Rolling out 5G has been a source of tension between the USA and China.
Riley Walters, a policy analyst at the Heritage Foundation's Asian Studies Center, agreed, saying the "private sector is the most efficient way to distribute 5G capabilities, even if it's not at the pace nationalization proponents would like to see".
The agency also plans to create a "Rural Digital Opportunity Fund" (RDOF) to spend roughly $20 billion over a decade on rural broadband.
Chairman of the Federal Communications Commission Ajit Pai speaks at the Conservative Political Action Conference (CPAC) at National Harbor, Maryland, U.S., February 23, 2018.
US officials have unveiled plans to accelerate deployment of 5G wireless networks, including new funding to bring the ultrafast systems to remote rural areas.
"Leading through the government - we don't want to do that, because it won't be almost as good, almost as fast", Trump said.
A 5G network expansion will mean faster wireless speeds and has implications for technologies like self-driving cars and augmented reality.
The FCC is considering banning the use of US subsidies for equipment from providers such as China-based Huawei Technologies Co. that are deemed a national security risk. The current rules impair the ability of users to deploy small, next-generation networking devices on their own property, The proposed changes would allow private property owners to install hub and relay antennas to expand the reach of 5G.
FCC Commissioner Jessica Rosenworcel, a Democrat, criticized the agency's approach to 5G Friday.
FILE - A sign advertises 5G at the Qualcomm booth at CES International in Las Vegas, Jan. 9, 2019.
Pertaining to the use of Huawei equipment in the US, FCC Chairman Ajit Pai addressed security concerns, but tiptoed around actually mentioning Huawei, the Chinese telcom company.
"The White House has yet to offer a workable plan for US leadership", Rosenworcel said.
"It's very important to distinguish how Western democracies operate relative to their private sector companies and vendors, and how the Chinese government operates with its companies", said Ambassador Robert Strayer, deputy assistant secretary for cyber and worldwide communications and information policy. The ultimate goal, those officials said in a conference call with reporters at the time, is to ensure Americans everywhere have access to 5G networks and make sure other nations don't overtake the United States' progress.
Riley, at the Heritage Foundation, told VOA that the United States "can still limit the proliferation of imports that have a security concern, but it will be hard for USA companies to compete in price in external markets".
The rollout started last week in the US and South Korea but will take years. Pai said that proposal is still pending.