In recent months, multiple authoritative sources have confirmed that the first official version of the 5G international standard is expected to be released in June 2018. This milestone will mark a turning point for the global 5G industry, as major telecom operators, equipment manufacturers, and mobile device makers will begin deploying commercial 5G networks aligned with the new standards. Industry experts believe that this development signals the start of a rapid expansion in 5G technology across the world. In China, it is anticipated that the release of the standard will accelerate the industrialization of 5G, with projections suggesting that by 2030, 5G could contribute 16.9 trillion yuan to China’s total social output and create 19.5 million jobs.
Starting from October this year, leading telecom companies and key proponents of 5G standards submitted their proposals to international standards organizations. Countries around the world have pledged to follow a unified approach in developing 5G technical specifications. According to the work schedule of these organizations, the 5G standard plans submitted by various parties will be finalized by the end of this year. After negotiations, the first version of the 5G international standard is set to be officially announced in June 2018.
Wang Zhiqin, vice president of the China Institute of Information and Communications, emphasized that China has significantly strengthened its voice in shaping 5G standards. Chinese experts have made notable contributions in key positions, voting rights, and lead projects during the development of the first 5G standard. Currently, over 30 Chinese representatives hold critical roles within the standards organization, with voting power exceeding 30%, and contributing to nearly 30% of the overall work. Additionally, China has played a major role in advancing key technologies such as wireless flexible system design, massive antenna systems, polar codes, and new access methods, as well as innovations in network architecture.
While the release of the 5G standard is a major step forward for China’s 5G industry, Wang pointed out that standards alone are not the sole determinant of success. Early deployment of commercial networks and large-scale applications will be essential for the continued growth of the sector. Institutions like the China Academy of Information and Communications Technology and Qualcomm also believe that the standard will pave the way for the global rollout of 5G networks. The country that leads in building and commercializing high-level 5G networks is likely to gain a competitive edge in the global 5G supply chain.
Many countries, including the U.S., EU, South Korea, Japan, and China, are planning to launch commercial 5G services in the second half of 2019 and fully commercialize them by 2020. With the standard now in place, competition in the global 5G industry is expected to intensify.
Given the strategic importance of 5G for the future of the information industry and the national economy, China has not only taken a leadership role in setting international standards but has also invested heavily in the commercialization and industrialization of 5G networks. Recently, the Ministry of Industry and Information Technology announced the allocation of frequency bands between 3000-5000MHz for 5G, addressing a critical barrier to commercial development. This move has put China at the forefront of spectrum resource management for 5G.
Throughout the year, the three major telecom operators have launched 5G pilot projects in cities such as Beijing, Shanghai, Chongqing, Guangzhou, Nanjing, Suzhou, and Ningbo. According to reports, the pilot programs are progressing smoothly, with successful testing of key technologies and applications. These efforts mark the next phase of large-scale experimental networking and are laying the groundwork for the official commercial launch of 5G in 2019, ensuring that the full commercialization of 5G networks will proceed as planned by 2020.
Once 5G networks become widely available, they are expected to drive significant economic growth across industries. Kuang Guohua, Honorary Chairman of the China Communications Standards Association, predicts that by 2035, 5G will generate $12.3 trillion in global economic output and create a value chain worth $3.5 trillion, with China capturing $980.4 billion of that value.
According to the "White Paper on 5G Security Demand and Architecture" issued by the China Academy of Information and Communications, it is estimated that by 2030, 5G networks will contribute 16.9 trillion yuan to China’s total social output, adding 6.5 trillion yuan to the economy and creating 19.5 million jobs. Direct contributions from 5G are expected to reach 6.3 trillion yuan in output, 2.9 trillion yuan in economic growth, and 8 million jobs. Indirect contributions will include 10.6 trillion yuan in output, 3.6 trillion yuan in economic value, and 11.5 million job opportunities.
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