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The trade dispute between the United States and China has accelerated at the edge of the trade war.
A recent Trump decree banning US companies from working with "opponents" (China fits this description) was hammered by the ban on selling high-tech US products to the Chinese technology company Huawei.
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Blocking Huawei in Australia means slowing down and delaying 5G – and for what?
Australia has also put an end to 5G infrastructure from China.
But it's not just about the company's poles and cables that will allow the Internet to download your phone and movies in the future.
The choices made by the United States, Australia and other countries with regards to the 5G configuration will determine how we use technology for collaboration, innovation and global trade.
Huawei's 5G becomes a global standard
5G is the fifth generation network for mobile connectivity. It has been described as a "game that changes" because of its high speed and capacity and the provision of superior service to a large number of users.
5G relies on standardization – the technical specifications used in mobile networks – supported by patents and licensing agreements.
In mobile networks, essential essential patents (SEPs) are the patents that any company will need to obtain under license when implementing 5G. The story suggests that companies holding MS benefit significantly from royalties.
Data from April 2019 show that China collectively owns more than a third of the world's PES for 5G.
China lost its opportunity in 1G and 2G, took a costly lesson from its failure of the 3G standard and made a considerable catch-up in 4G. He is determined to lead in 5G.
Chinese technology companies such as Huawei and ZTE understand that the transition to 5G gives them a window of opportunity to achieve this goal. To do this, they need to recruit followers – and the momentum is already moving in this direction.
By the end of March 2019, Huawei would have won 40 5G commercial contracts from carriers around the world (including 23 Europeans, six from the Asia-Pacific region, ten from the Middle East and one from Africa).
The battle of radio spectra
In addition to standardization, the radio spectrum is another critical factor in 5G. The radio spectrum is a limited resource used for communications from Earth to space.
The allocation of spectrum is at the heart of the 5G competition.
Huawei's 5G technology has been developed for medium-bandwidth spectra that are commercially available in many countries, including Australia.
The best plan for Australia is to use medium band solutions to cover most of the 5G networks, with high-bandwidth technologies to provide complementary coverage in densely populated areas.
The United States has limited access to the medium-band spectrum for commercial 5G, as most of these are for the defense. The United States has therefore developed its 5G technologies for high-bandwidth spectra, which poses a dilemma for this country.
It is not easy for the United States to move quickly from the high band 5G band to the medium band. And the rest of the world is unlikely to abandon the use of medium-bandwidth solutions, which offer more coverage and require less investment in infrastructure.
A short-term solution is that the United States is pushing its allies to jointly exclude Huawei from their 5G networks. This could be sought to protect the United States from "loneliness" of 5G, and perhaps have other commercial or political implications – or a combination of these factors.
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The ban imposed by Huawei in the United States after the crackdown on cybersecurity Trump – and Australia on board
The consequence is that Australia, as one of these allies, should probably spend more money for the base stations and the necessary infrastructure and wait longer for a 5G system fully operational.
For example, a Huawei 5G base station is only one-third the size of its 4G equivalents and weighs only 20 kilograms: it is easier to install and the technology is at least 18 months ahead of its competitors. than Nokia. This benefit is lost if Australia continues to block Huawei.
Australia's fourth largest mobile operator, TPG, says there is "no credible case" for deploying its 5G as planned without Huawei.
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The stakes are high as the United States raises the bar of the trade dispute with China
Globalization fractured?
The 5G will support many applications such as industrial automation, autonomous cars, mbadive machine-to-machine communications, the Internet of Things, smart cities, and more.
This means that the growth of 5G will accelerate the development of an ecosystem in which different countries can coexist and grow, relying on interconnected and interdependent networks of supply chains.
These ecosystems are built on mobile network infrastructures, which support layered technology platforms for manufacturing, medical treatment and payments (for example), and applications for work, study and life.
For example, in the future, Australian and Chinese academics and industry experts could use this type of system to work together on innovations related to health care, environmental protection, and environmental protection. Industrial automation.
But this could fall if the countries concerned build their 5G infrastructure differently.
Australia's final plan for 5G could have a profound impact on Australia's economic development in the future.
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