Kudlow went on to say that the administration wants to give the wireless industry whatever they need to deploy 5G quickly. The FCC recently took a big step in that direction by speeding up and cutting the costs for attaching 5G small cell sites to poles and other infrastructure in the right-of-way.
There are a few other ways that were mentioned about how the administration could foster 5G deployment. David Redl, the head of the NTIA called for the government to make the needed spectrum available for 5G. The FCC is in the process of having an auction for spectrum in the 25 GHz and 28 GHz bands. The FCC is also working towards finalizing rules for the 3.5 GHz and 3.7 GHz spectrum (the 3.5 GHz CBRS band will be the subject of tomorrow’s blog).
I hope that the fervor to promote 5G doesn’t result in giving all of the new spectrum to the big wireless carriers. One of the best things the FCC ever did was to set aside some blocks of spectrum for public use. This fueled the WiFi technology sector and most homes now have WiFi networks. The spectrum also powers the fixed wireless technology that is bringing better broadband to rural America. While 5G is important, the administration and the FCC need to set aside more public spectrum to allow for innovation and broadband deployment outside of the big ISP sector.
I found this summit to be intriguing because it’s the first time I recall the government so heavily touting a telecom technology before it was introduced into the marketplace. There was mention in the Summit that the US is in a race with China to deploy 5G, but I’ve never seen anybody explain how that might give China an advantage over the US. China is far behind the US in terms of landline broadband and it makes sense for them (and much of the rest of the world) to stress wireless technologies.
There certainly was no similar hoopla when Verizon first announced the widespread deployment of fiber – an important milestone in the industry. In fact, at the time the press and Wall Street said that Verizon was making a mistake. It’s interesting to see that Verizon is again the market leader and is the only company, perhaps aside from T-Mobile, that has announced any plans to deploy 5G broadband. It’s worth looking back in history to remember that no other big ISPs followed Verizon’s lead and for over a decade the only other fiber to residences was built by small telcos, municipalities and small overbuilders.
Even if the government makes it as easy as possible to deploy 5G, will other big ISPs follow Verizon into the business? For now, AT&T has clearly decided to pass on the technology and is instead investing in fiber to homes and businesses. The big cable companies have shown no interest in the technology. The cellular companies will upgrade mobile networks to 5G but that’s expected to happen incrementally over a decade and won’t be a transformational technology upgrade. 4G LTE is still expected to be the wireless workhorse for many years to come.
There was one negative issue mentioned at the Summit by Rep. Greg Walden of Oregon. While praising efforts to deploy 5G he also said that we needed to take steps to protect the supply chain for 5G. Currently the FCC has precluded the use of any federal funds to buy technology manufactured by Huawei. But a more pressing issue is the current tariffs on China that are inflating the cost of 5G electronics – something that will be a barrier to deployment if they remain in place for very long.
It’s likely that the Summit was nothing more than politicians climbing onto a popular bandwagon. There has been enough hype about 5G that much of the public views it as a cutting-edge technology that will somehow transform broadband. We’re going to have to watch the Verizon deployment for a while, though, to see if that is true.
The administration has it within their power to create more benefits for companies willing to invest in 5G. However, helping huge companies like Verizon, which doesn’t need the help, is not likely going to bring 5G to more homes. And federal money won’t transform 5G into a technology that can benefit rural America, since 5G requires a robust fiber network. I just hope this doesn’t signal more giveaways to the giant ISPs – but if the FCC’s small cell order is any indicator, that might be all it means.