🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

China's IT ministry urges faster 5G rollout: government document

Published 03/24/2020, 04:26 AM
Updated 03/24/2020, 11:35 AM
© Reuters. FILE PHOTO: A 5G sign is pictured at Huawei's booth at Mobile World Congress (MWC) in Shanghai

SHANGHAI (Reuters) - China's Ministry of Industry and Information Technology (MIIT) published a lengthy document on Tuesday calling on localities to accelerate 5G network buildouts and applications to minimize the impact of the coronavirus.

The directive comes as China continues its aggressive 5G network expansion, which was disrupted when the coronavirus outbreak halted construction of base stations in February and fibreoptic factories ceased production.

In one part of the 18-point directive, the agency urged local authorities to construct 5G smart medical systems and "optimize and promote the application of 5G in the fight against the new coronavirus epidemic".

The directive also asks authorities to develop 5G applications in virtual reality for the industrial and related car sectors.

Beijing has long considered building 5G should be a strategic priority, following its comparatively late establishment of 3G networks.

The MIIT said the country has installed 130,000 base stations in 2019.

Analysts expect that figure will increase to more than 600,000 this year as investment continues despite the coronavirus disruption.

Speaking in an earnings call last week, China Mobile chairman Yang Jie said the carrier would build 250,000 base stations this year and dedicate 100 billion yuan ($14.13 billion) to 5G investment.

Throughout the period of coronavirus slowdown, many local governments in China have made commitments to 5G-related projects.

In March alone, the provincial governments of Guangdong, Guizhou, Yunnan, Hebei and Fujian all set targets to build tens of thousands of 5G base stations by the end of the year.

© Reuters. FILE PHOTO: A 5G sign is pictured at Huawei's booth at Mobile World Congress (MWC) in Shanghai

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.