Thursday, April 12, 2018

Will 5G unleash a "digital" cold war ?


5G logo
We are in an era where apps, artificial intelligence and connected objects are entering, disrupting and revolutionizing sectors as diverse as transport, energy, health, finance or construction. Mastering mobile networks technology is becoming crucial.
It is not involving the telecom industry alone, but all industries are impacted.

This is why China has made 5G one of its economic and strategic priorities. 5G is one of the pillars of  Made in China 2025 plan (plan that I wrote about recently, you can click on the link to go to the corresponding post). It aims to make China a world reference in terms of innovation and new technologies, while it has long been seen as a low-cost country simply copying more or less foreign products. For China, 5G is part of the essential technological foundations that will allow the emergence of economic champions. The goal is to be the first to deploy 5G technology throughout its territory, while being a leader in the field of patents, standards, design and manufacturing of these high-speed networks; knowing that 5G technology is designed to connect objects from different industries.

Higher investment
China has worked hard in the 5G. According to a forecast  from the Ministry of Industry and Information Technology, China's cumulative investment in 5G will reach by 2025, 214 billion US dollars!   

Of course, Chinese telecom equipment manufacturers are among the main beneficiaries. 

For the United States, China's ambitions in 5G pose a serious threat to the US economy.
The 5G race is not just a technological battle!! Both China and USA believe that the one who wins will have a decisive advantage to take the world economic leadership in the longer term.  

So if China is heavily investing in this technology -which is, by the way, totally legitimate and fair-, what are the other developed countries doing? What are the plans from Europe, Japan, USA?

We haven't heard of any concrete, elaborated plan, rather than few "shy" & unclear initiatives here and there.

Or is the only response is a "digital" cold war; a trade war by taxing products ??

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