China will spend $134-220 billion on 5G between 2020 and 2025

China will spend between $134 billion and $220 billion on 5G infrastructure between 2020 and 2025 says the China Academy of Information and Communications Technology (CAICT).

This is roughly equivalent to the annual capex of all the world’s telcos.

Globally operators spend about $150 billion a year on capex out of their collective revenues of $1.6 trillion.

The total global cost of installing 5G is estimated at $2.7 trillion and the cost of installing it in Europe is estimated at $568 billion.

The collective annual capex of European telcos is $47 billion and their collective annual revenues are $270 billion.

CAICT estimates that the the direct and indirect economic value derived during 2020-25 from the commercial operations of China’s 5G networks will be between $158 billion and $369 billion.

CAICT also estimates that the 5G-related revenues of China’s network operators will be $283 billion in the five year period.

This year 5G-enabled handsets will cost $1,192 and next year $149, estimates CAICT.

Globally 5G phones are likely to account for 7% of 5G handsets this year, says IDC, rising to 18% in 2022.

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