Pro: Western Allies Need To Avoid Chinese 5G Equipment

The worldwide shift to 5G data is "hugely geopolitically contentious," according to Kevin Allison of Eurasia Group.

What Happened

5G will allow a large number of internet-connected devices to communicate with each other almost instantaneously across a wide geographic area, Allison said in a Monday CNBC interview. This creates not only a faster network, but a "new network" that will include self-driving cars, smart cities and next-generation factories.

Why It's Important

Given the importance of 5G technology, geopolitical events need to be considered, Allison said.

The U.S. is encouraging its Western allies not to exclude 5G equipment made by China's Huawei, and several countries such as Australia and New Zealand have already done so, according to CNBC. 

The decision to ban Huawei and other Chinese firms stems from a combination of national security and economic concerns, Allison said.

The leader in deploying 5G technologies will likely see a faster-growing economy, stronger military and a population with a longer lifespan due to advances in health care, he said. 

"It's a hugely geopolitically consequential network upgrade." 

Telecommunication giant Verizon Communications Inc. VZ confirmed Monday that more than 10,000 of its employees will voluntarily leave the company ahead of its push toward 5G technology.

What's Next

The future of global 5G technology is likely to consist of either networks built with Chinese technologies in some countries or networks that are "built to be free from Chinese technologies" in other countries, Allison said. 

Related Links:

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Ericsson Mobility Report Predicts 5G Will Roll Out Faster Than Any Generation Before