This is why the importance of 5G has been greatly exaggerated

by admin, Wednesday, 27 October 2021 (10 months )

Have you noticed that there has been little talk about fifth-generation networks lately? At first everyone was waiting for them, then they got scared and began to burn the towers, and now it seems that they have completely forgotten about them. It seems that the latest activity has been the attempts of handset manufacturers to include “5G” in the names of all models where it is available. It doesn’t matter that there were no versions without him. The main thing was to show the whole world that the company is at the forefront of progress. One would assume that the conversations have died down only in Russia, where there are no such networks yet, but interest has fallen all over the world. This can be clearly seen if I look at foreign news feeds, which I do almost daily. Still disagreeing that interest in 5G has fallen? Then let’s read on.

Is 5G well developed

UK research firm Omdia shared the findings of its latest 5G research last week . The announcement was made at an event organized by one of the largest operators in Europe – Orange. In a nutshell, 5G is growing quite fast, but these networks are still far from being considered a truly massive phenomenon.

In the study, the phrase “golden mean” sounded . This term refers to the point of balance between supply and demand, at which 5G will begin to make a profit. According to Omdia’s findings, this point is still a long way off. Only 14% of currently existing 5G networks have reached this optimal level, representing a total of 10% of subscriber penetration. By June 30, about 150 operators around the world have launched their local 5G networks. These were some parts of their coverage area, but formally they offered such services. Only 21 of these 150 operators managed to reach the level where at least 10% of their subscribers had regular access to 5G.


Where are the most 5G users?

The choice of the best option is based on how the 5G market is behaving in South Korea, which is currently the leader in 5G penetration . The number of 5G users in China is also growing steadily, increasing by 4.7% in the first quarter of 2021 and by 3.7% in the second. A total of 318 million people gained access to the new networks. If the trend does not change, Omdia predicts that another 24 markets will achieve 10% 5G penetration by the end of 2021.

Currently, 5G penetration rates are highest in China, South Korea, Japan and the United States, with 82% of subscribers in Asia . Of the Asian users, 87% are in China. Small but growing 5G penetration outside of these markets can be seen in Finland and Ireland, which have surpassed 5% overall.

5G is still in its infancy, and we have yet to see its full potential from a technological and commercial point of view. Like 4G when it launched, 5G adoption is mostly supply driven, which means that the demand for 5G has to be driven by the industry. Operators in China and South Korea have shown how to market their networks to get consumers to use them, said Ronan De Renesse, senior research director at Omdia.

How 5G will evolve

Omdia predicts that 37 additional markets will achieve 10% 5G penetration in 2022, and by 2026 there will be more than 100 such markets. But it notes that there are countries in which the development of fifth-generation networks will not be so rapid. This primarily applies to developing countries, where the population does not have so many phones with 5G support, and if they bought such a phone, they cannot pay much for communication.


What is holding back the development of 5G

In the early days, using 5G will be expensive . Some operators take it upon themselves and do not raise the price for the user. While others, on the contrary, shift the payment for new networks to subscribers. In many respects, therefore, at first, new networks will be the lot of geeks and techno enthusiasts. This market situation will last for several years, and then 5G will become commonplace. But it is still premature to say that fifth-generation networks have become really widespread.

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