China once again proved to be ahead of the rest by running a commercial 5G network. However, analysts believe that the future that came to celebrate too early — the price of new technology may discourage potential subscribers, many of whom do not understand the fundamental difference between the networks of the fourth and fifth generations.

5G in each house

China has announced the launch of the fifth generation networks (5G), which are now available to ordinary consumers, reports CNBC. 5G will provide subscribers high-speed data transmission, which is a necessary condition for the successful operation of many new technologies, such as smart cities and driverless cars.

Initially it was expected that full deployment of 5G in the country will begin only in 2020.

Mobile operators China Telecom, China Unicom and China Mobile introduced its own tariffs 5G, the price of which starts with 128 yuan per month ($18 or about 1150 rubles).

Expensive rate is about 599 yuan a month ($85 or about 5430 rubles) and includes 300 GB of bandwidth and 3 thousand minutes for calls.

It is reported that commercial 5G is already available in 50 Chinese cities including Beijing, Shanghai, Guangzhou and Shenzhen. China is the second country after South Korea, which has deployed networks of the fifth generation on a national scale. For example, in the U.S. some providers also provide services to 5G, but only in certain cities.

Meanwhile spring of this year the US President Donald trump said that “race 5G has begun, and America needs it to win.”

Prior to that, in his Twitter account he said that it is time to enter and “6G”, and as soon as possible.

“I want 5G and even 6G in USA as soon as possible. It is much more powerful, fast and smart communication standard than the current”, — said the American leader, which caused ridicule from Internet users, reported to the President that when the sixth generation does not yet exist even in draft.

However, sanctions imposed by States on the Chinese company Huawei, can interfere with Donald Trump to win the 5G race — the fact that this vendor is one of the pioneers of this technology. In America are concerned that Huawei can spy in Beijing’s favor by using their equipment.

Russia also conducted extensive preparations for the introduction of 5G and even launched a pilot zone, but it remains an open question of allocation of operators required frequencies.

The fact that the priority range for the deployment of networks of the fifth generation is the 3.4–3.8 GHz, which in Russia is busy with special services and special communication. As told in an interview “Газете.Ru” the Director of the division of legal regulation GSMA John Giusti, the use of other frequencies can lead to more expensive communication equipment and devices themselves.

Something to think about

Despite the successful commercial launch of 5G, this technology has a number of challenges remain that need to be addressed for optimum performance. First of all, analysts believe that the installed price (at least $18 monthly) may be too high for full-scale distribution.

Analyst at investment firm Jefferies Group Edison Lee indicates that the price of 5G in China is almost the same as in South Korea, but incomes in China are much lower.

“As the income per capita in China is 69% lower than in Korea, the same prices for the service may mean that the level of penetration of the [technology] in China will be lower than in Korea,” said Lee.

In addition, another obstacle to the development of 5G could be the lack of a wide range of devices that support this technology. Now on the market you can find smartphones the Chinese and South Korean brands with a 5G, but they usually belong to the premium segment, and therefore will not be available to the wider population. The American company Apple release the gadget-enabled 5G is scheduled only for the third quarter of 2020.

In addition, mobile operators need to convince subscribers of the need to transfer to the tariff with 5G.

“The main problem is this — if a consumer sees a big difference between 4G and 5G?.. For many of the differences will be very little,” said CNBC senior partner of the investment company Delta Partners, Vinod Nair.

According to him, if you add together the reluctance to change the rate with increased prices and need to buy another smartphone, the process of transition to networks of the fifth generation can be very lengthy.

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