The impact of 5G

High-speed mobile communication networks are the infrastructure that underpins the connected way we now live. In that world, the move from 4G/LTE networks to 5G is the next big thing.

Several countries have begun to trial 5G networks, though full international standards have not yet been agreed. It will bring higher speeds, lower lag times, and a much larger capacity to transfer data. It also requires more base stations; the capital investment needed will be significant.

Chinese network equipment company Huawei is the world leader in such switching equipment, but American officials have been pushing allied countries to ban Huawei from building their 5G networks, citing concerns over security and the company's unclear links to the Chinese state. The arrest of Meng Wanzhou (Huawei's chief financial officer and daughter to the company's founder) in Canada in December and her possible extradition to the USA, has deepened the spat.

Here in South Africa the uselessness of the industry regulator ICASA and the government Department of Communication has delayed even the testing phase of 5G networks. Vodacom and MTN are pulling their hair out. We are buy rated on both stocks. There is a new minister in place, Stella Ndabeni-Abrahams. Perhaps she will get things going?

Take a look at the chart below, which shows the range of web services which are made possible by the low latency and high bandwidth that 5G provides.



More here, on the FT website (requires a subscription): Huawei spat comes as China races ahead in 5G