Shenzhen Subsidizes 5G Deployment: Why Are Governments
In late June, it announced that it would subsidize the country''s top four telecom operators and would make a 20% increase in the 5G base stations it plans to build from
Technicians from China Mobile check a 5G base station in Tongling, Anhui province. [Photo by Guo Shining/For China Daily] China aims to build over 4.5 million 5G base stations next year and give more policy as well as financial support to foster industries that can define the next decade, the country's top industry regulator said on Friday.
Setting up a 5G base station is expensive, with costs ranging from $100,000 to $200,000 per site. This price includes hardware, installation, site rental, and maintenance. Urban areas often have higher costs due to land prices and infrastructure challenges.
The total cost of 5G infrastructure is staggering, with projections estimating that telecom companies will spend over $2 trillion globally by 2030. This includes investments in spectrum, network densification, fiber backhaul, energy-efficient infrastructure, and emerging technologies such as AI and automation.
Fiber optic networks are the backbone of 5G infrastructure, providing the high-speed data transfer needed to support ultra-fast connectivity. However, laying fiber is expensive, with costs ranging from $25,000 to $100,000 per kilometer, depending on location, terrain, and construction regulations.
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