Chinese telecom equipment maker ZTE Corp will double its research spending on the fifth-generation mobile network (5G) from this year as China steps up the push to build the world’s largest 5G network.
ZTE would invest 2 billion yuan ($295.5 million) in 5G research and development every year starting this year, up from 1 billion yuan invested last year. The budget could increase further as China will roll out 5G by 2020.
China’s increasing 5G capital spending is expected to rise to 1.65 trillion yuan by 2025, a recent research paper from the Ministry of Industry and Information Technology forecast, with equipment makers such as ZTE and Huawei Technologies set to be major recipients.
5G Integrated Solution
On Wednesday, the world’s fifth-biggest smartphone announced the availability of 5G integrated solution, which is a comprehensive suite of solution for 5G wireless access, core network and bearer network to help operators fast-track 5G commercial network deployments.
ZTE’s 5G integrated solution, which uses a fully cloud-based network architecture design, provides customers with integrated 5G network infrastructure to drive service and business model innovations and will offer support for 5G industry standards as they evolve. The release of the 5G integrated solution coincided with the Mobile World Congress Shanghai 2017 conference this week.
China and the United States are in the races to lead the development of 5G technology, which will be significantly faster than the current 4G network. International standards for 5G are yet to be finalized.
ZTE said it currently employed 3,000 people engaged in research and development for 5G. A spokeswoman for the company declined to say if it planned to increase that headcount.
ZTE’s 5G Hub in Italy
China’s ZTE Corp will make Italy its European hub for the development of 5G wireless technology.
ZTE will open 13 new research & development centers in Italy, said its CEO for Western Europe, Hu Kun. “The 5G network will be ready by next year,” said Hu who also serves as president of ZTE Italy, adding “The pre-5G phase is in full swing.”
5G development at the Italy tech hub “will be the most important experimentation, at the European level, in the telecoms field,” Hu told the Italian Institute for Asia and the Mediterranean (IsiameD), one of its digital technology partners in Italy, in an interview posted on the IsiameD website.
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