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5g in China: Ultra-fast network started in 50 cities

The country's three state-owned telecommunications providers launched services for the next generation of wireless technologies on Friday.

China Mobile ( CHL ) China Telecom ( CHA ) and China Unicom [19659003( CHU offer all 5G plans starting at 128 yuan (US $ 18) for 30 GB of data per month, providing Chinese Internet users with access to ultra-fast service.

According to state-run Chinese news agency Xinhua, 5G commercial services are now available in 50 cities, including Beijing, Shanghai, Guangzhou and Shenzhen. In Shanghai, nearly 1

2,000 5G base stations have been activated to support 5G coverage in key outlying areas of the city.

In other countries, including the US and South Korea, 5G services were introduced in selected areas earlier this year. However, according to Bernstein Research, China's commercial network is the largest, which gives the county more influence on the global development of technology.

"The scale of its network and the price of its 5G services will have a critical impact on the supply chain as a whole." Bernstein analyst Chris Lane said earlier this week in a research report.

  I tried 5G. It will change your life - if you find it

China has more mobile Internet users than any other country. Around 850 million people use their smartphones to surf the Internet. According to Xinhua.

Jefferies analysts predict China will have 110 million 5G users by 2020 – about 7% of the country's population. South Korea launched its 5G network in April, and about 3% of the country's Internet users subscribe to it, according to Jefferies.

The role of Huawei

Huawei, the world's largest manufacturer of telecommunications equipment and a leading smartphone brand, plays an important role in the introduction of the 5G network in China. Europe warns that 5G networks could be hit by government-backed hackers ” data-src-mini=”//cdn.cnn.com/cnnnext/dam/assets/191009090731-5g-technology-europe-restricted-small-169.jpg” data-src-xsmall=”//cdn.cnn.com/cnnnext/dam/assets/191009090731-5g-technology-europe-restricted-medium-plus-169.jpg” data-src-small=”http://cdn.cnn.com/cnnnext/dam/assets/191009090731-5g-technology-europe-restricted-large-169.jpg” data-src-medium=”//cdn.cnn.com/cnnnext/dam/assets/191009090731-5g-technology-europe-restricted-exlarge-169.jpg” data-src-large=”//cdn.cnn.com/cnnnext/dam/assets/191009090731-5g-technology-europe-restricted-super-169.jpg” data-src-full16x9=”//cdn.cnn.com/cnnnext/dam/assets/191009090731-5g-technology-europe-restricted-full-169.jpg” data-src-mini1x1=”//cdn.cnn.com/cnnnext/dam/assets/191009090731-5g-technology-europe-restricted-small-11.jpg” data-demand-load=”not-loaded” data-eq-pts=”mini: 0, xsmall: 221, small: 308, medium: 461, large: 781″ src=”data:image/gif;base64,R0lGODlhEAAJAJEAAAAAAP///////wAAACH5BAEAAAIALAAAAAAQAAkAAAIKlI+py+0Po5yUFQA7″/>

The Shenzhen-based company has business with all three Chinese telecommunications operators. China Mobile, China's largest mobile operator, has awarded almost half of its 5G network contracts to Huawei, China Daily reports. The remainder went to competitors such as Ericsson ( ERIXF ) Nokia ( NOK ) and . ZTE ( ZTCOF ) .

Huawei was pressured by a US campaign against his company. Washington called on countries to ban Huawei devices from their 5G networks and claimed that Beijing could use them for spying. Huawei denies that any of its products pose a security risk.

Despite the pressure, Huawei has found customers for its 5G products. The company had signed 60 commercial 5G contracts with carriers around the world in a earnings report earlier this month, beating rivals Ericsson and Nokia.

  Europe goes its own way with 5G and Huawei

Smartphone Sales

[19659012] Several Chinese smartphone makers have already begun selling 5G devices in China.

However, Huawei is in pole position to dominate the market, "given its close relationships between operators in the provision of 5G networks and control over key components," said Nicole Peng, analyst at research firm Canalys.

Peng said a research report from Wednesday in which local rivals Oppo, Vivo and Xiaomi "will find it very difficult to make a breakthrough".

CNN's Yong Xiong contributed to this story.

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