China Mobile Launches $4 Billion 5G Fund
At MWC Shanghai, China Mobile revealed its long-awaited 5G plan.
China Mobile Ltd. (NYSE: CHL), China's largest telecommunications operator, announced on Tuesday it plans to set up a 5G industry fund of $4.4 billion and will roll out commercial 5G services in 50 cities in China by the end of the year.
Yang Jie, the chairman of China Mobile said at MWC Shanghai that China Mobile will set up over 50,000 5G stations across China before the end of this year. Meanwhile, the company said it 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 supply partners no later than July.
China issued a 5G license earlier this month. This was after some experts predicted that high costs would prevent the country's service providers from offering large-scale 5G applications within the next eight years. But escalating trade tensions and technological competition pushed Chinese companies to roll out major 5G projects in recent months.
Shares in China Mobile dropped 24 cents on Tuesday, closing at $44.57 per American depositary share.