The arrival of 5G is a game changer, but not in the way people expect
Smartphone users around the world have been looking forward to fewer dead spots and up to 20x faster download speeds. Potentially more important is his 5G ability to unleash the full potential of the 30 billion Internet of Things (IoT) devices expected to be connected by 2030. The analyst says that by 2035, his 5G value chain will generate new economic output and support 22 million jobs. To make this prediction a reality and justify the necessary investments, the electronics industry will need to go beyond the mobile phone business to take full advantage of 5G’s potential.
One fact that most people agree on about 5G is that it’s not cheap.
Analysts estimate that from 2020 to 2035, network equipment companies, telecommunications companies, and governments in the United States, China, Japan, Germany, South Korea, the United Kingdom, and France will spend an average of $200 a year in research, development, and capital expenditures. It is estimated that it will exceed. a billion. The estimated investment amount is huge compared to the size of the industry. In contrast, global revenue for mobile network operators (MNOs) in 2017 was $1.4 trillion. 5G investments will be made over many years across MNOs, electronics companies, and government agencies, and the investments required are significant. Smartphone revenue alone isn’t enough to justify it. However, the expanded net value benefits and contributes to your investment.
The telecommunications industry, like network equipment providers (NEPs), must seek growth using software as a differentiator in a wide range of use cases across the industry. This includes apps, analytics and bespoke software designs that address specific user needs. Examples include artificial intelligence (AI)-enabled manufacturing, edge-specific decision-making for transportation-as-a-service, and augmented reality that can assist with everything from utility repairs to construction trade operations. AI-enabled chips often enable edge applications. Chipset providers have the potential to support both the hardware and software of IoT devices, allowing decisions to be made close to the device rather than sent to the cloud.
This doesn’t mean the cloud is going away, but more processing will be done locally at the device level. Just as the Apple iPhone X’s facial recognition happens on the phone itself rather than in the cloud, Edge requires quick decisions at the point of impact.
5G is inherently more flexible and scalable than its predecessors
The way 5G networks are built allows networks to be configured with virtual slices of network functions, increasing speed, dedicated capacity, and throughput as needed. This allows for reduced latency. Each virtual network operates independently and can be controlled and configured to suit your specific needs without creating a new physical network. Software-defined network (SDN) architectures make network control programmable, while virtualization abstracts the underlying infrastructure for applications. Orchestration dictates which protocols and processes to call and in what order. 5G technology should be delivered in three key modes: Enhanced Mobile Broadband (EMBB), Massive IoT (MIoT), and Ultra-Reliable Low Latency Connectivity (URLLC).
