Millimeter wave spectrum not used for access networks and commercial communications applications, plus massive MIMO radios and small cells are among the building blocks for tomorrow’s 5G networks featuring bandwidth 10 to 100 times greater than offered by commercial 4G networks at the moment.
There are technology challenges, to be sure, but those issues actually pale in comparison to the question of whether 5G networks will produce enough incremental revenue to justify the investment.
That is not a new question, and has been asked of 3G and 4G networks as well.
There are technology challenges, to be sure, but those issues actually pale in comparison to the question of whether 5G networks will produce enough incremental revenue to justify the investment.
That is not a new question, and has been asked of 3G and 4G networks as well.
The bigger questions, though, are about future business models, in particular new revenue sources to be created by internet of things applications and services. Faster networks, all things being equal, are a good thing. But those networks will be more expensive, and it is not at all clear that traditional use cases (consumer mobility and internet access) will offer a payback.
That is why the business model is key. We’ll build the networks; that much is certain. Whether most firms will see a payback is the big question right now.
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