ZTE to Double 5G Research Spending

ZTE Corp. of China is preparing to increase its investment on 5G research two times for 2017 to reach the peak of the market. The Chinese telecom equipment producer is commencing this move in order to show its support to China’s aim of building the biggest 5G network in the globe. ZTE disclosed that it had already spent 1 Billion Yuan last year in this project. For 2017, it aims to increase that amount two times to 2 Billion Yuan ($295 .5 Million). On the other hand, the telecom major claimed that this amount might still elevate since the Government of China wishes to roll out 5G by the end of 2020. 5G technologies provide superior speeds than what 4G can provide. The existing 4G LTE networks can only reach an utmost speed of almost 1 Gbps. On the other hand, due to the existence of high-rise structures, that utmost speed is not really achieved. As a result, China wishes to beat the U.S. in the competition to become ideal in 5G technologies in the entire globe even if 5G global policies are not still in place.

ZTE to Double 5G Research Spending

That sheds some light as to why an estimation was subjected by Ministry of Information Technology and Industry of China representing that it will elevate its 5G funds to 1.65 Trillion Yuan by the end 2025. Being one of the major equipment manufacturers in the country, ZTE is certain to get a huge part of this investment, paired with Huawei, also one of chief companies of China. The reason for this huge development and research investment is that implementation of 5G network is very costly. In addition to this, there will be a requirement to produce and design new smartphones that will back this latest technology. That is the sole reason why Huawei, one of largest smartphone manufacturers of China, is introduced into the picture.

In its attempt to be at the peak in 5G technologies of the world, China has carried out field tests of its initial 5G base station. China Mobile, the state-owned and largest telecom operator in the country, has already commenced the trials past few week.

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