As an economic powerhouse in south China， Guangdong Province， a frontrunner in reform and opening up， has now taken a new lead in developing fifth-generation （5G） industries. According to a plan issued by the local authorities in May， the province’s 5G industrial output targets to cross 300 billion yuan （$43.6 billion） by 2020， making it the most ambitious domestic player in 5G development.
　　Provinces and regions are ratcheting up efforts to develop action plans and improve their telecom base stations after the Ministry of Industry and Information Technology （MIIT） issued the fi rst 5G licenses for commercial use on June 6. The three major telecom operators—China Telecom， China Mobile and China Unicom—as well as China Broadcasting Network became the first batch of companies to get the green light.

　　But even before the licenses were issued， Henan Province in central China and cities such as Beijing had unveiled 5G development plans， followed by Jinan in Shandong Province， Shanghai and Hunan Province.
　　Peng Jian， a researcher with CCID Think Tank under MIIT， told 21st Century Business Herald that 5G technologies will give a new impetus to many other industries besides telecom， leading to their industrial upgrade.
　　“Since the conditions tend to vary in different regions， 5G development plans need to be in line with local industrial growth，” Peng said.

The pioneers

　　With a data transfer speed at least 10 times faster than 4G technology’s， the 5G mobile network will generate a blue ocean market. According to mobile communications industry body GSMA， China is expected to become the world’s largest 5G market by 2025 with 430 million 5G connections， one third of the global total.
　　5G technologies are expected to create more than 8 million jobs and generate an industrial output of 6.3 trillion yuan （$916 billion） in China by 2030， the China Academy of Information and Communications Technology estimated.
　　As 5G commercialization starts， many cities and provinces are expanding their 5G networks amid rising competition to seize 5G market shares.
　　By the end of June， over 8，900 base stations had been established across Guangdong. Local authorities said Guangzhou， capital of the province， had opened 5，000 5G base stations as of May. By the end of this year， it will build 14，600 more. 　　The 5G network will boost the development of industries such as electronic manufacturing and artificial intelligence， the value of which will total 800 billion yuan（$116.24 billion） by 2021， the Guangzhou authorities said.
　　An action plan on the development of the province’s 5G industry issued in May shows that its 5G industrial output is expected to reach more than 300 billion yuan（$43.6 billion） by 2020.
　　As a key host of major international events， Beijing is also developing its 5G network. By the end of June， it built over 5，000 5G base stations in urban core zones， the Beijing Daxing International Airport， the International Horticultural Expo 2019 （April 29-October 7） and at the city venues of the 2022 Winter Olympics， Beijing municipal telecom authorities said on July 17.
　　According to the administration， the city is expected to achieve full 5G coverage including central business districts and suburb innovation centers.

　　By 2022， Beijing will spend over 30 billion yuan （$4.4 billion） on building a citywide 5G network and aims to achieve a 5G industrial output of 200 billion yuan（$29.1 billion）， its action plan released in January said. Other regions such as Tianjin and Hubei Province have also promoted 5G networks， both building more than 300 base stations.

Averting homogenous rivalry

　　To avoid homogeneous competition， the cities and provinces are seeking to develop 5G networks in different industrial clusters.
　　Chen Baoming， a researcher with the Chinese Academy of Science and Technology for Development， told Beijing Review coastal and southern regions with a strong industrial foundation have a higher demand for 5G expansion than other parts of the country.
　　“Since the 5G network is based on a string of industrial chains， cities and provinces in the clusters can complement each other to tap into the potential of the 5G market，” Chen said.
　　The Beijing-Tianjin-Hebei region， demarcated to promote their coordinated development and produce a driver for the economy， and the Yangtze River Delta region in east China comprising Zhejiang， Anhui and Jiangsu provinces as well as Shanghai are enhancing cooperation on 5G.
　　According to Ge Xin， Deputy Director of the Smart Manufacturing Department of Comba， a Guangdong-based telecom service provider， clustered development of different cities and provinces can also help reduce waste of resources caused by homogeneity as 5G layout costs are expected to be at least 1.5 times those of 4G networks. 　　As 5G technologies give a thrust to a wide range of industries such as medical care， automated driving and smart logistics， many cities and provinces are moving fast to launch 5G networks to better meet public demands. Some of them have launched 5G networks in public places and transportation. The Guangzhou Baiyun International Airport in Guangdong launched a 5G base station on January 25， making it the first 5G-covered airport in China. The Beijing Mass Transit Railway said one of the city’s subway lines， Line 16， attained full 5G coverage from May 17.
　　With 5G technologies， doctors are able to observe the real-time situation in operation rooms and give instructions for remote pre-operative planning and surgical cooperation. Several hospitals in Hubei and Guangxi Zhuang Autonomous Region have undertaken 5G-based remote surgery with success.
　　The 5G network is also boosting automated driving as well as the application of drones and unmanned ships. Since China allowed local governments to arrange road tests for intelligent connected vehicles （ICVs） last year， Beijing took the lead and held China’s fi rst road test for selfdriving cars with 5G network. Shanghai and Chongqing in southwest China have also issued license plates for ICV road tests.
　　China Mobile estimated that the number of cars equipped with 5G will reach 50 million in China by 2030， which suggests great market potential.
　　On May 16， Tianjin completed China’s first inspection of electric power lines through drones， using 5G connection， which protected workers from potential electric shocks.
　　As 5G technologies bring a strong growth momentum to various industries， Chen said their further commercialization still faces challenges. Similar to other newly emerged industries， the gap between the input and the market demand in 5G industries may lead to inadequate returns in the initial phase， he said.
　　However， he was upbeat about the future expansion of 5G technologies. “5G-based industries may face bubbles in the short term but the technologies will be able to meet the market demand better through long-term development，” he said.