5G Network; what it is and how it will affect Global Economy

5G network brings forth realities of the fantasy of effectively connecting virtually everything to the internet and with each other with enhancing faster communications. The global trend towards the forth industrial revolution of autonomous supply chain finds the network to be its bedrock.

What is this 5G?

5G is the fifth generation of cellular networks. It is a new set of standardized specifications that have been agreed on by international bodies. 5G supports significantly faster wireless internet access via mobile networks and lower delay than previous generations. Previous generations were 1G, 2G, 3G, and 4G networks. It is up to 100 times faster than 4G, while also enabling the full interconnectivity of virtually everyone and everything together including buildings, machines, objects, and devices (that’s the Internet of Things, I use to wonder what it was too…hmm).

Wait; let’s break it down a little bit more, 5G offers the following:

Enhanced mobile broadband: Peak download speeds of at least 20 Gbps and a reliable 100 Mbps user experience data rate in dense urban areas.
Ultra-reliable and low latency communications: 1ms delay and very high availability, reliability and security to support services such as VR and connected vehicles.
Massive machine-type communications: The ability to support at least one million IoT connections per square km with long battery life and extensive wide-area coverage.
Fixed Wireless Access (FWA): The ability to offer fibre type speeds to homes and businesses in rural and urban areas in developed and developing markets

From connecting vehicles and transforming healthcare to building smart cities and providing fibre-over-the-air, 5G network is at the heart of the future of communications. The network is also essential for preserving the future of the most popular applications – like streaming video, online gaming – by ensuring that growing usage can be sustained.

What do we know about the previous generations of mobile networks? Here is a summary

First generation – 1G offered analogue voice only (1980s).

Second generation – 2G introduced digital voice (Early 1990s).
Third generation – 3G brought mobile data (Early 2000s).

Fourth generation – 4G LTE ushered in the era of mobile broadband (2010s).

1G, 2G, 3G, and 4G all led to 5G, which is designed to provide more connectivity than was ever available before.

How and when will 5G affect the global economy?

The success of 5G services is heavily reliant on national governments and regulators. The speed, reach and quality of 5G services depends on governments and regulators supporting timely access to the right amount and type of affordable spectrum, under the right conditions. There is already a significant variation in the amount of spectrum assigned, and the prices paid at auctions, which means the potential of 5G services will vary between countries. This, in turn, directly impacts the socio-economic benefits of 5G network and the competitiveness of national economies.

5G is driving global growth.

$13.1 Trillion dollars of global economic output
$22.8 Million new jobs created
$265B global 5G CAPEX and R&D annually over the next 15 years

The full economic effect of 5G will likely be realized across the globe by 2035—supporting a wide range of industries and potentially enabling up to $13.1 trillion worth of goods and services according to a landmark 5G Economy study.

This impact higher than previous network generations. The requirements of developing the new 5G network are also expanding beyond the traditional mobile networking players to industries such as the automotive industry like the present day industry 4.0.

The study also revealed that the 5G value chain (including OEMs, operators, content creators, app developers, and consumers) could alone support up to 22.8 million jobs, or more. And there are many emerging and new applications that will still be defined in the future. Only time will tell what the full “5G effect” on the economy is going to be.

Is 5G available now?

Yes, it has been deployed in over 60 countries since 2019. Major phone manufacturers are also commercializing 5G phones so more people may be able to access 5G soon.

Would you need a new phone if you want 5G? Yes, you will need a new phone that supports 5G to be able to use the network.