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Tech & Science Good 5G matters: Why banning Huawei could push up costs by 30%

12:30  03 december  2019
12:30  03 december  2019 Source:   smartcompany.com.au

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Britain has the matter under consideration, although there are signs it might allow Huawei in to some parts of the network. But the main issues are in the 5 G infrastructure where Huawei holds more of the critical patents than One estimate suggests that banning Huawei could push up costs 30 %.

Why it matters . It can be tough to keep pace with the sheer number of headlines, so here's July 30 , 2019: Huawei reported revenue surge despite US ban , and Commerce Secretary Wilbur Ross said July 24, 2019: United Arab Emirates telecom says US ban on Huawei isn't an issue for its 5 G network.

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By Christopher Findlay, Australian National University

Productivity growth matters. But in advanced economies, over the past 15 years, it has fallen by half.

Which is why it doesn’t make much sense to risk damaging one of the most important potential sources for future growth in productivity: the rollout of 5G.

5G is the next generation of wireless technology. Download speeds will be many times faster than what is possible under 4G.

And it’s not just speed. It’ll cut latency, which is the time it takes for signals to start travelling — something that will be critically important for the Internet of Things.

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David Dyson from Three said a ban could delay its rollout by up to 18 months. Huawei has rejected claims it poses a security threat. "The cost of doing that runs into the hundreds of millions and will dramatically affect our 5 G business case," he said . "We would have to slow down the deployment of

Image caption Ren Zhengfei says a Western buyer could modify his firm's products to meet the US's security concerns. Huawei 's chief executive has proposed selling its current 5 G know-how to a Western firm as a way to address security concerns voiced by the US and others about its business.

Nurtured well, 5G has the potential to become a ‘general-purpose technology’, analogous to electricity.

It holds open the possibility of creating new markets for goods and services that we can’t yet imagine.

The best suppliers of the gear required for 5G are in China, most notably Huawei, which has made the heaviest investments in the relevant technology. But the problem is that Huawei caught up in security concerns.

It has been banned from work on Australia’s national broadband network and from helping build Australia’s 5G networks.

In the US, the President issued an executive order last May prohibiting transactions with providers subject to direction by foreign adversaries.

Britain has the matter under consideration, although there are signs it might allow Huawei into some parts of the network.

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Huawei has warned that Canberra’s ban on the Chinese company’s participation in the development of advanced 5 G technologies could cost the Australian market up to 1,500 jobs among suppliers and contractors, according to remarks by top Huawei official Jeremy Mitchell

But Europe could not keep up with Silicon Valley or Shenzhen, where Huawei has its headquarters. The Trump administration has threatened America’s intelligence-sharing relationship with Germany, Britain and other allies as Huawei sought to build their fifth-generation, or 5 G , networks.

Huawei is setting standards

Industry experts rank Huawei highly.

There are none yet from the United States, although reports say Apple will release 5G phones next year. Its competitors are China’s ZTE, the Swedish multinational Ericsson, Korea’s Samsung and Finland’s Nokia.

But the main issues are in the 5G infrastructure where Huawei holds more of the critical patents than others. Globally, it appears to be winning the most contracts.

There is a risk that the rejection of Huawei by some will end up, in the longer term, dividing the world into zones committed to different standards, limiting interconnection.

Standard-setting bodies have expressed concern.

Different standards could constrain the development of global supply chains, pushing up prices. They could impede the scale of application and diffusion of new technologies, limiting what 5G is capable of achieving.

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Update: The Huawei Mate 30 and Huawei Mate 30 Pro briefly had backdoor access to Google apps The lack of apps such as the Play Store, Gmail and Maps could seriously limit the Mate 30 range's What does the ban mean if I have a Huawei phone? First up , it's worth noting that the Huawei Mate

To be sure, Huawei is said to have stockpiled enough chips and other vital components to keep its business running for at least three months. Huawei will only be able to access the public version of Google’s Android mobile operating system, the world’s most popular smartphone software.

One estimate suggests that banning Huawei could push up costs 30%.

Huawei poses risks …

In announcing what amounted to bans on Huawei (and also China’s ZTE), the Australian government said 5G required a change in the way the networks operate compared to previous mobile technologies.

“These changes will increase the potential for threats to our telecommunications networks, and these threats will increase over time as more services come online.”

The government had found “no combination of technical security controls that sufficiently mitigate the risks”.

Vendors likely to be subject to extrajudicial directions from foreign governments risked failure to adequately protect 5G networks from unauthorised access or interference.

Huawei said those security concerns could be managed, as do British cyber-security chiefs.

… which can be mitigated

Europe has noted the risks and is developing a risk mitigation strategy.

Southeast Asian economies are considering degrees of engagement with Huawei.

Worth continuing attention by Australia is what former US defence secretary Robert Gates calls the “small yard, high fence” approach.

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Why it matters . The Mate 30 Pro 5 G model has the longest-lasting 5 G battery and better 5 G cooling system when compared to the Samsung Galaxy Note 10 Plus 5 G , Huawei said during the event. If Huawei can bring together an ecosystem that neutralizes the loss of full-Android support, this will be

But Huawei says it has now signed more than 40 commercial 5 G contracts around the world, including in Europe, the Middle East and Asia. In South Africa, for example, Huawei has already announced its involvement in a commercial 5 G network in Johannesburg with the mobile data provider, Rain.

It means defining exactly where the risks lie and intervening directly to manage them, something Europe is working on.

The US appeared to be struggling after Trump’s May order. The Commerce Department was given 150 days to come up with regulations to implement it. It released a draft only last week.

There were reports of tension in the US between those who would take the risk-based approach and others who would simply keep Huawei on the banned provider list.

Commerce has, finally, proposed a case by case approach, and has not named any particular provider. But the Federal Communications Commission has banned Huawei from access to its universal services subsidies.

International cooperation could give us room to solve the problem. It could include cooperation with China. China and Australia share concerns about cybersecurity and could together in the same way as we do over other standards to facilitate trade.

Attempting to completely eliminate risk could lumber us with big costs. Some would be financial, others might come from stunting the next technological revolution.

This article is republished fromThe Conversationunder a Creative Commons license. Read the original article.

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The post Good 5G matters: Why banning Huawei could push up costs by 30% appeared first on SmartCompany.

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