Though much speculation about new 5G use cases abounds, the practical driver is about as utilitarian as it gets. In some markets, mobile customers are using so much data that the 4G networks were getting congested.
In other words, as always, next-generation mobile network was needed simply to boost capacity.
As always is the case, mobile operators had to move to add much more capacity ahead of demand growth that would have led to congested networks and diminishing experience.
Paradoxically, for all the talk of new features, 5G is necessary simply to add capacity to the network. Though smaller cell sizes traditionally have been the main way most new capacity is added, it is arguably more costly and difficult than adding new spectrum.
In the case of millimeter wave spectrum, perhaps both issues occur simultaneously: the new spectrum requires use of small cells. In the early days, millimeter wave has been used almost exclusively to augment capacity of urban, high-use cell outdoor cell sites.
Eventually that will change. We will see more use of millimeter wave indoors in high-traffic areas.
When Opensignal analyzed the mobile data consumed by millimeter wave 5G users, Opensignal found that 5G accounted for a much larger share of the total mobile data consumed.
“Our T-Mobile users who connected to mmWave 5G consumed 58.6 percent of their mobile data on 5G networks, followed by AT&T at 41.3 percent and Verizon at 18.7 percent,” Opensignal says.
Much of the concern about 5G payback models is warranted. Higher capital investment without an increase in revenue is always a problem. But it is the lesser of two evils. Without an increase in capacity made possible by 5G, mobile user experience would worsen.
Fancy new apps or not, 5G is a utilitarian move to increase mobile network capacity and preserve user experience.
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