Sunday, December 6, 2020

5G Fears Misplaced

5G has so far proven to defy all manner of dire predictions. There was said to be no business case, since nobody needs 5G


It was argued 5G infrastructure was too expensive, based on the need for huge numbers of small cells. That proved incorrect, as small cells cost a fraction of what a macrocell cell site costs


In many cases, 5G infrastructure will cost no more than 4G, as a result.  

source: CCS Insight 


Others worried about the cost of new spectrum, especially when 4G investments had been recently made. But new and existing methods for using spectrum developed. Wi-Fi for offload, spectrum aggregation of licensed and unlicensed spectrum, spectrum sharing, huge amounts fo new spectrum and a declining cost per MHz for millimeter wave spectrum all helped. 


On the demand side, there is some evidence consumers might pay more for 5G, in part because mobile operators figure out ways to bundle additional value with 5G, such as “unlimited usage.”


It remains to be seen whether the hoped-for enterprise new revenue cases develop. But history suggests 5G will be adopted robustly, as have all prior generations of mobile platforms, through a combination of demand push and supplier pull. 


Simply put, consumers will need the additional capacity features, eventually, while suppliers have every incentive to encourage use of the new network. Device suppliers also will create capabilities based on 5G network availability, increasing the perceived value of 5G. 


The point is that many 5G fears have proven overblown or non-existent.


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