President Donald Trump’s new order effectively blacklisting Huawei, the Chinese telecommunications networking equipment maker and smartphone giant, from the U.S. market will not hurt America in the race to build out next-generation 5G wireless technology, a well-known CEO and a top telecom investment banker who did not want to be identified told CNBC on Friday.
The Justice Department is leaning against approving T-Mobile US Inc.’s proposed takeover of Sprint Corp., according to a person familiar with the review, even after the companies won the backing of the chairman of the Federal Communications Commission. The remedies proposed by the wireless carriers earlier Monday don’t go far enough to resolve the department’s concerns that the deal risks harming competition...
The Republican-controlled Federal Communications Commission indicated on Monday that it would approve the T-Mobile-Sprint merger after the two companies agreed to spin off Boost Mobile and submit to other conditions for the $26 billion deal. Ajit Pai, the FCC's Republican chairman, said in a statement Monday morning that he was encouraged by the companies' commitments to expand rural connectivity and to build out a large next-generation 5G wireless network as conditions for approving the merger.
Officials hammered out a set of non-binding proposals published at the end of a two-day meeting organized by the Czech government to discuss the security of new 5G networks. The meeting comes amid a simmering global battle between the U.S. and China's Huawei, the world's biggest maker of network infrastructure equipment. The U.S. has been lobbying allies to ban Huawei from 5G networks over concerns China's government could force the company to give it access to data for cyberespionage.
The blending of economic policy analysis and national security concerns regarding next-generation 5G wireless infrastructure is leading to some sloppy, if not downright loopy, thinking. 5G is anticipated to play a critical role in enabling a far broader set of applications for all kinds of organizations than previous technology, and seeing a successful, relatively early adoption of the platform may be key for generating the next decade’s worth of innovations that will leverage its capabilities.
Huawei is the world’s biggest telecoms equipment maker, with a 28 per cent market share -- according to Dell’Oro, the market research company -- and more 5G contracts around the world than any other company. Its closest rivals are Ericsson and Nokia, the European companies. But there is no US group that can build the equipment to transfer signals between mobile phones and the towers or sites that make up the network.
Approving the T-Mobile merger with Sprint will not help us win the race to 5G, even though T-Mobile and Sprint are touting 5G as the main reason their merger should be approved. The two companies claim that America needs their merger to win the 5G arms race. However, those same companies tell Wall Street that they are well positioned for 5G as standalone firms.
You know it must be nothing short of transformational when Washington goes on the offensive over Beijing getting ahead in a telecommunications standard. But what is this new 5G technology and why has it got the world’s two biggest economies at each other’s throats? Let’s just say it’s a lot more important than allowing you to download the latest high-definition episode of Game of Thrones on your smartphone in seconds. According to some experts, 5G could change the way we live forever.
The United States and China are in an arms race. Not the familiar military-strength arms race from years past, but still an arms race that will have a profound impact on the two superpowers in the foreseeable future. The Chinese government is throwing its full authority and considerable resources at developing the coveted 5G wireless technology of tomorrow.
Countries around the world are still awarding Huawei contracts to develop 5G networks, despite repeated warnings and pressure from the U.S to ban the equipment maker. The Chinese telecom giant has won more than 18 new 5G commercial contracts in the past five months, half of which come from Europe, according to data Yahoo Finance compiled from Huawei announcements. With 40 commercial contracts in total, Huawei is leading 5G installations worldwide.