Chinese telecoms company ZTE unveiled what it said is the world's first smartphone compatible with the lightening-fast 5G mobile internet service that networks expect to have up and running by 2020. 

The company revealed the Gigabit Phone on Sunday at the Mobile World Congress (MWC) claiming it is the first smartphone capable of a download speed of up to 1 gigabit per second (Gbps) - up to 10 times faster than the first generation of 4G services widely in use today. The phone is powered by a Qualcomm Snapdragon 835 processor that features an integrated X16 LTE modem and represents an important step for 5G technology. 

The phone "marks an important cornerstone for the 5G mobile era," the company said in a statement, as it will lead to a new world of mobile experience with 360-degree panoramic Virtual Reality (VR) video, instant Cloud storage, entertainment upgrades and fast downloads of ultra Hi-Fi music and movies.

"With the new device, the way people stay connected will be changed forever. Focusing on 5G technologies will be one of the key priorities of ZTE’s global development," a ZTE spokesman said.

ZTE is a leading global provider of telecommunications equipment, networking solutions and one of the world's fastest growing smartphone manufacturers. This is the 13th time that ZTE has attended the MWC.

Tech firms are racing to develop products that will be compatible with 5G, shorthand for the fifth generation of networks, which promises blazing fast connectivity for a generation used to streaming movies and TV directly to phones. 

(With inputs from Xinhua and AFP)