Nationalized 5G Networks for U.S.?

A memo produced for the National Security Council apparently argues for a centralized, secure 5G network that inevitably would require centralized control of a single facilities platform, instead of the separate physical networks now built and operated by AT&T, Verizon, Sprint and T-Mobile US.

Keep in mind, it is a memo, not yet even a concrete proposal. It is not yet a recommendation. And if the goal is to build such a network within three years, something far simpler than centralizing all mobile network infrastructure would likely be necessary.

It is not clear whether a physically-distinct secure 5G network at mid-band frequencies could the starting point, with possible carrier adherence to the security standard for their low-band (below 3.7 GHz) or high-band (millimeter wave) operations.

It is not clear whether such a radical revision of industry operating models could be so drastically revised within three years. It is not even immediately clear why some virtual private network would not do the job just as well.

Ignore for the moment the larger issues about whether some sort of nationalization of all facilities-based mobile networks is even possible, whether a single wholesale 5G infrastructure could be built within three years or even whether some consortium of carriers could rapidly create a secure 5G network of the sort a national security report envisions.

A discussion memo produced for the National Security Council apparently argues that the government could build such a network itself, and then rent wholesale access to the service providers, or could be built by the carriers collectively.

If those sounds fanciful, it probably is. It is not clear how the entire industry could move--within three years--to some sort of “single infrastructure” model without disrupting the whole industry’s business models, its equity valuation, operating models and practices.

The memo also considers whether such a move would help U.S. manufacturers re-establish a foothold in the telecom infrastructure business.