5G, the fifth-generation technology standard for broadband cellular networks that began deployment in 2019, offers faster download speed and reduced latency time. Because of this, telecom service providers quickly recognizes the impact it could have with enhanced applications, including connected vehicles, expanded IoT use cases, better communications and collaboration services, and much more – not to mention bringing reliable connectivity to underserved areas.
Fast forward to 2022, and 5G has grown in complexity. Adoption of 5G is easier, 5G is being implemented in industrial and other IoT implementations, and 5G is improving AR/VR applications with its improved latency and higher bandwidth.
These are a few things that are reinforcing Jabil Inc.’s findings of its 2022 5G Technology Trends Survey.
In the survey, decision makers from North America, Europe, the Middle East and Asia-Pacific weighed in on the current and future state of the industry, with about two-thirds agreeing that it will take another one to three years before 5G technology will be adopted widely.
Of the industries adopting 5G technology, the financial services sector is looking the most promising with respondents ranking it first. Transportation ranked second after receiving a boost from developments in connected vehicles and autonomous driving. Healthcare came in third with its breakthroughs in wearables and connected auto-injectors.
“Continued growth in 5G complexity and diversity creates a wealth of opportunities as well as obstacles for traditional telco service providers, equipment manufacturers and software developers,” said Emanuele Cavallaro, president, communications and networking division at Jabil. “Our ability to collaborate with companies across the entire 5G ecosystem will push the boundaries of innovation to help 5G stakeholders reach their true potential.”
The survey also found that 59% reported the transition to 5G will create opportunities for new telecommunications companies while a little more than half said it will deliver new business models. Almost all respondents believe 5G will foster partnerships between service providers and software or web services companies.
With 5G being adopted more widely, businesses are facing various challenges:
- 31% cited the creation of subscription models as the top impediment.
- 27% cited government regulations as an impediment.
- One-quarter cited erosion of market share by over-the-top providers as a challenge.
Network mapping and the lack of 5G-enabled devices were cited at around 30% of respondents believing these still cause perational challenges.
Despite the challenges, telecom stakeholders remain confident about 5G’s prospects. About two-thirds say it will transform telecommunications, which is up 16% from Jabil’s 2018 poll.
Edited by Erik Linask