The European Union (EU) has reached an agreement with China to make wireless 5G commercially available by 2020. The two countries will work together closely to establish a 5G global standard.

5G is the future's communication network, not only allowing faster connections but innovative functionalities as well. The telecommunication system will also serve as the groundwork of an EU market for the Internet of Things (IoT), extending smart innovative apps and functionalities to homes and cars.

It is estimated that mobile Internet traffic in 2010 will be approximately 30 times more when 5G networks are installed.

"5G will be the backbone of our digital economies and societies worldwide. This is why we strongly support and seek a global consensus and cooperation on 5G. With today's signature with China, the EU has now teamed up with the most important Asian partners in a global race to make 5G a reality by 2020. It's a crucial step in making 5G a success," said Günther Oettinger, the European commissioner in charge of the digital economy and society.

During the EU and China's High Level Economic and Trade Dialogue in Beijing, Oettinger and Miao Wei, the Chinese minister of industry and information technology, signed the agreement, starting the joint participation of both countries in the global race of developing 5G networks. Recently, Japan and South Korea reached such an agreement as well in which the EU and China's agreement was drafted on similar terms.

The EU and China hope to finalize a draft of the agreement and reach a global understanding by the end of 2015 for all aspects of 5G implementation, including basic functionalities, time plan, key technologies and concept. The two countries also wish to explore all possibilities regarding joint-research actions, global standardization, spectrum requirements and research for services and apps for 5G, particularly for IoT.

With the Horizon 2020 Programme, the European Commission (EC) is going to invest €700 million or about $786 million in the hopes of making the joint effort a complete success. Also, with its Digital Single Market Strategy, the EC plans to use it to improve spectrum coordination in the EU for the needs of 5G in the near future.

Chinese and EU 5G associations will be open in terms of market access, research funding and access to 5G networks. China plays a crucial role in 5G's future, as it has the potential for the largest 5G market for its products, services and technologies, allowing the ICT industry and EU telecoms to gain more access to the Chinese market. The agreement will establish a reciprocal system in which European and Chinese companies gain access to 5G development, research and innovations of each country.

China's IMT-2020 (5G) Promotion Association and EU's 5G PPP Association are prepared to join in when the EU and China's agreement goes official.

Photo: Norlando Pobre | Flickr