China nears full mobile broadband coverage on back of increased 4G adoption
Move could spur accelerated adoption of e-commerce activities in rural areas and integration of online technologies in traditional industries, such as financial services and manufacturing
China’s mission to put its entire population on the internet is almost complete, as analysts predict full mobile broadband network coverage in the world’s second-largest economy within the next few years.
That development would enable operators China Mobile, China Unicom and China Telecom to hasten the shutdown of their 2G networks and step up preparations for the deployment of more advanced 5G infrastructure, according to analysts from Bernstein and Jefferies.
In addition, full mobile broadband network coverage on the mainland would likely spell the accelerated adoption of e-commerce activities in the vast rural areas and integration of online technologies in traditional industries, such as financial services and manufacturing, under Beijing’s “Internet Plus” initiative.
Elaine Lai, an equity analyst at Jefferies, estimated in a report published on Monday that 92 per cent of mobile subscribers on the mainland would have converted to either 3G or 4G services by 2018, up from 83 per cent projected for next year.
Those forecasts are well above the target set under China’s 13th Five-Year Plan, which drew up a mobile broadband subscription rate of 85 per cent by 2020.
Chris Lane, a senior analyst at Bernstein, has forecast mobile broadband subscription in 2020 to reach a high of 90 per cent.
