China’s Telecoms Are Cautious on 5G, Says Jefferies’s Lee

The video discusses the gradual rollout of 5G and its impact on the market, particularly focusing on China Mobile's dividend strategy and CapEx guidance. It highlights the cautious approach of Chinese telcos towards 5G spending and the lack of immediate applications justifying a larger buildout. The role of Huawei in the 5G landscape is examined, considering potential risks from US-China trade tensions. Additionally, the video explores the significance of 2G refarming for future network capacity, emphasizing the need for maintaining 4G networks to handle data and voice traffic as 5G is primarily for data services.

What is one reason why stocks might be under pressure despite the 5G rollout?

• High costs of 5G equipment

• Lack of significant dividend increase

• Increased competition from new telcos

• Regulatory challenges

Why are Chinese telcos cautious about 5G spending?

• They have already completed their 5G networks

• They are waiting for government subsidies

• They have not seen justifiable applications for a larger buildout

• They are focusing on 4G expansion instead

How might the Huawei situation affect 5G development in China?

• It will have no impact

• It will lead to increased foreign investment

• It might delay the 5G buildout

• It could accelerate the rollout

What is the primary reason for 2G refarming in China?

• To reduce operational costs

• To prepare for future 5G networks

• To increase 2G coverage

• To improve voice services

What is expected to handle voice traffic in the future as 3G and 2G networks shut down?

• Wi-Fi networks

• 4G networks

• Satellite communications

• 5G networks