A free trade zone (FTZ) in South China's Shenzhen, Guangdong Province, has established full 5G coverage, becoming the first FTZ in China to see deployment of the next generation of wireless technology, according to media reports.

According to the reports, China (Guangdong) Pilot Free Trade Zone Qianhai and Shekou Area's 5G network has reached a peak bandwidth exceeding 1.5 Gigabit per second (Gbps), with ultra-low latency of less than 8 milliseconds in the ecosystem. The Qianhai and Shekou area is now looking to develop 5G-related technology, including AR/VR and connected vehicles.

Currently, China Unicom's Shenzhen branch has deployed 111 5G base stations to enable the coverage of 5G networks in the FTZ. A large-capacity intelligent optical transport network (OTN) for government and enterprises is also already in deployment.

Shenzhen is known for its technological edge and is one of the first trial 5G cities in China. Now the city is pushing the progress of the deployment of 5G infrastructure. 5G is expected to be commercialized by 2020, and more than 7,000 base stations will be set up in the city in 2019.

Apart from China Unicom, which has announced its plan to deploy 5G in 40 cities in China, other operators are also working to speed up 5G deployment and commercialization. China Mobile's Guangdong branch is planning to set up around 3,000 base stations in Shenzhen, and China Telecom has planned to invest 9 billion yuan ($1.34 billion) in 5G technology, according to media reports.

Given the high cost of 5G deployment, strong government policy support is crucial for the major operators' progress in 5G development. On Wednesday, Hao Peng, an official of the State-owned Assets Supervision and Administration Commission of the State Council, regulator of state-owned enterprises, including the three major operators, urged them to invest in the core research and development of 5G and accelerate the deployment of the technology during a research trip at China Mobile.