5G has taken center stage at this year’s MWC. Some argue that while 5G might be slower on the road, it will never be late. Despite the U.S. refusing to open its doors to Huawei, the company is still expected to lead the charge in the 5G revolution.
On February 27th, after a year of rigorous testing, wireless operators finally set the deadline for large-scale 5G deployment. From the U.S. to Asia, many companies are preparing to commercialize 5G, with plans to roll it out this year. At this year's MWC, 5G was undoubtedly the main attraction.
While the timeline seems exciting, the challenges behind it cannot be ignored. Looking ahead to 5G services this year, most are far from meeting the ambitious goals set by operators. The goal is to make wireless connections as fast and reliable as wired broadband. However, the current plans from AT&T, Verizon, Australia’s Optus, and Finland’s Elisa Oyj are limited in scope or only represent one part of the ongoing 5G standardization process.
The "fixed-line wireless" service being launched this year sounds promising. It uses an outdoor antenna to deliver broadband into homes without the need for cables. However, initial speeds are not as impressive as expected.
Why is the development so slow? A major reason is the lag in infrastructure. Unlike previous network upgrades, 5G requires installing a large number of small cellular antennas that are not yet in place. Once installed, cable companies can use existing telephone poles, but even then, they still need time to send new radio signals across city streets.
Countries like Australia, China, Finland, Japan, and South Korea are testing 5G services, with operators claiming they’ll launch 5G in 2019. But a bright plan often falls short of reality.
Professor Ted Rappaport from New York University’s Tandon School of Engineering believes that for 5G to be truly practical, manufacturers must invest in building market readiness. Only when phones and other devices come with compatible chips will "fixed-line wireless" become a reality.
Michael Murphy, Nokia’s North American technology director, said it’s hard to predict which devices will adopt 5G before chip costs drop. He also emphasized that we still don’t know what the killer applications of 5G will be.
Verizon started early, testing 5G in 11 U.S. cities and planning to launch services in Sacramento. But even they admit that full mobile services will take years. AT&T said fixed-line and mobile 5G services would launch before 2018, starting with mobile hotspots for laptops.
Huawei's Position
Although the U.S. has blocked Huawei, the company has already partnered with major operators in Europe and Asia, and is expected to become the leader in the 5G revolution.
China is set to become the world’s largest 5G market, where Huawei holds a strong position. Meanwhile, Huawei continues to expand globally, competing with Ericsson and Nokia in some lucrative markets, including those aligned with the U.S.
So far, 5G networks are still in beta, using dense arrays of small antennas to transmit data up to 50 or even 100 times faster than 4G. Building a full 5G network may take another year, but Huawei has already begun by signing 25 memorandums of understanding (MoUs) with operators to test 5G equipment. These MoUs could lead to commercial contracts. Operators like BT, Bell, Orange, Deutsche Telekom, and Vodafone have partnered with Huawei.
Despite this, Huawei lags slightly behind Ericsson, which has signed 38 MoUs, and Nokia, with 31. These figures only include public deals, and some undisclosed agreements are not counted.
Still, Huawei has long-standing relationships with operators, giving it a competitive edge. By 2016, there were 537 4G networks worldwide, with Huawei providing equipment for more than half. In 90 4.5G networks, 59 used Huawei equipment.
Dell'Oro analyst Stefan Pongratz noted: “Existing network business is crucial because operators want to keep their old systems running. Using the same supplier saves money.â€
In China, Huawei has a strong advantage. One-third of China Mobile’s 5G network contract will go to Huawei, another third to ZTE, and the rest open to foreign competitors.
According to GSMA, by 2025, 1.2 billion people worldwide will use 5G, with one-third coming from China.
Huawei’s Risks
Is there no risk ahead for Huawei? No. Like its competitors, Huawei has invested heavily in 5G research, but when will operators accept the new tech? There’s no guarantee.
Some well-funded operators are patient, waiting for mass consumer and enterprise adoption before investing in 5G. These markets aren’t Huawei’s focus. Some emerging markets are still struggling with 4G and may skip to 5G in 10 years.
Looking at recent financials, Huawei is three times the size of Nokia and Ericsson. Last year, it made $92 billion in revenue, half from China. In the last quarter, it sold 32% of mobile wireless access devices, compared to 30% for Ericsson and 25% for Nokia.
In recent years, Ericsson has faced pressure due to declining profits and has had to cut costs. Nokia is also struggling, focusing on integrating acquired businesses.
Nokia claims confidence in its 5G product portfolio, offering both software and services. Ericsson says it has worked closely with customers for years, has advanced 5G patents, and believes it will win the competition. An Ericsson spokesperson added, “Our customers are all looking at 5G.â€
Huawei has also signed non-binding memorandums with major telecom operators in South Korea, Japan, Australia, Italy, Turkey, and Saudi Arabia. Setting aside commercial interests, these agreements show that many countries, despite being U.S. allies, do not see Washington’s security concerns as a major issue.
The U.S. accuses Huawei of insecure equipment. Huawei responded: “In 170 countries, Huawei products are trusted by governments and customers. Compared to other providers, our products have no higher cybersecurity risks.â€
Bruce Rodin, vice president of Bell’s wireless network in Canada, revealed that his company hired external security firms to test Huawei products and found no issues. He stated, “We’ve tested for nearly 10 years and haven’t seen any malicious code or backdoors.†He believes the U.S. is acting to protect its own businesses.
Deutsche Telekom said it has collaborated with Huawei at multiple levels and found no security risks. A spokesperson said, “Hardware is manufactured according to our requirements and checked by our security department.†Orange treats Huawei like any other supplier.
Packages For Fiber Optic Communication,Optical Housings,Optical Communication Component,Optical Communication Fine Tube
Shaanxi Xinlong Metal Electro-mechanical Co., Ltd. , https://www.cnxlalloys.com