NEWS CENTER

From Stratfor's perspective, the fierce competition began when China, the US, South Korea, and several telecom companies rolled up their sleeves to vigorously develop, test, and deploy the technology that will drive the world economy in the next decade—5G wireless technology.

As the first 5G networks begin installation this year in three American cities, we also need to start understanding what 5G is and why 5G will pave the way to Industry 4.0.

5G—or the fifth generation wireless network—is the next leap forward in wireless communications. According to Science Daily, 5G transmits data at speeds 100 times faster than any mobile technology today. But 5G is not just a reform of wireless 4G and LTE; the constant buzz about 5G also indicates its significant importance to Industry 4.0.

For the growing Internet of Things, from autonomous vehicles and drones to virtual reality, every aspect relies on ultra-fast working connectivity. 5G is key in communications, unlocking the full potential of these advanced technologies.

Before we delve into what this new world of ultra-fast connectivity looks like, we first need to understand how 5G networks work.

Axios has published an excellent guide on how 5G works.

• Suppliers like AT&T, Verizon, and T-Mobile will use a series of smaller transmitters—instead of traditional signal towers—to provide transformative high transmission speeds for phones and other devices.

• According to wireless industry forecasts, building a national-level 5G network requires constructing 300,000 new cellular base stations by 2020.

• Suppliers may also use more reliable but lower-frequency broadcast television radio waves to build 5G networks.

According to 5G.co.uk, the new network could be a game changer:

• Speeds up to 10Gb/s mean you can download a full HD movie in 10 seconds (compared to 10 minutes with 4G).

• Low latency means less delay or lag—down to 1 millisecond—at which point users will be unaware of any delay.

• Greater network capacity allows better handling of multiple high-demand applications running simultaneously.

• High reliability means connection-sensitive applications like digital healthcare won’t experience dropped calls or connection issues.

• Network slicing offers flexibility, allowing the physical network to be divided into multiple virtual networks, enabling users to use slices according to their needs.

• Battery life is improved tenfold.

Businesses of all sizes and industries worldwide will benefit from 5G. According to Qualcomm's research, 5G will bring goods and services worth up to $12.3 trillion (about €9.3 trillion) to industries including retail, healthcare, education, transportation, and entertainment.

Looking ahead, over 90% of respondents say 5G will spawn unprecedented new products, services, and use cases. Network World, a site for network professionals, describes what future 5G cities will look like—traffic lights connected to the Internet of Things, vehicles flowing continuously, and autonomous delivery trucks flexibly avoiding obstacles. Trials of driverless trucks on public roads have already been conducted in the US and EU.

5G.co.uk once published an article about the exciting ways 5G will change how businesses work. Remote work will become the new norm, as AR, VR, and seamless connectivity will make employees feel as if they are in the same room.

5G will bring innovation to rural areas, making it easier for people in countries like the UK to start businesses from home. Ofcom has found that only 63% of people in the UK are within mobile data coverage of the four major providers.

Smart automated transportation will mean easier commutes and shorter travel times. This will in turn improve employee productivity, as they can work more effectively during their commute.

Smart buildings are another improvement—offering more flexible, safer, and cheaper workspaces, thanks to small radio receivers that monitor occupancy, lighting, and temperature, and CCTV systems that can live-stream images to mobile devices.

An IEEE blog on future directions explores 5G's role in Industry 4.0, such as more automated robot work in factory environments, robot organization through AI, and data sharing with supply and delivery chains.

The retail industry will indirectly benefit from smart parking allocation systems, encouraging more consumers to enter urban areas. Los Angeles already has a system in trial, and 5G connectivity will facilitate the launch of this smart system.

What the upcoming 5G network in the US will look like remains to be seen. In fact, The New York Times even speculated that President Trump plans to nationalize the networks currently being built by private telecom companies.

According to Tech Times, the first three US cities to adopt 5G are Atlanta, Dallas, and Waco, Texas. AT&T plans to launch 5G in 12 cities by the end of 2018, with other cities following in 2019.

According to Lifewire, most countries will access 5G networks by 2020.

• Canada is set for 2020, with Vancouver earlier than that.

• Mexico is set for 2020 but may be as early as 2019, depending on technology availability.

• South America will launch 5G by the end of 2019.

• Japan's NTT DOCOMO has been experimenting since 2010 and plans to launch in 2020.

• It is estimated that China will launch commercially viable services in 2020, but some companies like AT&T have already felt pressure from the US government (which wants to cut ties with Chinese-made phones), which may affect the 5G launch date.

• Germany began testing installations this year and will start commercial operations in 2020.

• UK's EE network aims to launch commercial 5G in 2020.

• Australia recently announced that Telstra has switched to 5G technology in some areas of the Gold Coast, making Queensland the first state in the country ready for 5G networks. Optus—the country's second-largest telecom company—is committed to launching 5G in key urban areas in early 2019.

• New Zealand's Spark NZ aims to first launch 5G in urban areas in 2020.