Unlock Editor’s Digest for free
FT editor Roula Khalaf has chosen her favorite stories in this weekly newsletter.
This month, a consortium of global telecommunications standards organizations announced plans to work on the sixth generation of ultra-fast wireless cellular communications specifications. However, consumer engagement with 5G has been lackluster. It is doubtful whether 6G, which is scheduled to be released next year in 2010, will attract much attention.
Mobile carriers like Verizon, AT&T, and T-Mobile have promised that 5G networks will change our lives. Bandwidth auctions broke records in 2021 with Verizon bidding for more than $45 billion. However, many smartphone customers have a hard time noticing the difference.
Roughly two-thirds of U.S. mobile phone customers have tried a 5G network, according to a study by Global Wireless Solutions. Still, ABI Research predicts that by the end of 2023, there will be even more subscribers using 4G.
Blame the way 5G is being rolled out. The upgrade was gradual and resulted in little improvement. The additional speed, capacity, and connectivity available in standalone networks is still underutilized.
Released in the early 2010s, 4G networks enabled mobile phone users to stream videos, play games, and conduct conference calls. 5G can be used for high-quality virtual and augmented reality, and enables instant communication between devices such as self-driving cars. However, these latest features have not yet caught the attention of the masses.
The new 6G could enable data speeds up to 50 or 100 times faster than 5G. Companies like Huawei and Nokia say it should be ready for deployment in the early 2030s. Both the United States and China are determined not to give the other country an advantage.
However, CB Insights data shows that mentions of 5G in earnings calls peaked in 2021 and have since declined. Capital investment growth for network operators is expected to slow next year. Operators want to see a better return on their 5G investments before considering further network upgrades.
If you are a subscriber and would like to receive alerts when Lex articles are published, click the “Add to myFT” button that appears at the top of this page, above the heading.
