The competition of 5G is increasing in US, Asia and Europe

The rollover in the 5G networks has become a hot topic in the US, China and Europe. The competition of the leadership is increasing due to the market situation, standard setting and regulation. The hyped 5G is getting also comments related to ethics and good governance.

The speculations of global leadership in the 5G networks have been increasing due to the tensions between the US China trade talks and issues related to Huawei. The Chinese tech company was placed to black list by the US authorities due to the security concerns. The company has repeated that this is not the case.

Many market analysts say that the growth of the 5G investments will see the same kind of path as did the 4G. Others think that the path will be different due to the different applications the 5G is made for like the business to business applications. All agree that this game-changing technology, the 4th industrial revolution, will make the business difference.

The leadership talks is now between the US and China. It is expected that the Chinese markets will invest in the new technology 218 billion dollars during the years 2020-2025. This estimate from the China Internet Report also states that there would be 460 million 5G connections by the end of 2025. China has maintained the political ambition in the new technology.

Europe is lacking behind the 5G development about one year due to the lack of spectrum and the lack of integrated EU-tech strategy.

-5G delays in Europe are not tied to the choice of technology vendor. Europe instead faces a series of structural problems that hinder 5G development.  Some structural reasons for Europe lagging behind were the lack of spectrum and a dangerous “wait and see” approach to 5G among some regulators and service providers. The biggest roadblock relates primarily to regulatory policies.  5G must be viewed as a critical part of European national infrastructures.  This is not the case today, the Swedish company says.

The international 5G competition is also a question of the global standard and standard setting which normally have been in the interest of the European companies as well. But it is also questions of the good governance as related to the big tech companies recently over privacy, personal information and security issues.

The US Qualcomm CEO Steve Mollenkopf said in the Bloomberg interview on Monday that he thinks China is trying to create that standard and he sees that it is not only the China that is interested of the standard but also the other Asian countries like South Korea and Japan.

Regarding the competition situation Mr Mollenkopf commented that the only way the 5G is to be implemented is to co-operate with Huawei. According to him, it is the only way to make the 5G live in the world although there are some geopolitical tensions.

This new technology, 5G with high internet speed, enable the development of future sustainable cities, industries and homes with smart applications related to artificial intelligence, iOT and virtual reality.

The new network is needed in order to effectively take care of the future needs related to driving, health and security issues for example. So, it is also a question of confidence, trust.

There are different companies in the 5G supply chain to gain from the new technology. The network suppliers, semiconductors, mobile phone manufacturers and other vendors play a vital role in the development. For example one of the mobile phone makers, the US Apple, has said earlier that their 5G phones will be available in the late 2020.

For tech stock investments follow for example these companies for more information of the development: Apple (AAPL), Verizon (VZ), AT&T (T), Qualcomm (QCOM),  Alphabet (GOOGL), T-Mobile (TMUS), Sprint, China Mobile (0941), China Telecom (0728), China Unicom (0762), China Broadcasting Network, Ericsson (ERIC) , Nokia (NOKIA), Huawei, Samsung (005930), NTT Docomo (9437).






















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Trump: US companies can sell equipments to Huawei

The US President Donald Trump said in today’s press conference in Osaka, Japan that the US and China have agreed that the US companies can sell equipments to Huawei. According to the US President this is part of the US China trade talks they agreed during the weekend G20 meeting.

He did not on the other hand wanted to comment if the Chinese telecom company would be lifted from the national security list or not.

– We are leaving this issue to be discussed later on, he said. The negotiations are starting again during the next week and according to President Trump the Huawei-case is a complicated matter.

Trump mentioned that he would like to see the countries more as strategic partners in the future.

During the meeting in Osaka, US and China also agreed that US is holding tariffs during the negotiations. And part of the trade deal is also that China has agreed to buy US farm and agri products.

Business Finance

Apple manufactures most of its iPhones in China

The US mobile tech company Apple ( APPL) manufacturers most of its iPhones in China. According to Nikkei Asia, the China tops now Apple’s production site compared for example to the US.

Apple has increased its suppliers in the Greater China during the last few years and much of the materials, manufacturing and assembly processes are now in China.

In January the company said that it will start to assemble the premium phones also in India. The reason for this was also the rising concerns of trade wars between the US and China.

But also to establish the production overall in Asia to be more competitive against Samsung and Huawei.

Apple said in its 2018 annual report that the US and China are the only countries to account over 10 % of the company net sales. The sales in China were 51,9 billion dollars last year and operating income was 19,7 billion dollars.

During the second quarter, which ended March 30th, the company net sales in America were 25,6 billion dollars and 10,2 billion dollars in China. In Europe the sales were 13 billion dollars.

According to Bloomberg News, the new trade tariffs between the US and China, may eventually increase the Apple’s retail prices.

Apple’s share price was trading down 2,23 % to 195,49 dollars in Wall Street today.

Business Tech

Stock markets down again – trade talks, oil

Stock markets were down again in Asia, Europe and Wall Street on Thursday. One of the biggest threats was the tiggering question of the US China trade talks after the Chinese telecom group Huawei news. The company confirmed that its CFO has been arrested related to the Iran sanctions.

S&P 500 -index ended down 0,15 % to 2695 points and Dow Jones was down by 0,32 % to 24947 points. The tech-lead Nasdaq was able to turn to positive at the end of the day trading and was up 0,42 % to 7188 points.

In Europe the sell side was dominant and the main indexes ended over 3 % down. In Paris the CAC 40 -index ended down 3,32 % to 4780 points, in Frankfurt the DAX-index ended down 3,48 % to 10810 points and FTSE 100 -index in London  down 3,15 % to 6704 points.

In Asia the Hang Seng index ended down  2,47 % to 26 156 points. In th commodities side, gold was up 0,10 cents to 1237 US-dollars an ounce.

Oil talks have been going on in Vienna and the next meeting in expected to be on Friday. The Brent Crude Oil was down 2,13 % to 60,25 dollars. The OPEC proposal of the cut of 1 million barrels a day was not finalised.



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Smart Banking in Cebit 2017

CeBIT Preview 2017Digital transformation is one of the major competitive questions for banking and insurance companies in the near future. The customer expectations and behavior have changed the way bank services are used and shared. One could say one of the major industrial revolution could be summarized in this sentence:  “bring your own device”.

We have seen that large national and international banks have minimized their branch  network and sifted towards online-banking. But this is not enough. According to Digital Banking White Paper from Huawei Technologies and Deloitte, mobility, social channels, data & analytics, customer experience and advanced automation will be game changers.

Leading towards omni-channel services, customers control over channel selection and simplifies the previous fussy process by avoiding repeated information requests.

According to the White Paper, the smart bank strategy profiles customer needs in order to create value for them by applying Big Data technology and cloud computing.  Ultimately, banks will be able to offer superior customer experience with in-depth customer contact and insights.

Fintech, Bitcoin, Blocchain will all have their impact in the financial markets and the latest studies show that large financial institutions are partnering with start-ups in order to make new innovative solutions and gain more customer satisfaction in their service operations.

The Cebit Technology Fairs will be opened during Sunday with Welcome Night with German Chancellor Angela Merkel and the Japanese Prime Minister Shinzō Abe.

CeBIT Preview 2017


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