In the early going, an order of magnitude (10 times) to two orders of magnitude (100 times) change in the cost of supplying internet bandwidth might be the key early value of 5G networks. In other words, vastly-lower cost per bit is going to drive early revenue model changes.
That might be true even if latency performance and speed also change by an order of magnitude.
The reason is that the step change in cost per bit supports the existing business case (supplying more bandwidth) to mobile phones and other devices, as well as creating the foundation for at least a couple new revenue sources, without requiring the creation of other brand-new services or applications that harness the ultra-low latency or faster speeds.
Where demand for bandwidth is highest (the 10 percent to 15 percent of cell locations where traffic demand is greatest), 5G can be spot deployed to improve user experience.
In the category of “new use cases,” the earliest addition will be the use of 5G in fixed wireless mode to attack the fixed network internet access customer base.
The extent to which a pricing premium for “faster speeds” allows a 5G price premium, how much and for how long, remains to be seen, but there will be some likely impact there.
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