The French regulatory agency Arcep has set out its plans for 5G, with ambitions for the mobile network to be up and running in at least one major city by 2020. Many people have pointed out that Europe may be somewhat behind the US and the leading countries in Asia in this particular area. At the moment, this gap appears to be narrowing. There is no doubt that fifth generation wireless network technology will change a lot. The Internet of Things and driverless cars are a couple of examples that will utilise 5G. Physical things will not only be able to communicate with each other, they will also do so at blazing speeds. Deloitte has previously estimated a huge impact on the entire mobile ecosystem. We're talking about an estimated increase of more than 150 billion dollars in GDP, as well as 370,000 new jobs. Although this will take place over several years, the foundations will be laid already in 2018.
New opportunities for growth
The US has already invested heavily in automotive connectivity, and sales of these types of features have already shown strong growth. But the potential for IoT extends far beyond driverless cars. Most everything will become smart. Smart homes, smart cities with everything from smart car parks to smart waste systems that use sensors and communicate with each other. A growth strategy for many telecoms companies will be acquisitions and strategic partnerships. For example, it turns out that Verizon, by far one of the world's largest telecoms companies, is currently looking at the possibility of entering into a partnership with either Apple or Google. The overall idea is pretty much the same; to be able to deliver content to any screen through wireless distribution. After all, mobile content, especially video, is one of the most common application areas for 5G.
Other opportunities include the second-hand market, which is projected to see strong growth as prices for new smartphones continue to exceed five figures.
Finally, telecoms companies will also be interested in VR and AR, which are slowly but surely penetrating existing markets where telecoms are already a cornerstone.
Her is an overview of the telecoms industry and the telecoms companies' biggest costs.
5G and innovation
The need for a better mobile network is mainly due to the fact that technology in society is developing in a way that the network is unable to keep up with. In other words, a new and better standard will facilitate new technological developments. For example, it was 4G that made smartphones really shine.
Not only will there be innovation, it will happen to a greater extent "invisibly". "Visible innovation" is referred to as more traditional; for example, marketing a new functionality on a product. When it comes to "invisible innovation", this is first and foremost about simplified processes, which the consumer does not notice as much. With a better developed network, things will happen faster, machine learning will make processes more efficient, unnecessary steps will be cut and the user experience will be improved.
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