5G is bound to have an impact on business. Many readers of this site may recall that we encouraged the industry to prepare for the end of 2G networks. In fact, I have noticed that the arrival of 4G brings new connectivity possibilities, and the introduction of any disruptive technology is bound to replace previous technologies. The widespread demand for 4G led to the end of 2G and 3G networks.

4G mobile communication technology was first launched in late 2009. Over the next decade, 4G helps people around the world manage work and home. So next is 5G, which will account for two-thirds of all mobile connections by 2025.

Meanwhile, mobile technology and services will generate 4.2% of North America's GDP in 2021 and support more than 2.2 million jobs directly and indirectly. All of this data comes from a new GSMA report titled The North American Mobile Economy 2022.

The report comes on the heels of the 2021 America's Infrastructure Act, which allocated about $65 billion in federal funding to expand broadband access and 5G connectivity nationwide. Likewise, in Canada, the government established the Global Broadband Fund, with an allocation of C$2.75 billion, equivalent to US$2.1 billion. The goal here is to bring high-speed projects to underserved areas and improve connectivity in a post-pandemic era. Nonetheless, the reality is that mobile revenue is under pressure from macroeconomic challenges such as inflation.

For businesses, my prediction is that we will see a surge in 5G over the next decade and that the pace of change in industries such as manufacturing will continue to accelerate, as it has been in the past decade. Let's take a look at what this means across the industry.

Impact on business

The GSMA report shows that while the consumer market has been the focus of early 5G deployments, the enterprise market represents the largest incremental opportunity in the 5G era. As a result, operators are building new capabilities and partnerships in a range of areas. Private networks are getting a lot of attention.

For example, AT&T is working with Microsoft on a dedicated 5G solution that integrates AT&T's 5G network with Azure's dedicated edge capabilities. While this is still in the proof-of-concept stage, it will focus on delivering integrated products to help businesses get private networks up and running faster. In another example, Verizon announced On Site 5G, and GooGle also launched its private 5G network solution last June.

In addition to tech companies, utilities such as Southern California Edison, Sempra Energy and Alabama Power have also received priority access licenses in CBRS auctions to build private networks for smart grid applications.

As this all begins to roll out, 5G can open up new opportunities for businesses. We may even see the rise of metaverse ecosystems. While the early stages are mostly gaming, other verticals can also benefit from the metaverse, taking retail as an example, we can see virtual stores, NFTs, personalization and immersive marketing, product demos, and more.

To achieve these goals, we need networks (5G), media (apps, AR/VR/XR) and virtual elements (economic elements, avatars and graphics). Big tech companies are taking the necessary steps to kickstart the metaverse. As 5G becomes more ubiquitous, so will the metaverse.

Rise of the Edge

At the same time, edge computing will emerge in the world of 5G enterprises. The GSMA report states that the full potential of edge computing will only be realized if 5G SA (private) networks are deployed more widely. These networks will be able to meet the ultra-low latency requirements of many industrial customers. These SA networks remain a minority globally, but are gaining momentum.

SA's greatest strengths in North America include massive machine-type communications support; ultra-reliable, low-latency communications support; network cost optimization; simplified network architecture; and network slicing capabilities.

Sustainability of Telecom Companies

One of my biggest takeaways from this report is that there are several pages highlighting the importance of sustainability to telcos. Many U.S. mobile carriers — including AT&T, Verizon, and T-Mobile — are committed to ambitious net-zero emissions goals and have taken steps to reduce carbon emissions from their operations and across their supply chains.

Taking the 2021 announcement as an example, AT&T's emissions reduction goal is to provide connectivity solutions that enable enterprise customers to save a billion tons of greenhouse gas emissions cumulatively. To that end, it works with tech companies, customers, universities and nonprofits to identify best practices, develop new products, use cases, and scale innovation from start-up partners.

The message here is that partners are key for mobile operators to improve energy efficiency and reduce operator emissions, while enabling the transition to a net-zero world.

All in all, we're seeing the rise of 5G -- and it's going to have a lasting impact on businesses.