Government Gets Involved in 5G Networking to Combat Huawei
According to a report from the Wall Street Journal Tuesday, the Trump administration is working in conjunction with some of the biggest tech companies in the country to develop software for 5G telecom networks in an effort to reduce American reliance on Chinese technology, specifically Huawei. AT&T, Microsoft and Dell were all cited by the White House as taking part in the effort. The administration effectively banned Huawei from doing business in the U.S. by issuing a national security order last May that limits foreign involvement in American telecom networks -- the administration has national security concerns regarding the cozy relationship between Huawei and the Chinese government, a connection that the company has repeatedly denied.
“The big-picture concept is to have all of the U.S. 5G architecture and infrastructure done by American firms, principally,” according to Larry Kudlow, White House Economic Advisor, in an interview with the WSJ. “That also could include Nokia and Ericsson because they have big U.S. presences. Dell and Microsoft are now moving very rapidly to develop software and cloud capabilities that will, in fact, replace a lot of the equipment.”
Despite the best efforts of the U.S. to curb Huawei’s virtual stranglehold on 5G hardware development, the company is still the largest provider of telecom technology in the world. The U.K. recently announced a partnership with Huawei to let the company build part of its 5G networking system, a move perceived by pundits as very unpopular with the Trump administration.
Before the White House got involved, coordinated efforts had already begun within the U.S. telecom industry to develop a set of common standards and practices that would enable 5G software developers to write code for equipment manufactured by anyone, not just Huawei. Ironically, government involvement in telecom infrastructure development played a big part in Huawei’s ascension to the top of the telecom food chain. The Chinese government actually subsidized the company in its early stages and helped to block foreign competition from encroaching on their turf domestically. While the U.S. government currently has no plans to subsidize the American telecom industry, it is attempting to close Chinese companies out of the U.S. market while extending invitations to big European telecom players like Nokia (Finland) and Ericsson (Sweden) to dip their toes in the water. The Trump administration believes that 5G and the enhanced connectivity it promises will grow the IoT market and incite innovation, so much so that the White House at one point considered providing government subsidies to American hardware developers competing with Huawei or even funding a state-owned 5G network, according to the WSJ.
Could this collaboration between the government and the private sector be a sign of things to come? Smart phones and other connected devices aren’t just gadgets of convenience anymore, they’re an almost essential part of human life. Historically, when certain industries have become integral parts of American life, the government has stepped in to make sure they’re safe and even occasionally prop them up, a la the automobile industry. Has the telecommunications industry crested that hill? Let’s answer that question with a question: chances are you probably know someone who doesn’t own a car, but do you anyone that doesn’t have a cell phone? Or a tablet, or a laptop? In a world of connected devices, telecom may end up becoming than automotive industry if it hasn’t already. It shouldn’t come as a surprise that governments are looking to exercise some control over it.