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Home / Business / China beats the United States in the race for 5G

China beats the United States in the race for 5G



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The global race for 5G technology is under way – and China wins.

This is from a report by the CTIA, a trade association for the US wireless industry.

The study, conducted by telecommunications research firms Analysys Mason and Recon Analytics, found that China is most likely to introduce the next generation of super-fast wireless technology. South Korea ranks second, while the United States ranks third.

Mobile carriers are sprinting all over the world to adopt 5G networks, which are ultimately used to power self-driving cars, virtual reality, and smart cities. Whichever country launches 5G networks first will have a huge global investment and hiring advantage.

The US mobile industry is poised to pump $ 275 billion into the 5G deployment, creating up to 3 million new jobs and 500% of the country's GDP, according to an 201

7-commissioned Accenture study commissioned by CTIA Could increase billions of dollars.

Related: What is 5G

But right now, there is fear that the United States will lag behind.

"China has a tight lead in the 5G race, thanks to a combination of industry momentum and government support," said the CTIA report.

There are a few things that need to happen to make a broad commercial launch of 5G a reality.

Companies need to invest in research and development. But the government also needs to allocate additional radio frequencies to wireless companies, as 5G needs more bandwidth.

The CTIA analysis indicates that Beijing plans to make large-scale commercial use of 5G by 2020, and China's top carriers are all committed to meeting that timetable. The Chinese government has already distributed a good deal of the necessary radio frequencies.

"China benefits from extensive government-industry coordination when it comes to telecommunications," said Dan Hays, Advisor at PricewaterhouseCoopers, who specializes in telecommunications issues.

South Korea has gained much momentum through this year's Winter Olympics, which the report said were "a focus for early investment, research and experimentation".

The United States, in third place, remains "near the top," the report said. Wireless providers such as Verizon ( VZ ) and AT & T ( T ) storm ahead and want to launch the Introduction of their 5G technology in selected markets before the end of 2018.

Despite the current situation, many experts believe that the US will eventually be ahead of the pack.

"We may have lost some early battles in the 5G supremacy war, but we have not lost the war yet," Hays said.

Related: 5G helps to make Pyeongchang the most high-tech Olympics ever

However, some obstacles remain.

The US needs a clearer timetable for radio spectrum allocation, as announced in China and South Korea, CTIA said. In addition, the legislature still needs to pass some necessary legislation to make room for an infrastructure overhaul, the report said.

CTIA itself is committed to such reforms.

"The US will not get a second chance to win the global 5G race," said CTIA President Meredith Attwell Baker in a statement. "… Today's research highlights the importance of policies in 2018."

The US government has previously indicated that they want to win the 5G race and are aware of the threat from China.

Last month, President Donald Trump blocked Broadcom's $ 117 billion bid for Qualcomm ( QCOM ) for national security reasons.

The deal, which would have united two computer chip manufacturers, was examined by the Foreign Investment Committee in the United States or CFIUS.

The interinstitutional panel examining contracts that could give a foreign investor control of a US firm said that a major concern was that an acquisition would result in the United States' developing the 5G Staying behind technology would take the lead.

Qualcomm, a leader in 2G and 3G wireless networking technology, has invested heavily in 5G research.

CNNMoney (New York) First published on April 16, 2018: 5:01 am ET


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