In recent weeks several major developments affecting the roll out of 5G systems in the United States highlight the promise and the difficulties for near-term deployment of this transformative technology. British intelligence issued a report signaling its deep suspicions about the security of Huawei’s 5G system, which reinforces the view in the U.S. that the Chinese company should not play a role in providing equipment for commercial wireless systems. The White House later issued a strong statement that any commercial 5G system would be the province of the principle, private sector wireless carriers now operating in the U.S. Finally, Apple settled its disputes with the leading 5G technology innovator, Qualcomm, which was necessary if Apple is going to succeed in offering competitive 5G-capable mobile devices by 2020. Apple’s reliance on other semiconductor firms, notably Intel and its own research units, had not kept pace with Qualcomm and threatened to put the iPhone juggernaut in danger of a significant technology deficit with rivals.
Although these developments show the path for the 5G future in the U.S.—a private sector system primarily using domestic and legacy European technology—they do not erase some serious problems with the rapid construction of the new wireless networks, nor do they suggest an economically compelling alternative in the rest of the world to the increasingly sophistical and state-supported competitor, Huawei.
A major issue in the next few years will be the capital costs of installing the needed 5G infrastructure and software upgrades in the U.S. Effective deployment will require hundreds of thousands of new cell sites, new or upgraded connective nodes and central switches, new software and redesigned mobile devices. Cost estimates run into the hundreds of billions of dollars for the full transition.
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The likely path of installing 5G in the U.S., given the high cost of building entirely new infrastructure, is to retrofit existing 4G systems, locking the major wireless operators into existing hardware providers (mostly Nokia and Ericsson). These providers are not as advanced as Huawei which is able to offer entirely new, integrated systems at reasonable (often subsidized) prices. This dynamic too will slow the deployment of the most advanced new 5G technologies and features in the U.S.
READ THE ENTIRE ARTICLE @https://www.forbes.com/sites/thomasduesterberg/2019/04/30/problems-and-prospects-for-5g-deployment-in-the-united-states
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The April Apple-Qualcomm settlement is strong confirmation of the importance of the latter’s fundamental core 5G technology. As Huawei moves ahead with the newer 5G infrastructure in China and around the world, the superior scale of its business and China’s non-market economy incentives are allowing it to outcompete and move ahead of Nokia, Ericsson, Samsung and others in perfecting new technologies. Huawei is able to channel significant new funds into the research narrowing the Qualcomm lead and powering it ahead of the infrastructure firms.
