If you would like information about this content we will be happy to work with you. We strive to provide individuals with disabilities equal access to our website. To get there, mobile operators must invest in all network domains, including spectrum, radio access network (RAN) infrastructure, transmission, and core networks (Exhibit 1). These use cases will require network performance to increase 10-fold over current levels across all network parameters, as measured by latency, throughput, reliability, and scale. To understand how these will change infrastructure requirements, we grouped them into three categories: enhanced mobile broadband, IoT, and mission-critical applications. While many things on the road to 5G are uncertain, it is easy to envision the emergence of new and innovative use cases. When will operators invest in 5G infrastructure? Another article, “ Network sharing and 5G: A turning point for lone riders,” will focus on network sharing, one investment approach that could reduce cost and risk. In this article we will focus on the infrastructure investments required to enable 5G. This conundrum raises important questions about investment strategy and future profits for mobile players.
In an analysis of one European country, we predicted that network-related capital expenditures would have to increase 60 percent from 2020 through 2025, roughly doubling total cost of ownership (TCO) during that period.
#Explain 5g technology upgrade#
Meanwhile, operators will still have to upgrade their 4G networks to cope with growing demand. At the same time, they are keenly aware that they’ll have to increase their infrastructure investments in this technology. They know that it will open opportunities to capture value from new 5G use cases and widespread adoption of the Internet of Things (IoT). Mobile operators are preparing with a mixture of resignation and anticipation. Now 5G technology is under testing and poised to launch in some markets later this year.
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