China has beat USA and South Korea in the international 5G race, as per Analysys Mason a prominent telecom consulting firms. Another telecom consulting firm informed that the 4G leadership of the USA provided optimum financial benefit and if the US wants to lead the 5G market, it has to focus on maintaining the communication standard.
The 5G market is led by China right now. South Korea, United States of America and Japan are following the lead. Though China is leading the competition with narrow margins, the governmental policies and the momentum created in the telecom industry will surely increase the overall growth.
Most of the Chinese telecom providers have agreed to launch the service on a particular date. The government of China has also committed to a minimum mid-band spectrum of 100MHz and high band spectrum of 2000MHz for every wireless provider. Different nations are auctioning for 5G spectrum including Spain, the United Kingdom, and Italy.
Leadership in the global wireless market is important because it brings significant economic benefits as well as the generation of new jobs. Further, it provides a major boost to the domestic telecom industry. It is for this reason that the countries are fighting to gain the leadership position in the emerging technologies.
China is spending a huge amount in the research and development of 5G. The country had tried to take a lead in 4G technology as well. The country had come up with its own version of 4G, LTE TDD. It can be said that the balance of power started to move towards the Asia Pacific region with 4G technology.
Losing wireless leadership had long-term negative effects on Japan and Europe, contributing to job losses and the contraction of their domestic wireless industries.
As per the estimation, USA will be the 6th country among the ten countries to provide mid-band spectrum needed for 5G. Currently, Russia, Canada, and the US are the countries that are not disclosing any information regarding the allocation of mid-band spectrum.
In the end, it needs to be said that the industry across the globe is still grappling with the monetization model for the upcoming 5G technology. It enables low latency and ubiquitous coverage enabling a number of use cases including Virtual Reality, Augmented Reality, Internet of Things, the transformation of mission-critical infrastructure and Internet of Things, amongst many others. However, at the same time, the monetization is not very clear. Even as China and other nations move towards 5G, they need to resolve the business model question of 5G.