Successful Tests Drive ZTE’s Plan to Commercialize 5G in 2H18

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ZTE [0763:HK] is planning to trial operations later in 2018 to commercialize fifth generation wireless network technology (5G) after it achieved successful test results from a third-phase of national testing, reported Yicai on August 9. A promotion group under the Ministry of Industry and Information Technology (MIIT) conducted the 5G tests. This third phase is seen as the last step before ZTE can proceed with its 5G commercialization plans, according to ZTE’s WeChat account.

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5G development tests are separated into three stages, with the third phase involving system experimentation once key technology and technical solution experiments are completed. After the third phase, the next step is to build out infrastructure construction by increasing base station quotas, which are to be more than 10,000. 5G networks require much denser base stations, with as many as four to eight times more cell towers per square kilometer than a 4G network. In regards to the previously embattled ZTE, stock and market cap performance have exceeded expectations in light of the US sanctions saga that occurred earlier this year. Its stock traded at RMB14.3 per share on August 9, after reaching the 10% daily limit that the bourse’s rules stipulate after the midday break. Additionally, its market cap almost hit RMB60bn (USD8.8bn).

Eileen Li