5G brings new use cases and creates new ecosystems and business opportunities. Deployments will evolve from regional technology trials into commercial launches.
5G rollouts in Europe will take off in 2020 with affordable devices and new use cases.
Intro: what is 5G?
5G is the new evolution of cellular networks. This upgrade brings among other things faster connections and lower latency, that means virtually no delay in connections.
These upgrades let us communicate and control in real time without latency to any device. A device can be an industrial machine, a gaming console or server, even a car.
For consumers, 5G provides the ability of react in real time. The best examples are gaming or augmented reality, because delay and lag are critical for the gaming experience.
Higher communication speeds will improve the quality of content transmitted between devices, supporting thousands of users simultaneously.
For the industry, 5G provides a “real” real time communication and control mean, because it allows processes automation through cellular networks with and ensured quality of service. This is crucial for critical business and manufacturing applications. This report from Ericsson provides a great view.
5G enables several connected services that are not possible to deploy with 4G. Source: EU Commission
Role of network operators
5G evolution is key to network operators. In a commoditized market where OTT services take advantage of the operator’s networks investment, 5G technology has lower costs and enables new use cases, new ecosystems and new business cases. This will permit “digitalize” industries in a way that was not possible up today.
The challenge would be to convert the technology into valid value propositions to users and businesses that goes beyond speed and latency upgrades.
Deployment status
2019 was a year for the comercial preparation, where operators tested some use cases along with the technology. Manufacturers deployed the first 5G devices for commercial and friendly user trials during the second half of 2019 .
In the fourth quarter we saw the first commercial launches in many cities with tens of base stations.
5G deployments timeline. Source: European Commission report, EU 5G ObservatoryWhat to expect in 2020
Spectrum usage is a key aspect to consider because several auctions for Europe will take place during the first half of 2020. Therefore, the allocation of frequencies will shape the deployments of 5G between 2020 and 2022.
We expect an expansion in 5G rollouts in 2020 deployments that includes territory and use cases.
Applications will include modems, fixed access wireless, and first industrial implementations.
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