5G Rivalry Escalates Between U.S., China
The United States was the first to roll out 5G in 2018, with its four major telecom carriers launching the service nationwide by 2019. South Korea quickly followed, and its 5G network helped set the standard for Asian countries, which are now seen as leaders in offering more advanced 5G services compared to the US.
By 2026, the US expects to reach 200 million 5G subscriptions, covering roughly 72% of its mobile market. However, China, Japan, and South Korea have already emerged as global leaders in 5G technology, with China in particular boasting the largest 5G network in the world. This is due to massive state-backed investments and widespread installations.
Europe began adopting 5G at the tail end of 2020, with countries including the UK, Italy, Belgium, Latvia, and Germany quickly following suit. However, European nations still lag behind their Asian counterparts, particularly in terms of 5G base stations per user and the pace of transitioning from 4G to 5G networks, owing to their slower 4G rollouts initially.
In the Middle East, Saudi Arabia has emerged as the leader in 5G data speeds, closely followed by Kuwait.
Looking ahead, mobile industry experts predict that by 2027, there will be around 4.5 billion 5G subscriptions globally. In Europe, 5G is expected to dominate, capturing 85% of the market share.
The intense global race for 5G infrastructure is underscored by the rivalry between the US and China, two of the most dominant players in the tech world. Chinese companies such as Huawei and ZTE have aggressively pursued international growth with a focus on exports, while the US has prioritized security, leading to a ban on Chinese 5G equipment from companies like Huawei and ZTE.
Meanwhile, the US has opened its infrastructure to non-Chinese firms such as Ericsson, Nokia, and Samsung. The UK, Canada, and Australia have followed the US's lead with similar restrictions on Chinese 5G technology. Despite these obstacles, Chinese firms maintain a strong global presence, deploying infrastructure across Asia and the Middle East.
On the other side of the spectrum, US companies like Qualcomm are key players in producing 5G chips, while Oracle and Cisco lead in infrastructure software. However, no American company has yet matched the scale of China’s industry leaders when it comes to 5G base stations.
Patent filings further reveal the fierce competition in the tech sector, with Huawei holding the most 5G-related patents, followed by Qualcomm, LG, Samsung, Ericsson, and ZTE.
Looking ahead, the industry’s focus is already shifting toward 6G. Firms like Ericsson and Huawei have been working since 2020 to shape the future of this next-generation technology. While 5G enables real-time processing of massive amounts of data from AI, IoT, and automation, 6G aims to create a far more sophisticated technical infrastructure. The commercial rollout of 6G is expected to take place in the early 2030s, setting the stage for the next major leap in connectivity.
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