Chinese 5G Not Living Up to Its Hype

By John Xie  Oct 10 2020 
https://www.voanews.com/east-asia-pacific/voa-news-china/chinese-5g-not-living-its-hype


Mounted on rooftops, utility poles and streetlights throughout China since last 
year are hundreds of thousands of high-tech wireless towers for 5G, a powerful 
sign of the country's ambition to lead in new technology. Yet many of them are 
operational for only half the day.

China Unicom, one of three telecommunication operators, announced in August 
that its Luoyang branch in Henan province would automatically switch its 5G 
transmitter stations to sleep mode from 9 p.m. to 9 a.m. because there were few 
people using them.

The other two carriers quickly followed suit and since then have rolled out the 
same policies in other cities across the country.

"Shutting down base stations is not a manual shutdown, but an automatic 
adjustment made at a certain time,” Wang Xiaochu, chairman of China Unicom, 
said at the company's midyear earnings conference.

5G is one of the biggest technology investments in China's recent history.

Touted as the next big leap forward in digital communication, the 5th 
generation mobile network technology is supposed to change the world and spur a 
new digital revolution.

China officially launched its commercial 5G networks in September 2019 with the 
promise of delivering unprecedented digital speed to support new applications 
from autonomous driving to virtual surgery.

More than a year later, the biggest 5G market is now facing widespread 
complaints about network speed and skyrocketing costs of deployments.

Signals are hitting walls

To handle more data at higher speeds, 5G uses higher frequencies than current 
networks. However, the signals travel shorter distances and encounter more 
interference.

"5G uses ultra-high frequency signals, which are about two to three times 
higher than the existing 4G signal frequency, so the signal coverage will be 
limited," Wang Xiaofei, a communication expert at Tianjin University told 
Xinhua, the official state-run press agency, last year as the country's state 
telecoms started to make 5G networks available to the public.

Wang said since the coverage radius of its base station is only about 100 
meters to 300 meters, China must build a station every 200 to 300 meters in 
urban areas. Because the penetration of 5G signals is so weak, even indoor 
stations will have to be built in densely distributed office buildings, 
residential areas, and commercial districts.

And to reach the same coverage that 4G currently has, the carriers eventually 
need to install as many as 10 million stations across the country, according to 
a report by Xinhua.

"For the next three years starting this year, 1 million 5G base stations may 
need to be built every year," Xiang Ligang, director-general of the Information 
Consumption Alliance, a telecom industry association, told the state media last 
year.

In the first half of this year, China only built 257,000 new 5G base stations. 
The total number of the stations installed across China so far was only about 
410,000 by the end of June, according to the Ministry of Industry and 
Information Technology (MIIT).

Big costs, small benefits?

The cost of the energy needed to power 5G has proved to be one of the biggest 
headaches for Chinese telecommunication companies.

"The 5G base station equipment consumes about three times more energy than 4G 
because of the way the technology works," Soumya Sen, associate professor of 
information and decision sciences at the University of Minnesota, told VOA in 
an email.  "5G uses multiple antennas to make use of reflected signals from 
buildings to provide gains in channel robustness and throughput."

If 5G is to reach the same level of coverage as 4G networks, the base station's 
annual electricity bill will approach $29 billion, according to a report by the 
China Post and Telecommunications News, a media outlet directly under MIIT. 
That amount represents about 10 times the 2019 profit of China Telecom, one of 
the three state-owned telecommunication companies in China.

In the early days, there were efforts to make 5G more power-efficient than its 
predecessors, but the ambitions were quickly dashed as realities settled in.

Two months after the official rollout of 5G services, a top executive from a 
Chinese carrier admitted that operators had made little progress in reducing 5G 
power consumption and cost. Speaking at a GSMA (Groupe Speciale Mobile 
Association) seminar in Beijing last week, Li Zhengmao, executive vice 
president of China Mobile called on the government to subsidize electricity 
costs for telecoms.

"This might require government to support extended periods for subsidized 
monthly fees or subsidized handsets at the B2C [business to consumer] level, or 
tax breaks and other incentives," said Ross Feingold, a lawyer and political 
risk analyst.

The total investment could top $220 billion in the next few years, said Li 
Yizhong, former minister of Industry and Information Technology early this year 
during a forum.

Another former official warned in a recent speech that China’s 5G push could 
become a failed investment.

"The existing 5G technology is very immature, hundreds of billions of 
investment have been deployed, and the operating cost is extremely high, no 
application scenarios can be found, and it is difficult to digest the cost in 
the future," former finance minister Lou Jiwei reportedly warned in a recent 
speech last month.

"It is difficult for ordinary consumers and industry users to see the long-term 
benefits and rewards of 5G," a white paper titled "The 2020 China 5G Economic 
Report" released by China Academy of Information and Communications Technology 
said.

Based on a recent survey of Chinese consumers, 73.3% of the people polled said 
they believe that there is no need for the public to buy 5G mobile phones. The 
study released last month by iiMedia, a market research group, also found that 
the main reason for not buying 5G mobile phones is because there is no such 
need.

With all the expectations and the investment, 5G is “actually exaggerated,” and 
it is not something that the societies need anyway, according to the man who 
leads a company that dominates the technology.

"In fact, human societies do not have an urgent need for 5G," said Huawei's 
founder and CEO, Ren Zhengfei, "What people need now is broadband, and the main 
content of 5G is not broadband."

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