The telecommunications industry is getting ready for the arrival of 5G technology, a next-generation wireless standard that promises to deliver faster and more reliable connectivity across a wide range of devices—from smartphones to smart cars, home appliances, and industrial equipment. However, for most consumers, the benefits of 5G are still a few years away. While the first commercial 5G rollout was launched in the U.S. in 2018, many users in developing markets are still waiting for 4G coverage, with some even relying on outdated 3G networks for several more years.
A major debate within the industry centers on whether 5G can truly live up to the high expectations set by its most enthusiastic supporters, and how effectively telecom companies will be able to roll out this new technology given the pressures of competition and regulatory challenges. Unlike previous generations like 2G, 3G, and 4G, which were primarily focused on mobile phones, 5G aims to provide faster and more stable connections for a broader ecosystem, including vehicles, homes, factories, and offices.
In Norway, Telenor is testing 5G in unique applications such as autonomous snow plows, transportation systems, and even self-driving vessels in the fishing industry. However, the company is not rushing to launch a full commercial 5G network before 2020, and its executives remain cautious about what the technology can realistically offer at this stage.
At the Mobile World Congress in Barcelona, Telenor CEO Sigve Brekke remarked, “There’s too much hype around 5G as a revolutionary technology.†He emphasized that he sees 5G more as an evolution of current services rather than a complete transformation. The conference highlighted the growing interest in 5G, but also the need for realistic expectations.
Telenor expects 5G to complement existing networks, helping reduce operational costs after significant capital investments. It could also enable high-bandwidth video streaming and near-instant communication for autonomous vehicles and medical applications. Supporters claim that 5G can transfer data up to 10 times faster than 4G and significantly reduce latency, making cloud storage more practical than local device storage.
However, Cisco Systems CEO Chuck Robbins argued that 4G advancements and new software could already deliver many of the benefits promised by 5G. Analysts from Nordea Bank also warned that the industry may be overestimating the impact of 5G on solving key challenges.
The first commercial 5G projects are expected to launch in the U.S. in 2018, followed by Japan and South Korea in 2019, with China planning to join in 2020. But for network equipment providers like Ericsson and Nokia, keeping up with this pace is challenging, as they're still dealing with declining 4G sales.
In Europe, 5G deployment is expected to start slowly in 2020 and won’t reach mass adoption until 2025. Meanwhile, many emerging markets are still catching up with basic fixed-line and 3G services. Additionally, deploying a 5G network requires massive investment.
According to Mats Granryd, Director General of GSMA, 5G deployment could increase capital expenditures for the mobile industry from 15% of revenue to 16–17% starting in 2020. The GSMA predicts global mobile network capital spending will hit $500 billion between 2018 and 2020. To fund these investments, operators plan to shut down 2G and 3G networks, reducing costs and freeing up spectrum for 5G.
Industry consultant Bengt Nordstrom noted, “We operate in a capital-constrained industry.†This reality may slow down the widespread adoption of 5G. GSMA forecasts that by 2025, over half of mobile users will still be on 4G, while only 14% will use 5G.
South Korea tested 5G briefly during the PyeongChang Winter Olympics, aiming to use drones and broadcast ultra-high-resolution 360-degree videos wirelessly. However, most smartphones at the time weren't 5G-compatible, so the technology went largely unnoticed. At the same event, Qualcomm showcased an early 5G phone prototype, but analysts expect 5G-compatible smartphones to become available in the second half of 2019.
Ben Wood from CCS Insight shared a humorous anecdote about a 5G phone that dropped and broke during a demo at the conference. He joked, “The result is that the phone is completely empty.†These real-world challenges highlight that while 5G has great potential, it's still in its early stages and faces both technical and financial hurdles.
Shenzhen MovingComm Technology Co., Ltd. , https://www.movingcommtech.com