US behind China in race to 5G communication, risks losing profits: Deloitte

United States Falling Behind China in Race to 5G Wireless Deloitte

United States Falling Behind China in Race to 5G Wireless Deloitte

According to the report, this suggests that China and other countries "may be creating a 5G tsunami, making it near impossible [for the US] to catch up". China has built 350,000 new cell sites, while the us has built fewer than 30,000 in the same time-frame.

China is greatly outspending the USA when it comes to building the infrastructure needed to support 5G networks according to a new report from Deloitte titled 5G - The Chance to Lead for a Decade.

China's economic commitment to 5G makes it a formidable competitor, the report said.

Since 2015, it has outspent the $24 billion in 5G infrastructure, Deloitte's study found. In just three months of 2017, according to a Reuters report, China had built more cell tower companies and carriers than the United States had in the three previous years.

Countries who are first to adopt 5G will likely see greater and more sustained macro-economic benefits, given the network effects associated with adding billions of devices to the 5G network. Deloitte estimated that the equipment necessary to add a carrier in China cost about 35 percent less than the US, suggesting that Washington would need to spend 2.67 times the amount that China does to generate an equivalent amount of wireless network capacity.

Dan Littmann, a principal at Deloitte, said in a statement that "for the United States to remain competitive and eventually emerge as a leader, the race to 5G should be carefully evaluated and swift actions should be taken".

On research, the United States is thought to be out front.

Huawei is busy developing 5G technologies and products at their headquarters in Shenzhen, China. And it helps that the country won the race for 4G earlier this decade.

But in April, a report from CTIA, a trade association for the U.S. wireless industry, said the United States needs a clearer schedule for the allocation of radio frequencies, similar to what has been announced in China and South Korea.

For now, it appears China has more money behind its effort. South Korea was second, and the United States was third.

The US government has indicated it's aware of the threat from China.

Another report dubbed China's lead in the 5G race the "China Surge" and noted that China has the potential to lead through 2021.

It's likely that United States carriers Verizon, T-Mobile and Sprint will launch their 5G networks early in 2019, while AT&T said it'll bring its mobile 5G network to three cities this year.

Beijing plans to deploy 5G on a large commercial scale by 2020.

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