While the Chinese technology giant Huawei has been facing a tough situation in the USA and some other countries, the European markets have been quite welcoming. In particular, the 5G technology of Huawei is sought after by these countries. Iceland is one of the latest countries to sign up Huawei as the partner for launching 5G in Iceland. The local telecom partner for this foray is Nova, a relatively new player in the country in the telecom segment.
A Brief Throwback on the Telecom Scene in Iceland
It need not be overemphasized that Iceland does not offer a huge market since its population is less than half a million. In the telecom sector, there are three players, Vodafone, Siminn, and Nova. Each of them has its own strength to boast of. Vodafone is an international player and is known for offering economical offerings. Siminn is a state-owned enterprise and has its network spread across the country including the interiors. Nova has limited itself more to the lucrative pockets of Reykjavik, the capital. Nova has now received the approvals for launching its 5G in Iceland, with Huawei providing the technology and the infrastructure backbone to run the high-speed mobile internet services. Vodafone has also tied-up with Huawei and is in the process of testing the infrastructure.
The third company, Siminn, has a partnership with the Swedish major Ericsson.
Question Mark Over Huawei Due to Sweden’s Action – 5G in Iceland
Meanwhile, news has filtered in that Sweden, has ordered Huawei to pack from its country by 2025 since it fears there is a data privacy issue. The objections some countries have raised with Huawei is that the Chinese company may be under obligation to share information in its possession with the Chinese government. This is considered a serious threat to national security. Though Huawei keeps denying this, there are very few takers. Since Iceland’s trade and commerce closely follow the happenings in the neighborhood, particularly, in Denmark, Norway, and Sweden, some in Iceland will be watching the developments concerning the Huawei connection in the rollout of the 5G service in the country.
About 5G Service
If you are not very familiar, 5G stands for the fifth-generation technology for mobile internet service. The technology has progressed from 2G, 3G, and 4G to now 5G. 4G is available in most countries in the world, though 2G and 3G are still around, including in Iceland. 5G is slowly being introduced. The hardware, that is the smartphones have to either have an extra 5G modem or one of the integrated processors to be able to operate in the 5G network.
The data speed within the 5G network is likely to be 10 times that of 4G. That will bring in revolutionary changes to the way smartphones are used for downloading from the internet. How much of a change 5G in Iceland can bring remains to be seen. Though the population is small in Iceland it is a highly informed population and had adopted the latest technologies everywhere. Telecommunications won’t be an exception. One area to be watched is the expansion of the market for the Internet of Things or IoT segment. Connected homes and increased use of technology in the lives of the average Icelander can boost the country’s economy in the years to come.
5G in Iceland has that kind of potential and Iceland can once again demonstrate that the size of the country has little to do with the way the economy operates. It need not be always ‘big is beautiful’. It is still early days and the network has to stabilize first and the number of subscribers for 5G has to go up to see the real benefits the service can bring.
For any kind of assistance in Iceland, contact Swapp Agency.