Wednesday, January 2, 2019

Will 5G Business Value Resemble 4G in the First Few Years?

Many have noted that the business value of 4G networks was largely its ability to lower cost per bit for mobile internet, all the value of support for video streaming aside. Some might eventually say (over the next several years, at least) that the actual value of 5G was substantially the same in the consumer markets: providing lower cost per bit.

That is not to discount the eventual importance of 5G for many new enterprise internet of things apps, but only to point out that the practical value for mobile operators, in the consumer market, is the ability to keep supplying more usage without breaking the retail business model.

According to at least one analysis by Boston Consulting Group, 4G networks will run out of gas, in terms of lower costs per bit, by about 2021. Some will suggest that 5G will be bending the cost curve far beyond levels presently envisioned.



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