Benefits of 5G Technology: What the World Expects
Updated: Jul 6
5G technology is explained on how to build an efficient future in a digital environment. The Internet is crowded with information about new opportunities that it opens for humanity. Anyway, it's not completely clear what the new generation can offer and how it will affect different areas' progress. Let's try to figure out what the benefits of 5G and who should take advantage of them.
How Does 5G Technology Work?
The definition of 5G technology looks: it's the new, most scalable mobile network generation. Nevertheless, this instrument is quite complicated and multifunctional. Compared with previous versions, it is capable of connecting almost all devices in the world in real-time. This fact allows businesses to create offers that can meet a wide range of customers' needs.
Besides, the new generation boasts equally striking features, such as:
the data transfer rate from 20 Gbit/s;
full coverage and the ability to use the network regardless of the user's location;
high bandwidth, which increased five times over 4G;
significantly lower latency in information processing.
Gaining such benefits is possible due to the work of cells, cables, and a set of radio frequencies, in particular millimeter waves. The cells are located in the most crowded places, for example, in the city center. Cables containing more than a hundred fibers carry the signal from the cells to the network at a speed of 300,000 km/s.
According to the Ooka Map, now 5G network is present, and devices are available for consumers in Norway, Uruguay, and some US, Canadian, and Chinese regions.
Companies Investing In 5G Technology: What Will They Get?
Telecom. 5G arguably has significant business value. First of all, it is necessary to mention the telecommunications industry, since it's so sensitive to any such innovations. Based on this, the industry giants as Vodafone, Orange, T-Mobile, Ericsson have already introduced new developments and are using their pros.
Explaining in plain, 5G is needed so that providers can create flexible digital solutions for different business sectors: from agriculture to medicine. It is especially important to be among the first adapting new generation realities to outperform competitors.
Retail. 5G will undoubtedly affect retail, helping the industry retain existing customers and attract new ones. In particular, this will affect the digital channels of interaction between the seller and the buyer. New technologies will enable efficient AR/VR usage to make shopping more convenient. Besides, due to 5G technology, the high number of orders processed, the reaction rate, and other factors directly dependent on the network will improve the customer experience.
Online retail and logistics will also benefit from recent developments for the same reasons: the high speed and error-free processing of customer requests.
Among the retailers, which are investing in 5G technology, IKEA, Amazon, Nike, The North Face need to be highlighted.
Tech Enterprises. Here, 5G will help develop new types of devices that can work more efficiently and quickly. Enterprises themselves will expand the range of their offerings, creating gadgets that support 5 generation technology.
According to a PwC study, 75% of Americans will have 5G coverage at home or work by January 2021. At the same time, about 4% of mobile devices will support 5G. Thus, for tech companies, these statistics are an excellent opportunity to make a difference. This is a significant source of profit based on the steady increase in consumer demand. Now Intel, Huawei, Nokia, and Samsung offer smart solutions to maximize the 5G usage.
Manufacturing Industry. 5G will give manufacturing flexibility to produce every specific order. The performance will become higher, optimization - faster, and cooperation between teams - more efficient. The new generation allows sending and managing vast amounts of data in real-time. All the regulations inside a company can be automated. It allows spreading factories all over the world and keep a constant wireless connection between them.
5G: Problems of Usage in 2020
Despite bright perspectives and predictions, all business areas are not ready for 5G implementation. During the last 5G World Summit Cradlepoint survey, 46% of respondents admitted they had done first elementary steps to new generation usage. As of 2020, the situation has not changed much.
There are several reasons why an effective solution is ready, but there is no way to use it. Among them are:
a small number of devices, supporting 5G;
outdated business development strategies that should be adapted to environment changes;
anxiety for business safety (the case is 5G will also allow hackers to steal data at high speed; to prevent this, companies must have a high level of cybersecurity);
the high cost of 5G technology implementation;
insufficient coverage around the world.
Following the CCS Insight Market Forecast 5G Connections, narrowband connectivity within the new generation becomes commercially available 2023 or even later. Based on the business unreadiness and the unstable situation in the world, this statement seems close to the truth.