Huawei and 5G
Telecom giant has projects with 10 Canadian universities, plans to double Ontario operations
The international race to deploy 5G wireless technology and what that has to do with Huawei,
VANCOUVER— As the world watches, U.S.China trade tensions are playing out against the backdrop of the Canadian detention of a high-ranking Chinese telecom executive — but experts say the bigger issue is the global race to deploy 5G networks, crucial to the next big leap in technology.
Indeed, China’s Huawei Technologies Co. is ahead of the curve and stands to reap huge economic benefits, not to mention establish itself as a technological powerhouse, according to global reports.
Meng Wanzhou, Huawei’s chief financial officer and the daughter of the company’s founder, was arrested at Vancouver International Airport on Dec.1at the request of the United States on charges of fraud related to American sanctions on Iran. On Tuesday, a B.C. Supreme Court judge said she could go to her multimillion-dollar Vancouver home to await word on her extradition as soon as she comes up with $10 million for bail.
The case has become a flashpoint in international relations. But what exactly is 5G? Why is it so important?
StarMetro breaks down the complicated world of next-generation telecommunications technology that will change the way we live in ways we have yet to grasp.
What is 5G?
It refers to the fifth generation of wireless technology that will allow us to live in a world with driverless cars; doctors who perform remote surgery with robots; police who can look up outstanding arrest warrants on wearables such as eyeglasses; homes where heating, security cameras, door locks and appliances will talk to each other; and cities with fully integrated networks that can notify different departments about fires, floods and even burnt-out street lights.
5G does not just mean faster wireless tech, though it will be able to move a massive amount of data. It also has lower latency — defined as the response time between clicking on a link and how fast it shows up — meaning it is more responsive and it can connect billions of devices at once. The connectivity means heightened productivity for consumers, industries and governments.
That’s why reliability is key on such a large scale. Entire roadways or complex systems must not be able to “go down,” even for a moment.
What is the Internet of Things?
It refers to the growing network of physical objects connected to the internet and the communication that happens between these objects and other internet-enabled devices or systems. The Internet of Things can transfer data over a network without requiring human-to-human or human-to-computer interaction.
5G technology would enable the expansion of the Internet of Things on a massive scale.
How is 5G on my home network different from this 5G?
Some mobile carriers have already rolled out 5G networks, but these “firsttier” cities serve as testing groups, and 5G merely supplements existing mobile broadband. Consumers won’t see the potential of 5G yet, as large-scale network connectivity and integration could take between one to five years to refine. This is what Huawei and other companies like Ericsson are chasing. Why is China ahead on 5G technology development?
After missing opportunities for tech ownership in the 4G era, 5G is now a top priority on Beijing’s policy road map called “Made in China 2025.” The program has contributed to the trade tension between the U.S. and China, experts say.
China plans a commercial launch by 2020, according to a 2018 Ernst and Young report, and its current five-year economic plan promises $400 billion in 5G-related investment.
Since 2015, China outspent the U.S. by roughly $24 billion in wireless infrastructure, building 350,000 new transmission sites while the U.S. built fewer than 30,000, according to a recent Deloitte report.
Taking a leading role in 5G allows China to have a greater share of intellectual property, which would increase its global influence. Eventually, it will enhance China’s bargaining power with foreign patent holders and help lower costs in the supply chain, the report said.
Huawei is able to produce equipment at a cheaper cost than competitors as it is subsidized by the Chinese state.
Countries want a head start with 5G because they’re likely to see economic gains, according to Henning Schulzrinne, professor of computer science at Columbia University.
“These type of infrastructure investments tend to be long-term lock-ins,” he said.
“Once you’ve made your bet on a company’s equipment, you’re likely to continue to use that in your network … as you’re only going to buy once in every 10 years or until 6G rolls around.”
Huawei has done major intellectual property acquisitions, he added. And companies that own patents can make billions of dollars in royalties. How deep is Canada intertwined with Huawei 5G development?
Huawei Canada has ongoing research initiatives with10 Canadian universities, according to the company’s website, which notes the company also “committed to invest a minimum of $500M in direct R&D spending.”
“Huawei very helpfully helps facilitate research amongst Canadian universities, but as part of that, amongst certain universities, it’s meant that Huawei subsequently obtains the patents that are realized,” said Chris Parsons, a cybersecurity expert for the University of Toronto’s Munk School of Global Affairs and Public Policy.
Huawei is also in partnership with companies such as Telus, with which it’s developing interconnected 5G networks in Canada. BCE Inc., and to a lesser extent Rogers Communications Inc., all use Huawei equipment in their networks.
The Chinese telecom giant announced plans three years ago to “double” the size of its Ontario-based Canada Research Centre operations by 2020 — in partnership with the province of Ontario, which invested up to $16 million to support Huawei’s initial $212-million investment.
It includes “the creation of 250 new research and engineering jobs” focused on 5G.