China has unveiled plans to almost double its 5G wireless capacity next year, sending the shares of ZTE Corp (中興) and other network equipment makers soaring.
Telecoms from China Mobile Ltd (中國移動) to China Telecom Corp (中國電信) are to build upwards of 600,000 base stations to accelerate 5G coverage across major cities, Chinese Minister of Industry and Information Technology Xiao Yaqing (肖亞慶) said at an industry event, Xinhua news agency reported.
The envisioned rollout would come on top of at least 718,000 base stations nationwide that transmit and amplify mobile signals.
LARGEST NETWORK
China this year began to implement the world’s largest and most sophisticated 5G network in a US$1.4 trillion rollout of technology infrastructure to boost the world’s No. 2 economy, underpinning everything from autonomous vehicles to artificial intelligence.
Huawei Technologies Co (華為) and its smaller rivals are expected to reap the lion’s share of that largesse, while foreign providers such as Ericsson AB and Nokia Oyj struggle to win contracts.
Network construction is also expected to lift adjacent sectors such as semiconductors.
WINNERS AND LOSERS
ZTE shares yesterday jumped as much as 9.1 percent in Hong Kong, while those of Datang Telecom Technology (大唐電信) soared as much as 8 percent.
Shares of Fiberhome Telecommunication Technologies Co (烽火電信), Wuhan Fingu Electronic Technology Co (武漢凡谷) and Suzhou Shijia Science & Technology (世嘉科技) surged by their 10 percent daily limits on Chinese exchanges.
Shares of major telecoms, including China Mobile, China Unicom Hong Kong Ltd (中國聯通) and China Telecom, which have yet to announce next year’s capital spending plans for 5G construction, fell between 0.7 percent and 2.7 percent.
The telecoms are expected to incur surging costs in maintaining an expanding network, while revenues from commercial 5G packages have yet to recover the capital input.
SIX-YEAR PLAN
Beijing is accelerating its bid for global leadership in key technologies.
In a plan backed by Chinese President Xi Jinping (習近平), Beijing is calling on local governments and private technology companies such as Huawei to enlarge 5G networks, install cameras and sensors, and develop artificial intelligence software over the next six years that would underpin automated factories and mass surveillance.
Such initiatives have already drawn fierce criticism from Washington, resulting in moves to block the rise of Chinese technology companies such as Huawei.
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