Mature 5G network will operate at higher frequencies and distance shorter than 4G, using a dense infrastructure of “towers” ​​the size of shoeboxes located every hundred feet only. That allows them to support billions of devices, almost without latency, at speeds up to 20 times faster than 4G. 5G antennas also consume less power, which makes the protocol better for connecting small Internet of Things (IoT) devices that run on batteries.

How could 5G hyperconnectivity affect our lives? Here five fundamental ways:

1. Smart cities

According to the National League of Cities, two-thirds of US municipalities have invested in technology for smart cities. For example, San Diego installed intelligent lighting systems that automatically dim when no one is nearby, saving almost $ 2 million a year in electricity costs. Pittsburgh is replacing 36,000 street lamps with LEDs that contain sensors to monitor air quality. South Bend, Indiana, installed sensors inside the sewer mouth caps that redirect water flow when levels rise too high. For its part, after installing shooting detection microphones in neighbourhoods with high crime rates, San Francisco reported a 35 percent decrease in the incidents where the shooting occurred.

The upgrade to 5G network will allow cities to handle more data from millions of IoT devices and install low-energy sensors that can last for years without replacement. This will expand your ability to intelligently manage vehicle circulation, air quality, energy use, public safety and more. A 2017 Accenture Strategy report predicts that the use of 5G networks to manage traffic and energy could save cities $ 160 billion.

2. The world of work

Perhaps the broadest impact of 5G network optimization is on industrial and commercial IoT devices. Location beacons already transform the way goods move from inventory to shipping and delivery. ABI Research predicts that more than 500 million objects will be tracked by 2023. Precision agriculture uses sensors in the ground and cameras from the air to identify diseases in crops, determine when to water and reduce the use of pesticides. Smart factories install connected robots to automate dangerous and/or repetitive jobs.

All these changes will increase exponentially once ultrafast wireless networks are installed, with capacity for approximately 125,000 million IoT devices by 2030.

IoT will be an important driver of what will be known as “the fourth industrial revolution”.

The evolution of 4G to 5G network not only implies a ‘plus one’ in the name, but they are also years of transformation of the industry and mainly of technology in telecommunications. This will demand a forced change in processes, costs, technology and people to enable and take advantage of the 5G network. Otherwise, companies will be left out of this offer and those who continue without considering this digital transformation will run the risk of being out of the market.

3. Driverless cars

According to the National Highway Traffic Administration, almost 95 percent of traffic accidents are caused by human errors. Taking people off the wheel could save up to 1.25 million lives each year.

But for driverless cars to be completely autonomous, they should contact the cars around them to avoid accidents and minimize congestion. They should talk to the sensors integrated into the traffic lights, traffic signs and pavement to navigate more safely. And they will need to get answers instantly, which is where 5G networks of low latency are involved.

“Only fast networks, such as 5G, can accept latencies of milliseconds,” says Dr. Kevin Curran, a professor at the University of Ulster in Northern Ireland, and leader for the Environmental Intelligence Research Group. “It is not long before driverless vehicles share our roads and one day they will dominate them, but first we must invest in infrastructure.”

Once the infrastructure for driverless traffic is installed, the streets may become less congested and the air less polluted. With fully autonomous vehicles, fewer people will have their own cars and sharing the trip could become more common. The Boston Consulting Group predicts that this will reduce by 60 percent the number of vehicles on city streets and emissions from exhaust pipes by 80 percent.

4. Telemedicine

Visits to the doctor’s office can be as rare as home visits, thanks to virtual visits that low-latency and HD quality wireless networks will make possible. Portable or implanted medical devices will capture their vital signs and transmit them to health care providers, allowing them to detect early warning signs of heart attacks, strokes or other life-threatening events.

“The 5G network infrastructure will open the door to important events in personalized medicine, anywhere, anytime,” says Dr David Teece, a professor at the Haas School of Business at the University of California, Berkeley.

The high speed wireless network will also allow telesurgery, in which specialists located in a hospital will control the equipment in another facility located hundreds of kilometers away. That day may be closer than you think. In January, a surgeon in China who was 30 miles away successfully extracted a part of a pig’s liver using a 5G connection.

5. Virtual spaces

Thanks to the high bandwidth and low latency of 5G, augmented and virtual reality could finally become a practical reality. Telepresence applications with virtual reality will allow colleagues in distant cities to work “side by side,” or sports fans to experience the roar of the crowd in the Super Bowl from the comfort of their sofas. Practically, we can tour the commercial areas of Tokyo during lunch breaks and receive the products in our homes.

All these changes will not happen overnight. Although the main operators are already busy installing limited versions of 5G in cities around the world, devices capable of accessing 5G networks are now starting to appear, and there are still several years left for ultra-high speed implementations.

It took 10G for 10 years to become the predominant cellular technology, and 5G could take even longer. But once fully established, we will wonder how we could live without it.

The 5G will allow us to reimagine what information we want to collect and what we are going to do with all these millions of data, providing a new range of possibilities to the digital world. This new technology will generate new professions and great innovation that will optimize that ‘plus one’ in the name.

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What figures are we talking about? It is estimated that the telecom will spend 5,000 million euros on the frequencies and deployment of Spanish 5G Network, but the truth is that the actual bill is an unknown. “It is difficult to specify a figure since this launch is the result of many years of work and, of course, a large number of investments in innovation and infrastructure deployment have been necessary. It’s somewhat difficult to making 5G profitable. To this we must add strong sums in equipment, radio and all the services developed on the Network, ”admits Julia Velasco, network director of Vodafone Spain, who recalls that the company has been the first to launch commercial 5G in the country.

What is clear is that, learned the lesson of 4G, technology whose development left shaking the coffers of the telecoms, this time they are determined not to waste and even reduce costs through unthinkable alliances only a few years ago : in the Kingdom United, Telefónica and Vodafone share mobile towers; in Italy, TIM and Vodafone, radio equipment and facilities. Also in Spain, Orange and Vodafone extended in April the agreement for the deployment and distribution of mobile and fixed networks, including new technologies such as 5G. “It is estimated that in Europe, and thanks to sharing, operators could save up to 200,000 million of a total cost of 500,000 million, although we are still talking about a very high investment effort,” they say from Orange.

But beyond that the operators look for mechanisms to save costs in the investment phase, they must be able to monetize the new standard. How? It is still somewhat diffuse. The operators are aware that the billing for the services provided to consumers will grow less than the construction costs of the new infrastructure. And there is a clear precedent: according to the calculations of the Strategy Analytics consultancy, 4G mobile phone subscriptions grew in the world from 4% to 61% between 2012 – date of the actual launch of the fourth generation – and 2018, while billing for these services 4G increased less than 1% per year in the same period.

“The 4G meant the appearance of new online platforms and the growth of content providers, exponentially increasing the IP traffic that circulates through the networks of the operators,” recalls Carlos Javier Moreno, director of the Telecommunications Consulting area at Deloitte. “On this occasion, the business is in offering ad hoc connectivity services for other economic sectors. Technologies such as the cloud, big data and edge computing will be enhanced by the characteristics of 5G, helping operators to provide increasingly higher value-added services and be fundamental agents for the digitalization of society ”.

Offer and demand

In short, with a view to the final consumer, the challenge of operators in the coming years will be to be able to offer services for which it is worth paying much more. It seems easier to bet on a new type of client, things, to which they will be able to offer services through IoT devices based on fifth-generation networks. However, according to Vanesa González, the partner responsible for Telecommunications of PwC, and José Moreno, director of Strategy &, the strategic consultant of the same group, in telecommunications, the new services that will benefit from the higher transmission speeds do not yet exist. In his opinion, “the deployment of the 5G infrastructure and the monetization are expected to be slow leveraging in the previous networks” since this is still far from being able to replace the fibre due to the lack of coverage and investments required to change the network mobile.

“It is too early to talk about profitability strategy when several of the investments have to be defined. However, there is something clear, and that is that the capabilities of 5G are different and, therefore, we are working on new use cases, ”admits Mercedes Fernández Gutiérrez, Innovation Manager at Telefónica España. “It is clear that current services such as video streaming will work even better, but there are other verticals where an immediate interest in this new technology is being seen, such as education, tourism, the digitization of the industry, the evolution of the connected car and autonomous, construction processes and supervision and maintenance of infrastructure, among others ”.

In Orange, they also believe that “the opportunities and making 5G profitable are promising since it represents a paradigm shift in connectivity that will undoubtedly bring strong benefits to operators that will compensate for the heavy investments planned.” In this regard, they mention a recent report by the technology consultancy Gartner that expects revenues from the infrastructure used in the global scope of new mobile technology to grow 89% in 2020. The above all are the challenges to face in the process of making 5G profitable.

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