Why aren't any U.S. companies producing 5G technology?

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  • 1 month ago

    This is a case where it's important to understand history!!!!

    I'm going to assume you mean the 5G headend equipment?  There are three components to 5G, the device (i.e. a phone/tablet), the headend (at the tower and equipment that process the "5G signal"), and the backhaul (from tower to the Internet).  From the tower to the Internet is mostly American companies (Cisco/Arista/Juniper Networks) already.

    The "issue" is that THE "US" company that made headend equipment was Nortel Networks (technically Canadian).  Nortel Networks was the company behind LTE (a.k.a. 4G/CDMA).  For example the Verizon network used/uses Nortel LTE headend equipment.  There are no other North American companies that make "telecom headend equipment".  Unfortunately Nortel went out of business due to various reasons (primarily due to incompetence/greed at the executive level), leaving a vacuum in the North American telecom equipment provider space.  The other options (in the world) were Nokia (acquired Bell Labs (the brains at Lucent)), Ericsson and Chinese companies (Huawei, ZTE). Point being, there are no American companies that make cellular headend equipment anymore.

    You need to go back the 1984 divestiture of the American telecom market.  Prior to the divestiture AT&T, with respect to telecommunications in the USA, was your only choice.  AT&T built the equipment they used AND they provided the service. This was in the day of land lines, wireless didn't exist.  Nobody could foresee how the market would change with the Internet and cell phones.  Congress (Carter administration) determined that AT&T had a monopoly and essentially broke it up (over 40+ years ago).  Out of AT&T there were several companies created - the baby bells (look it up, one of which became Verizon (out of NYNEX)), AT&T, Lucent and Avaya.  After divestiture, the AT&T portion of the business only provided long distance telephone service (local calling and long distance were different things in 1984).  Lucent manufactured the equipment used to carry telephone calls at the "carrier" level and Avaya made the telecom equipment used at the business level (i.e. a PBX).  Lucent was the only American company that could have possibly competed in the cellular head end market, unfortunately they no longer exist.  This would be the biggest screw up congress ever made.  Bell Labs was part of Lucent, these were the people who invented the transistor, which is the basic building block of modern electronics. 

    In 2005 Lucent was acquired by Alcatel (French company).   Alcatel was to France what AT&T was to the USA (prior to divestiture).  In 2005, the only hope for an American company to develop 3G/4G/5G wireless was taken away.  Nortel (primarily Canadian) went belly up in ~2009.  Bottom line, there are no companies in the USA that are capable of building cellular infrastructure as their primary business.

    This is a classic case of where politicians interfered with the free market when they shouldn't have.

    Ciscos primary business is building industrial grade routers and other "IP gear" used by large companies and on the Internet.  Cisco doesn't build telecom infrastructure.

    Arista is primarily worried about taking market share away from Cisco.  Arista is spread to thin to even consider manufacturing telecom infrastructure.

    Juniper Networks primarily builds equipment used in carrier IP networks (backhaul and Internet).  In my opinion, getting into the telecom infrastructure market would be a good move for Juniper, however the stock market would punish them if they did.

    A carrier = Verizon, T-Mobile, Rogers etc..

    Source(s): Ex-Nortel employee, who used to wander the halls in Holmdel. Watched it all go down the toilet.
  • Lv 7
    1 month ago

    not sure what you mean. there's plenty of 5G stuff out right now.

    most big cities have switched to 5G.

    what's the problem?

  • VP
    Lv 7
    1 month ago

    Of course, there are US companies doing that. If it causes consumers to buy a new gadget -- they're doing it.

  • 1 month ago

    US companies including Dell, Microsoft, and AT&T will make up the principal players, and European players including Nokia and Ericsson could be also be onboarded too,

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  • Anonymous
    1 month ago

    You mean like the new iPhone?

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