| GSMA Releases China Mobile Economy 2019 Report
| China's Mobile Net Subscribers Reach 1.2 Billion, World's Largest
| 4G Accounts for 77% of Connections in China, to be Replaced by 5G in the Future

According to a new report released by GSMA on the 21st, China's mobile ecosystem contributed 5.2 trillion yuan—approximately 874.64 trillion won—to China's economy in 2018, representing 5.5% of China's GDP that year.

The above information is included in the China chapter, the first of its kind in the GSMA Mobile Economy report series. This data was unveiled at a special roundtable event held in Beijing to discuss the latest trends in China's mobile industry as it enters the 5G era.

The key findings of the report are summarized as follows.


First, China is the world's largest mobile market. As of the end of 2018, mobile net subscribers reached approximately 1.2 billion, accounting for 82% of China's total population.


Second, over 69% of mobile connections in China are smartphones, and smartphone penetration is projected to reach 88% of total connections by 2025.


Third, currently 77% of connections in China are made through 4G networks. 4G adoption is expected to peak within several years and then decline to 72% by 2025 as consumers migrate to 5G networks.

Fourth, by 2025, China is projected to become one of the world's largest 5G markets, with 460 million 5G connections representing 28% of all domestic connections.


Fifth, the economic contribution value of China's mobile ecosystem in 2018 was 5.2 trillion yuan (874.64 trillion won), and is projected to increase to 6 trillion yuan (1,009.14 trillion won) by 2023.


Sixth, China's mobile ecosystem contributed to the creation of 8.5 million jobs directly and indirectly in 2018 and contributed to government finances through 583 billion yuan (98.054 trillion won) in tax payments.

Seventh, licensed cellular IoT connections in China totaled 672 million as of the end of 2018, supporting various industry and smart city-related applications.

Meanwhile, the new report 'The Mobile Economy China 2019' was researched and prepared by GSMA Intelligence, GSMA's research institute.

Mats Granryd, GSMA Director General, explained, "The new report describes how China's mobile industry is creating a new generation of digital consumers and transforming industries and society as a key driver of economic growth, inclusion, and modernization."

He continued, "China's mobile operators have invested tens of billions of dollars over the past decade to deploy 4G networks across the country," and stated, "Over the next two years, China will invest an additional 401 billion yuan (67.48 trillion won) to prepare for and deploy 5G, positioning itself to grow into one of the world's largest 5G markets."