The recent decision of the US government ignites a fight between the US government and two of the leading Chinese telecom companies Huawei and ZTE. Though some are assuming that China is going to face a problem in developing 5G plan, the chances are that Chinese 5G plans are not going to be affected much by this.
As the deployment can be more expensive than assumed, the US Commerce and the Federal Communications Commission thwart US companies from selling equipment to ZTE or buying gear from Huawei and ZTE.
If Huawei and ZTE have to buy software and hardware from sources other than the USA, that can cost them a fortune. On the other hand, the cost inflicted on domestic operators can increase considerably if they have to turn to Ericsson or Nokia.
Unfortunately, there are some loopholes in the assessment. First of all, the US Commerce didn’t ban Huawei but only ZTE. ZTE is a part of the huge 5G network which has Huawei, Ericsson and Nokia as well. Though China prefers trading in the local market, it doesn’t protest the overseas retailers who are helping it with pursuing 5G. Besides, China isn’t the only country that’s planning to launch 5G, but there are many other countries that are working on the same and may launch 5G even before 2020.
On the contrary to popular belief, 5G isn’t going to conquer the market before 2020 and even if it is released before that, only a few people will be able to enjoy the benefits as it would take time to make the 5G supported handsets available for the mass. Even Huawei changed its opinion about 5G and in the recent interaction the company head honcho said that 4G will be reigning the market even after the launch of 5G. Besides Huawei, British Telecom’s CEO and Vodafone’s senior management has also raised alarm against the hype around 5G.
Besides, the US, though significant is not the only market for 5G. The other regions like APAC (including South Korea) and Europe are becoming important centers of 5G development.
The major three points that 5G technology is focusing on are lower the inactivity, provide better speed and more connections. However, customers may notice the difference only in significance with speed and nothing else as 4G already provides low latency in most of the places.
Still, there’s research going on where LTE can be used to connect the 5G devices so that when the devices are out of the 5G service networks, the customers don’t notice any call-drop. There will be no changes in the launch of 5G connections with the US ban on trading with ZTE because 5G will launch irrespective of the US.