China Mobile Launches $4 Billion 5G Fund

At MWC Shanghai, China Mobile revealed its long-awaited 5G plan.
Binwei WangJun 26,2019,06:55

China Mobile Ltd. (NYSE: CHL), China’s largest telecommunications operator, announced it will set-up a 5G industry fund $4.36 billion and would roll out commercial 5G services in 50 cities in China by the end of the year.

Yang Jie, Chairman of China Mobile said at MWC Shanghai Tuesday that China Mobile will set up over 50,000 5G base stations across China before the end of this year to support its rollout plan. Meanwhile, the company expects to offer commercial 5G services in over 200 prefecture-level, more-developed Chinese cities by 2020.

Yang also said China Mobile will invest 3 billion yuan into developing 5G content including ultra-high definition videos and games. What’s more, the company is also set to launch its first batch of 5G phones with device partners no later than July.

China issued a 5G license earlier this month. Specifically, half a year ago, some experts predicted that high costs would prevent China’s service providers from offering large-scale 5G applications within the next eight years. But escalating trade tensions and technological competition pushed these Chinese companies to roll out major 5G projects in recent months.

Share in China Mobile dropped 24 cents on Tuesday, closing at $44.57 per American depositary share.