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Since the development of 5G networks in various countries, the United States has not stopped. Affect the cooperation options of other countries in 5G networks, and then let US operators dismantle Huawei, ZTE equipment, and promote the Open RAN open wireless access network based on European and American technology systems.
However, the United States has encountered further difficulties in the removal of equipment, and the United States FCC (Federal Communications Commission) has issued a warning that two-thirds of operators' applications for subsidies for dismantling equipment are seriously flawed. The implication is that two-thirds of the subsidy applications were rejected.
Will this lead to u.S. carriers replacing devices at their own expense? Will the United States vigorously promote Open RAN become a mainstream technology?
Lao Mei dismantled Huawei equipment and encountered problems again
Entering the critical moment of 5G development, other countries are constantly building 5G networks and building more base station facilities, but the united States' approach is incompatible with other countries. Because the way the United States builds 5G networks is to dismantle the equipment and then install new equipment.
Under the demolition and construction, we can imagine what kind of 5G construction efficiency can be achieved. The former CEO of Google complained that the 5G network in the United States is only an embellishment of 4G, and in some areas, the 4G network is even faster than 5G.
However, the United States did not realize the inappropriateness of this, and is still urging operators to step up the dismantling of equipment, while the United States has specially provided $1.9 billion in subsidies to operators.
New problems have arisen, with operators filing too many subsidy applications that exceeded FCC expectations. The FCC received a total of 181 subsidy applications, but not all operators can receive subsidies, and the FCC issued another warning on the dismantling of Huawei equipment, saying that two-thirds of the application documents were seriously defective and unqualified.
Lao Mei has encountered financial difficulties, and the original $1.9 billion is not enough to meet the subsidies of all operators, and has now reached 5.3 billion US dollars (about 35.5 billion yuan) to dismantle the equipment cost.
In this case, unless the United States increases the amount of subsidies, only one-third of operators are expected to receive subsidies.
However, in order to finalize the $1.9 billion subsidy, the United States did not know how many meetings and topics were discussed before it was determined to settle $1.9 billion. If it is increased to $5.3 billion, it will face a lot of financial pressure.
So will this lead to the replacement of the device at the expense of the US carrier? Operators may be more difficult to pay for than to apply for subsidies.
Small operators with only a few hundred thousand, a few million, cannot have sufficient funds to dismantle the equipment and then purchase new equipment for installation. The cost of equipment is only one aspect, and it also needs to pay a lot of labor costs, and the equipment maintenance in the later stage is not a small expense.
If the subsidy application has been rejected and they are unwilling to pay for it themselves, do U.S. operators have more options? Maybe you can only take one step at a time.
Will the United States vigorously promote Open RAN become a mainstream technology?
The United States urges operators to replace equipment for another purpose, that is, to promote Open RAN and reduce the dependence on traditional manufacturers such as Huawei and ZTE on RAN technology.
Open RAN is an open wireless access network technology that can be used with the technology of multiple communication equipment vendors. In this way, the future network construction will not have to use the same supplier's equipment all the time, increasing the operator's choice and bargaining power.
This technology has been vigorously promoted by the United States, and European countries and regions are also building Open RAN network sites. After the US operators dismantled the old equipment, the new solution was estimated to be Open RAN. Will the United States vigorously promote Open RAN become a mainstream technology? Not necessarily.
If Open RAN really has the potential to become a mainstream technology, it will not let the construction of 5G in the United States stagnate.
Compared with RAN technology, Open RAN lacks a mature market ecology and does not have a perfect supply chain at this stage, which will lead to the construction of Open RAN networks will face a lot of costs. Some operators in the United States shut down the first Open RAN networks because of cost issues.
In terms of network security construction, Open RAN as a new technology still has a lot to improve. Maybe only when Open RAN develops into a RAN-scale industrial chain and has a huge ecological environment, this technology will usher in a better future, but not now.
Open RAN has a long way to go to become mainstream, and the United States wants to change the 5G choice of other countries and join the Open RAN camp together, depending on how many people are willing to start from scratch.
There is clearly ready-made RAN technology available, as long as it is open and cooperative, it can keep up with the pace of the 5G era. If you join the Open RAN network construction, no one knows whether you can achieve the same network effect as RAN, and the cost is economical.
The U.S. took pains to dismantle the old equipment and install equipment that supported the Open RAN network. The idea is rich, but in practice it faces the cost pressure of 35.5 billion yuan. Operators are unlikely to dismantle the equipment at their own expense, waiting for more subsidies in the United States to be implemented without an exact time.
summary
The U.S. plan to dismantle equipment was echoed by hundreds of operators, but limited funding led the FCC to issue a warning that two-thirds of the application documents were not in conformity. I don't know if the United States did it intentionally, but the pass rate is stuck in the $1.9 billion subsidy. U.S. operators have no more choice than to take one step at a time.
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