GSMA: China's 5G connections are expected to reach 865 million by 2025, accounting for 40% of the world's total

Statistics from GSMA Think Tank, a GSMA research institute, show that by the end of the third quarter of 2021, the number of 5G networks worldwide had grown to 176, with 5G connections reaching approximately 550 million. China's 5G connections account for 78% of the world's total 5G connections, or approximately 430 million. By the end of 2021, nearly 8% of the world's consumer groups, or approximately 640 million users, will use 5G. The continued network construction of operators plays a vital role.

It is expected that by the end of 2021, the 5G penetration rate in South Korea and China will exceed 30%, accounting for 32% and 30% of the total mobile connections respectively. It is expected that by 2025, the total number of 5G connections in China will reach 865 million, accounting for 40% of the total number of 5G connections in the world, and China's 5G penetration rate will exceed 50%.

Against the backdrop of the rapid global deployment of 5G, the revenue structure of global operators has changed. In addition to traditional telecommunications revenue, revenue from new services has increased significantly, and China's performance in revenue growth has been particularly impressive.

Data shows that in 2017, traditional telecom services, including fixed-line, fixed-line, mobile SMS, voice, data, etc., accounted for 82% of operators' revenue; new services, such as pay TV, OTT video, media and advertising, games, IoT, cloud, security, commercial and financial services, smart home services, and vertical industry solutions, accounted for only 18%. By 2020, the proportion of traditional telecom service revenue in total revenue will drop to 76%, while the proportion of new service revenue outside traditional telecom services will increase to 24%.

Among them, China leads the world in revenue growth outside of traditional telecommunications services. In 2020, the average year-on-year growth rate of global operators' revenue outside of traditional telecommunications services was 9%, while China's figure reached 26%, far higher than the global average. 5G is an important catalyst and driving force.

China's three major operators, China Mobile, China Unicom, and China Telecom, doubled their revenue outside of traditional businesses in 2020 compared with 2017, reaching RMB 230 billion, of which the growth of B2B business was the main driving force. Cloud revenue increased sevenfold from 2017 to 2020, and revenue from the Internet of Things and data each doubled.

It is expected that by the end of 2021, the 5G penetration rate in South Korea and China will exceed 30%, accounting for 32% and 30% of the total mobile connections respectively. It is expected that by 2025, the total number of 5G connections in China will reach 865 million, accounting for 40% of the total number of 5G connections in the world, and China's 5G penetration rate will exceed 50%.

Against the backdrop of the rapid global deployment of 5G, the revenue structure of global operators has changed. In addition to traditional telecommunications revenue, revenue from new services has increased significantly, and China's performance in revenue growth has been particularly impressive.

Data shows that in 2017, traditional telecom services, including fixed-line, fixed-line, mobile SMS, voice, data, etc., accounted for 82% of operators' revenue; new services, such as pay TV, OTT video, media and advertising, games, IoT, cloud, security, commercial and financial services, smart home services, and vertical industry solutions, accounted for only 18%. By 2020, the proportion of traditional telecom service revenue in total revenue will drop to 76%, while the proportion of new service revenue outside traditional telecom services will increase to 24%.

Among them, China leads the world in revenue growth outside of traditional telecommunications services. In 2020, the average year-on-year growth rate of global operators' revenue outside of traditional telecommunications services was 9%, while China's figure reached 26%, far higher than the global average. 5G is an important catalyst and driving force.

China's three major operators, China Mobile, China Unicom, and China Telecom, doubled their revenue outside of traditional businesses in 2020 compared with 2017, reaching RMB 230 billion, of which the growth of B2B business was the main driving force. Cloud revenue increased sevenfold from 2017 to 2020, and revenue from the Internet of Things and data each doubled.

From techweb