Government to Offer Funds to Companies Involved in 5G Development

The Japanese government plans to give funding to companies working on next-generation 5G in a bid to catch up with China

5G Development
3G to 5G graphic
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To boost Japan’s competitiveness in 5G development, the government will provide financial aid to domestic companies to help them develop the next generation of 5G wireless networks, sources revealed.

Financial support for 5G development

The fund is expected to be worth around ¥70 billion and will be allocated to a range of companies, including electronics manufacturers and telecommunications firms. Japan is currently lagging behind countries like China, Sweden, and Finland in the race to get 5G wireless networks up and running.

The financial support will be taken from the ¥110 billion the government planned to spend on the New Energy and Industrial Technology Development Organisation under its supplementary budget for fiscal 2019.

Upgrading to 5G technology will allow the transmission of large volumes of data at high speeds which would, in turn, enable telecommunication devices to expand connectivity to a wide range of products and services

Domestic firms working on 5G technology

Companies like NEC Corp. and Fujitsu Ltd. will likely receive a percentage of the funds for their work on developing devices essential for use at base stations for next-generation networks.

NEC and Nippon Telegraph and Telephone Corp. recently announced a new business partnership, combining capital and expertise to develop 5G wireless network technology together. The union is set to give the two companies the lion’s share of the global mobile phone infrastructure market by 2030.

NEC and Fujitsu have submitted applications for licences to operate “local 5G” services. This option allows municipal governments and companies to build networks within a set boundary, for example in a factory or farmland area.

Fujitsu plans to use its local 5G technology as a security measure at its factory in Kawasaki in Kanagawa Prefecture. The system will use AI to monitor videos transmitted by cameras installed around the premises to detect and prevent any unauthorised entry to the facility.

How will our tech experience improve?

Upgrading to 5G technology will allow the transmission of large volumes of data at super-high speeds which would, in turn, enable telecommunications devices to expand connectivity to a wide range of products and services.

Some areas that would benefit most from the advancement include autonomous vehicles and health care services. Self-driving cars will have the ability to communicate efficiently with other vehicles and infrastructure, and health care professionals will be able to use live video streaming and robots to treat patients.

When used along with the Internet of Things technology, 5G will also make devices like smartwatches and home appliances highly integrated, thus opening up fresh business opportunities for new fee-based services.

Are you looking forward to the implementation of 5G technology across Japan, and the globe? Share your thoughts with us in the comments below.

"Otsumami" - a bite size snack:

Japan is now stepping up its game to catch up in the global 5G development race.

What do you think?


Written by Catherine McGuinness

Writer and journalist with a love for all things Japan.

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