5G Fosters Growth in New Markets
5G deployments are starting to bring the benefits of digital transformation to new consumer and enterprise markets.
The increasing prevalence of 5G makes it easy to assume that the technology is fully mature. However, the full potential of low-latency, AI-controlled and full-automation use cases that underpin 5G investment is still being developed, formulated and trialed. Although 5G technology has yet to reach its full potential, it is already offering a variety of benefits like fixed wireless access (FWA) to new markets and even greater benefits to emerging 5G private networks.
Operators in developed markets can use 5G FWA as a substitute for fibre or cable to bring next-generation connectivity to rural households for the first time. Take the U.S. for example. According to a 2021 study from leading analyst Accenture, 5G FWA services could potentially serve 8.4 million rural households in the U.S., representing nearly half of all rural homes in the country, with a high-speed broadband option.
While they will not match the speed of fibre, FWA services will still offer rapid access and the potential for greater service speed in the future as networks become denser. FWA isn’t the communications revolution promised by fully functional 5G, but it is a significant revenue-generating service that will greatly benefit consumers while justifying operator investments in 5G infrastructure.
5G Private Networks
Enterprises are turning to 5G private networks to benefit from new 5G capabilities like low latency, massive IoT connectivity, wider coverage and greater capacity. These capabilities make new applications viable that would have previously been impossible in 4G private networks. For example, many companies are acquiring spectrum to operate 5G private networks at their manufacturing sites. The high-speed and low-latency capabilities of 5G will enable highly sensitive applications, including:
- A connected network of automated guided vehicles on factory floors.
- Mission-critical sensor networks to maximize machine uptime and productivity.
- High bandwidth and secure communications across large sites.
Vertical market knowledge and 5G private network technology are creating new business opportunities in agriculture, mining, healthcare and Industry 4.0. 5G can provide ultra-reliable low-latency communications (URLLC) for greater automation, and the sheer bandwidth it offers can help transmit large volumes of data for analysis and action.
This is seeding the future consumer 5G market and getting CSPs ready to provision, support and charge for network usage in new ways. The future is about network-enabled experiences, which will come with new business models and new approaches to charging for consumption.
Click here to learn more about the impact of different 5G applications on business and technology.