5G Benefits for businesses: how will the emerging trend affect your performance?
Updated: Mar 23, 2023
5G technology explained, discussed, and even implemented by big fishes in the telco world as well as other enterprises in various domains. It made the telecom industry a central link allowing ISPs and CSPs to create suitable conditions for business operations.
If you've decided to invest in 5G this year, find out more about the benefits waiting for you. Following Ericsson, by 2023, there will be 1 billion 5G subscriptions globally. So what are the reasons for becoming one of them? Read on to explore the details.
How Does 5G Technology Work: The Concept in General
5G technology is the latest and most scalable mobile network generation. It is designed to connect almost all devices in the world in real-time, making it an essential tool for businesses looking to offer services that meet a wide range of customer needs.
Compared to previous versions, 5G can boast of several features, such as:
a data transfer rate of up to 20 Gbit/s
full coverage regardless of location
high bandwidth (five times faster than 4G)
significantly lower latency in information processing
The benefits of the 5G network are made possible through the use of cells, cables, and a set of radio frequencies, including millimeter waves. The cells are strategically placed in crowded areas like city centers, and the cables, which contain more than a hundred fibers, transmit the signal at speeds of up to 300,000 km/s.
According to the Ookla Map, as of February 2023, 5G networks and devices are available for consumers in multiple countries, including the UK, the US, Canada, China, Norway, and Uruguay. However, the availability and coverage of 5G networks may vary by region and provider.
Overall, the new features of 5G technology offer significant improvements over previous generations, providing faster speeds, lower latency, and expanded connectivity. As 5G networks continue to expand and improve, it is likely that businesses and consumers will increasingly rely on this technology to meet their needs.
Investment in 5G technology: Companies Can Reach Better Performance
Telecom
The benefits of 5G technology for businesses are significant, especially in the telecommunications industry, which is sensitive to innovations. Industry giants such as Vodafone, Orange, T-Mobile, and Ericsson have already introduced 5G development results and are utilizing its advantages.
5G enables providers to create flexible digital solutions for various business sectors, from agriculture to medicine. Being among the first to adapt to the new generation realities is crucial to outperform competitors.
Retail
5G is transforming retail, helping the industry retain existing customers and attract new ones. It will have a significant impact on the digital channels of interaction between sellers and buyers. New technologies, such as Augmented Reality (AR) and Virtual Reality (VR), will make shopping more convenient and enable retailers to provide a better customer experience.
Online retail and logistics will also benefit from 5G developments, providing high-speed and error-free processing of customer requests. Among the retailers that are investing in 5G technology are IKEA, Amazon, Nike, and The North Face.
Manufacturing
The core advantage of 5G for manufacturers is its ability to deliver flexibility to produce every specific order, with higher performance, faster optimization, and more efficient cooperation between teams. The new generation technology allows sending and managing vast amounts of data in real-time. All the regulations inside a company can be automated, enabling factories to be located all over the world while maintaining a constant wireless connection between them.
5G is challenging: what pitfalls should you be aware of
The implementation of 5G technology by businesses in 2023 poses several challenges that must be addressed.
Firstly, the cost of implementing 5G technology is a significant hurdle for many businesses. According to a study by Ericsson, 47% of decision-makers in enterprises cite high deployment costs as a significant barrier to implementing 5G technology.
Furthermore, another challenge is the lack of skilled professionals to manage 5G networks. A report by Gartner predicts that by 2023, more than 75% of organizations will face a shortage of staff with the necessary skills to manage their 5G infrastructure.
Additionally, the complexity of integrating 5G with existing IT systems and applications is another challenge. A survey conducted by Accenture found that 63% of businesses consider integration with legacy IT systems to be a top challenge in 5G adoption.
