaged
there were more than 5,300 dedicated 5G networks solutions that include service management tools
operating in the country. While this figure includes and billing systems, edge and cloud integration, and
a range of deployment scenarios beyond dedicated mechanisms for handling data authentication and
private 5G networks (e.g. hybrid networks and mobile security.

Key verticals, use cases and stakeholders


Dedicated 5G networks can be deployed across a As shown in Figure 16, operators and network
range of vertical industries. Manufacturers have been vendors have been the main contractors of dedicated
among those setting the pace in China, with factories 5G deployments in China. However, in November
and warehouses a natural setting for private wireless 2022, MIIT granted the first 5G private network
networks. This reflects the need in these locations licence in the country to Commercial Aircraft
for precision operations and data analytics that run Corporation of China (COMAC), the manufacturer of
across a densely linked network of localised assets. the C919 – the country’s first domestically developed,
There has also been strong demand from the mining single-aisle passenger jet. While spectrum set-asides
sector, which often requires connectivity in rural and offer the possibility of enterprises building their own
hard-to-reach areas (such as underground). private networks, the experience of operators and
network vendors in this space means a collaborative
Multiple use cases involving dedicated 5G are
approach between operators, vendors and
currently in testing or live operation in China.
enterprises that have their own spectrum assets is
These include mobile robotics (for site inspections),
the most likely deployment scenario.
AGVs (for transporting goods), drones (for site
survey) and 4K video streaming (for safety and
security applications). AR-based software is also
being considered because of its latency demands
(sub-20 ms).

Mobile industry trends 29 / 46


Figure 16
Selected private 5G deployments in China

Companies
Location Sector Customer Primary use case(s)
involved

Jilin Drones for monitoring


Jilin China Mobile, the health of crops,
province, Agriculture
Company ZTE and remote control of
China farm equipment

Guangzhou Video conferencing,


Guangdong, China
Municipal allowing students
Education Unicom,
China People's to access mobile
Huawei
Government academic resources

Autonomous mobile
Binjiang, Manufacturing China robots, and remote
(consumer ZTE Telecom, control of production
China electronics) ZTE process using 4K video
streaming

Autonomous mobile
Ningbo, Manufacturing China Mobile, robots, and image
Hotel Star
China (packaging) ZTE recognition for quality
inspection

Real-time video
Yanjiahe Shanxi
China streaming of
Xiangning
Coal Mine, Mining Unicom, underground HD
Coking Coal
China Huawei cameras for risk
Group
identification

China Mobile, Autonomous mobile


Dahaize Coal China Coal China robots for inspections,
Mining
Mine, China Group Broadnet, AGVs and smart
ZTE wearables

Source: GSMA Intelligence, GSMA 5G Transformation Hub

Mobile industry trends 30 / 46


2.3
Innovation underpins China’s digital
ambition
China’s 14th Five-Year Plan (2021–2025) and the environment. Internally, the growth of the real
Long-Range Objectives Through the Year 2035 economy is slowing, as evidenced by sluggish output
centre on innovation, and position technological in recent years across several major industries, such
independence as a strategic pillar of national as manufacturing, agriculture and construction. In
development. The goal is to promote the integration the context of slowing economic growth and sluggish
of the digital economy and the real economy, with growth in several major industries, accelerating
modern, high-quality industrial development and industrial modernisation and digitalisation as well as
technology-driven industrialisation, informatisation, promoting high-quality industrial development has
urbanisation and agricultural modernisation. become a strategic focus of the Chinese government.
Figure 17 highlights the key focus areas of China’s
China’s digital ambitions are driven by a combination
digital ambitions.
of external and internal factors. External factors
revolve around a challenging global macro

Figure 17
Overview of the 14th Five-Year Plan and Long-Range Objectives
Through the Year 2035

Pillars Example focus areas

Implement strategy to Technology leadership in areas such as AI, quantum computing,


lead in manufacturing biotechnology and space research.

Develop and expand Enhanced manufacturing competitiveness in areas such as robotics,


strategic emerging agricultural machinery and equipment, zero-emissions vehicles, and
industries innovative medicine.

Build a modern Modern infrastructure to support next-generation digital


technologies, advanced biotechnology, and environmentally friendly
infrastructure system energy and transportation solutions.

Create new opportunities New opportunities in cloud computing, big data, IoT, blockchain, AI,
in the digital economy VR and AR.

Accelerate the pace


Digital solutions in areas such as agriculture, transport, energy,
of digital society
manufacturing, tourism, public services and education.
development

Source: GSMA Intelligence based on fujian.gov.cn

Mobile industry trends 31 / 46


The digital ecosystem, including start-ups, will be In 2022, the US added 182 unicorns, accounting
at the forefront of efforts to realise China’s digital for more than half the world’s 330 new unicorns,
ambitions. China is a global hub for tech start-ups, followed by China with 74 new unicorns.7 China’s
with innovative solutions across a range of industries. number of unicorns grew during the year despite
Many of these have become ‘unicorns’,6 serving both an overall fundraising slump amid economic
the domestic and international markets. Although headwinds, including pandemic-related supply chain
the US is home to more than half (54%) of the 1,205 disruption. Around 70% of China’s new unicorns
unicorns tracked by research firm CB Insights, China come from four areas: clean technology, renewable
is in second place with 14.3%, ahead of India (5.7%) energy, healthcare and smart logistics. More than 10
and the UK (4.2%). China-based ByteDance, which semiconductor companies also made the list, while
operates content platforms such as TikTok and automotive transportation, smart manufacturing,
Toutiao, reached a peak valuation of around $400 gaming and the metaverse were among the other
billion in 2021. sectors represented.

6. A unicorn startup is a private company valued over $1 billion.


7. "China added 74 unicorns in 2022, maintaining steady pace of growth despite fundraising crunch", South China Morning Post, February 2023

Mobile industry trends 32 / 46


2.4
Fintech presents opportunities for mobile
industry players
China’s economy is largely cashless, reflecting Other markets are also implementing initiatives
high levels of penetration of fintech services. China to capture new opportunities in the domestic and
has developed a lead in fintech services over the international fintech markets. In Hong Kong, key
past decade, largely driven by investments in an stakeholders, including financial regulators and
expanding portfolio of products and growing public agencies, are collaborating on efforts to
demand for electronic payment options. The Covid-19 enhance fintech infrastructure, provide an enabling
pandemic served as a catalyst for the surge in digital regulatory framework, encourage financial innovation
services, including e-commerce, with fintech services and nurture talent:
supporting many online transactions. In China, mobile
• The Hong Kong Monetary Authority (HKMA)
payments are not only used by the relatively tech-
and Securities and Futures Commission (SFC)
savvy urban population; they are increasingly used by
have introduced sandboxes to promote fintech
those in rural areas too.
development.
Unsurprisingly, digital payments are the leading
• The HKMA has launched its Fintech 2025 strategy
market segment in terms of transaction value.
to drive fintech development, alongside other
However, several other product categories, such as
initiatives to position the city as the ideal platform
asset management, insurance and inclusive finance,
for evolving and expanding fintech businesses.
are beginning to gain traction. Meanwhile, China has
been rolling out a central bank digital currency that • InvestHK, a department of the Hong Kong
has undergone several pilot programmes, including government responsible for attracting foreign
during the 2022 Winter Olympics, with the potential direct investment, has a dedicated fintech team
to drive innovation in new fintech products and looking to attract the world’s top innovative fintech
services. firms to set up and scale their business via Hong
Kong into mainland China and Asia.
In January 2022, the People’s Bank of China released
its second Fintech Development Plan for 2022–2025, • In December 2022, InvestHK soft-launched the
which seeks to further develop China’s fintech sector FintechHK Community Platform, a centralised
and drive the digital transformation of the finance fintech platform to connect local and global tech
sector. The plan builds on the Fintech Development companies with ‘corporate, investor and service
Plan for 2019–2021 and is in line with the 14th Five- champions’ to drive growth of Hong Kong’s fintech
Year Plan and Long-Range Objectives Through the ecosystem.
Year 2035. The fintech plan focuses on a number of
An important feature of the fintech landscape across
areas, including regulatory supervision, privacy and
China is the prevalence of B2B fintech and a high
data protection, low carbon and green fintech, and
level of adoption among small to medium-sized
fair and inclusive growth.
enterprises (SMEs). In Hong Kong, 66% of the 800+
fintech companies8 in the market focus on the B2B
segment.

8. https://www.oases.gov.hk/en/strategic-industries.html

Mobile industry trends 33 / 46


Opportunities for operators
Connectivity is the primary enabler for fintech on adjacent areas, such as big data, AI, and cloud
services. Furthermore, the ubiquitous nature computing, is set to position operators to capture
of mobile networks and growing adoption of greater value from fintech.
smartphones puts mobile connectivity at the heart
Some operators are also playing a more active role
of many fintech solutions. Beyond basic connectivity,
in the fintech space through direct investments
fintech innovators are increasingly leveraging a
and partnerships. For example, in January 2023,
number of emerging technologies to enable more
Next Commercial Bank, a digital bank backed by
complex and customised solutions to serve customer
Chunghwa Telecom, launched its operations in
needs. Figure 18 highlights the distribution of
Taiwan, with plans to register 300,000 customers
technologies among leading fintech companies in
within nine months of opening. In March 2022, China
China.
Mobile launched its own fintech subsidiary to expand
Many of the technologies provide long-term growth its presence in the Chinese fintech sector. And in
opportunities for operators in China. Operators have 2020, HK Telecom launched a fintech project with
invested extensively in core telecoms technologies a variety of solutions, including mobile payments,
(e.g. 5G, IoT and edge computing), all of which merchant services and insurance packages.
can facilitate important fintech solutions, such as
real-time transactions. However, a growing focus

Figure 18
Main technologies used by China's leading fintech enterprises, 2022

Big data 76%


AI 68%
Cloud computing 41%
Knowledge graph 34%
Deep learning 33%
Blockchain 33%
Natural language processing 29%
Computer identification 11%
IoT 10%
5G 10%
Robot process automation 9%
Biometrics 8%
Virtual/augmented reality 1%
Edge computing 1%

Source: Statista

Mobile industry trends 34 / 46


2.5
China shifts to a
circular economy
Adoption of 5G is rising more quickly than with any In view of the growing demand for telecoms
previous wireless technology. Demand for telecoms equipment, the concept of a circular economy
equipment and services is therefore greater than has been developed as a transformative model to
ever. Three of the top five biggest network operators reuse products, parts, components and materials
by subscribers globally are based in China, and in successive production cycles to reduce waste
account for almost 1.7 billion connections. This and pollution. Here, the guiding principles of reuse,
means China is uniquely placed as one of the recycle and refurbish are used to extend the life of a
largest consumer markets for devices as well as a product and, consequently, reduce or eliminate waste
leading country for telecoms equipment and device in the production and usage cycle.
manufacturing.

Figure 19
The concept of the circular economy

Recycle

Refurbish

Reuse

Extraction and Product Product Customer Disposal Landfill and


raw material manufacturing distribution usage greenhouse gas
emissions

Source: GSMA

Mobile industry trends 35 / 46


The benefits of the circular economy and its Chinese device and equipment vendors are involved
necessity for telecoms equipment will take centre in the shift to the circular economy. For example,
stage in 2023 and beyond. The shift towards as a member of the UN Global Compact, ZTE has
sustainability requires all industries to examine committed to optimising waste management to
how they use resources. This is particularly crucial support the circular economy and contribute to
for growing sectors, such as telecoms. Authorities carbon neutrality. Meanwhile, Huawei promotes
in China recognise the importance of the circular circularity in its network design in various ways,
economy and have incorporated its principles into such as minimising the resources and raw materials
the 14th Five Year Plan. The Development Plan for used throughout the product lifecycle, using more
the Circular Economy, which fits into the broader renewable materials, increasing product durability,
framework of the 14th Five Year Plan, aims to boost easing disassembly and optimising products for
circularity across the economy with various initiatives, recycling.
such as promoting recycling, remanufacturing, green
product design and renewable resources.

Accelerating the journey to circularity: example initiatives


from Huawei
• Reusing pallets to save plywood – Plywood and reduce their environmental impact. The
pallets have traditionally been used for vendor has also scaled up its product trade-
product shipment and transport. However, in programme and introduced a new online
these are not ideal for long-term use in many recycling programme that gives coupons to
complex logistics environments and require consumers in China in return for recycling.
a considerable amount of wood. Huawei
• Multi-density cushioning process for
developed lightweight plastic-steel pallets for
lightweight packaging – Huawei introduced
packaging 5G base station equipment and
an integrated moulding process for cushioning
other products, and promoted the reuse of
materials with different densities. This enables
these pallets. Compared to traditional pallets,
the seamless integration of materials with
they can reduce the total weight transported,
different densities in the same mould and has
saving both wood and CO2 emissions.
been applied to protect wireless base station
• Recycling and reusing smartphones – China equipment and servers. The process provides
produces 300–500 million used phones every the same level of protection as traditional
year. Device manufacturers can increase the single-density foam but with 30% less
scalability and serviceability of products by packaging and 20% less weight, on average.
using more durable components and providing Using the multi-density cushioning process for
upgrade and maintenance services. Huawei packaging of 5G MIMO equipment has shrunk
has built a global recycling system that allows the volume of packaging by 38%.
consumers to recycle their used electronics

Mobile industry trends 36 / 46


03
Mobile industry
impact
3.1
The mobile industry’s
impact on the SDGs
According to the most recent analysis, the mobile
industry accelerated its impact on the Sustainable
Development Goals (SDGs) in China, despite the
challenges of global events. SDG 6 (Clean Water
& Sanitation) and SDG 9 (Industry, Innovation and
Infrastructure) scored highest in 2021 thanks to
growing mobile internet adoption and rising use of
mobile-enabled services.

Figure 20
Mobile's impact on the SDGs in China, 2021

Highest
SDG
scores

Source: GSMA Intelligence

Improving quality of life and education


SDG 6 focuses on ensuring the availability and Another of the seven projects promotes access to
sustainable management of water and sanitation high-quality remote learning sources in rural areas,
for all. Mobile technology enables communication contributing to SDG 4. China Mobile created 5G
and payment channels that improve water delivery online classrooms with its Hunan subsidiary, bringing
and sanitation provision. Increasing mobile internet the curriculum to village schools via interactive
adoption in China, with 81% of total connections live streaming. By the end of 2021, the 5G online
based on smartphones, helps citizens directly classroom had offered 33 large lectures and more
connect with utilities and other public services. than 500 small classes, benefiting nearly 10 million
primary and secondary school students in Hunan
The mobile industry also facilitates the logistics
province.9
of waste and sewage management and treatment
of non-sewered sanitation services. For example,
China Mobile undertook domestic waste and sewage
treatment work for 306 villages under its 'Seven rural
digital-intelligence projects', implementing a national
rural revitalisation strategy.

9. Examples from China Mobile Limited Sustainability Report 2021

Mobile industry impact 39 / 46


Boosting industry, innovation and infrastructure
SDG 9 aims to build resilient infrastructure, promote example, China Telecom has worked with various
inclusive and sustainable industrialisation, and deliver ecosystem partners to establish the Conch Group
affordable internet access for all. Mobile technology 5G Smart Manufacturing project. The project applies
contributes significantly to innovation and industrial to the production process for cement, including
development in terms of critical infrastructure raw material mining, production and shipment. It
and as a catalyst for other sectors. Connectivity provides evidence of the important role played by 5G
enables industrial processes and manufacturing technology in the process manufacturing field.
to utilise enhanced technological advancements
The combination of 5G, robotics and AI can improve
such as AI, IoT and blockchain. 5G technologies are
productivity in manufacturing plants by more than
expected to contribute significantly to the global
10%. For example, Thundercomm, ThunderSoft,
economy, especially through countries with large
Qualcomm and Chinese mobile operators increased
manufacturing sectors such as China.
productivity by using 5G industrial transfer robots at
5G can combine network capabilities with AI, an automobile plant in Beijing.10
cloud, machine vision and VR technologies. As an

5G supporting digital health services


SDG 3 (the fifth highest-scoring SDG in China) the first provincial 5G-based remote diagnosis
focuses on ensuring healthy lives and promoting well- project in which all primary healthcare institutions
being for all. Mobile technology contributes to this by are digitalised. A hierarchical diagnosis and
optimising healthcare service delivery and providing treatment platform has been constructed to
frontline workers with the skills and infrastructure provide remote consultation and technical
needed for early disease detection through analytics. assurance for primary medical institutions.

Improving network performance and connectivity • China Mobile, Huawei and other partners have
with 5G and growing IoT deployments have advanced jointly advanced 5G and smart healthcare projects
healthcare facilities in China. Examples include the in Shenzhen. Using a dedicated 5G network, they
following: have developed remote emergency care, remote
consultation, mobile diagnosis and treatment,
• China Unicom, Huawei and Hainan province
community first-aid guidance, and smart ward
launched the ‘5G Smart Healthcare Lights Up
applications based on efficient and safe information
Hainan Healthy Island’ project. This is one of the
sharing among medical institutions in the district.11
largest 5G commercial applications in China and

10. How 5G can boost industrial productivity, GSMA


11. 5G use cases for vertical China 2021, GSMA, 2021

Mobile industry impact 40 / 46


3.2
Mobile’s impact on disaster
management and response
As 5G infrastructure continues to expand across Services cover a range of areas, including disaster
China, operators have been instrumental in using response and management.
it to deliver vital services for the benefit of society.

China Mobile and Ericsson’s disaster management solution


China Mobile Zhejiang and Ericsson have The platform includes features such as early warning
partnered to deploy a 5G-enabled solution for of disasters, remote search and rescue, and real-time
disaster management in Lishui City. The systems monitoring. As the city suffers from a range of natural
and equipment use 5G network slicing and edge disasters, the visualisation system serves as the basis
computing to support a converged communication for handling emergencies. Early warnings and large-
platform. The platform connects front-end mobile scale search and rescue can help minimise casualties
visualisation devices, such as IoT sensors, with and support decision-making at crucial times.
communication channels, such as satellites and 5G
drones, that monitor the progress of major disasters
in real time.

China Mobile and ZTE’s solution for rapid response


China Mobile deployed ZTE’s All-in-One Nomadic In emergency scenarios, the rapid recovery of mobile
5G base stations in the flooded areas of Henan and communications is vital to connect vulnerable people
at the earthquake-hit Luding County in Sichuan. The to much-needed help and facilitate the activities of
nomadic 5G base stations allowed the operator to first responders.
continue providing wireless service to those affected,
Beyond disaster relief, the All-in-One Nomadic 5G
and increase the efficiency of the rescue and clean-
solutions come with explosion-proof mechanisms
up operations. At the earthquake site, the operator
for deployment in challenging scenarios across
restored the 4G/5G networks for voice, SMS and data
different sectors, such as mining and smart
service in just an hour, improving communications
construction. With the required 5G functions defined
channels.
by 3GPP, the solution supports IoT data collection,
video surveillance and voice/SMS communication,
allowing for uninterrupted connectivity in unstable
environments.

Mobile industry impact 41 / 46


04
Mobile industry
enablers
4.1
Safeguarding 5G momentum and setting
the stage for 6G evolution
Spectrum availability and effective licensing continue November and December. WRC-23 is a chance to
to be critical to encourage the investment required to expand the availability of affordable 5G services
expand mobile access, meet the increase in demand and ensure future growth and innovation. It is an
for data services and enhance the quality and range opportunity to build a spectrum roadmap into the
of services offered. In 2023, all eyes will be on 2030s, address the digital divide and ensure 5G can
Dubai, where the ITU’s World Radiocommunication benefit billions of people.
Conference 2023 (WRC-23) will take place in

The future of mid-band spectrum


Of the three spectrum ranges – low, mid- and high The outlook for the 6 GHz IMT ecosystem is robust,
bands – that are required for 5G, the mid-bands will according to the report from GSMA Intelligence.
deliver the most economic value. Ensuring there is The report found there are no technical barriers to
enough capacity must therefore be a priority for developing and commercialising 6 GHz IMT solutions.
all governments that want their countries to be Device and infrastructure solutions can operate in
competitive. To thrive, mobile requires 2 GHz of mid- the band, just like any other. Players in the device,
band spectrum bandwidth to meet demand by 2030. component and network infrastructure ecosystems
The mobile industry is as agnostic as possible about are also ready to develop 6 GHz IMT products
how that mid-band demand can be met. However, it in line with customer demand. From the start of
has become increasingly clear that the 6 GHz band is development, ecosystem players expect to have
the best option for meeting demand. solutions ready in 6–12 months.

Included on the agenda of World To safeguard 5G growth and innovation, the GSMA’s
Radiocommunication Conference 2023 (WRC-23) global recommendations are as follows:
is the IMT identification of 6425–7025 MHz in ITU
• 6425–7125 MHz should be identified for IMT across
Region 1 (Europe, the Middle East and Africa) and
regions and countries at WRC-23
7025–7125 MHz in all ITU regions. While the WRC-23
agenda discusses the entire 6425–7125 MHz band in • 6425–7125 MHz should be made available for
only the EMEA region, there is growing support for licensed 5G by 2030
this process throughout the world – including in Asia
• 5925–6425 MHz should be considered for licensed
Pacific, where 5G has grown strongly in parts of the
5G, or licence-exempt on a technology-neutral
region.
basis.
A GSMA Intelligence study conducted cost-benefit
analysis for different authorisation models for the
6 GHz band. The study implemented a supply and
demand framework for the 2021–2035 period to
determine where 6 GHz spectrum will have its most
productive and efficient use, taking into account
Mobile requires
current and expected demand for 5G and Wi-Fi. 2 GHz of mid-
Considering three policy scenarios, the report finds band spectrum
that assigning the full 6 GHz band for licensed IMT
use would drive the largest socioeconomic benefit
bandwidth to meet
across most countries analysed. Failure to allocate demand by 2030
any 6 GHz spectrum for licensed use could mean
higher operator costs and/or lower network quality,
and would make it impractical to deliver on the full
characteristics of 5G (IMT-2020).

Mobile industry enablers 43 / 46


The GSMA’s vision for the 6 GHz band is as follows:

• Mobile networks will need, on average, 2 GHz of • Mobile networks are already highly densified, but
mid-band spectrum per country by 2030. This is 6 GHz can enable the growth of sustainable 5G
challenging to achieve without 6 GHz. capacity on existing sites to enable cost-effective
deployments.
• 6 GHz capacity will be required to meet increasing
customer demand at the required speeds of ITU • Timely availability of 6 GHz, at reasonable
IMT-2020 as 5G matures for both consumer and conditions and price, will drive cost-efficient
enterprise customers. network deployment, help reduce the broadband
usage gap and support digital inclusion.

600 MHz: expanding the benefits of 5G


The future of mobile connectivity, including of supplemental downlink in some cases. Current
applications such as massive IoT, still relies on the proposals for more low-band spectrum in the 600
wide coverage that low bands provide. Low bands (or MHz band will allow for between 2×35 and 2×40 MHz
UHF spectrum) are the cornerstone of digital equality of additional low-band capacity. This equates to an
and a driver of broad and affordable connectivity. improvement in speeds of 30–50% where low band is
The bands propagate further, making them a crucial the only spectrum available.
national asset. Low bands can help ensure the impact
There are already commercial 600 MHz deployments
of mobile’s economic and social benefits is felt across
in the US, and in Asia a new extended 600 MHz band
all communities.
plan is being standardised at the 3GPP. This will offer
However, availability of low-band spectrum is limited. additional capability for operators to reach more
Today, regional assignments vary, but a maximum people and businesses with better quality 5G.
of only 2×95 MHz of mobile spectrum is available
between 700 MHz and 1 GHz, with up to 20 MHz

5G innovation depends on mmWave access


Mid-band spectrum, especially the C-band, has mmWave can play a primary role in the deployment
helped launch 5G. However, as capacity needs of networks at stadia and in factories. The range is a
continue to grow and applications become more good fit for these environments due to the low risk of
advanced, mmWave spectrum is also needed. interference and the significant bandwidth available
Gigabit speeds can be delivered by 5G mmWave for traffic-intensive use cases. It is also a good fit
in even the most densely populated hotspots. The for applications where concurrent traffic is high and
wide bandwidth available in mmWave bands such uplink requirements are particularly important, such
as 26 GHz can help enable high-capacity eMBB as a high density of video cameras for computer
applications for consumers in hotspots, on top of vision, AR/VR applications and automated guided
the existing capacity provided by low and mid-band vehicles (AGVs). By 2030, an average of 5 GHz of
spectrum. mmWave spectrum per market will be needed to
satisfy demand and drive innovation.

Mobile industry enablers 44 / 46


Setting the stage for 6G
Successful spectrum licensing has always been 6G comes with new spectrum considerations. Among
about long-term planning. Putting in place the right these are the additional capacity and frequency
resources for 6G is no different. The mobile industry ranges needed, from low to very high bands, to
is already studying how 6G will shape the future of support next-generation services. This entails
mobile. For regulators, ministries, operators, vendors research into the use of terahertz spectrum.
and researchers, spectrum policy for 6G is becoming A new frequency range under consideration for
increasingly important. 2023 marks the beginning 6G is 7–24 GHz, with a special focus on 7–15 GHz.
of a long journey as new studies begin when the This direction is supported by the GSMA following
WRC-27 cycle kicks off. discussions with the mobile community, and
represents a potential solution for the WRC-27 study
6G is expected to become the primary mobile
cycle at the ITU.
technology in the 2030s and will offer an enhanced
user experience over previous generations. It
promises ultra-fast data rates with lower latency, The mobile industry
significant energy efficiency improvements and
greater reliability.
is already studying
how 6G will shape
the future of mobile.

Mobile industry enablers 45 / 46


GSMA Head Office
1 Angel Lane
London
EC4R 3AB
United Kingdom
Tel: +44 (0)20 7356 0600

You might also like