onald Trump’s election campaign for 2020 is taking a new line to secure the regional votes by government control of 5G frequencies. By leasing out frequencies directly to companies by the government, it’ll force the companies to provide the service to the regional areas and probably reduce the prices as well. But the telecoms are not in favour of this system.
Trump’s press secretary Kayleigh McEnany gave a statement to Politico that
A 5G wholesale market would drive down costs and provide access to millions of Americans who are currently underserved.
She’s right in many ways but the whole idea is designed to get votes from regions and not much more.
Currently, the 5G network frequencies are legally being controlled by Federal Communications Commission who lease them to the government organizations and other companies through the 5G Spectrum Auctions.
For example, companies like Verizon and AT&T have recently completed a 28 GHz 5G technology spectrum auction which resulted in $702 million cost and 2965 licenses.
The new system, which is still at a theoretical stage but likely to change is something a cross between the electricity system and the game Monopoly. For instance, the Government probably be auctioning off a minimum amount of frequency to each provider at the year’s start. This will enable the company to have the infrastructure which can take advantage of the 5G 24 GHz band.
On the other hand, 3 telecom operators want a piece of the 24 GHz 5G technology band and none of them is a clear market leader. In the first part of the year, one company has booming sales so they need extra 5G spectrum. However, in the second half, the other company steals the customers and now they need of extra 5G technology spectrum.
Donald Trump Tweeted
I want 5G, and even 6G, technology in the United States as soon as possible. It is far more powerful, faster, and smarter than the current standard. American companies must step up their efforts, or get left behind. There is no reason that we should be lagging behind on………
— Donald J. Trump (@realDonaldTrump) February 21, 2019
The new system reserves a portion of 24 5G band and auctions it out on a daily or weekly basis to the company that has consumers to take advantage. With this approach, there will be faster 5G speed during the peak usage of the 5G network. The 5G spectrums don’t get blocked so the companies can simply add new ones as the demand of 5G network increases.
If you Want to know more about 5G technology, It’s uses, frequency and incredible speed then go to this
The government can choose to only loan the 5g frequencies to the companies that have regional networks. This doesn’t mean there are not any problems with this.
The Cellular Telecommunications Industry Association, which represent the big telecoms says that
Instead of trying to ‘out-China, China’, as some proponents of a nationalized ‘wholesale’ network monopoly suggested, we reaffirmed our faith in that most American of principles – competition in a free and open market.
The larger companies who already lease out their 5G network spectrums and physical networks to small companies, this new system would ruin those highly successful deals.
The main backer of this new system is Revada company which is backed by Donal Trump’s ally Peter Thiel. However, this wouldn’t be an initiative without some scandals attached. The Revada probably be the middle-man to lease out the 5G network spectrums for the government which would indeed make Peter very rich.
The changing of 5G technology frequency and spectrum market has interesting potential and we’d without hear a lot more about this in coming months.
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