Over the last two years, 5G has dominated discourse throughout the telecom industry. Promises of higher data rates enabling users to download, stream or process content faster, lower latency to facilitate less lag and delay when accessing networks, and improved network capacity have industry stakeholders envisioning new and ambitious applications, such as autonomous vehicles, smart cities and expanded capabilities of Artificial Intelligence and Machine Learning.
But, consumers grew increasingly confused when it came to where 5G was available, on what networks and devices, and what the user experience should look and feel like. Testing in early 2020 showed these new networks were only detected in certain portions of the country, and when they weren’t available, networks reverted to 4G. And when it came to bandwidth-intensive events such as the 2020 Super Bowl, 5G download speeds – while highly touted as markedly faster than 4G – were minimalized, resulting from a hybrid 4G/5G blended model that only enabled 5G connectivity for users when the resources were available. This surely left consumers more confused and wondering “so now what” and “what does this mean for me?”
Despite the initial speed bumps caused by over-hyping and under-explaining how 5G would be rolled out and what to expect, there have been dramatic improvements in the last 20 months. 5G speeds, availability and reliability metrics have all improved, and the country is well on its way to a more ubiquitous 5G NSA (non-standalone) network with a truly independent 5G standalone network within sight, proving that improved public messaging and a little patience really is a virtue.
2021: The Year of 5G Improvement
Every operator’s approach to their rollout and integration of 5G into their networks is different, but progress can be seen across the board when it comes to network speed, reliability and availability. At this year’s Super Bowl in February, network performance testing showed all three nationwide operators experienced maximum 5G throughputs that exceeded 1Gbps, a first at any major sporting event. It was an enormous achievement in a somewhat controlled environment that set the tone for what can eventually be achieved in markets across the U.S.
Less exciting but necessary was the need to address the limited spectrum available nationwide for 5G coverage. For example, the operators’ use of advanced technology such as Dynamic Spectrum Sharing (DSS) – the sharing of channels between 5G and LTE – enabled Verizon and AT&T to increase their 5G footprint. By the end of July, Verizon deployed DSS in nearly half of the markets tested (229 out of 498 markets). And within those markets, DSS was used in 23% of the 5G Verizon tasks undertaken by GWS’ network testing specialists. AT&T DSS was noticed in 22 markets (and within those markets, it was used for 5% of the 5G tasks). But bear in mind that while DSS helps improve 5G coverage, sharing lower band 4G spectrum means that the ultrafast speeds capable under 5G are not achievable. Put another way, DSS is an interim 5G deployment step as operators work towards obtaining spectrum that will allow them to take full advantage of the power of 5G.
This tactic has had tangible results; 5G is taking hold in the major cities across the country. When considering the top 10 US markets (population totaling approximately 87 million), AT&T’s 5G network as of the end of July was actively available 66% of the time (“actively” means a phone has connected to the operator’s 5G network and is ready to send or receive data), versus 45% for T-Mobile and 36% for Verizon.
Carriers Lead the Charge
A large portion of 5G’s tangible improvement is due to the three nationwide carriers’ continued investment in these networks. In February 2021, the FCC announced the winners of an $81 billion auction for the license to use important airwaves that are ideal for 5G. Verizon bid nearly $45.5 billion on the airwaves. AT&T bid $23.4 billion. T-Mobile, having already acquired some mid-band spectrum through its merger with Sprint, bid $9.3 billion.
COVID-19 provided a real glimpse into what the cumulative investments made by the major operators have meant to the nation’s telecom sector – – years of dedicating resources paid off when the strain on the networks was highest. And today, the operators are spending tremendous amounts of money to facilitate widespread 5G adoption for their subscribers. Their actions so far are paying dividends as we head into the last month of 2021.
On its recent Q3 earnings call, Verizon noted there was “great momentum” in 5G device adoption across its customer base as the number of wireless subscribers with a 5G-capable device exceeded 20% in less than 12 months since the company turned on their nationwide 5G DSS. And, according to Verizon, this significantly outpaces their 4G adoption as only 10% of the company’s device base was 4G capable 12 months after 4G’s initial launch.
What Comes Next
A near-term endgame for operators when it comes to the latest generation of wireless networks is 5G Standalone (SA). 5GSA would maximize the speed, capacity and reliability gains of 5G. At the moment, most carriers are focused on prioritizing the deployment of 5G within their current infrastructure. The migration to 5GSA is expected to take years rather than months, therefore, despite all the previous hype, the country is still fairly young in maximizing the benefits associated with 5G.
Still, there remain positive signs of growth related to 5GSA. Recent network testing showed T-Mobile has started the long road to 5GSA. In 2021, GWS testing found that T-Mobile 5G was detected 35% of the time throughout the United States and out of that percentage, 5GSA was seen 10% of the time.
Once 5G SA is fully launched, a major benefit that will be unlocked is network slicing. Through this new feature, operators will be able to dedicate network resources to be used for multiple purposes; for example, low latency applications as well as high speed applications and high-reliability applications (everything from mission critical autonomous car applications to AR/VR to IoT applications). Most impressive is that network slicing would enable operators to do this all at once. 5G is not just about faster speeds, but also improving network flexibility when compared to previous generations.
Slower than expected progress often results in frustration when improvements are over-promised, under-delivered, and simply not explained. The “so what”, “it’s not a big deal” sentiment over 5G has, at times, been loud and accusatory towards the telecom industry. But the road to 5G was never going to be an overnight endeavor; it takes years to migrate from one generation of wireless networks to another; keep in mind the time between the commercial introduction of 3G and 4G was roughly ten years, per the Centre of Excellence in Next Generation Networks (CENGN).
Consumers and all those involved in the telecom industry would be better suited blocking out the 5G pessimism, and focusing more on the tangible improvements that have been developed in the last year. 5G’s here to stay, even if it is still at the beginning of its commercial presence.
