The 5G license is a go-ahead for full commercial deployment of the next-generation cellular network technology and would trigger investment in the telecommunications sector.
The companies licensed by the government include state-owned carriers like the China Unicom, China Telecom and China Mobile plus the state-owned broadcaster China Broadcasting Network Corporation Ltd.
The license was also granted to the Huawei Technologies amidst global setback being faced by the company.
Huawei Technologies in response to the license grant said that it was prepared to support China's 5G build-out. It said it had signed 46 5G commercial contracts in 30 countries to date, shipping more than 100,000 5G base stations.
This latest development will pave way for advances in technologies like autonomous driving and artificial intelligence.
Some business analysts however believe the China's 5G rollout will face difficulties due to the United State's ban on Huawei buying parts and components from American firms without Washington's approval.
"We remain concerned that if the U.S. export ban on Huawei remains in place for some time, and is even extended to other Chinese tech companies, it will be very difficult for China to build 5G in scale,"Jefferies said in a note.
"The action by China to accelerate 5G licensing does not remove or alleviate this risk."
Let's keep tuned for more updates in the issue. What's your take on the update? Will China be able to proceed without the help of the United States?
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