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Even as we are still discovering the marvels of 5G technology every day, the 6G race has already begun. 6G or the sixth generation of cellular technology is already preparing for its momentous entry between 2026 and 2030. Neil Mawston, executive director at market research firm Strategy Analytics predicts the launch of the first 6G-enabled smartphone in 2029.
6G technology has the capacity to deliver download speeds close to 1 terabit per second with a latency of one microsecond and unlimited bandwidth. These capabilities give 6G an edge over 5G functions in autonomous vehicles on roads and in intelligent robotics in the manufacturing sector. According to Forbes, “With development ramping up in areas like meetings, workplace training, social media, health care, and transportation, we are moving toward an incredible array of 6G use cases that will improve people’s lives all over the world.”
The talks about 6G technology have already begun as many countries, especially in Asia, have already chalked out their launch plans. Several big players are already engaging in discussions as operators and vendors to plan. South Korea, Japan, China, and India, the Asian countries that were the forerunners in the 5G race, have started developing their 6G capabilities intensely.
China is one of the top contenders in the 6G race. The country has also launched its first 6G satellite, with plans to launch more low-Earth orbit satellites. It plans to introduce early 6G mobile apps by 2025 and deploy them for commercial usage by 2030. According to the China Internet Network Information Center, the country has over 38,000 global patent applications, the highest worldwide.
South Korea has also launched a 5-year program to launch its 6G services by 2026 and for commercial use starting 2028. The country plans to invest nearly $193 mn to boost its ambitions. South Korea’s Electronics and Telecommunications Research Institute (ETRI) indicated that it is working on the terahertz (THz) frequency band to meet the 6G criteria of terabits per second data transfer rate.
Japan has earmarked $482 mn to develop 6G technologies by 2025, with its commercial use targeted in 2030. The country plans to work together with the US to create international standards in unmanned technology using 6G communications. Plans are to commercialise the technology for chip-scale atomic clocks by fiscal 2025.
Singapore also plans to launch 6G technology in the 2030s. The Singapore University of Technology and Design (SUTD) lab plans to explore new applications of technologies such as artificial intelligence, edge computing, and network virtualisation. This is a part of the Singapore government’s $50 mn 6G program under the newly launched Future Communications Research and Development Programme (FCP).
According to AstuteAnalytica, the 5G transition in India already holds vast growth potential, with projected revenues of $168.8 bn over 2023 – 2031 at a CAGR of 43.8%. And the government is already set to start the high-speed 6G journey under the initiative Bharat 6G. India’s 6G project will be rolled out in two phases. The first one from 2023 to 2025 would see the exploration of ideas and proof-of-concept testing. In the second phase, between 2025 to 2030, the government aims to commercialise peer-reviewed ideas and concepts.
How to invest in Asia’s 6G-powered initiatives?
Here’s a look at four Asian companies that are all set to ace their 6G game and position themselves ahead of the pack:
Samsung Electronics
Samsung has been focussing on its 6G operations since 2020. The South Korean company intends to use sixth-generation technologies for sensing, imaging, displaying, and AI.
The company’s revenues rose by 8.1% year-on-year to KRW 302.23 tn ($245.7 bn) for the year ended 31 December 2022. During the same period, Samsung’s operating profit dropped by 16% year-on-year to KRW 43.37 tn ($33 bn).
Listed on the Korea Stock Exchange (KS: 005930), the company has a market capitalisation of $350 bn. The company’s stock climbed 16.21% in the past year, and it has a PE ratio of 13.48.
China Mobile
China Mobile is already making a lot of news due to its artificial intelligence bets and the 6G ambitions of the government. The telecom operator along with 16 other international operators would have already submitted a proposal for the same.
The company’s revenues rose by 10.5% year-on-year to 937.3 bn yuan ($130.81 bn) for the year ended 31 December 2022. During the same period, China Mobile’s operating profit grew by 14.3% year-on-year to 141.9 bn yuan ($19.80 bn).
Listed on the Hong Kong Stock Exchange (HK: 0941), the company has a market capitalisation of $180 bn. The company’s stock surged 30.8% in the past year and it has a PE ratio of 9.78.
China Unicom
China Unicom has announced its plans to intensify research and development of 6G technologies and carry out collaborative innovation in 6G unified network architecture and technologies.
The company’s revenues rose by 8.3% year-on-year to 354.9 bn yuan ($49.42 bn) for the year ended 31 December 2022. During the same period, China Unicom’s operating profit increased by 17.5% year-on-year to 24.3 bn yuan ($3.38 bn).
Listed on the Hong Kong Stock Exchange (HK: 0762), the company has a market capitalisation of $22.7 bn. The company’s stock climbed 48.36% in the past year and it has a PE ratio of 9.38.
NTT Docomo
Japan’s Nippon Telegraph & Telephone (NTT) plans to build a pilot 6G network to serve the venue for the 2025 World Expo in Osaka. It also plans to commercialise the technology by the end of the decade. NTT’s Innovative Optical and Wireless Network will power the 6G services.
The company’s revenues rose by 36.8% year-on-year to 3490.2 bn yen ($24.47 bn) for the year ended 31 March 2023. During the same period, NTT’s operating profit grew by 21.9% year-on-year to 259.1 bn yen ($1.82 bn).
Listed on the Tokyo Stock Exchange (T: 9613), the company has a market capitalisation of $14 bn. The company’s stock slid 0.73% in the past year and it has a PE ratio of 18.05.
Editor’s note: All stock movement figures as of August 4, 2023.
