The 5G industry and its business model in China is yet to mature, and the international standard of 5G will be released in the second half of 2018, so China Mobile just keeps carrying out 5G test for the time being, Shang Bing, chairman of China Mobile said at the China Mobile interim results presentation on August 10.
He noted the 5G developments of China Mobile depend on the industry development trend and the maturity of technology and business model, for which the company can tell the definite number of capital expenditure with respect to 5G.
Also, Mr. Shang said China Mobile targets mainly at 5G field tests this and next year, large-scale pre-commercial plan in 2019 and formal rollouts in 2020. The company has to consider about the ROI instead of blindly investing 5G.
Not including investment in 5G, the company's annual capital expenditure in 2017 will be CNY176 billion, Li Yue, China Mobile's CEO claimed.
The telco has already spent CNY85.3 billion in the first half of the year, resulting in the reduced free cash flow in the financial results.