Huawei, ZTE, and Ericsson are financing China's 5G build by leasing/renting radios to China Mobile.  Edison Lee of Jeffries estimates the carrier is paying about US$6,500.year instead of buying the units at $35,000. Radio prices in the US and Europe can be twice the China price.

Chinese carriers intend to deploy over a million radios in the next two years, which could mean $25,000,000,000 in off-balance-sheet financing. The carriers are honouring the government mandate to accelerate 5G while also claiming to hold capex flat. Wang Xiaochu, chairman and CEO of China Unicom, predicted that “the capital expenditure in the whole year will not exceed RMB 58 billion, and the 5G capital expenditure for this year will remain unchanged at RMB 8 billion."

Under government pressure to bring down prices, China Mobile saw an actual decline in sales in the last quarter.  China Unicom saw a decline in mobile revenues.

ZTE has a $10,000,000,000 line of credit with government-owned banks. Huawei has over $30B cash on hand and minimal debt and can also cover the cost. 

Nokia CEO Rajeev Suri has cut back in China, refusing to give the carriers what they demanded.

dave ask


Rethinking Jan 27: Coronavirus could invalidate all projections. I reported on AIDS for 2 years. This could be worse because it spreads in air. Let us hope and pray.

Details on all 5G phones, as prices drop to $285 ** All actual 5G networks worldwide ** Facebook ordered to repost Italian fascist page. ** Apple China sales down 35%** Qorvo sees 300M 5G 2020 & 750M 2023 mmWave <10%

** Bharti demands India Gov more than double prices and enforce cartel. Sunil Mittal "Situation is dire. It is a matter of survival for everyone." ** Wi-Fi 6 meets ITU 5G criteria @stephenjcrowley ** Samsung $8B for Chinese memory plants ** Morgan paying billions for Altice fiber

Dec 10 Sprint bringing $300-500 5G phones to US 2020. Nokia, Lenovo, HMD ** H., Apple, and AMD doing 5 nm test runs on TSMC's 5 nm. Early results are 15-30% better than 7 nm ** AT&T low-band 5G built to >65% US. Speeds slower than 4G at launch. ** 

Verizon CEO Ronan Dunne: >1/2 VZ 5G "will approximate to a good 4G service" Midband in "low hundreds" Mbps ** CFO John Stephens says AT&T is going to cut capex soon. ** Huawei in 16 days sold 1,000,000 5G Mate 20s.  


Welcome  Asia is installing hundreds of thousands of 5G radios and adding 5G subs by the tens of millions. The west is far behind. 200,000,000 in 2020

The demand is there, and most of the technology works. Meanwhile, the hype is unreal. Time for reporting closer to the truth.

I'm Dave Burstein, Editor. I've been reporting telecom since 1999. I love to hear from readers and say thank you when you find an error.

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