How Businesses can Prepare for 5G

Although standards will not be fully defined until the 2019 World Radiocommunications Conference, early progress indicates that two distinct “flavors” will emerge: low- and mid-band 5G focused on spectrum below 6 gigahertz and high-band 5G on spectrum above 6 gigahertz, particularly in the millimeter-wave bands. Both these flavors will be used to augment and enhance existing LTE networks rather than replace them.
The focus to date has been on four key use cases that 5G will enable:

Enhanced mobile broadband. Faster speed, lower latency, and greater capacity could enable on-the-go, ultra-high-definition video, virtual reality, and other advanced applications. However, wireless data prices are falling and growth in demand can be met in other ways (for example, densification of LTE networks and Wi-Fi off-loading). Another hurdle is that constant connectivity—a must-have for mobile broadband—will be severely limited for high-band 5G due to propagation losses at higher frequencies.

Internet of Things. With the explosive growth in the number of connected devices, existing networks are struggling to keep pace. The advent of 5G will unlock the potential of the Internet of Things (IoT) by enabling more connections at once (up to one million per square kilometer) at very low power. This could create additional monthly revenues for carriers, but average IoT revenues will be a fraction of those for mobile broadband because of low usage. Moreover, 5G will have to compete against other technologies, such as Wi-Fi and Zigbee.

Mission-critical control. As connected devices become increasingly central in applications that demand absolute reliability—medical devices and vehicle safety systems, for instance—latency will serve as a limiting factor. Because 5G has the potential to deliver significantly lower latency (to about one millisecond), it opens the door to use cases in healthcare, utilities, and other time-critical contexts. But, as with IoT, operators can expect the associated revenue to be incremental at best.

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