RESEARCH
Game CHANGER
Are you ready for the disruptor that is 5G?
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e’re all acutely aware the world of work has changed irreparably over the past couple of years. Trends such as hybrid and homeworking with accompanying digital solutions like videoconferencing have accelerated massively. But there have been issues, as lag times and drop-outs have caused many a hiccup or miscommunication during online meetings and conferences. The good news is these kinds of problems are about to be solved with the advent of the fifth generation global wireless standard – 5G. The technology promises to turbocharge the movement to connect everyone and everything in an increasingly hyperconnected world.
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DIVERSE STRATEGIES Those due a mobile phone upgrade have likely noted the increasing availability of 5G handsets. According to the Global Mobile Suppliers Association, as of Q3 2021, over 500 5G smartphones had been announced. There are also plenty of real-world use studies being tested around the globe – everything from smart transport and city infrastructure to smart factories and offices. Delving into some figures, mobile network operator association GSMA says by 2025, 5G networks are likely to cover one-third of the world’s population. In its 5G Technology, Market and Forecasts 2022-2032 report, research firm IDTechEx states that, by the end of 2021, almost 80 nations had either commercialised 5G or were conducting trials. As reported by IDTechEx, in the absence of dominant US-based 5G telecom equipment suppliers, the Federal Communications Commission has been supporting OpenRAN development, with each operator holding a separate portion of the 5G spectrum. This means each deployment strategy is marginally different. Verizon, for example, has made mmWave a priority, while T-Mobile has opted for low and mid-band expansion. AT&T and Verizon both have plans to roll out mid-band service with a goal to cover 100 million people this year. China, on the other hand, is advocating for 5G national development. The country’s action plan extends to 2023 and includes increasing user penetration to above 40%, raising network access
traffic to over 50%, and pushing penetration in big enterprises to more than 35%. Simultaneously, telecom operators in China are working together to build a shared 5G network infrastructure. In December, the European Commission adopted its first Work Programme for the digital section of the Connecting Europe Facility that will receive in excess of €1 billion ($1.1 billion) in funding from 2021-2023. Aims include ensuring each EU household has gigabit connectivity and all populated areas are covered by 5G by 2030. At the time, EU Commissioner for the Internal Market Thierry Breton commented: “Secure and fast connectivity is the pillar on which we will build Europe’s Digital Decade. It will give Europeans access to digital skills, let businesses innovate and support the availability of unprecedented applications in fields such as health, education and online public services.” GETTING CONNECTED According to analysts CCS Insight, 5G network connections globally are expected to double this year to 1.34 billion and are firmly on track to reach 3.6 billion by 2025, despite component shortages affecting the mobile phone market. The analyst firm also identified two other drivers for 5G adoption – industrial cellular IoT devices and fixed wireless access. The latter remains niche for now, although CCS believes some network operators may soon target business users with the technology. Looking further ahead, the Ericsson Mobility Report November 2021 predicts that, by 2027, 5G will be the dominant mobile access technology, representing 50% of all mobile subscriptions globally (4.4 billion) and carrying 62% of global smartphone traffic.
5G is far more than a simple mobile network upgrade You may wonder why all this is important. Put simply, it’s not about faster online browsing via a smartphone – although this is a great bonus – but more about future market competitiveness. In Deloitte’s Enterprises Building Their Future with 5G and Wi-Fi 6 report, 86% of networking executives surveyed believe these advanced wireless technologies will transform their company, and 79% said the same regarding their entire industry. Furthermore, 87% commented that leveraging the technology will produce a significant competitive advantage. Deloitte noted that adopting 5G and wifi 6 is seen as a strategic necessity. The top benefits are: improving efficiency, enhancing security and taking advantage of new technologies such as edge computing, big data analytics and AI. 5G is far more than a simple mobile network upgrade. It offers much greater speed – potentially up to 100 times faster than 4G – with ultra-high bandwidth, better reliability and almost zero-latency connectivity. It will power smart cities
