The next generation 5G technology is creating competition among world’s leading superpowers. Eurasia Group, a political risk consultancy headquartered in New York has expressed its view on 5G. Kevin Allison; Director of Eurasia group feels that 5G technology is geopolitically controversial. The much-going trade war between US and China will pave way for the 5G mobile standards. It will include the spectrum allocation and market capitalization.
The 5G Advantage:
The foremost importance of any network lies in its speed. The 5G network speed will be 100 times faster than 4G. Even very large files can be downloaded within a few seconds. Smart cities, driverless cars and other commercial success will be possible with 5G. High capacity, high reliability, Access to a large amount of data, low latent communication are the key benefits of 5G.
The First Move by China:
China has the advantage of being first to involve in 5G. It is planning to establish 5G network domestically by 2020. China has support from its highly efficient digital platform companies. China can penetrate the markets in middle-east, Latin America, and Africa. In these countries financing 5G through Belt and Road initiative which is difficult for the government to sanction. Now China can cross borders to drive its digital journey.
Options for the United States:
The united stated in aggressively blocking Chinese networking equipment from entering its terrain. Concerns in National Security blocks the use of Chinese networks in US soil. The united states have the advantage of innovation and advanced technology from Silicon Valley.
The Split of Superpower Nations:
The trade war between US and China will be intensified with the implementation of 5G. Both the US and China will be competing for each other to its highest technological capabilities in case of 5G. The third countries will face difficulty in choosing their side. Developing countries will go for the Chinese side for their effective cost technology. But US-allied countries will face pressure from the US to use their product and ban Chinese product.
The telecommunication sector will undergo a major change in the 5G revolution. The 5G technology will need a lot of talent and capital for their development. Thus bringing in more jobs.5G fuels the growth of mobile companies like Huawei, ZTE outside China. The geopolitics in 5G will pose challenges for governments and industries from 2019.