5G Commercial Use

On June 6, 2019, China gave licenses to four major State-owned mobile carriers for the commercial use of 5G, which will roll out the first 5G services in 40 cities in 2019. China’s original plan was to commercialize 5G use in 2020, but the application coming in ahead of schedule shows the country’s determination to fully utilize its strategic importance in promoting its industrial upgrade, economic growth and core competitiveness. According to the Ministry of Industry and Information Technology, the first large-scale commercial application of 5G in China is expected in the autonomous vehicle sector. The Society of Automotive Engineers of China says that by 2030, all new vehicles sold in China will be connected to the internet with a market scale of one trillion yuan (US$145b). Consultancy firm Accenture estimated that China’s market for internet-enabled vehicles will account for a quarter of the global total in 2025. Ultimately, large-scale application of 5G in scenarios including the Internet of Vehicles hinges on policies, infrastructure and related laws and regulations.