Wireless carriers were shedding their share prices in Monday trading after it was revealed that the U.S. government may be considering building the nation’s first 5G network.
Both AT&T and Verizon saw losses as both companies are expected to have a limited roll out of 5G network this year.
“The wireless industry agrees that winning the race to 5G is a national priority,” Meredith Attwell Baker, president and CEO of CTIA, remarked.
CTIA is a group that counts AT&T, Verizon, Sprint and T-Mobile as members.
“The government should pursue the free market policies that enabled the U.S. wireless industry to win the race to 4G,” she exclaimed.
According to FCC Chairman Ajit Pai, “The main lesson to draw from the wireless sector’s development over the past three decades—including American leadership in 4G—is that the market, not government, is best positioned to drive innovation and investment. Any federal effort to construct a nationalized 5G network would be a costly and counterproductive distraction from the policies we need to help the United States win the 5G future.”
News site Axios reported that the Trump Administration is considering to build the 5G network in a way to combat Chinese spying of U.S. phone calls.
Axios acquired a memo that said the national 5G network could be built within three years and that it is “the 21st century equivalent of the Eisenhower National Highway System.”