What Businesses Will Do With 5G Technology in 2022: Cross-Industry View
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4.2. High costs
5G deployment is gaining momentum. AT&T and Verizon will launch the C-BAND spectrum, cover new regions and make the technology available for everybody. This year is promising to be much more fruitful than 2021.
Following predictions, 5G will deliver $8 trillion in value by 2030. So, does it mean businesses will also take active actions to catch 5G opportunities in 2022? It will surprise you, but enterprises’ involvement is weaker in this field.
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Recently Nokia shared its 5G readiness report revealing all secrets of 5G implementation. Here we’ll try to analyze it and discover companies’ 5G plans, core obstacles in this way, and reasons businesses should implement the technology faster.
5G for Enterprises in 2022: Overview
Nokia showed that the 5G implementation speed is not the same for enterprises worldwide. It belongs to awareness, governmental regulations, territories, and industries.
Trying to find 5G mature organizations, the company discovered that only 13% of companies in Saudi Arabia and 12% in the United States are 5G mature. The UK can boast 4% of mature enterprises, Germany - 3% and Finland - 2%. They are not third-world countries. Telco enterprises choose these regions for the first-rate 5G deployment. Why don’t companies use it to grow business?
They are not ready.
Following the Nokia readiness scale, 2% of companies don’t want to benefit from 5G at all. They didn’t include the technology in strategies. 15% of enterprises still conduct discovery, trying to predict whether investment in 5G is worth it. Most businesses, 50%, build grand plans on how to implement the technology and lay the foundation for development.
26% of respondents are already in the implementation stage. And only 7% of companies have implemented 5G, measured its impact, and discovered the technology exceeds their expectations.
Considering the 5G deployment by telcos enterprises gathering speed, business actions are too slow to chase it.
Sure, 5G now is much more available than a few years ago. Meanwhile, it’s not enough to take decisive action for its implementation. Now, only a few countries have wide opportunities in this field. Following Nokia, 19% of companies admitted the lack of coverage stops them and makes them wait for a full-fledged deployment.
Governmental support will help to fix the situation. Now, authorities promote 5G development, understanding its benefits for economic growth. Since telecom sharks will continue to expand the technology worldwide, it will eliminate this stumbling block soon.
Limited availability is equal to the high cost of usage. Often, companies can’t afford it because of a lack of resources. 5G infrastructure complexity makes businesses doubt they will deal with its implementation, running, and maintenance. Nokia reports that 26% of enterprises believe high costs are the core obstacle. That’s why 50% of companies are still planning: they accumulate resources to get ready.
A majority of companies still don’t understand what 5G is and what it’s capable of. It makes businesses stop and discover more about it. It’s a reasonable solution, considering the price of implementation & maintenance. The report shows that 17% of respondents said management doesn’t understand the 5G concept and can’t map it on business reality, respectively. A deep discovery in this field will help management see the big picture and match 5G with their conditions.
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5G is still about the future for some companies. That’s why they don’t make its usage a priority. The lack of knowledge leads to postponing. 22% of respondents admitted 5G implementation is not the first-rate action they will perform to boost businesses.
Companies are afraid of security risks related to 5G implementation. They believe postponing will help them protect sensitive data. This fear is more intense for non-5G mature industries, like healthcare (40%) and mining (43%).
Fear-ridden businesses watch the progress, still believing that 5G is about the future, not reality.
This position can lead to a crisis no less massive than the pandemic one. It could leave companies overboard by creating favourable conditions for monopolization. Businesses should act now to avoid such an outcome.
Sure, 5G implementation is complex and expensive, but you can start moving forward step-by-step using the XME.fast code platform. This solution will help you build adaptable, custom products without the vendor lock.
Drop us a line to discover how to begin the 5G transformation this way.