Australia has banned China’s Huawei from developing 5G technology infrastructure on security grounds and rejected its bid. The national security concerns were based around the company founder previous links with the Chinese military as well as risks of potential Chinese espionage which has currently been fueled by anti-Chinese sentiment overflowing from the US.
Commodity Inside View:
Australia plans to upgrade to 5G this year for which they invited bids for supplying the equipment’s used in developing the technology. However, it bans Huawei from biding because of the opposition from Australian national security agencies due to security reasons. The ban would cause the company huge loss as it already satisfying around 55% of the country’s 4G requirements.
Infrastructure for the 5G is getting ready across the world. We understand that a number of countries such as South Korea, China, Japan and the US claim that they would make ready their 5G networks by 2018 or early 2019. The UK and Australia are expecting to roll out the network by 2020, though the widespread coverage would still require additional years.
5G is highly pivotal for some sectors including automotive and energy. Autonomous vehicle technology, connected vehicles and V2X are some of the key segments in the automotive industry which would heavily rely on 5G. Smart grids would also be befitted from the infrastructure.
5G provides network stability and high speed of data compared to 3G and 4G and provide around 100 times faster internet connection than 4G, with speed up to 10 gigabits per second. We anticipate that 5G will be deployed in most major countries by 2022.
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