Since 2015, China has outspent the United States in 5G infrastructure by $24B

Doris Richards
August 10, 2018

For sites per 10,000 people, Japan leads the world with 17.4, while China has 14.1, Germany boasts 8.7, and the us figure is 4.7.

China is significantly outpacing the USA in terms of spending on the infrastructure necessary to ensure 5G readiness, according to a new study by Deloitte.

The report, titled, "5G - The chance to lead for a decade", shows that in addition to outspending the United States in wireless communication infrastructure investments, China is deploying technologies more efficiently and quickly achieving higher levels of tower density.

"Maintaining US leadership in mobile communications requires that carriers, technology vendors, OTT innovators, municipalities and policy makers collaborate to build a strong business case for 5G", said Dan Littmann, a Deloitte Consulting principal in tech, in a statement.

Despite the economic gains that are widely expected to come from 5G, investing in network infrastructure isn't always an obvious choice for carriers, the report points out.

The firm notes that China has outspent the USA on wireless communications infrastructure by $57 billion since 2015, constructing 350,000 new sites, compared with less than 20,000 in the States.

Since 2015, it has outspent the $24 billion in 5G infrastructure, Deloitte's study found.

Deloitte noted that adoption of 5G technology in the communications infrastructure is becoming increasingly critical. During just three months in 2017, Chinese carriers and cell phone tower companies added more sites than the U.S. had during the course of the past three years.

"China and other countries may be creating a 5G tsunami, making it near impossible to catch up", Deloitte said in its report.

China also had much lower costs for adding a carrier, with the Deloitte report estimating that the equipment necessary for adding a carrier was about 65% that in the US.

China has outspent the United States by $24 billion (roughly Rs. 1.6 lakh crores) since 2015 and has built 350,000 new cell phone tower sites, while the USA built less than 30,000. This compares to just 4.7 sites per 10,000 people and 0.4 sites per 10 square miles in the US.

China is beating the United States at building the architecture of 5G.

The Nokia hardware, software, and services will enable T-Mobile to provide wide coverage on the 600MHz spectrum and ultra-high-speed capacity on 28GHz airwaves in dense urban areas.

It's clear what the U.S. stands to gain from 5G investments: "Being first to LTE afforded the United States macroeconomic benefits as it became a test bed for innovative mobile, social, and streaming applications", the report says.

Other reports by Iphone Fresh

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