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5G Internet: Higher-speed, higher-impact connections

5G unlocked next-gen technologies that required faster Internet connections, such as virtual reality (VR) and the Internet of Things (IoT).

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Quantumrun Foresight
July 21, 2022

Insight summary

5G Internet represents a major leap in cellular technology, offering unprecedented speeds and reduced latency, which could transform various industries and daily life. It has the potential to enable advanced technologies while also democratizing access to high-speed internet in underserved areas. However, it also faces challenges, including public concerns about environmental impacts and the necessity for new government policies to balance technological growth with data privacy.

5G Internet context

Fifth-generation Internet, commonly known as 5G, marks a significant leap from its predecessor. This advanced cellular technology promises speeds of up to 1 gigabyte per second, a stark contrast to the 8-10 megabits per second speed of 4G, making it about 50 times faster than average US broadband speeds. Moreover, 5G technology offers reduced latency, the delay before a transfer of data begins following an instruction, by approximately 20-30 milliseconds compared to 4G. This enhancement in speed and responsiveness positions 5G as a potential catalyst for new innovations and business models, especially in communications and entertainment.

The financial implications of 5G are substantial, as forecasted by Ericsson, a Sweden-based telecommunications equipment company. Their analysis predicts that 5G could generate a cumulative global consumer revenue of USD $31 trillion in the information and communications technology industry by 2030. For communications service providers, the advent of 5G could lead to significant revenue opportunities, potentially reaching USD $131 billion from digital service revenues through various 5G plan offerings. Furthermore, consultancy firm McKinsey projects an additional increase of USD $1.5 to $2 trillion in the US gross domestic product, attributed to the expanded access to information, communication, and digital services facilitated by 5G.

The broader societal impact of 5G extends beyond mere economic gains. With its high-speed connectivity and reduced latency, 5G may also pave the way for advanced technologies like augmented reality and autonomous vehicles, which rely heavily on rapid data transmission. In addition, 5G could play a pivotal role in bridging digital divides, offering high-speed internet access to previously underserved areas, democratizing access to information and digital services.

Disruptive impact

5G Internet beamed through low-earth orbit (LEO) satellite constellations has a lot of promise for companies. LEO satellites fly across the stratosphere at an altitude of 20,000 meters. This orbit facilitates 5G broadcasts over a vast area, even remote ones that towers can’t reach. Another infrastructure development involves deploying dense networks of 5G boxes and towers in urban environments that can accommodate more simultaneous connections.

As a result of improved infrastructure, 5G can support the adoption of the Internet of Things (IoT) by supporting a vast number of connections between devices and equipment (e.g., in homes, campuses, or factories). Furthermore, 5G cellular and Wi-Fi 6 networks are designed to work naturally together. This collaboration allows companies to track items through the manufacturing process, synchronize production systems, and reprogram production lines based on market conditions and demands—without sensitive industrial data ever leaving the facility.

Meanwhile, virtual and augmented reality (VR/AR) technologies benefit from 5G’s high and stable speeds, allowing seamless cloud gaming and more immersive digital experiences. Autonomous vehicles will also benefit from 5G as faster connections allow them to download data-hungry components like interactive maps and security updates.

Implications of 5G Internet

Wider implications of 5G Internet may include:

Virtual reality (VR) and augmented reality (AR) technologies becoming prevalent in diverse fields such as forensics, travel, education, healthcare, and virtual worlds, enhancing experiential learning and immersive experiences.
Robotics industries utilizing faster connection speeds to improve interactions between humans and robots, especially in the use of collaborative robots in manufacturing settings.
Escalating public concerns and skepticism about 5G's environmental impact and the spread of misinformation related to 5G technology, potentially hindering its adoption.
Enhanced synchronization between smart devices and appliances, leading to more seamless and intuitive user experiences in smart home technology and fitness equipment.
The emergence of new social behaviors and media consumption patterns driven by the capabilities of 5G, reshaping interpersonal communication and entertainment.
The government enacting new policies to regulate the balance between technological advancement and data privacy, building greater trust among consumers.
Small and medium-sized enterprises gaining increased access to advanced technologies, leveling the playing field with larger corporations and fostering innovation.
Telecommunications companies facing challenges in infrastructure expansion to rural and underserved areas, highlighting the digital divide and the need for equitable internet access.
5G enabling more efficient remote working and learning environments, leading to shifts in urban and suburban demographics as people opt for more flexible living and working arrangements.