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Canada’s 5G Arms Race Heats Up

Jonathon Brown Jonathon Brown, The Market Online
2 Comments| June 10, 2020

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(Image via Ericsson.)

5G connectivity is finally coming to Canada and two major national telecom companies made headlines this week about how they’re rolling it out.


Bell Canada (TSX: BCE) announced that it had chosen Ericsson as a supplier of radio access network equipment for its national 5G wireless network.

BCE already has a relationship with Ericsson, which is the company’s 4G LTE wireless supplier, along with other technology. Ericsson is also supporting Bell’s 5G-enhanced wireless home internet service rollout. Bell is promising faster wireless connections as it works with several equipment suppliers for its 5G network. Bell signed its first 5G wireless network supplier agreement with Ericsson’s rival Nokia earlier this year.

Not content to be outdone, Telus Corp. (TSX: T) announced that very same day that Ericsson and also Nokia were selected to support building its Canadian 5G network.

Both companies saw roughly a 1.5% bump in share price after making this news public.

As for Rogers Communications Inc. (TSX: RCI), the only news from the carrier comes from its site’s FAQ – “We’re starting to roll out Canada’s first 5G network in downtown Vancouver, Toronto, Ottawa and Montreal – with plans to expand coverage in these cities, and to over 20 more cities, by the end of 2020.”

Both Ericsson and Nokia are rivals of Huawei, the Chinese telecom giant involved with the ongoing trade dispute between the US and China. Washington has warned Canada that it could limit intelligence sharing with anyone who uses Huawei equipment in their 5G networks. Both Telus and Bell have stated in previous news releases that their operations would be “comfortable” with a ban on Huawei tech and this selection of vendors seems to support that sentiment.

The Canadian government is continuing its analysis of the cyber security and national security implications of 5G networks, which the US has warned could be compromised under Chinese technology, though Huawei has denied that accusation.

Has it been long enough since Canada has had a chance to utilize 5G connectivity? Does this international political game, or corporate arms race, influence your decision around the tech or who is providing it? Let us know your thoughts in the commcomments below.

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