Shanghai becomes the city with the most 5G stations nationwide

China Telecom and China Unicom saw net profit increase in the first half of the year thanks to an increasing user base and more mobile traffic, the carriers said.

The country’s three major mobile carriers have all posted fiscal reports which showed steady income and booming 5G development nationwide.

Meanwhile, all three carriers plan to build more 5G base stations by the end of the year, which is a national strategy to boost digital innovation and fuel intelligent construction. For all them, Shanghai is a strategic place to set up 5G base stations.

According to official data, China Telecom’s net profit reached 13.9 billion yuan (US$2 billion) in the first half, a 0.3 percent increase from a year ago. Revenue hit 193.8 billion yuan, 1.7 percent growth from a year ago. In the same period, China Unicom generated a net profit of 3.3 billion yuan, up 10.9 percent from a year ago. Revenue was 150.4 billion yuan, a growth of 3.8 percent year on year. 

The growth in profitability of the smaller carriers was better than market leader China Mobile, which posted a net profit decrease of 0.5 percent annually in the first half.

The reason behind the gap is that China Telecom and China Unicom share 5G network construction costs while China Mobile is establishing its 5G network independently. 

By June, China Mobile and China Telecom said they had over 100 million 5G users nationwide. China Unicom hasn’t reveal its figures.

China is expected to have 200 million 5G users by 2020, double the current level, according to industry regulators. 

In Shanghai, mobile carriers have built 25,000 outdoor 5G base stations and 31,000 indoor 5G stations, making it the city with the most 5G stations nationwide, the city government said on Wednesday.

The city has boosted 5G development in 301 applications covering manufacturing, education and health care . It also launched a city-wide 5G application contest with a final session to be held in the Lingang area on August 28, according to the Shanghai Commission of Economy and Informatization.

Ti Gong