5.5G is expected to offer better capabilities that will enable operators to capture growth opportunities in the enterprise sector.
This is important because, despite research showing that 5G is the standard choice for connecting phones and devices around the world, it has still received a lukewarm response from the enterprise.
Plus: 5G and edge computing: What it is and why you should care
According to the latest data from GSMA Intelligence, 5G is expected to account for 51% of mobile connections in 2029, reaching 56% the following year. 5G, which began commercialization in 2019, is the fastest growing mobile technology, surpassing 1 billion connections in 2022 and reaching 1.6 billion connections last year. It is predicted to reach 5.5 billion by 2030. It took 4G nine years to reach 1.5 billion users.
However, several obstacles to 5G adoption have prevented the technology from gaining widespread acceptance among enterprises. Industry observers believe that will change with the commercial rollout of 5.5G, or 5G-Advanced, networks expected later this year.
Plus: 4 ways 5G will optimize your work and personal life
Despite its faster speeds, 5G has yet to demonstrate clear advantages over 4G, Wu Hequan, director of the China Internet Society’s Advisory Committee and China Standardization Expert Committee, said in a post published by Huawei Technologies. While it has proven useful for applications such as machine vision and remote management, 5G has not made a significant impact in the industrial sector, where applications require faster uplinks, lower latency, greater security, more deterministic capabilities and lower power consumption.
Currently, 5.5G (5G Advanced Network) is being seen as a stepping stone before moving to 6G as part of efforts to further realize its potential, Wu said. The technology offers 10 times the speed of 5G, with peak upload speeds of 1Gbps and peak download speeds of 10Gbps. He noted that 5.5G also improves three features of 5G: enhanced mobile broadband, ultra-reliable low-latency communications, and large-scale machine-based communications.
“The delivery of 5G-Advanced with 3GPP Release 18 will mark another important milestone for 5G in IoT (Internet of Things) delivery and will trigger new 5G investments in 2024-2025,” the GSMA said. Data from the association revealed that more than half of operators plan to start deploying 5G-Advanced solutions within one year of commercial availability. Adoption will be driven by priority use cases such as 5G multicast services and low-cost IoT support.
In January 2024, China Unicom Beijing branch and Huawei deployed a 5.5G trial network in Beijing, covering three areas including the Beijing Financial District and Beijing Workers’ Stadium. According to Huawei, in initial tests, the network’s downlink peak speed reached 10Gbps and the continuous speed exceeded 5Gbps.
The GSMA stressed the need for continued infrastructure investment, as mobile data traffic is projected to grow four-fold between now and 2030. Global monthly mobile data traffic per connection is also expected to grow from 12.8GB in 2023 to 47.9GB in 2030.
The GSMA said the growing adoption of generative artificial intelligence (AI) and related applications such as chatbots is likely to drive data traffic growth.
“5G is on the right path to business success,” said Li Peng, Huawei’s corporate senior vice president and president of ICT Sales and Services, at Mobile World Congress 2024 in Barcelona. “5.5G will be commercially available in 2024, and the convergence of 5.5G, AI, and cloud will enable operators to unlock the potential of new applications and capabilities.”
Also: What Verizon’s latest 5G upgrade news actually means for users
Li urged operators to capitalize on these opportunities by focusing on strengthening their networks and adopting a “multi-sided monetization” approach. More than 20% of 5G operators worldwide have adopted a speed-tiered pricing model, including Thai operator AIS, which recently introduced a 5G Boost Mode add-on. AIS now allows subscribers to choose different speed tiers based on their usage patterns. Huawei said this pricing model has increased operators’ average revenue per user by 23%.
Looking to further explore market opportunities, Huawei unveiled several 5.5G products at the Barcelona exhibition. These include the Net5.5G unified WAN and Net5.5G HiSec SASE, which provide end-to-end IPsec and SRv6 (Segment Routing IPv6) WAN and unified security access between cloud, network, edge, and endpoints, Huawei said.
Singapore-based Eileen Yu reported for ZDNET from Mobile World Congress 2024 in Barcelona, Spain, at the invitation of Huawei Technologies.
