Wednesday, February 26, 2020

Value of 5G is Highly Use Case Specific

To a large extent, the perceived value of 5G for end users and service providers turns on the new value the network can supply, and that arguably is unclear at the moment. Suppliers of devices arguably have an easier time of justifying the business case, as new devices are necessary. 

App providers will be most positively  affected if their apps hinge on ultra-low latency or ultra-high bandwidth or  ultra-low battery life. Least affected are apps that already run fine on networks with moderate latency and 10 Mbps to 25 Mbps per user. 

Since low-band and millimeter wave high-band versions of 5G support such radically different key performance indicators, and since mid-band is seen as the “best” compromise of coverage and capacity, it also matters which flavor of 5G is best suited to different use cases. 


It also matters whether a localized, private deployment primarily is needed, or whether wide area coverage is necessary. In other words, if a local area network will suffice, with cabled network backhaul to the core network, use of public 5G networks might not be required.

On the other hand, use of widely-scattered and numerous sensors, in motion or outdoors, will benefit most from public 4G or 5G network access. 

Another big strategic question is whether 5G, in combination with other service provider assets, can somehow create new value for business partners beyond simple connectivity. Can analytics, behavior and location be harnessed to create platforms of usefulness for business partners?

To what extent can major app suppliers do this themselves, without relying on connectivity provider data mining?

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