- The Benefits of 5G
- The Challenges of Transitioning to 5G
- Current 5G Situation in Australia
Everything is about to become faster as the fifth generation mobile network, or simply 5G, is here.
Although the 5G network hasn’t been fully launched in Australia or other parts of the world, smartphone companies have begun investing in newer devices that can support the network. By doing this, these companies are practically future-proofing their products. Once the wireless network fully rolls out, their devices are able to provide faster internet service for their consumers, riding the wave from the very start.
Nevertheless, should investors begin jumping on the bandwagon this early on?
The Benefits of 5G
The 5G network is an upgrade of 4G, meaning it’s better in every sense of the word. We all get a faster internet connection and lower latency. With all these, connecting to the internet will be a quicker and smoother experience, such as streaming videos and joining video conferences. Downloading bigger files will also be faster.
But the above-mentioned are benefits for the consumers. How about the benefits for the investors?
Stakeholders in the telecommunications industry can definitely get great opportunities from the emergence of 5G mobile network technology. For one, it should lower the cost of delivering data for internet service providers (ISPs) as well as mobile network operators (MNOs). Since everyone will likely be using 5G in the future due to its better services, investors would be able to regain what they have initially spent.
However, the full length of a 5G network’s benefits is yet to be realised until the new tech is wholly rolled out.
The Challenges of Transitioning to 5G
Nevertheless, 5G transitioning is not and won’t be easy for investors, especially for mobile network operators.
Perhaps the biggest challenge they would have is shelling out a significant amount to invest in the new wireless tech. They would have to do this to create more towers and cells, as well as acquiring new spectrum so they could guarantee that they could fully deliver 5G network to their consumers and that their consumers could maximise its capabilities.
Moreover, MNOs would have to work closely with the Australian federal government for the deployment of the needed infrastructures--and they would have to do it quickly. Good thing the government fully supports the industry and is also taking necessary steps to deploy whatever is needed for 5G on time, such as signing legislation for the spectrum re-allocation declaration.
What this means is that the Australian Communications and Media Authority (ACMA) will be allowed to re-allocate ultra-fast millimetre wave 26GHz band spectrum or mmWave by 2021 across 29 states in the country. By doing this, MNOs are able to launch the network faster and provide 5G’s high-capacity services.
Current 5G Situation in Australia
Although 5G has been rolled out in some places in Australia, the signal is still not reliable, which is why many consumers won’t be able to fully appreciate the wireless tech as it is.
Besides consumers, the telecommunications industry in the country hasn’t fully embraced the wireless tech yet, although MNOs are definitely working to assure that by next year or so, their consumers are given the best possible internet connection.
Telstra, Optus, and Vodafone are currently in the lead in the 5G game in Australia, with Telstra already offering the service to its consumers. Apparently, the company is also planning to switch some of its customers from fixed-line to mobile, especially as the wireless network is proving to be more profitable and will likely help them more when the fifth generation network is out.
When it comes to smartphones, big names such as Apple and Samsung are already releasing 5G-capable devices, something they have done since the first half of 2019. So by now, there are quite a few choices for smartphone lovers to choose from.
Australian telcos won’t be bidding for access to mmWaves until 2021, so Aussies might get a better 5G signal by the end of 2021 or early 2022.
How Fast is 5G?
Before anyone makes the jump to 5G, especially for investors, it’s good to know how fast precisely is 5G and why everyone seems to be going crazy over it.
In theory, it appears that 5G is ten times than 4G. But the exact numbers will be hard to predict as it could be different for each person. Remember that your internet speed would depend on a few factors, including your device’s hardware.
Nevertheless, Telstra has already tested the mobile network back in 2018 using mmWaves, and based on that, they have already achieved a 3Gbps rate, which is already way faster than regular 4G network and even NBN fixed-line connections.
Some reports also suggest that 5G will have an average speed of 50 to 100Mbps.
With these speeds, streaming 4K videos will be effortless. Downloading massive files won’t take that long. The quality of video conferencing will be so much better than it is today. Online gaming will be a better experience for everyone.
It’s no wonder everyone can’t wait for it.
Should Investors Jump in the 5G Technology Bandwagon?
Definitely. From a growth perspective, 5G will essentially grow bigger in the next few years. People will begin adopting 5G as the next way of life, and as experts see it, the adoption rate is high, with some saying 5G connections will reach 1 billion by 2023--and it won’t stop there. By 2025, experts predict it will go up to 2.5 billion, meaning one in every five mobile connections will be using 5G.
Telecom companies and other investors can gain a lot from this new generation of mobile networks, and even if it may seem slow these days, you’ll undoubtedly start earning back your investments once it has rolled out.