Chinese network carriers boast 150,000 5G base stations. They want more than 1m across 330 cities by the end of the year
is more than just a faster way to stream Netflix on the go. It enables networks that can support the “Internet of Things” : a world of connected devices from toothbrushes to tooling machines. Rather as the cloud has turned computing into a utility like electricity, 5networks would permit moving more number-crunching to places where it is needed. The extra processing oomph could allow base stations on networks’ “edge” to guide self-driving cars, or robots on factory floors.
Hawks in Washington are now urging Mr Trump to tighten the screws, for instance by lowering from 25% to 10% the share of American technology by value that products can contain for their makers, in America or elsewhere, to be allowed to supply Huawei. For all his China-bashing, Mr Trump appears to have demurred, instead heeding the concerns of America’s tech bosses, who warn that such a move would hurt their industry.
Samm Sacks of New America, a think-tank, warns that European and, ironically, Chinese regulators may block any deal on competition grounds. More fundamentally, as Rakuten shows, the bellhead approach they embody is no longer the only game in town. Mobile networks have been the bellheads’ last bastion. Base stations rely on specialised hardware. Mixing kit from different suppliers in one network risks dropped connections as users move around and switch from one base station to another.
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