President Trump has made clear that a quick roll out of next-generation wireless networks, known as 5G, is a priority. On Friday, the Trump administration is set to back that push with real investment. As confirmed by several news outlets, the Federal Communications Commission is set to announce that both new slices of airwaves will be up for auction and that the administration will set up a “Rural Digital Opportunity Fund” that will put $20.4 billion over 10 years toward boosting connectivity.
That’s exactly what the administration should be doing. Investing in wireless infrastructure is key to facilitating the next generation of innovation that is likely to be the basis of future economic growth.
For an idea of how important that investment is, it’s worth considering Uber. Car sharing is not a novel idea (taxis have been around for quite some time), but allowing individual users with access to high-speed internet on their phones to connect and purchase rides is. That was only possible because of advancements in wireless technology. Even faster and better-connected networks are likely to yield similarly disruptive and economically beneficial innovations.
Trump is right to want the U.S. to be a leader in those innovations as the country as well as individual companies and consumers are likely to reap huge benefits. Building out networks to under-served areas and making available more airwaves which will underpin 5G capabilities are important steps and the Trump administration is right to invest in them.
[Related: State Department admits US can’t compete with China’s 5G]
That being said, these investments do little to push back on U.S. concerns about Chinese telecommunications giant Huawei. That’s because despite putting money into infrastructure, no U.S. company currently manufactures the equipment needed for 5G networks. This is where Huawei has emerged as a major player and is well positioned to dominate the industry. Although other foreign companies such as Nokia, Ericsson, and Samsung, have also been focused on 5G equipment and benefited from government investments, the U.S. has not prioritized our own domestic development of 5G equipment.
If the Trump administration is serious about winning the race to deploy 5G while keeping the technology firmly in U.S. control, their next focus should be on ensuring that China’s Huawei faces real competition in the equipment market. For now though, Trump should be applauded for his announcement on Friday that will help lay the foundations for 5G capabilities in the U.S.
