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26 December 2022

What is 5G?


Fifth time’s the charm: 5G—or fifth-generation wireless technology—is powering the Fourth Industrial Revolution. Sure, 5G is faster than 4G. But 5G is more than just (a lot) faster: the connectivity made possible with 5G is significantly more secure and more stable than its predecessors. Plus, 5G enables data to travel from one place to another with a significantly shorter delay between data submission and arrival—this delay is known as latency.

Here are a few big numbers from the International Telecommunications Union. 5G networks aim to deliver:1,000 times higher mobile data volume per area
100 times the number of connected devices
100 times higher user data rate
ten times longer battery life for low-power massive-machine communications
five times reduced end-to-end latency

Here’s how it works: like all cellular networks, the service area of 5G networks is divided into geographic sub-areas called cells. Each cell has local antennae, through which all wireless devices in the cell are connected to the internet and telephone network via radio waves. To achieve its very high speeds, 5G utilizes low- and midbands on the radio spectrum (below six gigahertz), as well as whole new bands of the radio spectrum. These are so-called “millimeter waves,” broadcast at frequencies between 30 and 300 gigahertz, which have previously been used only for communication between satellites and radar systems.

Cell phone companies began deploying 5G in 2019. In the United States, 5G coverage is already available in many areas. And, while previous generation 2G and 3G technology is still in use, 5G adoption is accelerating: according to various predictions, 5G networks will have billions of subscribers by 2025.

But 5G can do more than enable faster loading of cat videos. This new speed and responsiveness—and the connectivity solutions it makes possible—is poised to transform a wide variety of industries.

How will 5G be used?

To date, 5G will enable four key use-case archetypes, which will require 5G to deliver on its promise of evolutionary change in network performance. They are:Enhanced mobile broadband. The faster speed, lower latency, and greater capacity 5G makes possible could enable on-the-go, ultra-high-definition video, virtual reality, and other advanced applications.

Internet of Things (IoT). Existing cellular networks are not able to keep up with the explosive growth in the number of connected devices, from smart refrigerators to devices monitoring battery levels on manufacturing shop floors. 5G will unlock the potential of IoT by enabling exponentially more connections at very low power.

Mission-critical control. Connected devices are increasingly used in applications that require absolute reliability, such as vehicle safety systems or medical devices. 5G’s lower latency and higher resiliency mean that these time-critical applications will be increasingly reliable.

Fixed wireless access. The speeds made possible by 5G make it a viable alternative to wired broadband in many markets, particularly those without fiber optics.

How might 5G and other advanced technologies impact the world?

If 5G is deployed across just four commercial domains—mobility, healthcare, manufacturing, and retail—it could boost global GDP by up to $2 trillion by 2030. Most of this value will be captured with creative applications of advanced connectivity.

Here are the four commercial domains with some of the largest potential to capture higher revenues or cost efficiencies:Connectivity will be the foundation for increasingly intelligent mobility systems, including carsharing services, public transit, infrastructure, hardware and software, and more. Connectivity could create new revenue streams through preventive maintenance, improved navigation and carpooling services, and personalized “infotainment” offerings.

Devices and advanced networks with improved connectivity could transform the healthcare industry. Seamless data flow and low-latency networks could mean better robotic surgery. AI-powered decision support tools can make faster and more accurate diagnoses, as well as automate tasks so that caregivers can spend more time with patients. McKinsey analysis estimates that these use cases together could generate up to $420 billion in global GDP impact by 2030.

Low-latency and private 5G networks can power highly precise operations in manufacturing and other advanced industries. Smart factories powered by AI, analytics, and advanced robotics can run at maximum efficiency, optimizing and adjusting processes in real time. New features like automated guided vehicles and computer-vision-enhanced bin picking and quality control require the kind of speed and latency provided by high-band 5G. By 2030, the GDP impact in manufacturing could reach up to $650 billion.

Retailers can use technology like sensors, trackers, and computer vision to manage inventories, improve warehouse operations, and coordinate along the supply chain. Use cases like connectivity-enhanced in-store experiences and real-time personalized recommendations could boost global GDP up to $700 billion by 2030.

The use cases identified in these commercial domains alone could boost global GDP by up to $2 trillion by 2030. The value at stake could ultimately run trillions of dollars higher across the entire global economy.

Beyond industry, 5G connectivity has important implications for society. Enabling more people to plug into global flows of information, communication, and services could add another $1.5 trillion to $2 trillion to GDP. This stands to unlock greater human potential and prosperity, particularly in developing nations.

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