Why Companies and Countries Are Battling for Ascendancy in 5G

Being at the forefront of a new technology often provides a strategic advantage. That helps explain why there is so much scrapping now by companies and countries over a next wave of wireless technology known as 5G. The Committee on Foreign Investment in the United States said it would investigate the proposed Broadcom-Qualcomm deal, partly because it was concerned that if Broadcom bought Qualcomm, it would weaken Qualcomm and “leave an opening for China to expand its influence on the 5G standard-setting process.” Broadcom, which is based in Singapore but is planning a move to the United States, swiftly rejected the idea that it would push 5G development less aggressively. “There can be no question that an American Broadcom-Qualcomm combination will provide far more resources for investments and development to that end,” a Broadcom spokesman said.

The Cfius letter estimated that Huawei owned 10 percent of the patents essential for 5G networks. A Huawei spokesman said it had been working on 5G since 2009, having spent $600 million on related research already and committing $800 million more in 2018 alone. Many American carriers also buy cellular equipment from Sweden’s Ericsson, which has long helped set cellular standards and estimates that it has been working on 5G for a decade. Erik Ekudden, the company’s chief technology officer, said its technical contributions had topped those of any other company. Other major contributors include South Korea’s Samsung Electronics, Finland’s Nokia and several companies in Japan. Intel, which has been determined to reduce Qualcomm’s market dominance in wireless chips, has also significantly stepped up efforts to influence 5G standards.