Saudi Arabia and UAE race to roll out 5G amid media feeding frenzy

  • 2/26/2019
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JEDDAH: Gulf telecom giants are racing to roll out 5G networks in what could be a major boost to the regional video streaming and gaming sectors. Both Saudi Telecom and Etisalat, the two biggest phone companies in the Gulf, announced tie-ups with international telecoms giants at MWC Barcelona — the industry’s largest annual trade show. Nokia and Saudi Telecom signed a deal to establish a 5G network first in the western and southern part of Saudi Arabia, including the holy cities of Makkah and Madinah. It is expected to be completed by the end of 2020. Meanwhile Etisalat and Huawei also struck a partnership to develop end-to-end 5G in the UAE. A 5G network is about 100 times faster than 4G, and 10 times faster than the average broadband connection, representing a potentially massive revenue generator for media firms ranging from gaming providers to video streaming and the Internet of things. “5G is going to revolutionize communication in Saudi Arabia and the UAE,” Daniel Newman, principal analyst at Futurum Research, told Arab News. “Benefits will range from lower latency and greater download speeds to shorter time to insight and improved user experiences. Smart cities, fully autonomous vehicles and real-world use of mixed reality will all be possible with 5G.” FASTFACTS FAST FACT Mobile communications industry body GSMA expects 5G to account for 15 percent of worldwide mobile subscriptions by 2025. The immediate winners are expected to be the telcos as data usage surges among customers — providing a crucial new revenue stream as fixed line phone and TV services come under competitive pressure from Internet-based calling services and video streaming sites. “We are excited to work with Nokia on the Aspiration project, which will help us realize our dream to be the first one to launch 5G services in the region,” said Nasser Al-Nasser, STC Group CEO. In the UAE, Huawei will offer 5G network solutions to Etisalat. “5G is considered a major enabler for the next generation of broadband service and the Internet of things, which is growing exponentially due to the global adoption of connected devices,” said Saeed Al-Zarouni, Etisalat senior vice president, mobile networks. “There will be immense potential for future technologies such as AI, robotics, advanced 4K gaming, and AR and VR (augmented reality and virtual reality),” he said. Still, consumers may need to wait for smartphones to catch up with the new network technology. Handsets will need inbuilt 5G radios to connect to the new networks, which are still months away from becoming widely available. Mobile communications industry body GSMA expects 4G to account for 45 percent of worldwide mobile subscriptions in 2025, with 5G expected to win a 15 percent share. Still, the early roll-out of 5G technology is important for Gulf states such as the UAE and Saudi Arabia, which are both seeking to become knowledge economies.

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