The Global 5g Landscape - 2019

THE GLOBAL
5G LANDSCAPE
AN INSIDE LOOK AT LEADING 5G MARKETS,
KEY PLAYERS, AND HOW THEY ARE DEFINING
THE FUTURE OF CONNECTIVITY
June 2019
Rayna Hollander | Research Analyst
Copyright © 2019, Insider Inc. All rights reserved. 1

KEY POINTS
 The next generation of wireless is here, and countries are
jockeying for the leading spot in 5G deployment. The spread of 5G
is pivotal for the connected world — its technical upgrades will
supercharge adoption of transformative technologies and strengthen
the value of old ones. 5G is a national priority for many countries
because of the far-reaching economic and social benefits that come
with being the pacesetter.
 This report illustrates how the countries spearheading the 5G

revolution — the United States, South Korea, and China — are
approaching the standard's rollout. Each snapshot provides an
overview of the wireless industry in a particular country, and explores
the evolution and distinct approach to its 5G development and
deployment. Additionally, we look at the notable wireless network
operators in each geography and identify their 5G launch efforts and
discuss what's ahead for that particular company and why it's worth
watching.
 The countries examined are expected to be among the first

mobile markets to see widespread 5G availability, with adoption
rates higher than other regions in the immediate future.
Government initiatives, new regulations, funding, and other country-
specific incentives are helping to catalyze 5G network investment and
innovations in these countries. Additionally, the wireless network
operators in each country are having a sizable impact on accelerating
the commencement of commercial 5G services in their countries.

o The United States launched the world's first commercial 5G
services in 2018 and will have twice as many commercial
5G deployments as the next leading nation by this years
end. The US is replicating the private-sector-led strategy it rode
to 4G dominance to continue its leadership into the 5G era. This
approach provides operators with autonomy over their own
deployment strategies and methods, which fuels competition,
and ultimately drives innovation and investment as a result. The
major providers are: Verizon, AT&T, and New T-Mobile (T-
Mobile and Sprint).
o South Korea was the second country in the world to deploy

a 5G network and it's on track to become the global leader
in 5G penetration. South Korea's speedy 5G deployment is the
result of its government taking a hands-on approach in
regulating the telecoms industry. This approach has played a
hand in growing South Korea's 5G subscriber base, which has
already eclipsed 4G's growth rate in the first two months since
5G services launched in the country. The major providers are:
SK Telecom, KT, and LG Uplus.

o China is the largest mobile market in the world, and is
expected to become the biggest 5G market by connections
by 2025. Chinese government bodies are backing a range of
policy initiatives to push China to the front of the global 5G pack.
China's three state-owned network operators are ramping up
trials and tests to meet the country's launch target for the first
phase of commercial 5G services later this year. The major
providers are: China Mobile, China Telecom, and China
Unicom.
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INTRODUCTION
The next generation of wireless is here, and several countries are
locked in a fierce battle for the top spot in global 5G development.
Telecoms in 18 countries will roll out 5G networks by the end of this year,
and by 2020 over one-fifth of the world's countries will have launched 5G
services. The race to lead the world in 5G development and deployment is a
national priority for many countries, because winning opens the opportunity
to shape the future of telecommunications industry by setting global
standards around 5G.
5G will overhaul the tech industry and serve as the backbone to the
fourth industrial revolution, and the global pacesetter for the new
standard could become the same for connected technologies. 5G is a
game-changing technology: Its speeds are up to 100 times faster than 4G —
its predecessor — and latency is up to 120 times lower. In practice, a 5G
connection has the potential to save nearly a full day each month from faster
streaming and downloads on movies, TV, music, gaming, and social media,
for instance. But 5G's transformative power extends well beyond faster
versions of the status quo: The next-generation standard will power billions of
new connected devices, supercharging the adoption of transformative
technologies at a rate that will reinvent the business world. Here are a few
innovations 5G will catalyze adoption of: IoT and smart homes, VR and AR,
connected and autonomous devices, and remote healthcare.

Securing global leadership in 5G — and the resulting leadership in
connected technology development — could win countries more than a
decade of competitive advantages. We can look to 5G's predecessor as a
guide: US 4G leadership translated into a $100 billion increase in the nation's
GDP, sparked an 84% increase in wireless-related jobs, and $125 billion in
revenue to American corporations that otherwise would have been lost.
Winning the race to 4G gave the US an advantage in innovation and resulted
in new immensely powerful companies, industries, and business models —
many of which were global firsts of their kind. Without the US' achievement in
4G, for instance, there would be no Uber, Instagram, or WhatsApp, according
to Qualcomm President Cristiano Amon — at least not as we know them
today. And given 5G's transformative power, the standard is expected to
have an even larger economic and social impact than 4G, making 5G
leadership even more critical. All told, 5G technologies are expected to
contribute $2.2 trillion to the global economy over the next 15 years.

In this report, Business Insider Intelligence identifies three countries — the
United States, South Korea, and China — that are spearheading the 5G
revolution. These countries are expected to be among the first mobile
markets to see widespread 5G availability, with adoption rates faster than
other regions, making it essential for other countries to catch an inside look
into the distinct strategies these markets are taking to define the future of
connectivity. The report compiles 5G snapshots of the United States, South
Korea, and China, with each providing an overview of the market's telecoms
space and details what is contributing to, or hindering its development. We
look at the notable telecoms in each geography and identify their 5G launch
efforts and discuss what the opportunities are for that particular company.

THE UNITED STATES
The US launched the world's first commercial 5G services in 2018,

securing its position as a leader in the network's deployment. Wireless
operators, hardware and equipment providers, and policymakers at all levels
of government are pushing 5G development at a breathless pace. That effort
will culminate in the Big Four US wireless carriers — Verizon, AT&T, T-
Mobile, and Sprint, respectively — launching 5G in select markets by the end
of 2019. By then, the US will have twice as many commercial 5G
deployments as the next leading nation, South Korea. It's expected that
America's wireless industry will invest as much as $275 billion over the next
seven years to build out 5G, creating 3 million jobs and adding $500 billion to
the economy in the process, according to Accenture.

To maintain its global wireless leadership, the US is replicating the
private-sector-led strategy it rode to 4G dominance. In the 4G race, the
US restricted the government's role to freeing up mobile spectrum for
auctions, updating infrastructure policy, and modernizing outdated
regulations. This model is valuable because it affords network operators
autonomy over their own deployment strategies and methods, which fuels
competition, ultimately driving innovation and investment as a result. For
comparison, in China, government authorities largely control operators'
strategies and methods, and that delayed the country's 4G deployment
timelines such that the standard launched several years after the US, South
Korea, and Japan. The US is committed to applying the same principles to
the 5G era, and it is banking on the three-part strategy issued by the Federal
Communication Commission (FCC) under its 5G FAST Plan to win again.

Here are the FCC's three strategic pillars:
 The regulator is making a concerted effort to free up mmWave

spectrum to fast-track deployments. At the start of 2018 there
wasn't a single spectrum auction scheduled, but the FCC swiftly
concluded two mmWave 5G spectrum auctions (in the 28 GHz and 24
GHz bands) since. Together, the auctions raised more than $2.7 billion
in gross bids. And in April, the FCC set the date for the third — and
largest in US history — mmWave 5G spectrum auction in the upper 37
GHz, 39 GHz, and 47 GHz bands for December 10, 2019, with 3,400
MHz up for bid.
 It's streamlining regulation to facilitate 5G deployments and

investment. The FCC adopted major reforms since 2018 that aim to
streamline the process and reduce the cost of deploying infrastructure
for 5G: establishing time frames for the federal, state, and local levels
to act on the review process; addressing the types of deployment
subject to review; and eliminating red tape and unnecessary fees that
state and local governments can impose during the review process.
These reforms were a tipping point in carriers' plans because 5G
networks require small cell infrastructure to be deployed in significantly
more locations than with previous standards, but local and municipal
governments control cell towers and base stations, and receiving
approval from local authorities had the potential to take up to two
years. The FCC estimates the moves will save $2 billion in
unnecessary costs — which would stimulate approximately $2.5 billion
of additional build-outs — while increasing telecoms' 5G coverage in
rural areas.

 It's also modernizing regulations to catalyze wireless network
innovations and promote nationwide 5G coverage. Among the
many regulations, the FCC introduced the Restoring Internet
Freedom to roll back the 2015 Open Internet Order — which enacted
net neutrality rules — and catalyze infrastructure investment by ISPs
and telecoms by effectively giving them control over how to structure
their service offerings. It also introduced the One-Touch Make-Ready
approach to accelerate and deepen the rollout of new networks by
easing the process of attaching new network equipment to utility
poles — the FCCestimates this could result in "approximately 8.3
million incremental premises passed with fiber and about $12.6 billion
in incremental fiber capital expenditures (capex)."
Key Components Of 5G In The US
Standards: US wireless operators' early 5G network deployments are based

on the non-standalone (NSA) architecture.
A focus on the NSA architecture is a move to protect telecoms' legacy

mobile networks. This approach doesn't require any substantial changes in
the infrastructure, as 4G and 5G radio access technologies are used in
tandem. That offers a quicker route to market than the standalone (SA)
model, which uses only 5G radio access technology and requires the
construction of a new network exclusively for 5G. In the long term, US
providers are likely to transition to a SA model as it allows 4G and 5G
services to run in parallel and removes the complexity of LTE integration,
while providing economies of scale.

Spectrum: US carriers are using a range of spectrum bands for their 5G
networks.
Compared with previous networking technology, 5G networks require

large, contiguous blocks of spectrum in the mmWave and mid-range
frequency bands to reach potential.
 High-band spectrum. The US is one of only three countries that have

already allocated high-band, mmWave spectrum for 5G — and it
currently has the most available for commercial mobile services (2500
MHz). The US is poised to continue its dominance in the amount of
assigned mmWave spectrum through 2021, with China in second. The
mmWave band is important for 5G networks because the frequency
range provides the fastest wireless connection speeds, but only over
shorter distances, making it ideal for densely populated urban areas
that require high-capacity, data-intensive 5G applications. Initial 5G
networks from Verizon and AT&T are solely mmWave, which is largely
driving their strategy of city-by-city rollouts.

 Mid-band spectrum. The US lags behind the rest of the world in
licensed mid-band spectrum — and will continue this narrative through
2020. The US is the only country examined to not have already
allocated mid-band spectrum for mobile use, and by the end of 2020,
global rivals like China are poised to offer over four times more mid-
band spectrum than the US' planned amount. Mid-band is a critical
building block to 5G networks because it offers improved capacity,
coverage, quality, throughput, and latency. However, the mid-band
frequencies being used by the rest of the world for 5G are generally
exclusive Federal bands in the US, set aside for DoD use, or currently
occupied in the US by fixed satellite operators to transmit broadcast
and cable TV signals to cable TV ground stations.

Notable Wireless Network Operators In The United
States
US mobile network operators are undertaking different methods for their 5G

services. Verizon is prioritizing 5G home broadband first, while AT&T is
doubling down on mobile 5G services. Meanwhile, T-Mobile is focusing on
nationwide 5G services in low-band range, and Sprint is targeting city-by-city
rollouts on 2.5 GHz spectrum and the upgradeable Massive MIMO antennas.
Verizon
Overview: The No. 1 US wireless carrier by volume, Verizon was the first
firm in the world to launch a 5G service.
Verizon's been striving to be a leader in 5G deployment for several years:

The company's focus was initially on fixed 5G networks, and it leaned on this
foundation to hasten the development of mobile 5G. And during its Q1 2019
earnings call, Verizon CFO Matt Ellis said the company's capex for the full
year is on track to reach up to $18 billion, with the majority facilitating its 5G
rollout.
5G-related financial highlights for 2018:
 Wireless subs. The carrier boasts approximately 154 million

wireless subscribers as of Q3 2018, capturing just over one-third
of the country's mobile connections.
 Wireless revenue. In 2018, Verizon generated nearly $91.7 billion in

wireless revenues, up 4.8% from $87.5 billion in 2017.
 Capex. Verizon's wireless capex reached nearly $8.5 billion in

2018, down more than 17% from $10.3 billion in 2017.

Fixed 5G
Fixed 5G came first among Verizon's 5G services, and it's already

helping the company lure subscribers from other telecoms. On October
1, 2018, the carrier launched a commercial mmWave 5G fixed wireless
access (FWA) service — called Verizon 5G Home — in parts of four US
markets. The deployment is currently limited in scope because the service is
based on the carrier's own proprietary standard, 5G TF. However, Verizon
5G Home coverage will be expanded in the second half of 2019, once new
customer equipment becomes available under the global standards, allowing
the service to be upgraded. Half of the customers who signed up for
Verizon's 5G Home service in the first two months after it launched were not
previously Verizon customers, according to Ronan Dunne, EVP and
president of Verizon Wireless. This highlights the importance of being first to
market, as subscribers are proving eager to jump ship from other carriers for
early access to fixed 5G services
 Devices. The Verizon 5G Home Router, which is installed by a

technician, is required to provide the 5G connection.
 Plans. After a free three-month trial, the company charges $50 per
month for unlimited data for Verizon mobile customers and $70 per
month for customers without a Verizon Wireless plan. The service also
comes with a free three-month YouTube TV subscription and either an
Apple TV 4K or Chromecast Ultra device.

Mobile 5G
Verizon's mobile 5G service launched just six months after its fixed 5G
service. Verizon launched its mobile 5G Ultra Wideband network on April 3
in parts of two US markets. The mobile 5G service is based on the 3GPP 5G
New Radio (NR) standard and uses mmWave spectrum, but Verizon plans to
eventually deploy the service on mid- and low-band spectrum when it
becomes available. The carrier aims to launch its mobile 5G network in at
least 28 additional cities by the end of 2019.
 Devices. The company offers 5G access through a Motorola moto z3

smartphone equipped with a Verizon-exclusive 5G moto mod
attachment. As of April, the company had sold tens of thousands of
Motorola devices in 2019. Additionally, Verizon has a limited period of
exclusivity for the first true 5G smartphone that launched in the US, the
Samsung Galaxy S10 5G, meaning the carrier's customers can
purchase the device before it's available to rivals' subscribers.
 Plans. Verizon subscribers on all three of its unlimited plans will be

able to leverage mobile 5G for an additional $10 a month, though the
carrier has suspended the fee for a limited time.
What's coming next: Verizon is focused on enterprise solutions, specifically

around fleet telematics.

While Verizon's 5G enterprise priorities range across a number of
industries, fleet telematics — a space it already leads — appears to be a
major focus in the long run. The company spent billions acquiring two big
telematics companies in 2016 — Telogis and Fleetmatics — making it the
largest US provider of fleet telematics services. Fleet telematics is poised to
keep growing as 5G comes into play, given the technology's enablement of
quicker transfers of vehicle data, and Verizon is looking to lead the charge.
The installed base of commercial fleet telematics systems will explode at a
53% compound annual growth rate (CAGR) over the next three years,
growing from 13 million units in 2019 to 20 million in 2021, according to new
estimates from C.J. Driscoll & Associates cited by Trucking Info.
Why it's worth watching: Verizon is pushing to become a go-to partner for
automated technologies.
Verizon is banking on leveraging 5G to power automated technologies

like drones as part of its 5G vision. The company's expertise in fleet
telematics positions it well to lead this segment, as its range of solutions can
support the complete spectrum of management needs while helping firms
reduce costs, increase productivity, and improve visibility into their
operations. For example, Verizon's 5G network can use the data generated
from fleet telematics to predict servicing and provide insights — such as real-
time location, 360-degree views of operations, mileage, and fuel usage —
that provide a more accurate picture of how their automated technologies are
performing, according to Kevin Aries, leader of global product success at
Verizon Connect.

AT&T
Overview: AT&T is the second-largest US mobile operator by volume, and

was the first in the country to launch a mobile 5G network.
AT&T's 5G vision differs from its main rival Verizon: Its priority is the
development of 5G services in the mobile market. During the company's Q4
2018 earnings call, CEO Randall Stephenson said he sees 5G as a fixed
broadband replacement product in three to five years, which helps explain
why it's not an immediate focus for the company.
 Wireless subs. AT&T has about 153 million subscribers, or more

than one-third of US mobile connections.
 Wireless revenue. AT&T Mobility revenue, which accounts for 39% of

AT&T's total revenue, reached $71.3 billion in 2018, up just 0.4%
from $70.1 billion in 2017.

 Capex. The company's total capex in 2018 reached $21.2 billion,
down 1.4% from $21.6 billion in 2017.
Mobile 5G
AT&T's mobile 5G service is already seeing uptake among enterprises.

AT&T rolled out its 3GPP-compliant commercial mobile 5G service, using
mmWave spectrum, in parts of 12 US cities on December 21, 2018. The
carrier expanded mobile 5G coverage to parts of an additional seven markets
in April, and it plans to connect parts of more than 29 cities by the end of
2019. AT&T aims to deploy 5G in sub-6 GHz spectrum bands to gain
nationwide coverage by the first half of 2020. While the mobile 5G service
was the first in the US for both businesses and consumers, Stephenson said
during the company's Q1 2019 earnings call that adoption is enterprise-only
for now.
 Devices. The service is currently available with AT&T's Netgear

Nighthawk 5G Mobile Hotspot, a portable Wi-Fi router that enables
users to connect up to 20 devices at once. In late April, the device
became the first in the US to surpass 2 Gbps speeds on a 5G NR
network. AT&T expects to carry two additional 3GPP-compliant mobile
5G devices this year. The company also partnered with augmented
reality (AR) headset company Magic Leap to be the sole US
wireless carrier for the company's headsets.
 Plans. The Netgear Nighthawk 5G Mobile Hotspot costs $70 per

month for 15GB after the first three months of free service. Once AT&T
connects 5G-compatible smartphones, we expect that the company
will revise service plans for those devices.

Fixed 5G
AT&T flipped on its fixed 5G ambitions and is gearing up to deploy the

technology. While details have been sparse, AT&T initially intended to hold
off on plans to deploy fixed 5G wireless because the companybelieved it
wasn't cost efficient to deploy the tech and offer service to residential
consumers. However, in late 2018, AT&T changed its tune and announced
plans to deploy an FWA solution for 5G in late 2019 using the unlicensed
Citizens Broadband Radio Service (CBRS) spectrum. It will initially deploy
LTE, which will lay the groundwork for customers to upgrade and take
advantage of AT&T's fixed 5G service once available. AT&T will initially
target business customers for the service.
What's next: AT&T is focused on continuing its development of companion

networks to operate alongside its 5G networks.
The company is working to expand its role as a provider of IoT services

and solutions for a range of industry segments in the 5G era. That's
because 5G networks possess a tenfold advantage over 4G in terms of the
number of connected devices a network can support and the time between
data transfers to and from a connected device — upgrades that have
transformative potential for IoT. The company has a stable of LTE-M low-
powered wide-area networks (LPWANs), and in May 2019, it launched its
complementary narrowband IoT (NB-IoT) network across the US in response
to customer feedback that highlighted demand for NB-IoT in addition to LTE-
M. The NB-IoT provides lower-cost solutions to companies looking to connect
assets with low connection speed requirements and which can be located
deep inside of buildings — that's appealing for segments like home security,
electronics, and utilities.

AT&T is also prioritizing building out its industry-specific FirstNet
network, an AT&T-built national LTE network dedicated to public safety
and first responders. The network, which was launched in March 2018, is
already 53% built out and should reach 60% or more by the end of Q3 2019,
according to AT&T CEO Stephenson. As of May 2019, the network reached
over 7,000 public safety agencies, accounting for over 600,000 connected
devices — that's up 33% and 41% respectively from the number of agencies
and devices supported at the end of 2018. On top of building out an
extensive network, AT&T has been able to provide a stronger service to
users: FirstNet is reported to consistently perform over 25% faster than any
other commercial network.
Why it's worth watching: AT&T's ability to quickly scale up attractive,

industry-specific networks and services it can lean on to promote growth
places it in a strong position for the 5G era.
Business-to-business (B2B) segments have a wide range of needs

which are highly dependent on the industry they occupy, and demand
for tailored solutions will multiply as 5G comes into play. AT&T's proven
strength in its ability to rapidly fill the gaps and offer new, in-demand options
and services based on customers' needs will be key to helping it capitalize on
new B2B-driven revenue segments that will arise with 5G.

New T-Mobile: T-Mobile and Sprint
Overview: T-Mobile is banking on its pending merger with Sprint to boost its
5G deployment.
Separately, the telecoms lack the resources necessary to upend the 5G race,
but a merger means they can leverage wider spectrum holdings and
infrastructure to lead 5G development in the US and globally. By 2024, the
new company, which would operate under the name New T-Mobile, is
anticipated to have approximately double the total capacity and triple the total
5G capacity of the carriers combined. New T-Mobile is also expected to have
5G speeds four to six times what they could achieve on their own. The
merged entity plans to invest up to $40 billion in building out its 5G network
and business in the first three years, which is 46% more than the duo has
spent collectively over the past three years.

 Wireless subs. T-Mobile boasts nearly 80 million mobile

customers, representing 18% of the industry's total connections.
Sprint had over 53 million subscribers as of Q3 2018, providing it
with a market share of 12%.
 Wireless revenue. Separately, T-Mobile revenue hit $43.3 billion in

2018, up nearly 7% from $40.6 billion in 2017. Meanwhile, Sprint's
fiscal 2018 revenue reached $33.6 billion, up nearly 4% from $32.4
billion in its fiscal 2017.
 Capex. T-Mobile's total capex reached $5.5 billion in 2018, up

6% YoY. Sprint's total fiscal 2018 capexhit $5 billion, up 51% YoY.

Mobile 5G
T-Mobile's 5G strategy has a nationwide large-scale 5G launch at its

core, while Sprint is targeting a city-by-city rollout. T-Mobile announced
it's building out its 5G network using low-band spectrum in 30 markets by the
end of 2018, with plans to begin deployment in 2019 and provide nationwide
coverage in 2020. The carrier's 5G network will likely also use mmWave
spectrum, as the company emerged as a big spender in the two mmWave
spectrum auctions: In June the FCC revealed T-Mobile won 865 licenses in
864 counties in Auction 101 (28 GHz) and 346 licenses in 400 partial
economic areas (PEAs) — at least one in almost every PEA — in Auction
102 (24 GHz). Meanwhile, Sprint launched its mobile 5G service in parts of
four US cities in May — marking what the carrier claims is the largest initial
5G coverage footprint in the country. The service is based on the 3GPP 5G
NR standard and uses 2.5 GHz spectrum. The company plans to expand the
network to an additional five US cities in the coming weeks, helping it cover
approximately 2,180 square miles and 11.5 million people. Should the
merger go through, New T-Mobile can leverage T-Mobile's spectrum at 600
MHz and Sprint's 2.5 GHz holdings to create the highest-capacity 5G network
in the US.
 Devices. So far, Sprint unveiled the HTC 5G Hub device that's

designed to connect up to 20 devices simultaneously to its 5G
network. The device will be "good enough" for consumers to use as
their home internet connection, according to comments from Sprint
VP of product engineering and development Ryan Sullivan in an
interview with PCMag. Sprint is also the first US carrier to support
the LG V50 ThinQ 5G phone and will connect the Samsung Galaxy
S10 5G in the summer.

 Plans. 5G data is included for free for consumers on Sprint's Unlimited
Premium mobile plan, which starts at $80 per month for unlimited data,
talk, and text; 100 GB of LTE mobile hotspot; and includes free
subscriptions to Amazon Prime, Twitch Prime, Tidal HiFi, and Hulu's
standard plan. Additionally, New T-Mobile promised in a letter to the
FCC chairman that 5G data plans will be either the same or better than
existing 4G LTE service plans for three years. It has also promised to
offer unlimited data plans for 5G.

Fixed 5G
T-Mobile and Sprint plan to invade the home broadband market with 5G
fixed wireless. T-Mobile launched a pilot for the service using its wireless
LTE network in March, in which it will prioritize connecting 50,000 rural and
underserved US households by the end of this year. If allowed to merge with
Sprint, New T-Mobile plans to upgrade the service to 5G and will cover 96%
of the country's 62 million rural residents and over half of zip codes across
the US by 2024, enabling it to add 9.5 million customers.
 Devices: The service comes with a free New T-Mobile In Home

Router that, unlike the devices offered by other operators, can be self-
installed using a mobile app.
 Plans: The service costs $50 per month.
What's next: New T-Mobile is striving to become a fierce competitor capable

of disrupting the current US cable broadband market by tackling the three
major pain points: limited options, price, and accessibility.
The company hopes to become the fourth-largest internet service

provider by 2021 by offering an alternative option targeted at rural and
other underserved areas. That option is a high-speed, low-priced 5G home
internet service featuring self-installation, no annual service contract, and its
TVision Home service. New T-Mobile plans to prioritize rural and other
underserved areas first, as nearly one-third (29%) of US households either
have no service or lack a second option for wired broadband service, and
that share jumps to over 61% in rural households. And it expects its prices to
amount to about $13.6 billion in yearly savings for US consumers.

Why it's worth watching: New T-Mobile's strong portfolio of all spectrum
bands will enable it to deliver a reliable, high-capacity nationwide mobile 5G
network.
The strategy of using a combination of spectrum bands will give New T-

Mobile an advantage since each band provides a unique contribution to
the overall 5G experience. Specifically, New T-Mobile's ability to use
Sprint's 2.5 GHz spectrum will give it an edge over competitors AT&T and
Verizon in providing a smoother user experience and wider reach and
penetration. That's because it will enable the carrier to be the first to tap a
key 5G capability: dual connectivity, which allows devices to combine 5G and
4G networks to enable faster download speeds. For comparison, AT&T and
Verizon, which currently run their 5G networks on mmWave spectrum and do
not expect to acquire spectrum in these bands in the near future, use 4G to
establish a 5G phone's initial connection and don't yet enable dual
connectivity downloads.

SOUTH KOREA
South Korea was the second country in the world to deploy a 5G

network – right behind the US – and it's on track to become the global
leader in 5G adoption. The country's first 5G services appeared during the
PyeongChang 2018 Winter Olympic Games, which served as a catalyst for
South Korea's 5G development. Now, South Korea's three largest mobile
network operators (MNOs) — SK Telecom, KT, and LG Uplus, respectively
— are all offering 5G services to businesses and consumers, and their
networks reach roughly half of the country's population. All told, SK Telecom,
KT, and LG Uplus are expected to jointly invest up to 25 trillion won ($21
billion) in the development of the standard — 30% more than the three spent
on 4G.

South Korea's 5G subscriber base is growing rapidly and has already
eclipsed 4G's growth rate in the first two months since 5G services
launched in the country. The country's three MNOs collectively gained 1
million 5G subscribers in mid June — just 69 days after launch.
Comparatively, it took five months for 4G LTE subscriptions in South Korea
to pass the 1 million mark. By 2025, the number of 5G connections is
anticipated to surpass 37 million, equating to 59% of the country's mobile
subscriptions — the world's highest 5G adoption rate.
South Korea's speedy 5G deployment is the result of its government

taking a hands-on approach to try and realize the massive nationwide
benefits that come with being first. South Korea's Ministry of Science and
ICT (MSIT) set a national 5G policy goal of being the global leader in 5G
services, technology and devices, and standards development by 2020.

The government has high expectations for 5G:
 A commercial 5G network in the country is anticipated to create at

least 30.3 trillion won ($26 billion) in socioeconomic value in 2025,
1.5% of the country's GDP, and this is forecasted to increase to at
least 47.8 trillion won ($40 billion), 2.1% of GDP, in 2030.
 South Korea is expected to capture 331 trillion won ($280 billion)

between 2020 and 2026 from sales of 5G-related devices at home and
abroad.
 The country's first mover advantage is expected to create 600,000 jobs

and $73 billion in exports in related industries by 2026.
The MSIT implemented a number of policies that have powered South

Korea's ability to develop and deploy the next-generation network.
Here's an overview of MSIT's work so far:
 The MSIT convinced the country's operators to launch 5G

services at the same time and share deployment costs. The
country's three MNOs and broadband operator SK Broadband agreed
to shareexisting network assets and jointly build new 5G facilities. In
return for their cooperation, the MSIT promised to provide unlimited tax
benefits and security maintenance services. The MSIT deemed
cooperation necessary to avoid excessive competition and redundant
investments in 5G small cell base stations: The plan is estimated to
save the operators nearly 1 trillion won ($938 million) over the decade.

 The MSIT is providing funding to accelerate 5G launches. In 2014,
the governmental body kicked off a 1.6 trillion won ($1.4 billion), five-
year investment program to promote the installation of 5G networks by
2020. Then in 2018, the MSIT began R&D funding for a range of
projects including communications and broadcasting for 70 billion won
($59 million), software computing for 146.6 billion won ($120 million),
broadcasting for 65.7 billion won ($56 million), advanced security for
61.8 billion won ($52 million), and devices for 43.5 billion won ($37
million).
 It also reformed legislation to expedite 5G infrastructure

deployments. In April 2018, the MSIT revised legislation to provide
South Korea's MNOs with greater access to local- and government-
owned locations, such as street lamps and traffic facilities, to install
mobile equipment for 5G services. As of April 2019, approximately
85,000 5G base stations have been deployed in South Korea, with
Samsung supplying nearly two-thirds of the stations. That's up from
about 8,500 base stations at the end of 2018.
 The MSIT also secured frequencies in the mid- and high-band to

kickstart deployments. In 2017 the MSIT introduced the K-ICT
Spectrum Plan to offer management resources for the nation's
spectrum frequencies. Under the plan, the MSIT committed to securing
a total of 1300 MHz for 5G-specific frequencies across the 3.5 GHz
and 28 GHz bands by 2018, allocating 300 MHz in the 3.5 GHz band
and 1000 MHz in the 28 GHz band. The K-ICT Spectrum Plan also
includes measures to make more frequencies available by 2026 to
prepare for the evolution of autonomous devices, including vehicles
and robots.

Key Components Of 5G In South Korea
Standards: South Korean network operators' early 5G network deployments

are based on the NSA architecture.
A focus on the NSA architecture is a move to protect legacy mobile

networks, as the approach doesn't require any substantial changes in
the infrastructure. NSA architecture allows 4G and 5G radio access
technologies to be used in tandem. That offers a quicker route to market than
the standalone (SA) model, which uses only 5G radio access technology and
requires the construction of a new network for 5G alone. In the long term,
South Korean providers are likely to transition to an SA model as it allows 4G
and 5G services to run in parallel and it removes the complexity of LTE
integration, while providing economies of scale.
Spectrum: South Korea is launching 5G in a mix of lower and higher

frequencies.

large, contiguous blocks of spectrum in the mmWave and mid-range
frequency bands to reach potential.
 High-band spectrum. South Korea was the first country to allocate

high-band, mmWave spectrum for 5G — and is currently one of only
three countries to have done so. South Korea completed the first
mmWave spectrum auction in June 2018, with 2400 MHz bandwidth of
28 GHz available. Each of the major providers paid the reserve price
of $186 million for 800 MHz of the spectrum. South Korea's early
mmWave spectrum auctions are especially important given the
country's size and densely urbanized population — half of its
population of 51 million lives in the greater Seoul area — because the
frequency range is ideal for densely populated urban areas that
require high-capacity, data-intensive 5G applications.

 Mid-band spectrum. South Korea has already allocated spectrum in
this frequency band. MSIT made available a total of 280 MHz
bandwidth of 3.5 GHz spectrum, raising a sum of $2.89 billion: SK
Telecom and KT each won 100 MHz of the 3.5 GHz spectrum, while
LG Uplus captured 80 MHz. The country hasn't indicated plans for
further release of mid-band spectrum, which could become a problem
for LG Uplus' ability to deliver the best-performing 5G services, as 80
MHz in the 5G mid-band spectrum is below the awarded amount that
the 3GPP defines as optimal.

Notable Wireless Network Operators In South Korea
Given that SK Telecom, KT, and LG Uplus agreed to cooperate, they

simultaneously launched South Korea's first 5G networks in December 2018
— a fixed 5G wireless service for enterprise customers. A nationwide mobile
5G service rollout for general consumers followed in April, though the service
is still restricted. Nearly 90% of 5G base stations were based in the capital
city of Seoul, its surrounding area, and five metropolitan cities at launch.
SK Telecom
Overview: SK Telecom is an established leader in the 5G era, highlighted by

its ability to fulfill numerous industry firsts on the path to 5G
commercialization.
The company deployed the world's first 5G infrastructure-equipped

autonomous driving city in December 2017. Then in 2018, it successfully
showcased data transmission using 5G SA with Nokia, just five days after the
new 5G standard was approved by the 3GPP, and completed the first call
using the 3GPP 5G NSA standard and Samsung's commercial 5G
equipment. And in January 2019, SK Telecom achieved the world's first live
TV broadcast over a commercial 5G network.

Full-year 2018 financial highlights:
 Wireless subs. The country's largest wireless carrier by volume

boasted approximately 30.9 million customers by the end of 2018,
providing it with a market share of 46.9%. Wireless subs were up
2.3% YoY from just under 30.2 million subscribers in 2017, when it
had a 47.9% market share.
 Wireless revenue. In 2018 SK Telecom generated 10.0 trillion won

($8.5 billion) in mobile service revenue, which was down 7.1% YoY.
 Capex. Total capex over 2018 reached 2.12 trillion won ($1.8
billion), up 7% YoY.
Fixed 5G
SK Telecom has the most extensive commercial 5G FWA deployment of

all South Korean telecoms. The business-to-business (B2B) 5G FWA
service was launched in limited areas of 13 cities and counties nationwide.
The service is based on 3GPP 5G NSA new radio (NR) standards using
spectrum in the 3.5 GHz band. SK Telecom's first 5G enterprise customer
was Myunghwa, an automotive parts company, which used KT's "5G-AI
Machine Vision" solution to quality check automotive parts from the
production line.

Mobile 5G
SK Telecom also has the widest wireless 5G coverage in the country.

The carrier's nationwide 5G network was launched in parts of 85 major cities,
university districts, South Korea's high-speed rail system, sports stadiums,
and other public areas. The carrier deployed 38,000 units of 5G base stations
at launch, compared with KT's 35,000 and LG Uplus' 11,000. The provider
plans to expand 5G network coverage to nationwide subways, national parks,
and festival sites in the second half of 2019. It's also focused on increasing
its in-building coverage via its "Total In-building Solution," which the company
claims will provide four times faster in-building data rates than its rivals.
 Devices: There are currently two smartphones with built-in 5G

available on SK Telecom's network — the Samsung Galaxy S10
5G and the LG V50 ThinQ 5G. SK instituted the steepest subsidies
among the three MNOs for its 5G smartphones: It's offering up to $650
in subsidies on the $1,019 V50 ThinQ 5G and $460 in subsidies on the
$1,115 Galaxy S10 5G.
 Plans: SK Telecom's 5GX plans consist of four tiered plans at varying

prices and data limits:
o The entry-level Slim plan ($47 per month) caps speed at 1Mbps
after 8GB of data.
o The 5GX Standard plan ($64 per month) caps the speed at
5Mbps after 150GB of data.

o The 5GX Prime plan ($80 per month) offers 200GB of data, and
the 5GX Platinum ($110 per month) offers 300GB of data,
though customers that sign up for either the 5GX Prime and
5GX Platinum plans before the end of June 2019 will be able to
use unlimited data without speed restrictions at a discounted
rate through the end of December 2019. The company also
intends to update pricing according to the market's reaction to
unlimited options.
What's coming next: SK Telecom is looking to take an active role in

facilitating the evolution of digital media, broadcasting, and gaming and
esports with 5G.

In 2019, SK Telecom bought companies and forged a slew of global
partnerships to ramp up its entertainment offerings, as it expects 5G to
revolutionize user experience in the space. The technology's ultra-fast
network speeds and minimal latencies will be transformational for the
entertainment segment because it addresses some of the biggest pain points
— reliability, quality, and engagement. 5G will offer higher resolution games,
enable downloads in just a few seconds, popularize 8K streaming, and make
cloud-based gaming possible. SK Telecom's continued efforts in the space
will allow the next wave of 5G-enabled digital media and advertising, live
broadcasts, and gaming and esports to reach its potential in South Korea and
across the world.
Why it's worth watching: SK Telecom's moves to enhance security and

eliminate the risk of hacking will give it an edge in the 5G era, when nearly
everything is connected.

SK Telecom claims it has secured the safest 5G network among
competitors — likely making it a top option for businesses. To do so, it
was the first South Korean conglomerate to establish a quantum technology
laboratory in 2011; it developed the world's smallest Quantum Random
Number Generator in 2017; and it invested 70 billion won ($59 million) in ID
Quantique in 2018, the world's leading quantum-safe cryptography solutions
provider. SK Telecom's move enabled it to apply quantum cryptography
technologies to its 5G authentication center to prevent hacking and
eavesdropping. The company is considering applying its quantum
cryptography to its network covering the upcoming 5G-powered digital
hospital it's building with Yonsei University Health System in South Korea
and all hospitals under the Yonsei University Health System. SK Telecom is
also cooperating with the Korea Military Academy (KMA) to develop
innovative technologies with 5G networks and conduct studies on quantum
cryptography.
KT
Overview: KT had the opportunity to showcase the world's first 5G trial

services at the PyeongChang 2018 Winter Olympic Games, making the
event a focal point for early 5G investment and trials in the country.
The event also provided KT with early insights into how to build and stabilize
a 5G network running real-world connections — trial speeds reached up to
20 Gbps with latency under 1 millisecond while covering over a million
devices per square kilometer. KT's trial network and road map to
commercialize 5G were later approved in August by the International
Telecommunication Union (ITU) as an international standard. KT plans to
invest 23 trillion won ($19 billion) over the next five years in 5G and relevant
technologies.

 Wireless subs. South Korea's second-largest mobile carrier by

subscriber volume had approximately 21.1 million subscribers by
the end of 2018, providing it with a market share of 31.8%. Wireless
subs were up 5.5% YoY from just over 20 million in 2017.
 Wireless revenue. In 2018, KT generated 7.4 trillion won ($6.3

billion) in wireless revenue, down 2.3% YoY.
 Capex. Total capex over 2018 was 2 trillion won ($1.7 billion), down
12% YoY.
Fixed 5G
KT's fixed 5G service is primarily centered in major cities, like Seoul.

KT's B2B 5G FWA network was deployed in six metropolitan cities beyond
Seoul, and the company plans to eventually expand it to 24 major cities. The
service is based on 3GPP 5G NSA NR standards using spectrum in the 3.5
GHz band. In March, the company announced it successfully achieved 1
Gbps speed on Samsung's Galaxy S10 5G device connected to its 5G
commercial network.

Mobile 5G
KT was the first operator in the country to showcase 5G coverage

information and allow customers to access unlimited 5G data
plans. KT's nationwide wireless 5G commercial service is available for
general consumers and covers the Seoul metropolitan area plus six
additional metropolitan cities. It's also available in high-traffic commercial
areas including 70 shopping centers, 464 college campuses, two major
highways, and six airports. The company expects to have up to 80%
nationwide 5G coverage by the end of 2019 when its service is available in
85 cities, according to KT SVP and head of network strategy Seo Chang-
seok. By then, KT projects 10% subscriber penetration.

available on KT's network — the Samsung Galaxy S10 5G and
the LG V50 ThinQ 5G. KT instituted heavy subsidies for its 5G
smartphones, but the subsidies for LG's device are higher than for
Samsung's: It's offering up to $505 in subsidies on the $1,019 V50
ThinQ 5G device and $180 in subsidies on the $1,115 Galaxy S10 5G,
which is the least among the three MNOs.
 Plans: KT's 5G Super Plans, which include unlimited 5G data without

a speed cap and roaming in 185 countries, come in three packages:
Basic ($68 per month), Special ($85 per month), and Premium ($110
per month). Additionally, KT is offering a 5G Slim plan ($46 per month)
that caps speed at 1Mbps after 8GB of data.

What's coming next: KT's mission is to infuse its advanced AI platform and
offerings into the next wave of 5G-powered connected devices.
KT is looking to intelligent machines to open up new opportunities in

the B2B market and place itself at the center of the Fourth Industrial
Revolution. The company's first 5G subscriber was an AI-equipped robot
called Lota, which guides visitors through the Seoul Sky Observatory. And in
January 2019, KT opened the world's first 5G-powered robot cafe and bus.
Additionally, in February, KT opened the first AI hotel in South Korea using its
GiGA Genie platform — Korea's No.1 AI platform with 1.5 million users —
and plans to open three additional AI hotels in Seoul by 2020 with chains
including Hyatt, Marriott, and Accor. The company also signed a
memorandum of understanding (MOU) with Hong Kong-based MVI Systems,
the leading provider of internet protocol TV (IPTV)-based information and
entertainment solutions for hotels, hospitals, and enterprises, to link the KT's
AI platform with MVI's information and entertainment solutions in the Asia
Pacific and Middle East, enabling voice-activated room automation, robot-
delivered amenities, and other smart services. Lastly, the company is
expanding partnerships with car manufacturers for GiGA Drive — Korea's
No.1 voice platform for automobiles — in preparation for the rise of self-
driving vehicles.
Why it's worth watching: KT's 5G Super Plans propelled the firm to the
front of South Korea's 5G market, and global carriers should emulate the
company's approach and pricing structure to accelerate subscriber migration.

In just a month after the mobile 5G launch, KT captured more than
100,000 5G subscribers — approximately 40% of the country's total
sign-ups. And 85% of those new customers opted for the unlimited 5G
Super Plan packages, according to KT CFO Kyung-Keun Yoon during the
company's Q1 2019 earnings call. Additionally, younger customers between
ages 20 and 30 accounted for 60% of the 5G subscribers. South Korean
customers' receptiveness to KT's plans is likely because they provide full
access to the new standard's blistering data speeds without placing limits on
data or speed. This approach is critical for accommodating the growing
demand for data-heavy activities like streaming video, live streaming, and
360-degree videos, as well as for more innovative 5G-enabled activities in
the long term, like AR and VR, and cloud-based gaming.
LG Uplus
Overview: LG Uplus is also making significant strides in 5G deployment,

driven in part by its tight partnership with the Chinese telecom giant Huawei.
LG Uplus is the only South Korean MNO that's teamed up with Huawei. In
2016, the duo completed 5G field trials in the Gangnam District to verify tech
including IPTV 4K video, dual connectivity, and inter-cell handover — which
was the world's first wide-scale 5G network test using a pre-commercial
testing environment. And in January 2019, LG Uplus showcased the world's
first 5G Cloud VR-based game. However, LG Uplus has been in the hot seat
as of late because it chose Huawei's equipment over Samsung's for its
network in Seoul and the Gangwon Province, and the Chinese equipment
provider is embroiled in global tensions over security concerns. LG Uplus
plans to invest more than 4 trillion won ($3.4 billion) in the deployment of its
nationwide 5G network.

 Wireless subs. South Korea's third-largest telecom by volume

boasted over 14.1 million subscribers by the end of 2018, providing
it with a market share of 21.3%. That's up 7.2% YoY from over 13.1
million subscribers in 2017, at which time it had a 20.7% market
share.
 Wireless revenue. In 2018 LG Uplus generated 5.41 trillion won

($46 billion), which is down 2.8% YoY.
 Capex. LG Uplus' wireless capex reached 1.4 trillion won ($1.2

billion) in 2018, up 22.8% YoY.

Fixed 5G
LG Uplus' 5G fixed network appears to have the most limited coverage

so far. The provider launched 5G FWA services to enterprise customers in
December 2018. At the time, it had built more than 7,000 base stations to
support the service. The service is based on 3GPP 5G NSA NR standards
using spectrum in the 3.5 GHz band. LG Uplus' first 5G customer was tractor
manufacturer LS Mtron. LG Uplus expects to adapt its 5G service for use in
the remote controlling of heavy equipment and agricultural machines, drones,
CCTV, smart factories, and smart cities.
Mobile 5G
LG Uplus' 5G service is almost entirely concentrated in Seoul and its

surrounding metropolitan areas, and it's increasing coverage at a
slower pace than its local rivals. LG Uplus launched its commercial 5G
network in April with approximately 94% of its over 11,000 5G base stations
located in Seoul and its surrounding metropolitan areas. The carrier expects
to expand coverage to 85 cities by the end of 2019, in which it will install
80,000 base stations and have more than 50% nationwide 5G coverage,
which is below KT's planned nationwide coverage ambitions.

available on LG Uplus' network — the Samsung Galaxy S10 5G and
the LG V50 ThinQ 5G. LG Uplus instituted heavy subsidies for its 5G
smartphones: It's offering up to $480 in subsidies on the $1,019 V50
ThinQ 5G device and $400 in subsidies on the $1,115 Galaxy S10 5G.

 Plans: LG Uplus' 5G plans consist of four tiered plans at varying
prices, two of which have data and speed limits, and two that are
unlimited. All 5G plans come with a free U+ mobile TV basic monthly
account, which offers over 100 live channels and more than 150,00
movies.
o The entry-level 5G Light plan ($46 per month) caps the speed at
1Mbps after 8GB of data.
o Followed by the 5GX Standard plan ($63 per month), which

caps the speed at 5Mbps after 150GB of data.
o Both the 5G Special plan ($72 per month) and the 5G Premium
plan ($80 per month) offer unlimited data, with the latter
including the option to add two smart devices. Over 70% of new
subscribers have selected the 5G Special plan, according to LG
Uplus head of mobile group Jong-Wook Park during the
company's Q1 2019 earnings call, highlighting demand for
unlimited data and connecting multiple devices.
What's coming next: LG Uplus is banking on becoming a media content

distributor, as it sees immersive media — with VR and AR at the core — as a
focus for its 5G service and investment plans.

The company announced at CES 2019 that it's partnering with Google
to produce 3D, VR, and AR video, a move that will help customers
realize the value of its 5G services. The duo plans to establish an equally
invested fund to develop immersive content in the first half of 2019, with LG
Uplus leading the charge in design and production. The carrier will have local
distribution rights via its forthcoming OTT VR content platform, and Google
will exclusively distribute it through YouTube. What's more, LG Uplus is
gearing up to introduce its own VR headset, according to LG Uplus head of
5G services Lee Sang-min. The decision to focus on distributing the content
through its own platforms in addition to Google's will help to improve brand
recognition and awareness.
Why it's worth watching: LG Uplus is quickly emerging as a go-to for

enterprise IoT solutions, including autonomous vehicles, smart factories, and
smart cities.
The company is the only telecom in the country with three IoT
technologies, according to its Q1 2019 earnings call. And the newly
commercialized LTE M1 network will enable it to tap into areas such as fleet
management and location tracking, which the company expects will further
advance its B2B IoT services. South Korea's IoT market is expected to
become the fifth-largest in the world in 2019 after the US, China, Japan, and
Germany, with IoT sales growing 23% on average each year from 2015 to
2018.

CHINA
China is the largest mobile market in the world, and it's expected to
become the biggest 5G market by 2025, with 460 million 5G
connections. By then, 5G services from China's three state-owned
operators — China Mobile, China Telecom, and China Unicom — will cover
65% of the population and 5G connections will represent 29% of China's total
mobile connections. China's been targeting large-scale 5G commercial
launches for 2020 for years now, but it's striving to accelerate the deployment
of commercial 5G services to October 2019. The country is expected to
invest between 900 billion and 1.5 trillion yuan ($134 billion-$223 billion) from
2020 through 2025 to develop 5G networks, according to the China Academy
of Information and Communications Technology (CAICT).

Becoming a global leader in 5G development is a top priority for China,
especially after the country largely missed the opportunity in the 3G
and 4G eras. In 2012 — two years before China Mobile even launched 4G
services — Chinese entities joined an international initiative to promote 5G
R&D. And 5G development has been at the heart of the country's Made in
China 2025 policy roadmap and its 13th Five-Year Plan. Being first to market
is important to China — and every country looking to lead the race —
because it could help the country become a leading tech innovator and
increase its global influence as a result.

Here's a rundown of some expectations around the scope of China's 5G
market, per the CAICT.
 China's 5G market is expected to account for 1.1 trillion yuan ($166

billion), or 3.2%, of mainland China's entire GDP in 2025. And by
2030, 5G is forecast to contribute around 5.8% of China's GDP growth,
generating 8 million jobs and adding 2.9 trillion yuan ($420 billion) in
economic value.
 Direct and indirect economic value generated from commercial

operations of 5G networks in China is anticipated to reach 10.6 trillion
yuan ($1.5 trillion) and 24.8 trillion yuan ($3.6 trillion), respectively,
from 2020 to 2025.
 Internet companies and application developers are expected to

generate 10.7 trillion yuan ($1.6 trillion) in total 5G-related revenue
from 2020 to 2030.

Chinese government bodies are backing a range of policy initiatives to
push China to the front of the global 5G pack.
 The country has long been set on contributing to the

development of the globally unified 5G standard. In 2013, the
Ministry of Industry and Information Technology (MIIT) and the
National Development and Reform Commission (NDRC)
established the IMT-2020 (5G) Promotion Group, which is
comprised of nearly 60 industry experts who are working toward
the promotion of 5G research. The group has been working with
governments and industry associations in a number of countries
and regions, including the US, South Korea, Japan, and the EU, to
collaborate on 5G. A leading role in 5G development will provide
China with a greater share of the intellectual property behind the
universal 5G standard; as of May, Chinese companies held 30% of
all the international patents related to 5G connectivity standards.
Additionally, the IMT-2020 (5G) Promotion Group conducted its
own 5G trials — and completed the third phase of non-standalone
(NSA) trials based on 3GPP's Release 15 standard in October
2018.
 China's NDRC made 5G licenses more feasible for the

country's three licensed operators. The NDRC reduced the
standard per MHz fee for 5G licenses. It also waived the fee
entirely for the first three years of issue, and won't return to the full
rate until seven years after licenses have been issued.

 The MIIT issued 5G trial spectrum permits and subsequently
awarded commercial 5G licenses to accelerate launches ahead
of its original plan to commercialize 5G in 2020. The MIIT
issued test frequency licenses for low- and mid-band 5G trials to
the nation's three mobile network operators in December 2018. In
doing so, it assigned different bands to each MNO: China Mobile
received licenses for the spectrum on the 2.6GHz and 4.9GHz
frequency bands, China Unicom obtained spectrum in the 3.5GHz-
to-3.6GHz range, and China Telecom was allocated spectrum on
the 3.4GHz-to-3.5 GHz bands. Then, in June 2019, the MIIT gave
the country's operators the green light for commercial deployments
when it issued commercial 5G licenses to operators, which China
initially intended to do in October.

Key Components Of 5G In China
Standards: The stand-alone (SA) architecture for 5G networks is China's

primary goal, though operators are conducting trials and tests on both the SA
and NSA architecture.
China is pushing the SA specifications to ensure the most advanced

infrastructure is rolled out first. The SA approach requires a large upfront
investment to construct a new network for 5G, including base stations,
backhaul links, and a core network. SA 5G networks are beneficial because
they enable 4G and 5G services to run in parallel and remove the complexity
of LTE integration, while providing economies of scale. On the other hand,
the NSA model leverages existing infrastructure, supplemented by targeted
small cell deployment in high-density areas, which offers a quicker route to
market than the SA model. While China initially pushed for the SA model, its
decision to advance commercial deployments to 2019 has prompted some
operators like China Mobile to initially focus on the NSA model since it's
faster to execute.
Spectrum: China is rolling out 5G in lower frequencies first and treating high
frequencies as a supplement.

large contiguous blocks of spectrum in the mmWave and mid-range
frequency bands to reach full potential.
 High-band spectrum. So far, China has yet to assign mmWave

spectrum for 5G, though the MIIT in July 2017 approved two
mmWave bands — 24GHz-to-27GHz and 37GHz-to-42GHz — for
research and testing. The country is expected to allocate spectrum
in the mmWave band by 2020 or 2021, at which time China will
likely be closing in on the leading country — the US — in terms of
how much mmWave spectrum is available for commercial mobile
services.

 Mid-band spectrum. China has already allocated 300MHz of mid-
band spectrum in test licenses to the country's carriers, placing it
behind Spain and Italy to claim the third spot among the countries
examined. China is expected to advance to the second rank by the
end of 2020, when it will have approximately 500MHz of mid-band
spectrum available for mobile use.

Notable Wireless Network Operators In China
China's three state-owned wireless carriers are gearing up to launch the first
phase of 5G commercial services in 40 Chinese cities on October 1, 2019, to
celebrate the 70th anniversary of the country's founding of the People's
Republic of China. Each operator will have between 30,000 and 50,000 base
stations — provided by ZTE, Huawei, and Ericsson — deployed across the
40 mainland cities. Since 2016, there have been 5G trials in over 100
Chinese cities. The country is prioritizing the development of mobile 5G
services over leveraging the tech as a fixed broadband replacement; China is
not currently understood to be trialing or planning to launch 5G FWA
services.
China Mobile
Overview: China Mobile is the world's largest wireless operator by

subscribers and revenue, and it's been at the forefront of 5G technology,
achieving several milestones along the way.
This year, China Mobile supported the launch of Shanghai's 5G trial network,
which covers the entire Hongkou district — the world's first district to boast
both 5G and gigabit broadband coverage — and connected the first railway
station to have a 5G digital indoor system (DIS). The operator also connected
the world's first holographic video call using 5G SA NR standards and
assisted China's first 5G-based remote surgery on a human brain. China
Mobile's 5G capex for 2019 is expected to be at 17.2 billion yuan ($2.5
billion), which amounts to more than the 5G capex of China Telecom and
China Unicom combined.

 Wireless subs. China's largest operator by volume boasted 925

million subscribers at the end of 2018, accounting for 60% of the
country's connections.
 Wireless revenue. The company's mobile revenue in 2018 hit 492

billion yuan ($71 billion), which is down nearly 2% YoY.
 Capex. China Mobile incurred capital expenditure of 167 billion

yuan ($24 billion) in 2018, down 6% YoY.

Mobile 5G
China Mobile is currently conducting 5G network tests and performing

precommercial trials on business applications in select Chinese cities.
The telecom commenced precommercial 5G trials and application tests in 17
cities in 2019 after the MIIT gave it the go-ahead to adopt 2.6GHz and
4.9GHz frequency bands for nationwide 5G trials in December 2018. The
carrier is using the trials to conduct real-time tests of 5G-empowered
applications, which were previously in laboratories, in order to tackle the
technical difficulties anticipated to threaten commercial use, according to
China Mobile technology department general manager Wang Xiaoyun.
The trial is expected to expand to over 100 cities in 2019, before

beginning its commercial launch. Now that China Mobile has received the
go-ahead for commercial 5G deployments, the carrier has awarded its first
round of 5G network equipment contracts and selected Huawei and ZTE as
its major suppliers.
 Devices: China Mobile is gearing up to launch its own in-house

developed 5G devices, including the Forerunner One 5G mobile
smart hub, which was announced at MWC 2019. And after being
granted a 5G commercial license in June, the telecom announced
plans to buy 10,100 smartphones from five domestic manufacturers
— Huawei, ZTE, Xiaomi, Oppo, and Vivo — for 5G testing.
What's coming next: China Mobile's sights are set on conquering IoT as the
country shifts into the 5G era.

China Mobile is banking on its leading market position to forge
partnerships with global companies to propel enterprise IoT adoption
— a key use case for 5G networks. China Mobile's IoT subsidiary China
Mobile IoT is the global leader in IoT connections: It boasted 551 million
IoT connections at the end of 2018 and added 58% (322 million) of its total
connections in 2018 alone. For context, that's 5.5 times the total IoT
connections China Telecom serviced (100 million) at the end of 2018. The
carrier has already joined forces with companies like Singtel, Etisalat,
Vodafone, NTT DOCOMO, and AT&T to further enable global business
customers to connect and deploy their assets and offerings in China and
worldwide. The company is also leveraging its expertise to build out a 5G
superhighway housing several 5G applications, such as smart toll stations
and real-time traffic predictions, in the central Chinese city of Wuhan. China
Mobile has already deployed 31 5G base stations in Wuhan for the initiative,
and it plans to install an additional 2,000 by the end of 2019.
Why it's worth watching: The carrier's unique assignment of spectrum by

the MIIT sets it apart from Chinese rivals, and that gives it an initial
competitive advantage in China's wireless industry.
China Mobile's 2.6GHz band has the potential to reap cost savings for
the company, allowing for increased capital allocation to emerging IoT
networks and other industry segments. The lower band is typically a 4G
band, but it's also suitable for 5G. Lower bands can provide wider area
coverage than the higher frequencies the MIIT issued to China Unicom
(3.5GHz-to-3.6GHz ) and China Telecom (3.4GHz-to-3.5 GHz). These
benefits will help lower the overall cost of China Mobile's new network while
enabling it to serve more customers than its Chinese competitors: China
Mobile is only aiming to spend 150 billion yuan ($21.7 billion) in 2019 toward
capex — a more than 10% YoY decline from 2017 and a nearly 16% drop
from 2016.

China Unicom
Overview: China Unicom is the second-largest operator by volume and the

first Chinese carrier to launch public 5G trial services in the country.
The carrier moved up the launch of its first public 5G network trial to April
2019 to accelerate the commencement of commercial 5G services in China.
In 2019, China Unicom is budgeting 8 billion yuan ($1.2 billion) to 5G from its
58 billion yuan ($8.4 billion) capex.
 Wireless subs. The operator had 320 million mobile subscribers

at the end of 2018, accounting for nearly 21% of the country's
subscriber base.
 Wireless revenue. The carrier's mobile service revenue increased

5.5% YoY to reach 165.1 billion yuan ($23.9 billion) in 2018.
 Capex. In 2018, China Unicom's capex reached 44.9 billion yuan

($6.5 billion), up nearly 7% YoY.
Mobile 5G
China Unicom's April 2019 commercial 5G test network offers full

service in seven cities as well as partial coverage in 33 other cities via
hotspots. The mobile 5G service initially relies exclusively on mid-band
spectrum, as the MIIT assigned the carrier spectrum in the 3.5 GHz-to-3.6
GHz frequency band in December 2018. To facilitate the commercial trial of
its 5G network, the carrier is providing select subscribers with 5G services
and capable devices to incentivize them to join.

 Devices: China Unicom plans to eventually support 15 smartphone
models and CPEs from a dozen brands, including Huawei, Oppo,
Vivo, Xiaomi, and ZTE.
What's coming next: China Unicom is backing a range of 5G-powered

healthcare applications to ensure a commanding role in transforming the
medical ecosystem at home and abroad.
The network operator is providing technical support for 5G-enabled

remote medical services and will continue pushing to reach milestones
in the space. In April, China Unicom aided the establishment of Zhuhai's first
5G-empowered smart medical center — the Guishan Island 5G Center — to
connect patients in remote areas with high-end medical resources and
treatment. The Guishan Island 5G Center, which is over an hour away from
the nearest downtown hospital, was the first 5G center to remotely deliver
real-time professional diagnoses from a mainland hospital. And just a month
later, China Unicom supported a remote ultrasound scan for a patient 60km
away: Its 5G network enabled doctors to remotely operate and monitor the
medical service via a robotic arm and a large screen. China Unicom's
continued support for remote medical services — which are possible due to
5G's ability to eliminate time lags in online audio and video transmission —
will play a large role in addressing the uneven distribution of medical
resources in the region.
Why it's worth watching: China Unicom opened up a number of 5G

innovation centers that have allowed it to build out a robust ecosystem of
partners for 5G applications.

The effort will help create a strong foundation for China Unicom to
explore new verticals. China Unicom established the 5G Application
Innovation Alliance, which brings together 32 industrial companies with
applications for 5G. Major initiatives under the alliance include raising 10
billion yuan ($1.4 billion) to incubate 5G-related projects and aid 20
specialized companies along the 5G industrial chain. The carrier developed
the 5G International Cooperation Alliance to explore international 5G roaming
with Telefonica, NTT, Orange, and BT Group. China Unicom also set up the
5G Joint Innovation Lab to join forces with partners and explore and
demonstrate 5G applications in 10 key industries, including areas such as
new media, remote healthcare, industrial internet, and internet of vehicles.
China Telecom
Overview: China Telecom is eyeing 2019 for precommercial trials and

expects to build around 200,000 5G base stations by the end of the year — it
will allocate 9 billion yuan ($1.3 billion) to 5G networks from its 78 billion yuan
($11.3 billion) capex for 2019.
 Wireless subs. China's third-largest operator by volume had 303

million subscribers at the end of 2018, accounting for just
over 19% of the country's subscribers.
 Wireless revenue. The telecom's mobile service revenue

amounted to 167.7 billion yuan ($24.2 billion) in 2018,
representing an increase of 9.1% compared with last year.
 Capex. In 2018, capex was 74.9 billion yuan ($10.8 billion), down
15.5% YoY — 2018 marked the third consecutive annual decline.

Mobile 5G
China Telecom pledged in September 2018 to start to scale trials of 5G

applications in 17 cities in 2019, and aims to launch large-scale
commercial 5G services in 2020. The network trials will initially rely
exclusively on mid-band spectrum, as the MIIT assigned the carrier spectrum
in the 3.4GHz-to-3.5GHz frequency band in December 2018. SA is the
company's direction and goal, but it will conduct concurrent NSA and SA
scale trials to start.
 Devices: China Telecom hasn't announced any devices yet.
What's coming next: China Telecom is focused on extending its presence in

different verticals via global partnerships.
The carrier is leveraging 5G to broaden its intelligent solutions and

service capabilities in industries ranging from automotive,
manufacturing, and environmental maintenance. China Telecom inked a
strategic partnership with BAIC Group in May 2019 to jointly build an
intelligent connected vehicle (ICV) ecosystem through collaboration in 5G,
intelligent networking, smart logistics, new retail, data communications
technology, and information infrastructure. The duo also plans to conduct 5G-
based tests of autonomous vehicles in October 2019. China Telecom teamed
up with ZTE to launch a 5G intelligent water management solution and a 5G-
enabled industrial service platform designed to allow specialists to remotely
assist on-site maintenance personnel. The network operator also supported a
test run for a 5G-powered remote-controlled car, in which a remote operator
was able to control the car while watching the live feed of road conditions
supported by the 5G network. It also teamed up with Tata Communications to
grow the global reach of its IoT offerings, including in the consumer space
but also for industrial applications like electronics manufacturing, automotive,
and transportation and logistics.

Why it's worth watching: China Telecom's efforts to showcase applications
of 5G before it's commercially available will place it in a strong position to
drive future demand and service growth for its 5G network.
Providing potential customers with a taste of what the future entails

with 5G will strengthen China Telecom's ability to drive upgrades when
commercial 5G services roll out. China Telecom's 5G network is powering
southwest China's Guizhou province's first 5G bus, which consumers can
take for free to experience 5G and learn how the technical advancements of
the standard will impact their lives in a way that resonates. The bus is
equipped with five screens and an experience area to showcase 5G's ability
to support and enhance VR experiences, panoramic maps, live broadcasts,
video conferencing, and long-range medical treatments, among many things.
The carrier is also providing free 5G Wi-Fi on Zhongshan Si Road, Yuzhong
district that reaches speeds 100 times faster than the 4G network, and it
plans to expand coverage to five major business areas by the end of 2019.
Real-word demonstrations that help paint a picture of how 5G will impact
users will better enable China Telecom to convince mobile users to make the
leap to 5G.

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The Global 5g Landscape - 2019

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THE GLOBAL

Rayna Hollander | Research Analyst

Copyright © 2019, Insider Inc. All rights reserved. 1

 This report illustrates how the countries spearheading the 5G

 The countries examined are expected to be among the first

Copyright © 2019, Insider Inc. All rights reserved. 2

o South Korea was the second country in the world to deploy

Copyright © 2019, Insider Inc. All rights reserved. 3

Download the charts and associated data in Excel »

Copyright © 2019, Insider Inc. All rights reserved. 4

Copyright © 2019, Insider Inc. All rights reserved. 5

Copyright © 2019, Insider Inc. All rights reserved. 6

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The US launched the world's first commercial 5G services in 2018,

Copyright © 2019, Insider Inc. All rights reserved. 8

Copyright © 2019, Insider Inc. All rights reserved. 9

 The regulator is making a concerted effort to free up mmWave

 It's streamlining regulation to facilitate 5G deployments and

Copyright © 2019, Insider Inc. All rights reserved. 10

Key Components Of 5G In The US

Standards: US wireless operators' early 5G network deployments are based

A focus on the NSA architecture is a move to protect telecoms' legacy

Copyright © 2019, Insider Inc. All rights reserved. 11

Compared with previous networking technology, 5G networks require

 High-band spectrum. The US is one of only three countries that have

Copyright © 2019, Insider Inc. All rights reserved. 12

Copyright © 2019, Insider Inc. All rights reserved. 14

US mobile network operators are undertaking different methods for their 5G

Verizon's been striving to be a leader in 5G deployment for several years:

5G-related financial highlights for 2018:

 Wireless subs. The carrier boasts approximately 154 million

 Wireless revenue. In 2018, Verizon generated nearly $91.7 billion in

 Capex. Verizon's wireless capex reached nearly $8.5 billion in

Copyright © 2019, Insider Inc. All rights reserved. 15

Fixed 5G came first among Verizon's 5G services, and it's already

 Devices. The Verizon 5G Home Router, which is installed by a

Copyright © 2019, Insider Inc. All rights reserved. 16

 Devices. The company offers 5G access through a Motorola moto z3

 Plans. Verizon subscribers on all three of its unlimited plans will be

What's coming next: Verizon is focused on enterprise solutions, specifically

Copyright © 2019, Insider Inc. All rights reserved. 17

Verizon is banking on leveraging 5G to power automated technologies

Copyright © 2019, Insider Inc. All rights reserved. 18

Overview: AT&T is the second-largest US mobile operator by volume, and

5G-related financial highlights for 2018:

 Wireless subs. AT&T has about 153 million subscribers, or more

 Wireless revenue. AT&T Mobility revenue, which accounts for 39% of

Copyright © 2019, Insider Inc. All rights reserved. 19

AT&T's mobile 5G service is already seeing uptake among enterprises.

 Devices. The service is currently available with AT&T's Netgear

 Plans. The Netgear Nighthawk 5G Mobile Hotspot costs $70 per

Copyright © 2019, Insider Inc. All rights reserved. 20

AT&T flipped on its fixed 5G ambitions and is gearing up to deploy the

What's next: AT&T is focused on continuing its development of companion

The company is working to expand its role as a provider of IoT services

Copyright © 2019, Insider Inc. All rights reserved. 21

Why it's worth watching: AT&T's ability to quickly scale up attractive,

Business-to-business (B2B) segments have a wide range of needs

Copyright © 2019, Insider Inc. All rights reserved. 22

Copyright © 2019, Insider Inc. All rights reserved. 23

 Wireless subs. T-Mobile boasts nearly 80 million mobile

 Wireless revenue. Separately, T-Mobile revenue hit $43.3 billion in

 Capex. T-Mobile's total capex reached $5.5 billion in 2018, up