A no-nonsense guide to 5G

08 March 2019, 03:30 PM

By Optus Business

What does business and industry need to know about 5G in 2019?

This is a frequently asked question by IT decision makers in response to the great deal of (well-deserved) attention 5G receives. 

There’s no doubt 5G will accelerate innovations like self-driving cars, augmented reality and remote surgery. But with 5G devices only now commencing, several questions remain – from when will the roll-out be complete, to how does 5G compare to 4G and NBN?

When it comes to 5G in 2019, the most impactful thing business leaders can do is have a clear, accurate understanding of the present realities of 5G. Taking this important first step empowers them to deliver informed decisions and strategies for the future. 

With that in mind, read on for a no-nonsense guide to 5G in 2019 from Optus Business.

The current state of play

According to Ovum’s 2018 ‘5G in Australia: Evolution Not Revolution’ report, much of the current hype around 5G is based on premature assumptions that are largely dependent on three changeable forces:

  1. The extent to which mobile-only broadband becomes popular with Australian consumers. 
  2. How much fixed broadband improves in comparison.
  3. How usage and demand evolve.

A full national 5G deployment is unlikely to occur until the mid-2020s. This is because 5G standards are still evolving, and some of the more advanced features will become available in the future. In addition, enterprises are set to be one of the key drivers of future demand for 5G, and as business use cases are still being formed, the speed and scope of the rollout is changeable. 

However, that’s not to say that nothing is currently happening – a lot of exciting progress is being made. Optus has been preparing for 5G for several years, trialling and deploying the building blocks such as 4.5G, as well as recently making its first 5G data call in Australia on 60 MHz using 3.5 GHz spectrum. A number of Optus 5G sites are now live in Canberra and Sydney, with a total of 50 sites planned to be online by the end of March 2019. In January, Optus also announced plans for 1,200 live 5G sites by March 2020. 

By the mid-2020s, it’s expected new Internet-of-Things (IoT) applications that leverage the full capabilities of 5G networks and the appropriate business models will have been developed. Initially, 5G services are likely to be limited to high-traffic locations to help manage 4G congestion. 

5G vs 4G

So, how is 5G different to 4G?

A brief history of the G's

It’s important to remember that as an emerging technology, 5G will initially enhance rather than replace 4G services completely. It achieves this in two key ways:

5G will be able to carry more data than 4G. For example, 5G's initial phase, enhanced Mobile Broadband (eMBB), will require less buffering for the broadcasting of live-streamed video on a 5G smartphone. 

Anticipated 5G latency of less than 5 milliseconds. This improved, super low latency will allow HD images and videos to reach end users and the public faster with 10Gbps+, meaning innovations like multi-view sports, broadcasting from multiple competitor’s perspectives, will become a reality.

5G and the National Broadband Network (NBN)

Amidst all the speculation around 5G, another common question is what does 5G mean for the NBN?

Fixed broadband is expected to remain a strong option for years to come while 5G services continue to mature. In addition, the massively increased speed, capacity, and latency of 5G will be achieved through providers’ fixed fibre backhaul.

Rather than replacing fixed broadband, 5G will encourage further investments in faster and higher-capacity networks, providing greater choice for customers and businesses alike.

The potential use cases of 5G

The potential of 5G is vast for consumers and enterprise. Faster, more reliable mobile telecommunications will provide a range of benefits to enterprise – such as enhancing agile working and customer engagement, and facilitating emerging technologies for greater efficiency.

Here are some of the potential use cases for 5G in development:

5G helps society evolve Connecting people, places and ‘things’
  • Improved mobile broadband connectivity: eMBB enables enhanced, more efficient versions of existing mobile data connections, including fixed wireless access that will compete with traditional fixed broadband. This will support enhanced 3D and UHD video, rich media and entertainment streaming.

    Augmented reality (AR) and virtual reality (VR) technologies will also run far more effectively. This will facilitate real-time remote collaboration, training, and product demonstrations, creating more agile, decentralised work processes and richer customer experiences.
  • Ultra-reliable, low latency, wireless communications: With enhanced device-to-device communications, 5G will drive innovation in IoT and automation technology. The impact will be felt most in industries where reliability and high performance are critical, such as industrial processes, self-driving cars, and telemedicine practices.
  • Smart grids, smart cities and health: Massive machine-type communications (MTC) will be perfect for wide-area mass-market applications such as smart grids and smart city technology. Use cases include public transport planning and scheduling, smart streetlights and rubbish bins, sensor-based measurements of air quality, water usage, parking and traffic flow.

    In a world first, a number of 5G use cases and 8K video streaming were demonstrated at Optus 5G Live during the 2018 Commonwealth Games. The showcase included VR Driving, robotic challenges, and demonstrated speeds of 16Gbps  – highlighting the key differences between 5G and other wireless technologies, specifically, high bandwidth and low latency. 

The 5G cheat-sheet

Here are some key points to remember when making 5G-related decisions:

  • 5G will make mobile broadband more attractive to consumers.
    5G will deliver data more effectively than 4G. However, 5G networks will not be widely available outside areas of high-demand until the mid-2020s.
  • Fixed broadband will remain relevant
    Demand for data and networked video will continue to grow, positioning the lower per-GB pricing of fixed data as a more attractive option, relative to industry standard mobile data plans for some time.
  • 5G adoption will depend on levels of demand
    While some of the population is happy to consider a mobile-only option, many Australians are still reluctant. Demand will need to grow for greater investments and rollout to continue.

Planning for the future

5G is still an emerging technology that requires a significant program of work, over a number of years, to fully realise its potential. But while there’s still much to be done, the possibilities are undeniably exciting.

As well as enhancing mobile experiences for consumers, 5G’s wide range of commercial applications will bring significant economic benefits to Australia. The most important aspect for enterprises to consider today is how an exponentially faster, low latency mobile network could support their business into the future to achieve their outcomes.

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Optus Business
Optus Business is the enterprise division of Australia’s second largest telco. Our expertise spans across smart networks, mobility, digital transformation, ICT solutions, cloud and cyber security.

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