5G is a developing standard and a set of technologies that include MIMO, the use of the millimeter wave spectrum, small cell technology, and improved network management techniques. Together, they…
Jump To:
In 2018, mobile broadband providers began to roll out 5G networks to large population centers throughout the U.S., following limited deployments in 2017. 5G is available in New York City, Atlanta, Los Angeles, San Francisco, and many other cities. Consumers can buy 5G smartphones and routers today, and Apple is likely to release a 5G-compatible iPhone next year.
The 5G rollout will gather pace in the coming years, and, according to technology analysts at IHS Markit, there will be 294 million 5G subscriptions in North America by 2023.
The broad-strokes benefits of 5G are well understood and can be read about in dozens of articles. They can be summed up with three points: increased bandwidth, lower latency, lower power consumption. However, the implications of these changes are widely misconstrued. CEOs must understand the short and medium-term impact of 5G because the new technology will generate market changes and opportunities.
Here are two of the most widespread 5G myths and the truth that lies behind them.
Myth #1: 5G Is All About Bandwidth
Much of the excitement around 5G has understandably focused on consumers, particularly on increased speeds for mobile broadband. It is, in fact, likely that 5G networks will result in increased download speeds for consumers, but the majority of consumers are satisfied with the bandwidths available on 4G networks, which are, in theory at least, capable of streaming 4K video in real-time.
I say “in theory” because, in practice, consumers in populous areas rarely receive the full bandwidth that 4G is capable of. Contention for network resources means consumers in these areas rarely experience the full theoretical benefit.
On 5G networks, it will be possible to connect many more devices without degrading the network’s performance to the point at which consumers become aware. Many more people will be able to stream video and browse the web without interruption.
Myth #2: 5G Is All About Consumer Mobile Broadband
If the key advance of 5G isn’t bringing faster speeds to smartphone users, then what is it?
Earlier, we mentioned the three significant benefits of 5G: increased bandwidth, reduced latency, and lower power requirements. These are the ideal conditions for the Internet of Things (IoT) to flourish. The increased capacity of 5G cell towers and their higher density allows many more smart devices to be connected.
However, 5G’s reduced latencies are likely to have as much of an impact as increased bandwidth. Latency refers to the speed at which data can travel from sender to recipient. When you send an instant chat message, the latency is the amount of time it takes to reach the recipient. 5G latencies are 10 times lower than 4G latencies.
Long latency periods doesn’t have a significant impact on instant chat, but it has held back advances in areas such as virtual and augmented reality, cybersecurity, the remote control of infrastructure and machinery, autonomous vehicles, smart cities, remote healthcare, and even gaming. All of these areas require reliable low-latency connections that 4G cannot provide.
It’s hard to overstate the impact that massively reduced latency will have on both industry and the consumer market. Increased bandwidths are useful, but near real-time communications with IoT devices is a game-changer.
Prepare Your Business Infrastructure for the 5G Revolution
To take advantage of the low latency capabilities of 5G, businesses should consider the implications for their infrastructure. Superfast mobile networks are less useful if they’re sending data to data center networks and servers that are not capable of responding just as quickly.
As 5G networks become more prevalent, many of the benefits and market opportunities will be in the IoT space. Businesses focused on network services, connected devices in the home and industry, healthcare, industrial machinery, logistics, and healthcare should prepare for a highly competitive environment as startups and established businesses bring products capable of exploiting near-real-time mobile networks to market.
To learn about how TD Madison can help your business hire senior executives with 5G expertise, contact our executive recruitment team today.
