The race for 5G’s global market debut is already taking shape — Apple has just obtained US FCC approval to test 5G communications and Verizon has gradually started testing 5G networks since early 2017 across 11 US cities.
In addition, South Korea’s telecom operator KT is rolling up its sleeves to set the stage for the first-ever official demonstration of 5G technology during the 2018 Pyeong Chang Olympics.
The introduction of next-generation networks is expected to usher new opportunities for consumers and different industries alike. Telecom operators and digital players are also ready to embrace the benefits of 5G networks and their mega-fast download speeds, lower latency rates and full coverage reliability across different cities.
With 5G technology, users are expected to benefit by faster internet speeds compared to its predecessor in addition to bolstering innovations in smart home systems, automated smart city mechanisms and machine-to-machine (M2M) communication capabilities.
In our region, etisalat and Ericsson have taken the lead to trial 5G on high spectrum bands, which act as more experimental and simplified platforms to introduce the next generation of ultra-fast internet. This could reach speeds that’s up to 20 gigabits (Gbps) of data transmitted per second.
Looking at the current market pace, telecom operators are initially looking at adopting 5G (or 4.5G) to offer Fixed Wireless Broadband Access (FWBA) with traditional fibre connectivity experiences. The benefits of FWBA allows for cost reduction and faster time to market in low density urban areas.
The Fiber-to-the-Home (FTTH/B) networks are better suited for densely populated areas due to more favourable economics. In the UAE’s case, etisalat and du need to rely on fibre optic networks due to factors such as the highly-populated areas and the height of buildings, which all of course play a vital role in delivering high throughput broadband.
These fibre networks are key for 5G backhaul. Therefore, etisalat and du must consider sharing dark fibre and/or optical transmission to deliver consistent 5G experience across their fixed footprints.
The next phase of 5G testing will likely include lower band services — more suitable for mobility use. This will be essential for the take-up of services like augmented reality, which is very much a focus of what digital and over-the-top content (OTT) players are eyeing nowadays.
Apart from 5G offering users ultra-fast internet speeds, a multitude of industries are expected to benefit from such technology with the likes of hospitals with M-Health and telemedicine services, factories with automated assembly schedules in hazardous conditions and interlinked smart cities transport infrastructure that can significantly reduce accidents.
For telecom operators looking to be at the forefront of 5G market deployment, they need to ensure that their communication infrastructure relies on fibre optical backhaul and that it integrates with internet cloud providers’ infrastructure.
It is still important to keep in mind that 5G will only be an open option for developed markets that can house 4G network coverage. That means, cities in developed markets with a high population density and a widespread fibre infrastructure will be best suited to implement 5G. The UAE has already placed itself on the global stage by being one of the first-runners to test 5G before the anticipated global roll-out in 2018 — which also include the likes of the US, Korea, Japan and Australia.
The writer is Partner at the advisory and investment firm Delta Partners.