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US, China Face Off Over 5G in Cambodia

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For techies and phone geeks, Digital Cambodia 2019 was the place to be.

More than a dozen high school students clustered at the booth for Cellcard, Cambodia’s leading mobile operator. Under the booth’s 5G sign, they played video games on their phones.

Hak Kimheng, a ninth grade student in Phnom Penh, said his mom bought him a Samsung smartphone a few months ago, when he moved to the capital city from nearby Kandal province to live with his uncle while attending school. Like moms everywhere, she thought the smartphone would help her stay in touch with her son.

But smartphones being smartphones and kids being kids, Hak Kimheng, 16, has used it to set up an account on Facebook, Cambodia’s favorite social media platform. He’s also downloaded Khmer Academy, a tutoring app filled with math, physics and chemistry lessons.

And for one hour a day, Hak Kimheng watches soccer on the YouTube app he downloaded. While it’s better than nothing, the internet connection is “slow … and the video image is not clear,” he said.  “I want it to be faster. … It’ll be good to have 5G.”

Not far from the Cellcard booth, Cambodian government officials, ASEAN telecom and IT ministers, businesspeople, telecom and tech company representatives gathered for the opening ceremonies of Digital Cambodia 2019. The event, which ran from March 15 to March 17, attracted more than 100 speakers from throughout Southeast Asia, high level officials, businesspeople, researchers and telecom company representatives.

The discussions focused on 5G, which, with speeds as much as 100 times faster than 4G, will mean better soccer viewing for Hak Kimheng and faster connections for all users. But 5G will also be central to a world of smart cities filled with smart homes and offices replete with devices connected to the “internet of things” humming along amid torrents of personal, business and official data.

‘A milestone year’

David Li, CEO of Cambodian operations for the Chinese company, Huawei, which is facing challenges over security from the U.S., spoke first, promising to “help Cambodia obtain better digital technology to improve social productivity and national economy.”

Government ministers, one from finance and economy and one from posts and telecommunication, listened as Li continued, pointing out that Huawei Technologies Cambodia launched in 1999. “We have been operating 2G, 3G, 4G, and now we’re heading toward 5G,” he said.

“Currently we are the only industry vendor that can provide the intertwined 5G system. I believe this year 2019 will be a milestone year for 5G in Cambodia,” Li said.

While this next generation of mobile networks will take years to roll out, the U.S. and China are in a race over whose technology will set the standards for 5G networks, something which will have immediate commercial value and carry longer term strategic implications for developing the dominant platform for 6G.

Citing concern that Huawei is, like all Chinese companies, linked to the Beijing government, the U.S. has been urging allies not to let Huawei build their 5G networks. But in countries like Thailand, which is Cambodia’s neighbor and a U.S. ally, Huawei is building and testing a 5G network because authorities said its low cost trumped U.S. pressure.

Huawei has long maintained it doesn’t provide back doors for the Chinese government, pointing out the lack of evidence to support the allegations, according to Bloomberg.

William Carter, deputy director of the Technology Policy Program at the Center for Strategic and International Studies (CSIS) said earlier this month that any country doing business with Huawei on 5G will have to deal with the risk of Chinese influence.

“And the question will be to what extent is that concern enough to overcome the price advantage and the service advantages and the integrated financing advantages doing business with Huawei,” he said.

Rich market

As more private businesses and government services move toward cashless payment and online data access, Cambodia is emerging as a rich market for 5G telecoms. Approximately 13.6 million people, or 82 percent of Cambodians, use the internet, and about 7 million use Facebook, the number of mobile subscriptions is around 19.5 million by January 2019, or 120 percent penetration, according to the Ministry of Posts.

Sok Puthyvuth, secretary of state at the posts and telecommunication told VOA Khmer that Cambodia is eager for 5G, urging private companies, including mobile operators and internet companies, “to make 5G available across the country.”

Thomas Hundt, CEO of Smart Axiata, one of Cambodia’s mobile telecommunications operators, told VOA Khmer only that the company is preparing for a 5G rollout, because users’ data consumption is overwhelming the 4.5G network. “We see an immediate need to come out with the next evolution of technology … at some point this year.”

Cellcard CEO Ian Watson, said the company is targeting a commercial launch of 5G services in the second quarter of 2019.

Tram IvTek, Cambodia’s minister of Posts and Telecommunications said at the opening ceremony of Digital Cambodia that the government “is strongly committed to connecting the country and to ensure the benefits of ICT (information and communications technology) reach the remotest corners as well as the most vulnerable communities” by 2020.

Aun Pornmoniroth, minister of economy and finance in a March 12 workshop on Cambodia’s digital economy, suggested it will take “five to 10 years or more to set up a complete digital economy and turn Cambodia’s economy into a technological leader.”

Meas Po, undersecretary of state at Ministry of Post, said the government has yet to decide which company it will partner with for building the 5G infrastructure but it has not ruled out Huawei or other Chinese companies. “In our country, we have our protective system, in other countries, they have theirs. We don’t allow anyone to just freely hack our data.”

Protecting privacy

Smart Axiata’s Hundt said his company wanted to a partner that would “guarantee to us that the equipment is solid and sound [and] our users’ data is safeguarded and the network is fully secured from cyber-security perspectives.”

Nguon Somaly, who earned a master’s degree in law and technology at Tallinn University of Technology in Estonia, has written extensively on data privacy in Cambodia. She contends Cambodian social media users don’t have the data privacy concerns of users in the U.S. and Europe.

“Cambodian youths don’t really care about privacy [on social media], but people in [the] EU are concerned about their data privacy,” said Somaly, referring to the European Union’s General Data Protection Regulation (GDPR) which restricts how personal data is collected and handled.

“That is money and it can be analyzed and generate income,” Somaly said. “China is not a free country and privacy is not their priority. Their priority is to generate business opportunities and income.”

Xu Ning, a reporter with VOA’s Mandarin Service, contributed to this report from Washington, D.C.

 

 



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