5G Network Devices Competition Started Among Mobile Network Devices Makers.
Like 3G networks, operators only mistakenly believed 5G networks and telecom operators that they can recoup their investments by charging to access 5G.
Mobile network equipment makers are seeing a potential boost in the business with the first rollout of superfast 5G wireless networks. The EU wants European firms to start offering 5G – seen as key to developing “next generation” services like telemedicine or self-driving.
The first commercial 5G rollout begins this year and thereafter in the United States, Korea and Japan.
Telecom operators, who have slashed spending on their networks in recent years, are hitting network equipment makers like market leader Ericsson, costing hundreds of billions in years to come to build their 5G networks. Be able to prepare.
Deutsche Telecom estimates the cost of delivering a 5G network in Europe alone will be 300-500 billion euros ($370-615 billion).
“5G is certainly good for us but also for other industries and society,” Eric Akoden, Ericsson’s chief technology officer at the Mobile World Congress in Barcelona.
He predicted the technology, which makes it possible to download full-length movies in less than a second, would give service providers an additional 35 percent growth.
“There’s an even bigger backlash for other industries.” “Our own progress will be moderately trivial with comparison,” Akoden said.
Low-cost Chinese player Huawei has been the biggest winner of all time.
It has spent heavily on research and development and has managed to undermine its competitors’ position with less expensive products.
Huawei Chief Executive Ken Ho told Congress that his company had signed a memorandum of understanding for 5G devices with 45 operators in Asia, Europe and North America.
“There has been a significant drop in margin with the arrival of Huawei in the market,” BMI research analyst Dexter Thelin said.
He added that the already highly competitive sector had been weakened and in 2016, the merger of French telecoms goods company Alcatel-Locent and Finland’s Nokia.
Now three firms dominate the global mobile network market. Ericsson, Huawei and Nokia.
5G wireless networks promise to unlock the potential of internet-connected devices, or the Internet of Things, which could create a new category of potential customers for equipment manufacturers beyond traditional telecom operators.
For example, a French environmental services group Volia has established its own wireless network for its smart meters.
Airports, highways, railways and other infrastructure operators are all “potential good clients of the 5G frequency,” said French telecoms regulator in Barcelona.
New uses for wireless networks are often quite different, forcing gearmakers to look for partners from other areas.
Ryan Ding, the company’s executive director and president of Products and Solutions, said Huawei has more than a thousand partners “delivering different use matters” in other areas, for example.
“We are experts in telecom industries, but we don’t know much about cow connecting, for example, he said more about connected farming.
Despite a potential increase in client numbers, mobile network equipment manufacturers are smart.
“It’s a fresh new business environment, this market can have room for newcomers,” Erickson said. But scale and leverage are also important, not every application should be a self-made network. ”
Their caution is based on past lessons. With the advent of 3G wireless networks, telecom operators have spent a lot, mistakenly believing that they could recoup their investment by charging for access to mobile internet.