For all of the hope that “5G” will happen sooner rather than later, there is still a lot of groundwork to do. The move to 5G will not be about going faster or the next “killer app.” And it’s not just an upgrade to existing network technology; it’s basically a new network. As a result, it will likely have a longer implementation time as operators might only deploy in certain areas of their regions when there is a quantifiable business case for doing so.
Looking at vertical market use cases to drive this business case is key. So what could some of these use cases be? The chart below identifies potential areas identified by the GSMA and how they might fit.
Source: GSMA Intelligence | Understanding 5G | December, 2014
As mobile operators consider the move to 5G, the question arises: What will be the key factors that drive this change? Given this isn’t just a simple air interface upgrade; it’s basically a new air interface, new spectrum and a new RAN. This isn’t likely an easy transition. During the research for RCR Wireless News’ recent feature report “The Path to 5G,” this question was posed to the interview participants and the following criteria were offered:
- Increased data rates.
- Lower latency.
- Expansion into new vertical markets:
- Scaling to meet the requirements of the “Internet of Things”;
- Offer new services;
- Public safety;
- Smart metering; and
- Sporting events;
- Lower network costs.
- Better network efficiency.
If you look at the list, it’s hard to find something that really jumps out at you. This was reflected by some respondents who said they really don’t see the business case yet for operators to make a move to 5G. Assuming the industry does see value in the move to 5G, which most industry watchers believe is the case, what are the challenges still to be overcome to do so?
- Lack of standards.
- Spectrum – alignment on what spectrum is used and the cost of implementing.
- Network cost justification – radical network architecture changes.
- All IP infrastructure evolution.
- Addition of new frequencies – millimeter wave.
- Prioritization of use cases on a consistent level across regions/operators, i.e. Can an industry that hasn’t focused on use cases in the past successfully define services and architectures around these topics?
- When are there devices that work with 5G?
- Interoperability will be extremely complex.
“As operators move to 5G, the impetus to do so will not be driven simply by faster speeds and improved network functionality as the transitions to 3G and 4G were,” said Michael Peeters, CTO Wireless at Alcatel-Lucent. “5G will be driven by use cases within vertical markets such as Internet of Things. The focus on specific use cases will enable operators to more quickly monetize 5G deployments and show the true value of these technology at the user level.”
To learn more about these topics and hear from industry experts; the report mentioned above can be downloaded along with viewing the companion webinar on demand.
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Claudia Bacco, Managing Director – EMEA for RCR Wireless News, has spent her entire career in telecom, IT and security. Having experience as an operator, software and hardware vendor and as a well-known industry analyst, she has many opinions on the market. She’ll be sharing those opinions along with ongoing trend analysis for RCR Wireless News.
