Huangpu district and Guangzhou Development District in the Guangdong provincial capital of Guangzhou released a group of measures to promote the industrialization of 5G technology in an all-round way on July 4.
It was the first policy supporting the development of 5G technology launched by a district-level administration in the country.
According to the document, the enterprises or institutions that are newly founded or moved in and engaged in the industries of the next generation communication chip module, high-end components and 5G new industry terminals will be 5 percent of its registered paid-in capital, up to a maximum of 3 million yuan ($436,180) if their registered paid-in capital reaches more than 10 million yuan.
In addition, a one-off allowance of 300,000 yuan for technician introductions will be subsidized as well.
Those enterprises or institutions specializing in 5G will be rewarded 10 percent of their contribution to the local economy, up to a maximum of 2 million yuan when their annual operating incomes reach 100 million yuan, 500 million yuan and 1 billion yuan for the first time.
According to the document, 10 percent of their contribution to the local economy or expense on research and development, up to a maximum of 2 million yuan will go to those 5G enterprises or institutions whose operating income of this year reaches 10 million yuan with their revenue from 5G seeing a year-on-year increase of more than 100 percent.
A total of 10 to 15 demonstration projects will be selected and receive a subsidy worth 30 percent of their investment, up to a maximum of 5 million yuan to promote 5G applications. Among them, the "5G+intelligent manufacturing" should be no less than five, and five projects should be selected among Hong Kong and Macao enterprises.
Huangpu district and GDD encourage telecom operators to offer 5G service to cover the core production areas of industrial enterprises above designated size.
Once an operator opens the service for a new enterprise after it offers such service to no less than 20 industrial enterprises above designated size that very year, it will receive 50,000 yuan as a reward. The maximum that an operator can receive in a single year should not exceed 2 million yuan.
Those manufacturers of core equipment of 5G and next generation information technology, such as small and micro base stations, high-end optical communication products, and network products, will be granted a one-off reward of 2 million yuan when their sales revenue reaches 100 million yuan for the first time.
As the first 5G-based Internet of Things and smart city demonstration area in Guangdong, Huangpu has housed a group of leading 5G enterprises with global presence and is home to 88 companies involving 5G core components, network equipment and terminal devices.
The output value of the 5G industry in the district has exceeded 20 billion yuan.