Cheaper accessibility would ensure 5G acceleration

By Xiao Xin Source:Global Times Published: 2019/11/25 20:13:40

Illustration: Luo Xuan/GT

Roughly one month after the 5G commercial rollout in China, the world's largest internet market, skepticism remains over whether there's too much hype about 5G and how big the impact is on 5G development of the politicization of the technology. 

For 5G to be a convincing technology representative of China's tech-innovation expertise, efforts are needed to make it readily available to average users. More importantly, Western economies, notably the US, should show sincerity in welcoming the technology and stop politicizing it. 

China, especially Shenzhen-based Huawei, is already sprinting ahead in the 5G race. 

The latest data from Berlin-based market intelligence platform IPlytics showed, as of November, Huawei's declared 5G patents have totaled 3,325, topping the global 5G declaration rankings. Companies following Huawei include Samsung with 2,846, LG with 2,463, Nokia with 2,308, and ZTE with 2,204. The highest-rated US company is Qualcomm, placing 7th with 1,330 declared 5G patents.

Huawei also leads the rankings in 5G contributions, per IPlytics figures, having submitted 19,473 technical contributions for 5G standards by November. Ericsson follows it with 15,072, Nokia with 11,555, Qualcomm with 5,994, and ZTE with 4,692. 

Also, the nation is already equipped with a network of 5G base stations. Now, the number is at 113,000 and is expected to hit 130,000 by the year end, Miao Wei, minister of industry and information technology, said Thursday at the 2019 World 5G Convention in Beijing. 

What's less encouraging behind these stellar numbers is the lukewarm acceptance of the technology among regular users. 

According to Miao, the number of 5G package subscribers has hit 870,000 in China. The reading netted over 20-some days is impressive in abstract terms. However, it also suggests that only a small portion of 5G service preorders has been finalized. 

China Mobile, the world's largest carrier in terms of subscribers, disclosed in mid-November that its 5G terminal sales had totaled 1 million and preorders among subscribers had exceeded 10 million while anticipating 70 million 5G users with 100 million 5G phones sold by the end of 2020.

A gap exists between ambition and reality, especially when factoring the affordability of 5G offerings available on the Chinese market. 

5G packages for individual users from the nation's three telecom carriers range between 128 yuan ($16.36) and 599 yuan per month, and preorders from users are  entitled to maximum 30 percent discounts, meaning 5G services start at only 90 yuan a month. This renders the nation's 5G rates only at a fraction of the price found in other markets. 

A major reason behind the gap is the small portfolio of 5G smartphones available. Smartphone majors, including Huawei, Samsung, Oppo, and Xiaomi, have unveiled their 5G lineup. Domestic brand Lenovo joined the race with the announcement of its 5G-enabled flagship model at a technology conference in Beijing on November 15. 

Unlike the previous 3G and 4G eras, 5G appears to have initially targeted only the market's premier segment.

Lenovo's newly announced Z6 Pro 5G starts at 3,299 yuan, making it the cheapest 5G phone. Huawei's folding Mate X, officially on sale simultaneously with the Lenovo phone, comes at a fairly steep price tag of 16,999 yuan.

While the Mate X is purported to be resold at well-above its original price, that 5G phones were created as higher-end offerings affects their popularity among average users whose finances have been eaten away due to rising inflation. 

Additionally, the number of 5G base stations needs to increase to enable domestic 5G coverage. With 5G coverage now only partially available in 50 cities, a nationwide transition has yet to occur. 

In a striking sign, Apple's latest models - 11 Pro and Pro Max - which don't have 5G, have been selling well in the Chinese market since hitting the shelves in September.

For 5G phones to reach out to the nation's mobile internet users, having totaled 847 million at the end of June, a wider variety of 5G models with a more affordable starting price is a must. 

The availability of 5G phones retailing for about 1,000 yuan along with seamless and more affordable 5G connectivity should be a flashpoint for 5G prevalence in the Chinese market, thus silencing 5G doubters. Its prevalence within the domestic market would augment China's attractiveness as a global 5G service provider. 

The affordable and appealing product and service offerings from Chinese vendors are intended to enrich global technology portfolios. Nonetheless, the fear of being outsmarted that has been haunting others, especially the US, has resulted in a technological divide, impeding global 5G development.

With China continuing efforts to open its market wider to the world and holding dear the protection of intellectual property rights (IPR) - in a fresh move, a directive was issued Sunday calling for intensified IPR protection, actions are also expected from the US to stop being paranoid over China's 5G drive amid the ongoing trade war.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn



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