In 2020, China accounted for more than 85% of the world's 5G connections

The 2020 China 5G Terminal Global Innovation Summit and the 8th China Mobile Phone Design Competition Swan Award Ceremony officially opened. Pang Ce, General Manager of Strategic Cooperation for Greater China at GSMA, delivered a keynote speech entitled "Global 5G and Terminal Development, Challenges and Innovations under the Epidemic".

Pang Ce pointed out that in 2020, the global economic development was affected by the epidemic, and the mobile business of operators declined. Among them, the five countries most affected by the epidemic were the United States, France, the United Kingdom, and Spain. The mobile business of operators in these five countries fell by 5.5% overall. If there was no epidemic, it would have increased by 3.8%.

At the same time, the epidemic has prolonged the replacement cycle of smartphones. Smartphone sales have been on a downward trend in recent years. Due to the impact of the epidemic, consumers' replacement cycle will increase by 4-5 months, while the average replacement cycle in most markets is 2-3 years.

GSMA observed that under heavy pressure, the innovative products launched by operators in 2020 surpassed history, such as online education platforms, online medical services, etc., thereby weakening the impact of declining revenue.

More importantly, some countries and regions have also accelerated the construction of 5G networks. GSMA believes that at present, the global 5G construction has not been greatly affected by the epidemic. As of September 2020, 107 operators have commercialized 5G networks in 47 countries and regions; 18 operators have commercialized 5G in Q3. It is expected that by the end of 2020, 149 operators will have commercialized 5G networks in 57 countries and regions. It is expected that by the end of 2025, 410 operators will have commercialized 5G networks in 123 countries and regions.

It is expected that in 2020, China will lead the world in the number of 5G connections, which is expected to reach 200 million, accounting for more than 85% of the world's 5G connections.

"But as far as smartphones are concerned, 5G itself cannot drive a new wave of smartphone sales in most countries in the world. Global awareness of 5G is high, but high awareness does not mean a strong desire to replace 5G phones," Pang Ce pointed out.

Pang Ce said that Asia has become the fastest growing market for smartphones in the world. Seven of the top ten smartphone growth markets are from Asia. Chinese consumers account for more than 30% of global smartphone purchases.

Pang Ce believes that in the post-epidemic era, the balance of the telecommunications industry has shifted from the known to the unknown.

The “known knowns” are the impact of the pandemic on operations, network performance, and network investment. The “known unknowns” are the macroeconomics and the telecom industry. The macroeconomics includes the time it takes to mass produce an effective vaccine, the time and speed of economic recovery, changes in work habits, and geopolitical impacts. Changes in consumer communication and entertainment behavior in the telecom industry; the enterprise market, the impact of international roaming services, and the impact of equipment suppliers. The “unknown knowns” are new technologies and new competitors. But it is still unclear what the “unknown unknowns” will face.