China has already built about 350,000 cell sites since 2015 while the United States has only constructed fewer than 30,000, according to a study released by Deloitte on Aug. 7.
Deloitte is a company that provides audit & assurance, consulting, risk and financial advisory, risk management, tax, and other related services to major companies worldwide.
According to the study, both China and the United States are preparing to build super-fast wireless networks but the latter is currently lagging behind.
China now has ten times more sites to support 5G networks than the United States, the study outlined. In fact, the former has already outspent the latter by $24 billion in network infrastructure development since 2015. China has already laid out a five-year economic plan that involves spending $400 billion on 5G investment.
Deloitte said that the first countries to pioneer the next generation of wireless communications will be the first to take advantage of economic gains from the technology. They will also have a huge lead in hiring and investment, as well as a cache of valuable data that can be retrieved from connected devices.
"We're talking about billions of devices on the same network, not just millions...first-adopter countries embracing 5G could sustain more than a decade of competitive advantage," said Dan Littmann, one of the authors of the Deloitte study.
The Deloitte report also underscored that several other countries are also joining the 5G race. The super-fast wireless networks can be used to power self-driving cars, virtual reality, and smart cities.
In April, a separate report from the Cellular Telecommunications Industry Association said the United States needs a more comprehensive schedule for its allocation of radio frequencies similarly to what China and South Korea are planning respectively. CTIA is the trade association for the U.S. wireless industry. The report ranked China as the no. 1 country most prepared to build 5G networks, South Korea at no. 2, the United States at no. 3, and Japan at no. 4.
The report from Deloitte said the crucial element of building 5G is the installation of new wireless sites. China Tower, the state-owned cell phone tower operator, had already added 460 cell sites during 2017. The country now has more than 14 cell sites per 10,000 people while the United States has less than five.
China Tower's debut in Hong Kong on Aug. 8 became the world's biggest stock listing since nearly two years ago. The cell phone tower operator raised $6.9 billion from investors, placing it at nearly $28 billion valuations according to CNN.
China Tower is pegged as the world's biggest developer of cell phone tower sites. Kenny Liew, a telecommunications analyst with Fitch Solutions, said the company is significant for China's 5G ambitions.
Deloitte said the United States can still catch up with China provided it adjust policy to reduce deployment time, encourage carriers to collaborate, and implement a database of statistics and best practices.
