Top 10 Promising 5G Business Opportunities
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More chapters5G has been quite the buzzword for some time. When comparing it to its predecessors, like 4G, its theoretical download speeds are ten faster. Its latency (the time it requires for data to travel from its source to the destination) is less than one millisecond. 4G’s latency is less than ten milliseconds.
The latest mobile versions, like the iPhone 15 and Samsung Galaxy S24, support 5G, and it is gradually becoming the new standard for mobile devices.
Do faster data speeds and new standards mean better services? What implications and impacts does 5G have on business opportunities? By examining 5G, the technology’s current state of infrastructure and the roles of stakeholders will provide us with an insight into these questions.
Key Takeaways:
- 5G is a new-generation technology that facilitates strong and reliable connections, low latency, and increased bandwidth.
- 5G-enhanced technology paves the way for multiple business opportunities, including smart IoT technologies, seamless remote work and remote healthcare services, data-driven business decisions, accelerating digital transformation, and more.
An Overview of 5G Technology - What is it and How it Works
Definition
5G stands for fifth-generation mobile technology. It is the new standard for telecommunications networks. While it uses the same frequencies as 3G and 4G, it provides quicker download rates, reduced latency, and increased bandwidth, which means improved dependability, stronger connectivity, and shorter download times.
In addition, 5G facilitates seamless roaming between cellular and Wi-Fi networks without the need for reauthentication, improving digital activities like online gaming and videoconferencing. Its dense, distributed-access architecture brings data processing closer to users, enabling faster processing.
How Does 5G Work?
Similar to communication systems, 5G technology uses radio frequency to transmit information through air. However, it does so with a less cluttered and higher frequency.
High bandwidth allows 5G to carry data faster, but it also faces the challenges of traveling over long distances, which are often obstructed by buildings or trees. Numerous input and output antennae are used to boost the signal and capacity of wireless networks to solve this problem. Smaller transmitters are also placed on buildings and street furniture.
Another notable capability of new-generation cellular technology is its ability to “slice” physical networks. Physical network slicing enables the creation of multiple virtual networks on top of the shared network. This allows operators to “slice” the network based on the user’s demand. For example, a video streamer’s network demands are different from that of a student or a business. This agility also allows enhanced mobile broadband or enterprises to purchase their own private networks.
A Quick Look at 5G Adoption Statistics
Global Statistics
- From 2019 to 2028, there will be a sharp rise in 5G subscribers globally, from over 12 million to over 4.5 billion, according to projections. According to region, the highest subscription rates are anticipated in North East Asia, Southeast Asia, India, Nepal, and Bhutan. (Statista)
- Berg Insight’s research report shows 2,900 private LTE/5G networks globally deployed by 2023, with 700 networks transitioning from trials to commercial operations. The number is expected to grow at a 33% CAGR until 2028, reaching 11,900 networks. Many networks will be upgraded to 5G within the next 2-3 years.
- By the end of 2023, around 45% of the world’s population is going to have access to 5G, and by 2029, that percentage is anticipated to rise to 85%. (Ericsson)
Vietnam Statistics
- Vietnam aims to commercialize 5G nationwide in 2024. (Tuoitrenews)
- The Government News reported that the National Institute of Information and Communications Strategy estimates, that 5G services will increase Vietnam’s GDP by about 7.34 percent by 2025.
The Roles of Business and Stakeholders in Transformations with 5G
To truly make use of 5G business opportunities, you need to be aware of the stakeholders and their roles.
- Network Service Providers (NSPs) develop, offer, and maintain control over infrastructure and service quality.
- Communication Service Providers (CSPs) are the ones to provide services to Online Service Providers (OSPs) and end-customers.
- Online Service Providers (OSPs), in addition to collaborating with NSPs for secured services, deliver and represent vertical industry stakeholders (E.g., automotive, energy, health) and provide tailored products to end-users.
- Device manufacturers and network infrastructure manufacturers offer proper devices and infrastructure for network deployment.
- End-customers involve B2C, B2B, and B2G segments benefiting from enhanced services and products.
Why 5G?
If you are still unsure whether 5G is an excellent business opportunity or not, here are the reasons 5G is becoming a prominent technology globally.
- Faster Speed: One of the most significant benefits when referring to 5G is its speed improvement. Imagine downloading a high-resolution within a second!
- Lower latency: 5G’s latency is faster than 1 millisecond – faster than the speed of human visual processing. Low latency allows remote device control to happen in near real-time, innovating the Internet of Things and other machine-to-machine communications, as well as providing smooth entertainment experiences like augmented reality (AR) and virtual reality (VR).
- Stronger Capacities: Speed and lower latency are exciting news. But are there any other implications the technology has for business innovations? 5G delivers 1000 times more capacity compared to 4G, meaning hundreds or thousands of connected devices communicate smoothly. Streamlined supply chain management, remote patient monitoring, smart cities, and smart homes will be able to grow even further.
- More Bandwidth: More data will be transmitted with 5G compared to the pre-existing networks. 5G can handle a spike in traffic smoothly - so events with large audiences no longer need to worry about sudden interruptions. For businesses, the technology facilitates the utilization of big data and data analytical insights.
Opportunities Posed by 5G - Emerging Markets, New Businesses and Investments
Facilitating IoT and Smart Technologies
Enhanced capacity, efficiency, and extensive data utilization make 5G a great match for IoT and other smart technologies in logistics and agriculture.
To be specific, the integration of IoT and 5G technologies supports predictive maintenance, smart factories, and monitoring of equipment performance, worker safety, production processes, etc.
Seamless connectivity is also utilized in agriculture. 5G enhanced capabilities facilitate precise farming techniques, automated farming machinery, and livestock monitoring.
Smart cities and smart homes are other applications of IoT and smart technologies. 5G acts as the primary connectivity for home automation, health and energy management, infrastructure maintenance, and more. It can also be used with other advanced technology like AI voice assistants.
Transforming Customer Experiences
5G not only paves the way for dramatic transformation in business operations but also in the customer’s interactions and experiences.
Customers can enjoy VR and AR in gaming and retail events for immersive shopping experiences. They can even enjoy the extended realities from the comfort of their homes without any lagging or buffering.
With content creation becoming an emerging industry, 5G allows customers to enjoy high-definition content without any annoying lagging.
In short, 5G opens up massive opportunities to elevate and innovate customer experience, which ultimately grows the business’ revenue.
Crowd Management
Crowd management systems need a reliable connection and ultra-wideband solutions to provide real-time analytics and updates like crowd density, access control at gates, and stronger communication to allow event personnel to respond quickly in cases of emergencies.
Fixed Wireless Access
An important application of 5G is Fixed Wireless Access (FWA), which offers high-speed internet access to homes and businesses without the requirement for traditional wired connections.
This gives underserved areas a cost-effective and flexible solution for broadband connectivity. The technology bridges the digital gap, enabling widespread access to modern tools and services.
Accelerating Digital Transformation
5G is a gateway to elevating other digital services and technologies. It is the force driving the advancement of AI, blockchain, IoT, AR, VR technologies, and more. There is almost no limit to how 5G can be used to push other technologies forward - as its reduced latency, robust data collection, and data analytics capability are setting new standards to help businesses thrive and gain a competitive advantage.
Supercharge Remote Work
We have been witnessing a steady rise in the trend of remote working. Many are convinced that remote work is here to stay. To make the transition to new working methods easier, 5G supports strong and reliable connections, facilitating smooth video conferencing and efficient collaborations.
Data-Driven Business Insights
We have discussed extensively how 5G along with other advanced technology assists the monitoring and management of multiple devices in different industries. This process often equates with an ocean of data collected. However, that doesn’t mean all the data is analyzed. With 5G’s advanced capabilities, your business will gain valuable insights into its operations.
Revolutionize Online Shopping
Online shopping has become an integrated part of our daily lives. As the e-commerce market grows increasingly competitive, providing a seamless, lag-free shopping experience with AR try-ons and instant payments is essential to keeping customers happy.
Real-Time Marketing Adaptation
Marketing nowadays requires agility and adaptability. 5G’s reduced latency allows your business to stay on top of the latest trends in the industry.
Telemedicine Capabilities
The pandemic has boosted the growth of telemedicine – remote patient video consultation sessions as well as patient monitoring with the help of wearable devices.
Minimum latency is quite literally life-saving to these patients - as sometimes, being notified on time or not can make the difference between life and death.
Last Note
5G undoubtedly delivers an array of desirable features and benefits. However, the network coverage is still quite limited. Besides, 5G security concerns and vulnerabilities have people feeling unsure of the technology.
But don’t let these woes stop you from leveraging the latest technologies. Here at Orient Software, we pride ourselves on alleviating these woes for our customers and providing them with the latest, secure technology to meet their needs. If you would like a consultation session with us, let us know, and we will be more than happy to assist you in the journey ahead.
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