Listen: Why the race to 5G is a bet on a multi-trillion dollar economic impact
"This marketplace podcast is brought to you by g. suite by Google cloud, a suite of cloud based productivity tools that includes g mail, docs, slides, sheets, and drive. You can make real time updates to the same document without having to keep track of multiple versions. And since all the tools are cloud based, your whole team can access the same document and work on the same page at the same time, make it with g. suite by Google cloud learn more at g. suite dot com. Why the raise to five g. is a bet on a multi trillion dollar industry from American public media. This is marketplace tech demystifying. The digital economy I'm Ali, would. The next generation of wireless technology. Five g. could be a huge deal. The speed, the number of devices that can be connected could spawn entirely new businesses that we haven't even thought of yet. Last year chipmaker Qualcomm and tech research firm. IHS technology put out a report that said five g. could enable twelve trillion dollars an economic output across the world by twenty thirty five. Not to mention some twenty two million jobs the report quite sincerely compared five g. to electricity. Now, compare that to four g. which just in the United States contributed about half a trillion dollars to the economy in two thousand sixteen and even a whiff of that potential is why there's a race to get to five g. I between companies and even countries Scott Tong for marketplace, reporter and former China correspondent. He said the US was a four g. winner and China doesn't want that to happen. Again, companies the innovation that was built on this technology, right? Whether it is. As social networking or gaming or video. A lot of those companies that built their products on top of this infrastructure or American company. So the US was kind of the hub for this, you know, giant economic boost for the country, and that is why so many countries. I mean, you had the European Union, Japan, South Korea, all investing billions in this tens of billions. And then of course there's China which has invested more than any of these competitors as far as the infrastructure. So the assumption is, if you're, I kind of build this ten lane superhighway in the sky that you know, if you build it, they are going to come right that these companies in these innovators are going to come to your country. What are people saying about the challenges of rolling out this infrastructure? One of the great big challenges that comes up over and over with five g. is how expensive it is to build the network on. One reason is because of the nature of the frequency where these signals are going to be transmitted is the. The cells are going to have to be really close together. So every little physical piece of the infrastructure is going to have to be much closer together than it is now. Now they don't have to be this big giant cell phone towers. The nature of the technology is could be a small little pizza box size thing on top of a light pole. But all those have to be installed, you have to negotiate with the city or the owner of a house table to put it there. So one of the price tags that one of the consulting firm said was on the order of three hundred billion dollars in the US to build this out. So what is the timeline for the rollout compared to some of those other places? So the first five g. phones, there's talk that they'll be coming up in the next year in two or three years. There's talk that some of the networks will be commercial ready to move into this internet of things. These machines at talk to one another will be out in the market. You know, what's the broader timeline? Well, eleven folks in the industry. Talk about a five year rollout and even more broadly that each of the past generations. Of wireless technology. Three g four g each of those generations has been about a decade. So maybe that kind of order of magnitude Scott Tong. It's a marketplace reporter and our former China correspondent tomorrow on the show. We'll talk about the tension between companies who want to roll out five g. infrastructure and the cities who want some say in that process. And now for some related links? No. The new pixel phones that Google announced yesterday are not five g. enabled. That's not a knock. I'm just pointing it out because it's related. But Google did announce its own new smart speaker with a display attached. It does have built in YouTube. So if you like so many people use your smart speaker as a kitchen device, you now have kind of a little kitchen TV. Also, unlike Amazon's echo show and the newly announced Facebook portal, the Google home hub does not have a camera built in. So other than collecting all your data, it's maybe a little more private. Now I ran a little Instagram pole earlier this week to see how people felt about the portal, the echo, the Google smart speakers, and even apples kind of sort of Syrian abled home pod, and people were not that enthusiastic. So let's increase the sample size Email me. Are you into smart speakers in general, or do you think they're the world's cleverest. National voluntary in-home wiretap. And does a screen or a camera make a gadget like this more of a must have or more of a? No. Thank you. Never in a million years kind of thing. MP tech at marketplace, dot org is my Email address, and this will be part of a conversation later this week. Also I got a great Email from sell about how he loves to listen to marketplace tech and make me smart with his teenage daughter. But he said she asked him, why does she always say she's a nerd for being smart? He writes, I didn't know how to answer that, but unconsciously, you're saying all the young girls in the world. If you're smart, you're nerd. There are so few girls in the stem field and you've done numerous stories on this subject. I love it that you're smart and educate all of us on a daily basis. You are a leader to all the young girls in the world. So please stop saying you're a nerd. Thanks for the Email, Chris, and that was super interesting because I guess I thought it was a good thing, like owning it reclaiming the term I like being a nerd, but now I'm gonna think on it some more because you make a good. Point I'm Ali would, and that's marketplace tech. This is APN."