Opinion Every industry is moving into an era where connectivity matters more than ever. The smart, connected enterprise depends on networking capacity, bandwidth, speed, reliability and flexibility at levels far greater than previously required.
5G will transform how companies operate, accelerate industrial progress and expand the services available to consumers.
With faster speeds, lower latency and the ability to guarantee quality of service, 5G will affect every organization and individual using mobile networks. For consumers, it will enable experiences such as mobile cloud gaming and virtual reality, and help reduce the cost of high-speed data plans.
The most profound impacts, however, will be felt across industry. From manufacturing to healthcare, 5G will make business models that have so far been theoretical into practical realities. Factories of the future—driven by automation, real-time data analytics and virtual reality—will be able to produce bespoke products quickly and efficiently thanks to 5G networking.
These new business models depend on dense networks of sensors and intelligent machines, unlocking new technologies and dramatically expanding the potential of the Internet of Things. Where industry has already taken steps toward a smart, connected future, 5G will enable far larger leaps.
Recent Capgemini research highlights the urgency of this opportunity for large enterprises. Two thirds of industrial companies plan to implement 5G within two years of availability. After cloud computing, these companies rank 5G as the most important enabler of their digital transformation—above advanced automation, robotics, AI and advanced analytics.
Telcos must take note of this strong demand from industry. One certainty about 5G is that demand will likely exceed supply in the early years. The cost of spectrum licenses, the need to build new infrastructure in many locations, and regulatory hurdles mean most operators are adopting cautious, phased rollouts and must be selective about where and how they deploy.
Surveyed telcos indicate it could take up to five years before 5G reaches the levels of speed and service quality industry needs to support new capacity and applications.
As operators define their 5G strategies, prioritizing industrial needs would be wise. Industrial 5G use cases promise the greatest innovation and economic impact, and large enterprises represent highly valuable customers with specific networking requirements. Nearly half (47%) of the large industrial companies surveyed said they would consider applying for a private license to build dedicated networks, so telcos should not take their business for granted.
We are moving rapidly from preparation to implementation of 5G. Decisions made now by telcos, industry leaders and regulators will shape whether we unlock the full potential of this technology. Industry is motivated to make 5G deliver more productive, efficient and successful operations—outcomes that benefit consumers, patients, energy users and many others.
Telcos must be ready to meet and capitalize on growing demand. To do this, operators and industrial organizations should co-innovate through pilot projects and experimentation platforms that demonstrate 5G’s value, define future services, and establish the operating and business models that will guide investment decisions.
Interested in hearing industry leaders discuss topics like these and share practical use cases? Consider attending industry events where experts and practitioners present real-world examples, pilots and lessons learned to help shape successful 5G strategies.