Huawei: Metaverse Can’t Run on Current Infrastructure, 5G or 6G Required

Huawei released a report on a “trillion dollar” metaverse opportunity, highlighting the need for better infrastructure.

man standing near an old wifi router, perplexed
  • Chinese cellphone manufacturer Huawei released a report on the metaverse.
  • Making the metaverse a reality will require significantly higher network speeds.
  • No single company can create the metaverse alone. It needs to be open and interoperable.

Chinese cellphone manufacturer Huawei has released a report on the metaverse, highlighting the trillion-dollar opportunity in the technology. However, the company said this interconnected virtual reality world would require significantly higher network speeds than currently available.

"Current Internet infrastructure is unsuitable for building a fully-immersive content-streaming metaverse environment," the report writes.

With only 25% of the world with 5G, they add, there is much room for improvement in the network. “The lags, packet drops, and network unreliability witnessed in today’s 4G would make the current state of the infrastructure unsuitable for building an envisioned metaverse experience,” they add.

"5G networks will dramatically improve bandwidth while reducing network contention and latency, while 6G will increase speeds by yet another order of magnitude," the report continues.

Metaverse: Trillion Dollar Opportunity

Huawei believes an open metaverse could disrupt the big tech monopoly. The cellphone manufacturer highlighted a Citibank report stating that the metaverse market could be worth between $8 trillion and $13 trillion by 2030.

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“In an Open Metaverse world, there is likely to be significant technological and business model disruption,” the report writes. “This new world would be a blockchain-based ecosystem where Web 3.0 native companies would challenge — and perhaps overtake — the current internet behemoths.”

This view echoes the statements from venture capital firm Andreessen Horowitz, one of the largest Web3 investors. The investment firm believes that Web3 put the power of big tech firms like Apple, Google, Meta, and Amazon in question.

Huawei also highlights the need for the metaverse to be open and interoperable. This is because a single company can create the metaverse alone. The metaverse will require cooperation between multiple industries, such as game developers, telecom providers, hardware manufacturers, and more.

Chinese Huawei on US Trade Blacklist

Huawei’s metaverse report comes at a time when the company is facing crippling sanctions. US regulations have limited Huawei’s ability to use the latest tech in its products and services.

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In 2019, the US put the manufacturer on a trade blacklist, making it difficult for the company to do business with US companies. Soon after, Google suspended Huawei’s license for all its services, including Gmail, Google Maps, and the Google Play Store. This means that Huawei mobile users had difficulty accessing many popular apps on Android.

A more open and interoperable metaverse could mean it would be more difficult to eliminate a company like Huawei from the industry.

On the Flipside

  • Companies that produce the most immersive and popular content could have an outsized influence in the metaverse world.
  • This means that big tech firms, such as Apple, Meta, and Google could be in a good position to control information in the virtual world.
  • Big tech in charge would likely mean an end to the open metaverse.

Why You Should Care

The metaverse is not just a potential trillion-dollar market. It will redefine how people interact, consume media and even live their lives.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.