Tencent partners with China Unicom to build a 5G-enabled esports lab

Tencent Holdings Ltd has partnered with China Unicom to establish an esports laboratory that is powered by 5G technology. It will study innovative applications and leverage the benefits of 5G wireless technology in gaming and esports. Both companies will provide their talents and influence to ensure the success of the project.

According to Chinese gaming database Gamma Data, the Chinese gaming market generated a revenue of $16.9 billion in the first half of 2019, up 10.8% year-on-year. Its this market that China’s major telecom carrier would like to penetrate as a result of this deal. China Unicom understands that esports growth is heavily dependant upon telecom infrastructure and hopes the partnership will help them achieve the sustainable development of esports through 5G for the next decade.

The State-owned telecom carrier was the first in its industry to join Tencent's tech alliance for esports in June and Tencent also happens to be a strategic shareholder of China Unicom, thanks to the telecom’s mixed ownership. The esports laboratory will be located in the capital of Sichuan province, Chengdu and is strategically poised to disrupt the esports industry.