In the international race for 5G connectivity, China and the European Union make strides in 5G connectivity, while Australia bans the technology for “security risks.”
The European Investment Bank loaned Nokia a $572 million dollar loan so that European companies can compete with the United States and China in the race for 5G connectivity. Nokia separated itself from its competitors in July by entering into a $3.5 billion-dollar agreement with T-Mobile, a United States mobile company. Nokia, a Finnish based company, is not the only firm in the European Union (“EU”) striving for 5G, as Swedish based Ericsson also received a $250 million-euro loan from the European Investment Bank as well. In the United States, AT&T introduced 5G speed in 117 American markets this past spring.
However, China has constructed close to 400,000 5G accessible cell sites since 2015, which is significantly more compared to the United States, which has built less than 30,000 in the last 3 years. 5G connectivity would allow for faster internet service and portable virtual technology. It is being hailed as the bandwidth required for fully functioning technological infrastructures such as self-driving cars. By utilizing fiber optic maps, such as those created by GeoTel, companies are able to assess which bands allow for such potential.
Unlike other nations, Australia has banned 5G connectivity from the Chinese company, Huawei, on grounds that it threatens the nation’s security. Specifically banning Huawei, Australia’s ban has left citizens and investors wondering if the legal move was politically motivated.
Nokia, T-Mobile, and Ericsson’s large investments in 5G illustrate that the race for connectivity is only beginning for telecommunication giants. However, as seen in Australia, not all nations are on board.
