5G is changing how people will live, work, and communicate. 5G transforms more than our personal lives, and it will also drive us to the Fourth Industrial Revolution, referred to as Industry 4.0. For the first time in modern history, multiple technologies, historically siloed, will now be integrated and leveraged to build a single fluent infrastructure. Technologies such as wireless, cloud computing, artificial intelligence and robotics can now seamlessly be connected to improve business operations and efficiency.
The 5G telecommunications services market is valued at approximately $2 trillion worldwide. LTE and 4G can no longer sustain the demands imposed by the increased number of devices required on the network or by the latency requirements. Industries need to transition their operations to leverage 5G to increase productivity and utilize this new wave of technology. Service providers must change their model to capture their portion of the market.
5G increases the number of devices to be connected as well as reduce latency to allow communication to exist without delays. It introduces network slicing, which can support multiple virtualized services overlaid on a single physical common infrastructure. The concept of who owns the equipment or where it is located is also less important. The new focus is to achieve higher throughput connectivity with ultra-reliable low-latency (URLLC) for the network, thus improving customer satisfaction.
This revolution will impact the end users, but will also significantly transform how businesses run. Industries, especially manufacturing, can now connect more devices with better security, and can manage and locate their assets through the network more quickly. In addition, by leveraging a private 5G network they benefit from having dedicated bandwidth for their critical applications.
Service Providers Need to Evolve
Service Providers would traditionally sell bandwidth, and for the most part it was very static, meaning it rarely changed connections or bandwidth. Today, industries have several types of traffic, such as connecting users, applications, robotics, and machinery. Each traffic type has classes defined within them that may have different network needs such as different security requirements, different bandwidth, and different Quality of Service contracts. 5G NR allows for classification of the traffic providing elasticity to the network as well as virtual overlays to separate and control the traffic. The next generation 5G networks are expected to provide service providers with the opportunity to increase revenue by offering not only business-to-customer service (B2C) services, but also business-to-business (B2B) and business to business to consumer (B2BC) services.