China Races Ahead of the U.S. in the Battle for 5G Supremacy + 5G to stimulate US$500B in China tech growth over next 5 years (CAICT)

Bloomberg: China Races Ahead of the U.S. in the Battle for 5G Supremacy

by Sheryl Tian Tong Lee –with assistance from Ed Ludlow (emphasis added by Alan J Weissberger)

In the race for tech supremacy, China is betting it can seize the lead by building the world’s biggest 5G wireless networks.

To get there, the country is banking on the might of the one-party state, making sure its state-run carriers have access to cheap airwaves and fast, inexpensive approvals for putting up the hundreds of thousands of base stations the fastest wireless technology requires.

As top phone companies elsewhere flinch at the cost of building 5G wireless networks, China’s operators are barreling ahead on the government’s mandate, virtually free airwaves and equipment at less than half the price U.S. carriers are paying. Being the first to reach massive scale with the speediest networks could also help the nation in its ambition to dominate industries like factory automation, robotics and autonomous driving.

“5G is a foundation and catalyst for reinventing industries,” said Paul Lee, U.K.-based head of research for technology, media and telecommunications at Deloitte Consulting. “The fundamental benefit of being the first mover is that you can build business models on the back of that and export them to other countries.”

As top mobile carriers elsewhere flinch at the cost of building 5G wireless networks, China’s telecoms operators are barrelling ahead on the government’s mandate, virtually free airwaves and equipment at less than half the price US carriers are paying. Photo: Reuters

As top mobile carriers elsewhere flinch at the cost of building 5G wireless networks, China’s telecoms operators are barrelling ahead on the government’s mandate, virtually free airwaves and equipment at less than half the price U.S. carriers are paying. Photo: Reuters

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South Korea’s wireless carriers were the first to offer commercial 5G services, with SK Telecom Co. launching its network in April and Samsung Electronics Co. already offering a 5G-enabled smartphone. But while U.S. carriers in cities like Minneapolis and Chicago have the beginnings of 5G offerings, it’s in sheer scale where China is on course to edge ahead over the next five years.

That size advantage is also reflected in China’s push to invent 5G technology.

The country’s biggest companies have already established a lead in patents related to the fastest network technology. Huawei Technologies Co., the contentious Chinese firm that’s at the heart of current U.S.-China tensions, leads the pack as the world’s biggest telecom equipment supplier. Meanwhile, ZTE Corp., which has also drawn America’s ire in the past, comes in at No. 3, according to Berlin-based patent information platform IPlytics.

But that won’t necessarily translate into network domination. China’s three carriers — China Mobile Ltd., China Unicom Hong Kong Ltd. and China Telecom Corp. — are all state owned.

Harvard Business School economist Shane Greenstein says having a bigger government role in 5G may not provide an advantage.  “The private firms in China in the digital sector have an admirable record with experimentation,” he said. “The state-owned enterprises? That is a more open question.”

Where the government is helping is by holding carriers’ costs down. Beijing is providing the bandwidth for 5G networks almost for free, said Edison Lee, head of telecommunications research at Jefferies Hong Kong Ltd.

U.S. carriers, by contrast, bid $2.7 billion at two auctions of 5G airwaves, according to the Federal Communications Commission. In India, the industry group representing carriers says its members can’t afford spectrum the government expects to auction for about $84 billion this year.

China’s operators will also pay less for base stations. The units will probably cost about $30,000 each in China, less than half the $65,000 average in other developed-economy markets, Jefferies’ Lee estimates. Two of China’s carriers have said they will lease the equipment, cutting the upfront cash outlay to roughly $6,500 each per year, Lee said.

In the U.S., where the government is leaving 5G to companies, carriers will also pay at least five times more than Chinese operators for civil engineering and permits to build 5G, Deloitte Consulting estimates.

The world’s most populous country has about 350,000 5G-operable base stations deployed, nearly 10 times as many as in the U.S., according to a U.S. Department of Defense study.  The report says China claiming the position of standard-setter for 5G, with Huawei leading rival telecom equipment makers, is a risk for the U.S. This “will create serious security risks for DoD going forward if the rest of the world accepts Chinese products as the cheaper and superior option for 5G,” said the report.

Concern about China’s edge prompted President Donald Trump to float a proposal last year for the government to build a secure 5G network, people familiar with the matter said at the time. The idea was dropped immediately after regulators, industry leaders and elected officials immediately pushed back, saying companies were in a better position to move the technology forward.

The idea of China securing that advantage is also stoking concern among competitors beyond the telecommunications equipment and wireless services industries.

Chip maker Qualcomm Inc., for example, is urging the U.S. and other Western governments to embrace 5G more rapidly or risk falling behind China in the potentially life-saving technology, which is also used in self-driving cars.

China will be “saving hundreds if not thousands of lives much sooner than we will as we fumble to determine which is the standard that is best for the long-term road map in the Western world,” Qualcomm Senior Vice President Patrick Little said in an interview.

While China’s autonomous driving infrastructure lags behind the U.S., where firms like Alphabet Inc.’s Waymo LLC are streaking ahead in real-world testing, Chinese companies are developing related 5G applications with some established car makers.

ZTE is conducting 5G tests on self-driving cars, and has cooperated with Audi AG’s China unit to develop “internet-of-vehicles” technology. In robotics, ZTE is working with internet giant Baidu Inc. and Siasun Robot & Automation Co. to develop 5G applications.

Byton Ltd., an electric-vehicle startup based in Nanjing, will release an SUV in China at the end of this year that includes a range of artificial intelligence functions and a roof antenna that offers data transfer rates up to 10 Gbit a second, which it says is hundreds of times the normal average bandwidth.

The benefits of setting 5G standards may also help China outside its borders. President Xi Jinping’s Belt and Road Initiative includes a push for Chinese-built network infrastructure across the length of a route that runs across Eurasia, the Middle East and parts of Africa.

“Developing countries that are more sensitive to cost will find the Chinese 5G price-point difficult to turn down, especially when the offer is sweetened with infrastructure and project-financing incentives like the Belt and Road Initiative,” the U.S. Department of Defense report said.

For its part, the U.S. is letting the private sector guide 5G development, Federal Communications Commission Chairman Ajit Pai said in a June speech to wireless executives in New York.

“For all this talk about our government’s focus on 5G, make no mistake that we are pursuing a market-based strategy to promote 5G development and deployment,” Pai said.

And the U.S.’ crackdown on Huawei, cutting it off from components made by American companies, will be a big test of China’s 5G lead, says Anthea Lai, Asia Pacific media, technology and telecommunications analyst for Bloomberg Intelligence.

“Before Huawei’s ban, China had strong potential to lead in standalone 5G,” Lai said. “But now we have to see how much Huawei can keep its carrier business intact,” she said.  “Huawei could slow China down.”

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To contact the reporter on this story: Sheryl Tian Tong Lee in Hong Kong at slee1905@bloomberg.net

To contact the editors responsible for this story: Dave McCombs at dmccombs@bloomberg.net, Jason Clenfield

©2019 Bloomberg L.P.

Original article at: https://www.bnnbloomberg.ca/china-races-ahead-of-the-u-s-in-the-battle-for-5g-supremacy-1.1296079

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From South China Morning Post: 5G to stimulate US$500 billion in China tech growth over next five years

At the Global Mobile Internet Conference held in the southern coastal city of Guangzhou on Saturday, a representative from the China Academy of Information and Communications Technology (CAICT) forecast that 5G will stimulate growth in the country’s information technology industry by 3.3 trillion yuan (US$479 billion) over the next five years.  That development is expected to rev up digitization across traditional industries, which would yield more than 10 trillion yuan in growth over the same period.

China Telecom technicians set up a 5G base station near the Yellow River in Lanzhou, capital of Gansu province in northwestern China, on May 16, 2019. Photo: Reuters

China Telecom technicians set up a 5G base station near the Yellow River in Lanzhou, capital of Gansu province in northwestern China, on May 16, 2019. Photo: Reuters

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“4G has changed people’s lives,” said Chen Jinqiao, deputy chief engineer at the academy, which is under the Ministry of Industry and Information Technology (MIIT), during his presentation on China’s 5G development in the conference. But he indicated that 5G has the potential “to change society,” as different industries adopt the technology to their various requirements.

Chen’s growth estimates come amid the increased pace of 5G infrastructure spending in China, which is attempting to move ahead in the global race to deploy ultra-fast, next-generation mobile networks.

With peak data rates up to 100 times faster than what current 4G networks provide, 5G has been held out as “the connective tissue” for the Internet of Things, autonomous cars, smart cities and other new mobile applications, establishing the backbone for the industrial internet.

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References:

https://www.scmp.com/tech/big-tech/article/3020815/5g-stimulate-us500-billion-china-tech-growth-over-next-five-years

https://www.scmp.com/tech/enterprises/article/2168665/made-china-2025-5g-offers-worlds-biggest-mobile-market-chance-seize

China IT Minister: 5G Licenses Coming this Year; Deployment timing dependent on technology maturation

China Telecom to accelerate 5G deployment; 100% Fiber network coverage; Gigabit fiber broadband deployment

https://techblog.comsoc.org/tag/chinas-imt-2020-promotion-group/

http://www.imt-2020.cn/en/category/65569

https://money.cnn.com/2018/04/16/technology/china-united-states-5g-technology-study/index.html

 

ZTE completes 3rd phase of CMIIT IMT-2020 5G core network tests

ZTE has announced it has completed the third phase of China’s Ministry of Industry and Information Technology’s (CMIIT)  “IMT-2020 core network tests.”  Those tests include: evaluating the performance of the network function virtualization infrastructure (NFVI) platform, the service performance of the 5G core network element, as well as system capacity and stability.  The security function test focuses on the device identity management and registration, as well as the security service procedure in mobility.

ZTE said it has passed all test cases and met the requirements for service model and specification indicators with its test results, verifying the maturity of its 5G core network solution.

ZTE

ZTE general manager for telecom cloud and core network products Liu Jianhua said the completion of the testing represents another significant milestone following the vendor’s completion of 5G standalone architecture functionality testing in September last year.

“ZTE will actively support and cooperate with (China) Ministry of Industry and Information Technology to help the 5G industry grow mature and embrace the arrival of the 5G era,” he said.

In addition to the completion of IMT-2020 third phase 5G core network test, ZTE also completed the world’s first end-to-end connection between 5G device and system, based on 3.5 GHz NSA networking, by virtue of ZTE’s 5G prototype smartphones.   In collaboration with China Telecom, ZTE recently completed the first 4G and 5G network interoperability test using standalone (non LTE) architecture. In collaboration with Tianjin Unicom and Port of Tianjin, ZTE released 5G&MEC smart port industry applications.

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China’s IMT-2020 (5G) promotion group was jointly established in 2013 by the Chinese Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Science and Technology, based on the original IMT-Advanced Promotion Group. In China, it is the primary platform through which 5G research and international exchange and cooperation is conducted.  Operators participating in the IMT-2020 Promotion Group include China Mobile, China Telecom, China Unicom and Japanese telecoms operator NTT DoCoMo. Vendors which are part of the initiative are Huawei, ZTE, Ericsson, Nokia, Datang and Samsung. A number of chipset and test measurement vendors, including Qualcomm, Intel, Mediatek, Ctec, Keysight Technologies and Rohde & Schwartz are also part of the initiative.

Under the guidance of China’s Ministry of Industry and Information Technology, IMT-2020 (5G) Promotion Group initiated the third phase of 5G R&D tests in November 2017, aiming at continuously improving the 5G technological R&D capability and promoting the maturity of the 5G industry.  Under this initiative, China state-run telcos are in the process of deploying 5G networks in 16 cities to trial the pre-IMT 2020 standard wireless technology.

China has previously announced plans to commercialize 5G mobile networks as early as 2020. China Mobile, the world’s largest mobile operator, previously said it aims to deploy 10,000 5G base stations across China in 2020.

https://www.telecomasia.net/content/zte-completes-third-phase-imt-2020-core-network-tests

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