5G is about to get a big boost from Trump and the FCC

The Trump administration and government regulators are expected to announce a major effort Friday afternoon at the White House to accelerate the deployment of next-generation high-speed mobile data technology called 5G.

As part of this plan, the Federal Communications Commission will release a wide range of high-frequency waves for cellular use, constituting the largest US wireless spectrum fund ever sold at auction. No less than 3.4 gigahertz of so-called "millimeter wave" spectrum could be sold to wireless operators like AT & T and Verizon at the sale, which will begin Dec. 10, according to FCC President Ajit Pai.

The FCC will also propose a $ 20 billion fund to expand broadband in rural America over the next decade, connecting up to 4 million households and small businesses to broadband internet, added Pai. The so-called "Rural Digital Development Fund" could be launched later this year after a period of public notice and comment.

"We want this program to be operational as soon as possible because we recognize the need to reduce this digital divide in rural America," Pai told reporters during a conference call on Friday morning.

Both proposals reflect the most intensive efforts of the Trump era to reduce the "digital divide" and take advantage in the global race to create a fully operational national 5G network. The developers believe that the advances offered by the 5G on 4G LTE will ultimately allow mobile download speeds of up to 1,000 megabits per second, about 100 times faster than the current standard, and will pave the way for new technologies such as autonomous cars and virtual reality.

Despite its focus on spectrum auctions, Pai critics say its 5G strategy has neglected or even caused setbacks in other areas of politics.

"Up to now, this administration's interventions on 5G have done more harm than good," FCC democratic commissioner Jessica Rosenworcel said Friday. "That it imposes tariffs on 5G equipment to alienating allies for the safety of the 5G or to a delay on the rest of the world on the critical spectrum of the medium band, it has not yet proposed viable plan for US leadership. "

Friday's announcement faces growing competition from China and other countries that are working to rapidly develop 5G technology.

[How China’s Huawei took the lead over U.S. companies in 5G technology]

Whichever country succeeds in deploying 5G early and on a large scale, it will reap dividends and shape the global economy for years, analysts say. For example, a headwind in the US could allow US companies to take a dominant position in the growing market for smart devices and the next generation of digital services.

Last week, South Korea was the first country to use a national 5G network, with the country's three mobile operators having announced the launch of their commercial service in 85 cities. In the United States, Verizon announced last week that it has begun offering 5G service in parts of Chicago and Minneapolis.

The next wave auction is not the first of the 5G era. Since November 2018, the FCC has sold more than 1.5 GHz spectrum licenses for 5G, according to agency figures. High frequency waves are considered ideal for 5G because they can carry a large amount of data in a very reliable manner, although at the cost of reach and ability to penetrate walls and other obstacles.

But millimeter waves are not the only type of radio waves suitable for 5G. Operators such as T-Mobile and Sprint have focused their 5G efforts on the medium and mid-frequency waves and have made it central to their argument for a $ 26 billion merger. The medium band spectrum offers less capacity than higher band solutions, but can cover larger distances.

Pai said on Friday that he had pledged to give priority to waves of all kinds.

Pai was part of a group of US officials who, at an industry conference in February, lobbied their allies to stop using wireless network equipment from Chinese companies such as Huawei, fearing that this equipment will allow the Chinese to listen. During the meetings, the Trump administration's European partners widely acknowledged the risk but did not agree with the US delegation on how to mitigate the threat.