The hype around 5G certainly hasn’t slowed down.
The new technical standard started its roll out in the US last year. Wireless companies have been continuously preparing by revamping equipment. These updates include “buying up chunks of radio spectrum for carrying 5G signals, and installing new 5G antennas on cellphone towers, utility poles, and streetlights,” explains an Associated Press breakdown of 5G. The article also cites industry trade group CTIA, which reports that wireless providers will invest $275 billion in 5G-related networks in the US.
The widespread reality of 5G is moving even closer, with Apple’s latest announcement of the 5G-enabled iPhone 12 — its first major venture into this cellular technology.
Key success factors
And while 5G promises to disrupt industries across the board, a new report from Boston Consulting Group (commissioned by CTIA) has identified five critical success factors needed for the US to continue building its 5G economy.
Widespread network deployment is critical to laying the foundations of a 5G economy. Latest @BCG study finds that U.S. telecom providers have invested 7x more than Chinese providers. More key factors to building the #5GEconomy: https://t.co/giTWu0ABWr pic.twitter.com/mZLGRn1KiP
— CTIA (@CTIA) September 16, 2020
Titled Building the 5G US Economy, the report identified these five factors:
Spectrum Availability
A mix of low-, mid-, and high-band is needed. The report found that while the US has low- and high-band spectrum available, the report finds there is a lack of midband spectrum.
Network Investment
In order to get a high level of active 5G subscribers (per capita), widespread network deployment is necessary. According to the report, “US telecom companies have invested seven times more than Chinese companies and that from 2020 to 2025, US operators are expected to invest over $250 billion to build 5G networks, more than any other country.”
Innovation Ecosystem
Namely, investment in R&D and IP protection to help drive innovation. Per the report, “US technology and telecom companies spend significantly more on R&D, as a percentage of sales, than other global competitors.”
Business Climate
To create the best environment for innovation and entrepreneurship, business-friendly policies must be in play alongside a willingness to take risks, investment, and capital expenditures. The report cites the fact that the US is home to major technological innovation and development — not to mention 12 of the world’s top 30 cities for startups.
Talent
The US is able to attract the world’s top-tier tech talent, found the report. The trick will be to maintain skill levels through training and retraining.
“A roadmap for policymakers”
According to Enrique Duarte Melo, a BCG managing director and senior partner and lead author of the report, “a country’s 5G progress shouldn’t be based on misleading snapshots in time such as the number of 5G subscribers or the amount of 5G base stations deployed in a given quarter.”
“Policymakers should instead look at how these factors…will blend together to drive 5G penetration and make 5G use cases widely available throughout society.”
The foremost impact of #5G will be the services and applications unlocked by powerful and ubiquitous 5G networks. @BCG Report identifies five key factors for building the U.S. #5GEconomy: https://t.co/giTWu0ABWr pic.twitter.com/IjhJWXRMhl
— CTIA (@CTIA) September 16, 2020
CTIA president and CEO Meredith Attwell Baker added that these factors will act as a “roadmap” for policymakers. Given the potential of 5G as a key path to economic recovery of the US, allowing the country to achieve a leadership position in wireless innovation is key.
“With a recommitment to free up more licensed midband spectrum and continue our pro-investment regulatory framework, I’m confident that our wireless platform will enable America’s entrepreneurs to build an inclusive 5G economy.”
