by Axios | 4.12.19
President Trump and his top telecom regulator will announce plans today to unleash the largest-ever swath of radio frequencies in the U.S. and a $20 billion fund to help wireless companies to keep pace with global rivals — specifically China — in the 5G race.
Why it matters: Proponents maintain that a significant economic advantage will be won by the first country to broadly deploy 5G networks, which will deliver wireless speeds 100 times faster than today's mobile internet. The U.S.'s lead in building current 4G technologies led to smartphone ubiquity and apps like Uber and Spotify. The next generation is expected to power self-driving cars and smart cities.
Fears that China has the edge in the global 5G race sparked some (including Karl Rove, Newt Gingrich and Trump campaign manager Brad Parscale) to call for a government-directed national network, similar to China's own approach.
"I draw the lesson from the development of the wireless industry over the past three decades, including U.S. leadership in 4G. The market, not the government, is the best way to drive innovation and investment. That's the general approach we've taken and it's proven to be successful."
FCC Chairman Ajit Pai
Details: At a White House event today, Trump and FCC Chairman Ajit Pai plan to make two announcements.
1. Airwaves: The FCC will auction off three big slices of millimeter-wave airwaves that are crucial to connecting new devices at high speeds.
2. Funding: The agency will announce a "Rural Digital Opportunity Fund" to spend $20.4 billion over 10 years in rural broadband.
The initiatives are part of the FCC's "5G Fast Plan" to position the U.S. ahead of competitors.
Yes, but: The U.S. is hampered in other areas. No American company manufacturers 5G network equipment, leaving the U.S. to rely on foreign-owned Nokia, Ericsson and Samsung. China is poised to dominate that market with Huawei, its fast-growing telecom firm that has been shunned by the Trump administration out of fears of espionage.
The bigger picture: Wireless companies including Verizon and AT&T are in the early stages of 5G roll-outs, with limited services in handful of markets so far and 92 deployments planned by the end of the year. But widespread deployment will happen over the course of a decade, requiring a steady pipeline of spectrum and fiber projects.
Written by Axios
Follow this Action Center to stay updated on new posts