(Yicai Global) Oct. 22 -- The building of public infrastructure somewhat ahead of demand is standard practice, said an official at China’s Ministry of Industry and Information Technology, following concerns about the increasing cost of the country’s fifth-generation mobile network.
Moderately advanced construction is a common feature of public infrastructure projects, and that is also the case with telecoms networks, including for 4G and 3G, Wen Ku, director of the ministry’s telecoms department, said at a press conference today.
China has set up 690,000 5G base stations so far this year, surpassing its annual target of 500,000. The excessive increase in investment has raised user costs and public sector debt, and it is difficult to bear those costs, a number of experts said recently.
5G network costs will fall along with their large-scale construction, Wen said, adding that the networks’ broad application will ensure the sustainability of its investment and construction. China must also redouble its efforts to innovate in the field of 5G application, he said.
The 5G network is still undergoing steady growth and the nation must hew to its strategic resolve, respect the laws of technological evolution, and network construction and market development, Wen said.
Local governments also attach great importance to the development of the new telecoms standard, Wen said, and strongly support it with project planning, resource access, site selection and base station power consumption, which eases the difficulty of network construction and company operating pressure, and stimulates operators' enthusiasm for construction.
The operating companies are considering whether to increase the number of 5G base stations to be built in the next three months, and by how many, Wen said.
Editor: Ben Armour