Five years of 5G: The time for money has come
- July 2, 2024
- 0
It has now been five years since the first 5G networks saw the light of day. Where are we today in Europe and to what extent does 5G
It has now been five years since the first 5G networks saw the light of day. Where are we today in Europe and to what extent does 5G
It has now been five years since the first 5G networks saw the light of day. Where are we today in Europe and to what extent does 5G keep its promises? A fact.
There is disagreement about the official birth date of 5G. The network standard was officially introduced in 2016, but it took until 2019 for the first networks to emerge. Originally, 5G was introduced as an alternative to fixed broadband internet. Today, when people think of 5G, they primarily think of mobile wireless connectivity.
Five years after the launch, the expansion and introduction of 5G is progressing at different speeds. GSMA has launched the 5G Connectivity Index to record progress. By the end of 2023, there were 1.5 billion active connections worldwide, making 5G the fastest growing network generation. From 2028, 5G is expected to completely replace 4G.
GSMA covers most EU countries Rank 2with the exception of the Scandinavian countries, which are allowed to play in the first league (except Sweden). On a global level, Europe is not doing badly, but the GSMA still sees room for improvement. In particular, the expansion of 5G base stations and the level of coverage in Europe are not yet at the same level as, for example, in Kuwait and South Korea.
Sanjiv Gossain (EMEA VP Verizon Business) is optimistic about the 5G rollout on our continent. “I don’t see Europe as a laggard at all. There is 5G for consumers and 5G for businesses. There are still many B2B applications conceptual proofbut we are gradually entering the phase where concrete projects are being set up. There are already many leading use cases from companies testing the limits of 5G. Europe is well positioned for the future as many countries have shared the spectrum or will soon do so.”
This is exactly where things went wrong in many European countries in the early stages. Political discussions about which providers should be allowed and which should not made the launch of 5G networks difficult. In Belgium, one could speak of political sabotage because the various governments once again argued about who would get which piece of the pie before the cake had even been baked.
Ultimately, the hatchet was buried in the summer of 2022 and the 5G frequency auction could be carried out. With visible results, as our country is making rapid progress in the rollout of industrial 5G. And for those who think Belgium has come too late: the auction will not take place until this summer in our northern neighbors in the Netherlands.
I don’t see Europe as a laggard when it comes to 5G. Now that many countries have shared their spectrum, we are well positioned for the future.
Sanjiv Gossain, EMEA VP Verizon Business
The spectrum auction was above all a liberating move for the network operators, who can now push ahead with the expansion of 5G infrastructure and services at full speed. GSMA predicts that 5G could contribute up to one trillion dollars to the global economy by 2030. To hit this jackpot, the operators must first dig deep into their own pockets for the infrastructure.
Will revenues from 5G services be enough to compensate for high infrastructure costs? The question was asked loudly at the last Mobile World Congress. There is an opinion that 5G has reached the stage of “disillusionment” because it is not (for now) sufficiently meeting sky-high expectations. Operator Ericsson warns in a report that rising inflation will rapidly increase 5G’s revenues, but also its operating costs.
Gossain is not impatient yet. Verizon offers B2B connectivity for the European market. “5G is a journey. First the devices have to be ready. Now companies are gradually discovering the benefits. There is certainly still a long way to go, but there is momentum. Connectivity is an important vector for companies.”
Everyone in the telecommunications industry agrees: the key to monetizing 5G is not with consumers, but with B2B. The benefits of 5G are also much more apparent in the B2B context, where 5G is more of a refined 4G for consumers. The development of 5G Independentwill be crucial to realizing its potential. For example, with 5G-SA you can Network slicing to isolate a virtual network from the physical one. The technology also enables private 5G networks that are fully managed by companies.
“5G standalone offers many advantages in an industrial context, especially in an outdoor environment where Wi-Fi connectivity is inadequate,” agrees Gossain. “With a private 5G network, as a user you have your own piece of spectrum that you don’t have to share, unlike a public network. This means it is always accessible.”
This message sounds like music to the ears of Belgian companies too. Nevertheless, the GSMA comes to the conclusion that the expansion of private 5G networks can be accelerated. Gossain sees many more possible applications: He points to OT in production lines and smart cities, among other things.
A cash cow certainly doesn’t seem to want to give. The metaverse and the support mixed realityApplications had to become the main advertisement for 5G. In 2024, no one seems to be interested in it anymore: even Meta seems to have turned its back on its idea. The Apple Vision Pro announced itself as a revival, but this fire quickly died out.
After five years, it is far too early to draw any conclusions about 5G. The latest network standard is a big toddler that is growing quickly but still needs years to reach maturity. Many industries are exploring 5G and it seems unlikely that interest will suddenly wane. 5G is the future.
The next generation is already ready. 5G Advanced or 5.5G is a trendy marketing term in the telecom industry these days. In practice, it is also nothing more than 5G, spiced up with additional AI and ML in the core and management layers of the network. “AI has been around for a long time and is already being used in many situations. It is a force that multiplies itself,” said Gossain.
5G Advanced is by no means the end point. The next generation of 6G is already slowly making progress, although no standards have yet been created for it. Gossain does not want to get ahead of himself: “Now we must first focus on increasing the number of 5G connections and making as many devices as possible compatible in order to be able to take advantage of the spectrum that is already available today.”
5G is a journey. There is still a long way to go, but there is certainly momentum.
Sanjiv Gossain, EMEA VP Verizon Business
Source: IT Daily
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