The Ministry of Economy, Trade and Industry (METI) will make the adoption of an international 5G standard a requirement to be eligible for tax cuts and public financing to encourage investment in 5G technology. High-level security measures will also be required. METI’s requirements will effectively exclude Huawei, which the U.S. and other countries regard as a security risk, because Huawei does not adopt this standard.
METI formulated guidelines including requirements for public financing in time for the August 31 implementation of a new law to promote 5G. The guidelines call for adoption of Open RAN, an international standard, as well as enforcement of strict security measures and the securing of stable supplies. The development of drones will be supported under the same conditions.
METI sees Open RAN as a key to Japan’s survival in the global competition for 5G technology. Base stations jointly developed by NTT and NEC use Open RAN standards. METI will encourage the creation of telecommunication networks that combine products by multiple manufactures that use the same standard. This strategy is intended to reduce reliance on those companies with a large share of the global market, such as Ericsson.
5G technology is expected to become the foundation for advancing self-driving vehicles and remote medicine. There are moves in the U.S. and other countries to exclude Huawei and other Chinese companies, which lead in technological development, over security concerns. Japan aims to reduce the risk to telecommunication systems through the implementation of the new law that supports domestic companies.