The US is being outspent by China in the race to build the next generation of wireless communication, known as 5G, and it risks losing out on the potential economic benefits, a report by Deloitte Consulting published yesterday showed.
China currently has 10 times more sites to support 5G communications than the US, the report said, adding that in just three months of last year, Chinese cellphone tower companies and carriers added more sites than the US had done in the previous three years.
‘UNTAPPED POTENTIAL’
The first countries to adopt the next-generation wireless communication technology would experience “disproportionate gains,” as 5G brings an “era of untapped economic potential,” the report said.
China has outspent the US by US$24 billion since 2015 and has built 350,000 new cellphone tower sites, while the US built less than 30,000, it said.
It might also be about 35 percent cheaper to install equipment necessary to add carriers to 5G in China than in the US, it added.
The report came after the US Federal Communications Commission announced new rules for bidding on high-band spectrum, which is expected to be used in the future for 5G.
Dan Littmann, a principal at Deloitte, said in a statement that “for the US to remain competitive and eventually emerge as a leader, the race to 5G should be carefully evaluated and swift actions should be taken.”
The US could still catch up, the report said, recommending that the US adjust policy to reduce deployment time, encourage carriers to collaborate and implement a database of statistics and best practices.
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