Mobile 5G networks are expected to be the bridge towards Industry 4.0. But the reality is that coverage is spotty, and access is expensive. What should enterprise CTOs consider when enabling 5G?

With a long hype, 5G has become one of the most anticipated technological leaps in the enterprise space. Does it live up to expectations? What does it mean for large, complex data applications?

5G factor

In short, 5G offers enterprises significant data performance improvements over previous iterations of cellular technology. It is faster, with less latency in data transfer and greater throughput.

“The key is for the CTO to understand why they are upgrading”

This means two things: an instant online experience for mobile consumers and, more profoundly, the opening of the digital economy to cutting-edge enterprise-grade technologies. 5G will upgrade access for gamers and homeworkers, who will experience speeds comparable to wired connections, but large and complex data applications are most likely to have an impact.

"The performance characteristics of 5G connectivity enable emerging technologies: edge computing, artificial intelligence, data analytics, and more," said Richard Webb, director of network infrastructure at CCS Insight.

“In terms of opportunity, it depends on where the business is in digital transformation, but as businesses become more data-centric in their operations, 5G provides new options for where operational data and processes reside. Potentially create a path to operational efficiency, cost savings, improved customer experience or generate new revenue streams."

a great leap

5G could deliver data speeds 10 to 20 times faster than its predecessor, 4G, especially in cities and urban environments where it works best. With speed comes capacity - more information is transmitted over the same bandwidth - and that's where the real potential lies.

5G enables businesses to deploy more devices and sensors in more locations without having to invest in the kind of fixed-line connectivity required for high data consumption and always-on connectivity use cases that will power future smart cities, utilities, transportation, Hospitals and smart factories provide support.

Jaco Vermeulen, chief technology officer at BML Digital, said long-distance connectivity previously meant smaller data volumes and limited scheduled feeds, but 5G raises the bar for capacity and continuous upstream and downstream data feeds.

He added: “This enables IoT projects to explore a wider range of capabilities and use cases and provide richer inputs for big data collection. It opens up artificial intelligence and machine learning to process using denser data points, thereby enabling produces more accurate output."

New, more powerful cellular technology brings greater automation capabilities, lower costs, greater support for numerous devices with lower power consumption, longer battery life, and greater security.

At the enterprise level, it will facilitate emerging technologies such as robotic process automation, predictive analytics and flexible remote work models for on-site and home employees.

Doug Castor, senior director of 6G projects at Philadelphia-based InterDigital, said that more people working outside of centralized centers means more advanced enterprise applications are accessed through consumer-grade phones, so connectivity must be improved.

“With more complex applications now serving a plethora of new use cases, these advancements are pushing 4G connectivity to its limits and pushing data consumption to the extreme. As a result, 4G will have to pass the baton to 5G because of such quality of service requirements beyond what it can offer."

This opportunity is not just an overall acceleration, but the gateway to new advancements in areas such as health, manufacturing, tourism and retail, just a few of the economy's ripe for modernization.

Laura Roman, Chief Marketing Officer of EDJX USA, said: "As 5G provides bandwidth for continued adoption, urban IoT, hospitals, real estate, transportation and municipalities will leverage smart technologies designed to improve quality of life, community interaction and public safety."

Path to Adoption

5G will facilitate granular, real-time data collection in the factory of the future. It will help doctors triage patients before they arrive at the hospital. Shoppers can seamlessly access virtual locker rooms. The possibilities are wide-ranging and buyers can easily get ahead of themselves, but according to CCS Insight's Richard Webb, organisations with a well-defined business case before adopting 5G technology will see the best results .

"In general, I wouldn't recommend anyone 'rush' to upgrade, but I do think 5G is worth considering by enterprise CIOs, CTOs and network executives. It can be a powerful tool to support digital transformation and enable more flexible data and cloud or edge operations options."

“This will be most beneficial to businesses that have identified use cases that are constrained by existing network infrastructure. It could deploy 5G private mobile networks across corporate campuses to support localized applications and enable new use cases, improve data security, and Create a more unified technology platform across the enterprise."

He gave an example of a business wanting to upgrade its CCTV network. Its Wi-Fi network might process information from 25 cameras on campus, but a 5G private network could double that number. Other use cases include adding new actions, data capture for analytics, inventory sensors, and more. The point is that the CTO understands why they're upgrading.

5G for Enterprise Business

Another consideration affecting the transition is the existing 5G device ecosystem, with applications other than smartphones catching up, in part due to the impact of the Covid-19 pandemic and global semiconductor shortages.  

Businesses should also consider whether all aggregators, storage, processing power and automation systems can handle the enhanced data exchange, says Jaco Vermeulen of BML Digital.

Asaf Gigi, vice president of marketing at floLIVE, pointed to potentially high entry costs and incomplete coverage, at least early on, although both factors will fade over time.

In a sense, 5G promises to fill the missing link in the digital transformation process of enterprises, without which many future prospects will be eclipsed. If the experts get it right, the new cellular technology will deliver on business expectations at the enterprise level, but it won't happen overnight.