If Chinese companies like Huawei and ZTE are banned from developing 5G networks infrastructure, the next generation of mobile networks would cost 55 billion Euros ($62 billion) more for European mobile companies, the wireless industry’s biggest association GSMA revealed in a new report cited by Reuters.

The US President Donald Trump has started a trade war with China by adding two of the world’s biggest telecom equipment makers to a trade blacklist in May. This has prompted global tech giants including Google to cut ties with Huawei and European countries are also likely to follow suit. However, this ban on Chinese telecom giants will not only raise the cost of 5G networks in Europe but it will also delay the technology by about 18 months.

US govt and intelligence agencies alleged that Huawei’s equipment is potentially used by Chinese govt’s institutes for spying, something the Chinese companies like Huawei and ZTE have repeatedly denied.

The ban on Chinese telecom equipment would also deprive the European Union of around 45 billion euros in productivity growth, according to a report drafted by the GSMA trade association cited by Bloomberg. The report said;

“The need to replace network equipment and the capacity constraints on the remaining mobile equipment vendors would disrupt current rollout plans. Such a delay would widen the gap in 5G penetration between the EU and the U.S. by more than 15 percentage points by 2025.”

The GSMA’s concerns came to light just after the US banned Chinese vendor last month by restricting its access to Google’s Android operating system for upcoming 5G smartphones. This will disrupt Huawei’s ability to function or access popular apps on the Play Store.

“We continue to stress that it is imperative that the market has the widest possible choice of equipment, technology, and partners, to drive, scale innovation and competition,” a GSMA spokeswoman said.

Meanwhile, an immediate and complete ban on Huawei appears to be uncertain in Europe as the region relies on most for growth outside China, after Germany, France, and Britain signaled more limited restrictions and stronger oversight of their networks.

South Korea has become the world’s first country to commercially launch 5G mobile network nationwide, promising new waves of possibilities for smartphone users. Samsung has said that the Galaxy S10 5G smartphone will offer 20 times faster speed than the current mobile phones as it began selling its 5G handsets along with the launch of 5G services in South Korea.

With the fifth-generation of mobile internet connectivity, users with less delay will get faster data speed, wider coverage, and stable connections. It will offer 20-times faster data speeds than 4G LTE networks and a better support system for artificial intelligence and virtual reality. Three mobile carriers, SK Telecom, KT and LG Uplus held launch events across Seoul in South Korea, for the Galaxy S10 5G.

During the launch event, the companies placed interactive virtual reality displays and robot demonstrations to describe the possibilities the world can achieve with the new 5G technology, especially live streaming of videos related to the fields of education, health science, and others.

Only a few hours later form South Korea, the Verizon company from the US launched its 5G services in selected areas of Chicago and Minneapolis.

The carriers of 5G services from South Korea said that 15,000 buyers have already subscribed to the LG Uplus 5G service, and more than 10,000 users have subscribed to KT company’s offer.

South Korea will be the first country to commercially launch fifth-generation (5G) services on Friday, April 5. South Korea has one of the world’s top smartphone penetration rates and is in a race with the US, China, and Japan to launch the latest 5G services. The 5G technology offers 20-times faster data speeds than 4G LTE networks and a better support system for artificial intelligence and virtual reality.

This tech will create revolutionary breakthroughs in the fields including smart cities and autonomous cars. It will also help to drive up economic growth that slowed to a six-year low in 2018.

Ryu Young-sang, executive vice president of the SK Telecom said, “It is meaningful that South Korean telecom companies are providing services and networks meeting South Korean customers’ high standard in speed and picture quality”.

He stated, “5G will change the landscape of the gaming industry as it allows games to stream with minimal delay to be played on smartphones”.

Ryu said that right now the SK Telecom company is working on its memory chip SK Hynix, to develop a highly digitized and connected factory, which is powered by 5G technology. The company has a total of 27 million users and is expecting a total of 1 million 5G customers by the end of this year.

A smaller rival company KT Corp, competing with SK Telecom is planning to offer cheaper LTE service plans, with unlimited data and 4-year installments scheme to buy their 5G devices.

Samsung was the first company to launch a 5G powered Galaxy S10 smartphone in February, and a $2000 folding smartphone. Samsung’s rival LG Electronics is also planning to launch a 5G smartphone in South Korea in the coming days. While in the US, carrier Verizon is planning to launch a 5G smartphone on April 11.

Huawei

There is no secret that many different regions including the United States and EU are investigating the use of Huawei equipment for their network infrastructure. Citing privacy concerns the Canadian Radio and Telecommunications Commission together with the government of Canada have started to review 5G rollout using Huawei equipment. Huawei has publicly stated to every country they operate in that they are ensuring the integrity and securities of the networks they operate in, including Canada. Huawei noted that hardware bans did not affect their Q4 results, but if more countries continue the bans and investigations Huawei could find themselves in trouble.

Telus

Canadian Telecom Telus Corporation (TSE:T 30.47 2.28%) in their Q4 results noted that banning Huawei equipment would affect not only the cost of 5G rollout but the timing of it as well.

Telus and their subsidiary Telus Mobility are the third largest telecommunications company in Canada, behind Bell and Rogers in revenue and users. Telus and Bell (TSE:BCE 43.32 0.70%) have typically shared standards and equipment in their deployments for cost savings and use many of the same towers while both using CMDA technology when Rogers was using GSM before LTE was rolled out. With LTE rollouts much of Telus’ equipment was Huawei in the past. Telus has also noted their successful 5G tests using Huawei equipment in 2018 with a planned rollout in 2019, although they have yet to name a vendor for final deployment.

Telus Statement Regarding 5G Network Risk

 

Government or regulatory actions with respect to certain countries or suppliers may impact us and other Canadian telecommunications carriers. The Government of Canada is currently conducting a cybersecurity review of international suppliers of next-generation network equipment and technologies, focused on Huawei Technologies, to evaluate potential risks to the development of 5G networks in Canada. A decision on 5G technology in Canada is expected in the coming months. Over the last decade, our partnership with Huawei has allowed us to utilize the most advanced technology in a cost-effective manner in our advanced 3G and 4G networks without any security incidents. In building our 3G and 4G national networks, we have collaborated closely with the Government of Canada for many years to ensure robust protections across all equipment used. This has included complying with a series of security protocols that effectively ban Chinese equipment from our core networks and limit such equipment to the less sensitive radio and antenna portions. We are continuing to work with the government as it conducts this cybersecurity review and we have yet to select a vendor for our 5G network. Given the range of potential outcomes of the cybersecurity review, the impact on Canadian wireless service providers cannot currently be predicted. A decision prohibiting the deployment of Huawei technology without compensation or other accommodations being made by the Government of Canada could have a material, non-recurring, incremental increase in the cost of TELUS’ 5G network deployment and, potentially, the timing of such deployment. In the case of a ban, there is a risk that the Canadian telecom market would undergo a structural change, as a reduction to an only two global supplier environment could permanently affect the cost structure of 5G equipment for all operators. See Section 10.4 Supplier risks. Risk mitigation: We attempt to mitigate regulatory risks through our advocacy at all levels of government, including our participation in CRTC and federal government proceedings, studies, reviews and other consultations; representations before provincial and municipal governments pertaining to telecommunications issues; legal proceedings impacting our operations at all levels of the courts; and other relevant inquiries (such as those relating to the exclusive federal jurisdiction over telecommunications), as described in Section 9.4 Communications industry regulatory developments and proceedings. See also Vertical integration into broadcast content ownership by competitors in Section 10.3 Competitive environment.

Source: (Page 77)

Impact

Just like any telecommunications company having now impositions Telus immediately said that it could harm the consumer by either costing more or delaying the rollout of 5G. The initial 5G tests were done on Huawei equipment so I’m inclined to believe there would be a delay in their rollout if they could not use the vendor. In their risk mitigation section, Telus did not disclose if they had other vendors prepared to help with their rollout as Bell has done with Nokia Networks. Canadians were relying heavily on 5G to have more effective mobile broadband, as the country has a low population density and currently rely on a mix of satellite, 3G and LTE networks to cover their much of their rural populations. Bell and Rogers (TSE:RCI.B) both noted that their deployment would not be delayed, and Rogers publically said they will not use Huawei equipment for their 5G network, using Ericsson instead

From a global perspective, one Canadian service provider does not affect very much, but if other providers start claiming harm to their networks from regulations and investigations than governments may have to take more consideration into the matter and provide either expedience or subsidisation to telecoms. In the United States telecommunications have very strong lobbyists and if they can sway consumers that costs may rise then the regulating bodies may have to review a subsidy model.

There is also an opportunity now for other companies to increase their investment in 5G technology, it will be interesting to see how Ericsson and Nokia Networks stock moves as a result or if they are able to make up for the possible shortage in 5G equipment that will be needed. The less competition for suppliers the higher costs will likely be, especially if there is suddenly a shortage in approved network equipment providers for telecoms to choose from.

 

Samsung Electronics has today announced that it has developed Exynos Modem 5100, the industry’s first 5G modem that is fully compatible with 3rd Generation Partnership Project (3GPP) Release 15 (Rel.15), the most up-to-date standard specification for 5G New Radio (5G-NR).

Built on power-efficient 10-nanometer (nm) process technology, the new modem also supports legacy radio access technologies designed into a single chip.

The Exynos Modem 5100 supports both sub-6GHz and mmWave spectrums specified in 3GPP’s 5G standard as well as legacy networks, including 2G GSM/CDMA, 3G WCDMA, TD-SCDMA, HSPA, and 4G LTE, with a single chip solution. As 5G is expected to be first deployed over existing network infrastructures, commercial implementation will benefit from the single-chip design that maximizes data transmission efficiency and reliability between other communication networks.

The modem delivers a maximum downlink speed of up to 2-gigabits per second (Gbps) in 5G’s sub-6-gigahertz (GHz) settings and 6Gbps in mmWave settings, which are about 1.7 and five times the data transfer speeds of its predecessor respectively. Fast and stable data communication can also be secured in 4G networks with the downlink speed of 1.6Gbps.

5G’s capability to transmit large-capacity data and real-time low-latency communication is expected to bring new user experiences not only in mobile but also in areas such as the Internet of Things (IoT), ultra-high resolution videos, holograms, real-time artificial intelligence (AI) and autonomous driving.

Exynos Modem 5100 is also offered with radio frequency IC (RFIC), Envelope Tracking (ET) and power management IC (PMIC) solutions, and will be available to customers by the end of 2018.

What is 5G exactly?

It’s the next – fifth-generation ( 5G ) of mobile internet connectivity promising much faster data download and upload speeds, wider coverage and more stable connections.

5g is all about making better use of the radio spectrum and enabling far more devices to access the mobile internet at the same time.

What will it enable us to do?

“Whatever we do now with our smartphones we’ll be able to do faster and better,” says Ian Fogg from OpenSignal, a mobile data analytics company.

“Think of smart glasses featuring augmented reality, mobile virtual reality, much higher quality video, the internet of things making cities smarter.

“But what’s really exciting is all the new services that will be built that we can’t foresee.

Imagine swarms of drones co-operating to carry out search and rescue missions, fire assessments and traffic monitoring, all communicating wirelessly with each other and ground base stations over 5G networks.

Similarly, many think 5G will be crucial for autonomous vehicles to communicate with each other and read live map and traffic data.

More prosaically, mobile gamers should notice less delay – or latency – when pressing a button on a controller and seeing the effect on screen. Mobile videos should be near instantaneous and glitch-free. Video calls should become clearer and less jerky. Wearable fitness devices could monitor your health in real time, alerting doctors as soon as any emergency arises.

How does it work?

There are a number of new technologies likely to be applied – but standards haven’t been hammered out yet for all 5G protocols. Higher-frequency bands – 3.5GHz (gigahertz) to 26GHz and beyond – have a lot of capacity but their shorter wavelengths mean their range is lower – they’re more easily blocked by physical objects.

So we may see clusters of smaller phone masts closer to the ground transmitting so-called “millimetre waves” between much higher numbers of transmitters and receivers. This will enable higher density of usage. But it’s expensive and telecoms companies are not wholly committed yet.

Is it very different to 4G?

Yes, it’s a brand new radio technology, but you might not notice vastly higher speeds at first because 5G is likely to be used by network operators initially as a way to boost capacity on existing 4G (LTE – Long-Term Evolution) networks, to ensure a more consistent service for customers. The speed you get will depend on which spectrum band the operator runs the 5G technology on and how much your carrier has invested in new masts and transmitters.

So how fast could it be?

The fastest current 4G mobile networks offer about 45Mbps (megabits per second) on average, although the industry is still hopeful of achieving 1Gbps (gigabit per second = 1,000Mbps). Chipmaker Qualcomm reckons 5G could achieve browsing and download speeds about 10 to 20 times faster in real-world (as opposed to laboratory) conditions.

5g

This is for 5G networks built alongside existing 4G LTE networks. Standalone 5G networks, on the other hand, operating within very high frequencies (30GHz say) could easily achieve gigbabit-plus browsing speeds as standard. But these aren’t likely to come in until a few years later.

Why do we need it?

The world is going mobile and we’re consuming more data every year, particularly as the popularity of video and music streaming increases. Existing spectrum bands are becoming congested, leading to breakdowns in service, particularly when lots of people in the same area are trying to access online mobile services at the same time. 5G is much better at handling thousands of devices simultaneously, from mobiles to equipment sensors, video cameras to smart street lights.

When is it coming?

Most countries are unlikely to launch 5G services before 2020, but Qatar’s Ooredoo says it has already launch a commercial service, while South Korea is aiming to launch next year, with its three largest network operators agreeing to kick off at the same time. China is also racing to launch services in 2019.

Meanwhile, regulators around the world have been busy auctioning off spectrum to telecoms companies, who’ve been experimenting with mobile phone makers on new services.

Will I need a new phone?

Yes, I’m afraid so. But when 4G was introduced in 2009/10, compatible smart phones came onto the market before the infrastructure had been rolled out fully, leading to some frustration amongst consumers who felt they were paying more in subscriptions for a patchy service.

This time, says Ian Fogg, phone makers are unlikely to make the same mistake, launching 5G handsets only when the new networks are ready, probably towards the end of 2019. These next generation phones will be able to switch seamlessly between 4G and 5G networks for a more stable service.

Will it mean the end of fixed line services?

In a word, no. Telecoms companies have invested too much in fibre optic and copper wire fixed line broadband to give those up in a hurry. Domestic and office broadband services will be primarily fixed line for many years to come, although so-called fixed wireless access will be made available in tandem.

However good wireless connectivity becomes, many prefer the stability and certainty of physical wires.

Think of 5G mobile as a complementary service for when we’re out and about, interacting with the world around us. It will also facilitate the much-heralded “internet of things”.

Will it work in rural areas?

Lack of signal and low data speeds in rural areas is a common complaint in the UK and many other countries. But 5G won’t necessarily address this issue as it will operate on high-frequency bands – to start with at least – that have a lot of capacity but cover shorter distances. 5G will primarily be an urban service for densely populated areas.

Lower-frequency bands (600-800Mhz typically) are better over longer distances, so network operators will concentrate on improving their 4G LTE coverage in parallel with 5G roll-out.

But commercial reality means that for some people in very remote areas, connectivity will still be patchy at best without government subsidy making it worthwhile for network operators to go to these places.

credit:BBC