5G Will Not Be ‘The Network of Networks’ for Enterprise Verticals

03 Oct 2019

5G is being positioned as a “network of networks” that will encompass public and private components, licensed and unlicensed spectrum, and even expand beyond cellular, to satellite communications. But in reality, 5G will only be one component of the enterprise vertical technology stack, states global tech market advisory firm, ABI Research, in its new whitepaper, The Five Myths of 5G.

“The telco industry has somewhat designed 5G as a technology that will complement, or even replace, several other competing communication technologies. This is, in fact, built into the standard: 5G includes eMBB, Ultra-Reliable Low-Latency Communication (URLLC), and Massive Machine Type Communication (mMTC) use cases. The first use case on this list, eMBB, builds on previous cellular generations, while URLLC can enable Time Sensitive Networks (TSNs), and can replace proprietary protocols and even Industrial Ethernet,” explains Stuart Carlaw, Chief Research Officer at ABI Research. mMTC is positioned to unify cellular IoT technologies into one system and introduce connectivity for millions of different types of IoT devices. In theory and according to its specification, 5G will enable connectivity that ranges from low power, low data rates, to ultra-high bandwidth and low latency, all under one system.

“From a pragmatic viewpoint, 5G will be another component in a patchwork of communication technologies and will certainly add unique value. However, it will not be the “network of networks” the telco industry is currently discussing,” says Carlaw. Enterprise verticals—just like the telco industry—have their own established supply chains and families of communication technologies. “Enterprise vertical end users prefer “function over form,” focusing on practical requirements, rather than insisting on standardized technologies. It is true that 5G can introduce a more cost-effective base (especially for chipsets and devices), but this will only materialize when enterprise verticals establish a critical mass for 5G and, in turn, economies of scale.”

This may not happen, especially in the first 5 years of 5G, when the telco supply chain adapts to the requirements of enterprise verticals. This may also mean that 5G will miss the enterprise digitization wave that is currently sweeping many markets, especially if the telco community does not act immediately. Telco operators and the infrastructure supply chain must build enterprise vertical expertise and partner with specialists when it is not necessary to organically grow this expertise internally.

“5G will only be one component of the enterprise vertical technology stack, and larger than connectivity only if the telco value chain builds expertise for each vertical separately,” Carlaw concludes.

These findings are from ABI Research’s The 5 Myths Of 5G report. This report is part of the company’s 5G Industry research service, which includes research, data, and ABI Insights.

To learn more about the misconceptions surrounding 5G’s value proposition and learn how MSPs, technology suppliers, and enterprises can actually unlock new business opportunities, download our free whitepaper, The 5 Myths Of 5G

About ABI Research

ABI Research provides strategic guidance to visionaries, delivering actionable intelligence on the transformative technologies that are dramatically reshaping industries, economies, and workforces across the world. ABI Research’s global team of analysts publish groundbreaking studies often years ahead of other technology advisory firms, empowering our clients to stay ahead of their markets and their competitors. 

For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.

About ABI Research

ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.

ABI Research 是一家全球性的技术情报公司,拥有得天独厚的优势,充当终端市场公司和技术解决方案提供商之间的桥梁,通过提供独家研究和专业性指导,推动成功的技术实施和提供经证明可吸引和留住客户的战略,无缝连接这两大主体。

For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.

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