5G is the 5th generation of cellular mobile communications. It succeeds 4G, 3G, and 2G systems. 5G enables a new kind of network that is designed to connect virtually everyone and everything together including machines, objects, and devices. With 5G, we are moving towards a highly connected world where technology will transform how we live, work, and communicate. But an important question arises – who owns and controls this next generation of wireless networks? Let’s take a closer look.
What is 5G?
5G offers faster speeds, lower latency, and the ability to connect a lot more devices at once. The benefits of 5G include:
- Faster data speeds – 5G is 10-100 times faster than 4G with speeds up to 10 Gigabits per second (Gbps). This enables high bandwidth applications like HD streaming and virtual reality.
- Lower latency – The lag or delay is greatly reduced with 5G. Latency could be as low as 1 millisecond which allows for real-time interactivity.
- Connectivity for billions of devices – With 5G, massive machine type communications is possible for Internet of Things (IoT) devices. It can support up to 1 million devices per square kilometer compared to 4G which supports only up to 100,000 devices per square kilometer.
5G will enable all kinds of new use cases that leverage its fast speeds, high bandwidth, and low latency – from self-driving cars, remote surgery, automated factories, AR/VR, and more. It is a transformative technology for consumers and businesses.
Who are the major players in 5G?
There are several key players driving 5G adoption and roll out:
Telecom operators
Telecom operators around the world have been investing heavily in building out 5G networks. Some of the major operators include:
- AT&T
- Verizon
- T-Mobile
- Sprint
- Vodafone
- NTT DoCoMo
- China Mobile
These companies are spending billions to purchase 5G wireless spectrum and build infrastructure like small cell sites. 5G coverage is still limited, but telecom operators are rapidly expanding their 5G networks as adoption increases.
Network equipment manufacturers
Companies that make 5G network equipment and infrastructure are also pivotal in the rollout of 5G. Some of the key players are:
- Huawei
- Ericsson
- Nokia
- ZTE
- Samsung
- Qualcomm
They provide the antennas, base stations, software, and other technologies that make 5G work. With their equipment, telecom operators are able to deliver 5G connectivity.
Smartphone manufacturers
In order for consumers to experience 5G, they need compatible devices like 5G smartphones. Top smartphone brands driving 5G device availability include:
- Samsung
- Huawei
- Apple
- Xiaomi
- LG
- OnePlus
As 5G smartphones become more affordable and widely available, adoption among consumers will rise.
Government agencies
Governments also play a role in 5G by:
- Allocating and auctioning 5G wireless spectrum
- Setting policies around 5G infrastructure and deployment
- Promoting investments in 5G through funding and other incentives
- Developing national 5G strategies and initiatives
Some government bodies involved with 5G include the FCC in the US, Ofcom in the UK, the EU Commission, and India’s Department of Telecommunications.
5G Spectrum Ownership
Wireless spectrum is the lifeblood of mobile communications. Spectrum refers to the radio frequencies allocated for different uses like broadcasting or mobile services.
For 5G to work, telecom operators need access to wide swaths of spectrum, ideally at lower frequency bands below 6GHz as well as new high-frequency millimeter wave (mmWave) bands above 24GHz. Securing adequate 5G spectrum is key.
But who owns the rights to this 5G spectrum? In most countries, spectrum is treated as a national resource and government regulators control access to it. Spectrum is allocated to different users through auctions, licensing, and administrative assignments. Let’s look at 5G spectrum allocation in some major markets.
United States
The FCC is the regulatory body that handles spectrum auctions in the US. Major spectrum bands for 5G identified by the FCC include:
- 600 MHz
- 2.5 GHz
- 3.5 GHz
- 24 GHz
- 28 GHz
- 37/39 GHz
The FCC has been running spectrum auctions for flexible use 5G bands. Here are some key auctions and who acquired spectrum:
| Band | Auction | Major Winners |
|---|---|---|
| 600 MHz | Auction 102 (2017) | T-Mobile, Dish, Comcast |
| 24 GHz | Auction 102 (2019) | AT&T, T-Mobile, Verizon |
| 28 GHz | Auction 101 (2019) | AT&T, T-Mobile, Verizon |
The major telecom operators are investing tens of billions into acquiring spectrum licenses to support 5G rollouts across the country.
Europe
The EU has taken a coordinated approach to make spectrum available for 5G. Key bands identified include:
- 700 MHz
- 3.6 GHz
- 26 GHz
Individual countries hold spectrum auctions for telecom operators to bid on licenses. Major license winners have included:
- Vodafone and Telefonica in Spain
- Deutsche Telekom, Vodafone, Telefonica in Germany
- Orange, SFR, Bouygues in France
The EU has set goals for its member countries to make these 5G pioneer bands available by 2020 under a consistent schedule.
China
China’s MIIT (Ministry of Industry and Information Technology) is responsible for allocating and assigning 5G spectrum.
Early 5G launches in China have relied on licenses in the:
- 3.5 GHz band
- 4.9 GHz band
China Mobile, China Telecom and China Unicom have all been assigned 100 MHz blocks in the 3.5 GHz band to support nationwide 5G deployment.
Additionally, mmWave spectrum allocations are expected in future including the 24.75-27.5 GHz and 37-43.5 GHz bands.
India
India’s Department of Telecommunications (DoT) oversees spectrum allocation and licensing. Key spectrum bands for 5G identified include:
- 700 MHz
- 3.3-3.6 GHz
- 24.25-28.5 GHz
The DoT plans to auction 5G spectrum in 2022. Reliance Jio, Airtel and Vodafone Idea are expected to bid for licenses to offer 5G services starting in 2023.
5G Infrastructure Ownership
Beyond just spectrum, the physical infrastructure for 5G networks is critical. This includes things like:
- Cell towers
- Small cell sites
- Fiber optic cables
- Data centers
This infrastructure allows telecom operators to actually transmit and carry 5G signals. Who owns and controls this infrastructure?
In most countries, telecom operators own and build their own private 5G networks. For example, Verizon and AT&T each have their own infrastructure like cell towers and small cells to support 5G rollouts.
However, some alternative models are also emerging:
Joint ventures
Some telecom operators are entering joint ventures to co-build shared 5G infrastructure and cut costs. For instance, T-Mobile and Sprint formed a joint venture in 2020 to combine their tower portfolios in the US. Similarly, Vodafone and Telefonica are co-building shared 5G networks in Spain and the UK.
Wholesale networks
There are alsomoves towards wholesale open access networks where independent companies build and operate infrastructure that they then lease to multiple telecom operators. This model enables faster rollout by consolidating infrastructure. For example, Cellnex operates shared networks across Europe.
Government-owned networks
Some governments are also getting directly involved in building national 5G networks. For instance, Australia plans to invest in government-owned 5G infrastructure that carriers can access. Similarly, the UK is considering a state-owned 5G network.
So in summary, while telecom operators generally own their own infrastructure, we are seeing new sharing and wholesale models emerge for 5G.
Standard Essential Patents and 5G
Development of the technical standards that define 5G has involved contributions from companies around the world. Companies that participate in standards development often file standard essential patents on the technologies. As these patents are essential to implementing the standard, device makers must license them.
This means major 5G patent holders have significant influence. Let’s look at the companies with the most 5G standard essential patents:
| Company | Number of 5G SEPs Declared |
|---|---|
| Huawei | 3,147 |
| Samsung | 2,795 |
| LG | 2,428 |
| Nokia | 2,361 |
| ZTE | 1,918 |
| Qualcomm | 1,756 |
| Ericsson | 1,428 |
Chinese firms Huawei and ZTE lead in terms of 5G SEP declarations. Companies like Samsung and LG also have strong 5G patent portfolios.
Going forward, new technologies and standards will likely bring updates to 5G and more associated patents. The balance of power on 5G-related IP will be an ongoing issue to watch.
Policy and Regulation
Governments play a key role in 5G by setting policy, regulation, and national strategies. There are many important policy issues surrounding 5G including:
- Spectrum allocation and licensing rules
- Infrastructure siting policies
- Network equipment security and supply chain requirements
- Competition rules and carrier access arrangements
- Privacy and data protection
- Infrastructure security and resilience
By setting the ground rules on these issues, governments exert significant influence over how 5G systems are built and operated in their countries.
Some examples of how government policy shapes 5G:
- The US FCC’s “5G FAST” plan limits state/local control over 5G infrastructure siting
- The EU’s 5G Cybersecurity Toolbox sets region-wide network security standards
- China’s policies promote state-owned carriers and domestic vendors like Huawei
As 5G continues to evolve, policy battles will heat up in areas like equipment suppliers, data security, infrastructure control, competition regulation and more. Governments hold major sway regarding how 5G networks develop.
Key Takeaways
Some key points on 5G ownership and control:
- Telecom operators pay billions to secure 5G wireless spectrum via government auctions and direct assignments
- Operators invest heavily in building networks but new models like joint ventures and wholesale infrastructure are also emerging
- Leading device makers own large 5G patent portfolios and can charge licensing fees
- Governments exert influence through national policies around spectrum, security, competition, and more
- No single entity owns the end-to-end 5G ecosystem – it’s a complex web of interests
5G is not controlled by any one group. But it is clear telecom operators, equipment vendors, device makers, and governments all play major roles in shaping the 5G landscape. As 5G continues to scale globally, wresting power and influence over this next-gen wireless network will only intensify among different players in the 5G value chain.
Conclusion
In conclusion, 5G ownership and control is spread across telecom operators, equipment vendors, device makers, government agencies, and other stakeholders. Major telecom carriers are driving 5G rollouts by acquiring spectrum and building networks. Governments exert influence through spectrum policy and 5G regulations. Leading smartphone brands are making devices more available. And vendors develop the critical hardware and software enabling 5G connectivity. There is no single controlling entity, but these major groups all have power in shaping the 5G ecosystem as it evolves worldwide. 5G is transforming connectivity and setting the course for a highly digital economy over the next decade. As adoption accelerates, the tussle for influence over 5G will continue across different industries and countries.