Chinese telecom operators cut back 5G network construction

Infrastructure spending falls 25% with cost-sharing and chip shortage

20210819 China 5G

According to government figures, China had 365 million active 5G connections as of June 30, up 166 million from Dec. 31. © AP

KENJI KAWASE, Nikkei Asia chief business news correspondent

HONG KONG -- Spending on 5G networks and other infrastructure by Chinese telecommunications companies dropped 25% in the first half of the year, a period they had previously identified as a peak time for building out their new high-speed systems.

The drop reflects a combination of microchip shortages that have affected equipment availability and efforts by the carriers to cut costs by sharing infrastructure.

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