FEED Issue 14

6 CLOUD FOCUS Wildmoka

Words by Neal Romanek

BREAKING NEWS FROM THE STREAMING SECTOR

5G?

WILL TRUMP NATIONALISE

US President Donald Trump’s re-election team is backing a controversial proposal for a nationwide 5G network, sparking telecom industry fears of nationalisation. The proposal envisions the US government taking specific frequencies in the 5G spectrum and selling them wholesale to wireless providers in the US. It means no company could use exclusive control over a wireless spectrum to block competition, and providers big or small could buy capacity. In theory, this could help regulate fair prices, but doesn’t seem to align with Trump’s MO as a free-market capitalist and many wonder why his team are endorsing this open-access model.

Rivada Networks is positioning itself for the lucrative role of delivering the 5G technology. This telco provider considers Peter Thiel, a prominent Trump donor, among its investors. Trump’s political advisors believe this will provide connectivity to rural, underserved parts of the country – the President’s largest voter base. There are precedents for beneficial US government telco regulation. For example, the Federal Communications Commission (FCC) has prevented phone companies from taking over internet service providers and is currently trying to enforce net neutrality. The government currently makes the wireless spectrum available by

exclusively licensing the highest frequencies to the highest bidder. A network that supported 5G operating on a wholesale basis could weaken the wireless oligopoly. It enables the spectrum to be used more efficiently, allowing niche services like telemedicine and smart electric grids to buy capacity. Trump’s 5G journey kicked off a year ago, when a leaked National Security Council memo outlined a national 5G network as a means to compete with China. But there’s no guarantee rural wireless providers will rush in to take advantage of the opportunity. A project of this scale would take careful oversight and a long-term commitment by the Trump government.

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