Image

Telcos are barely completed rolling out 5G networks — they usually’re already speaking about ‘5.5G’

You in all probability keep in mind cell operators raving in regards to the promise of 5G a number of years in the past. Now, they’re getting excited a couple of new improve: 5G Superior.

Angel Garcia | Bloomberg | Getty Pictures

BARCELONA, Spain — Telecom operators have not but completed rolling out 5G wi-fi cell networks. And but bosses of main carriers are already speaking about constructing one thing known as “5.5G,” or “5G Advanced.”

There was quite a lot of chatter about 5.5G on the Cellular World Congress tech commerce present in Barcelona, Spain.

MWC introduced collectively hundreds of individuals within the cell business, together with from main telecom corporations like Deutsche Telekom, Orange, Telefonica, BT, and Vodafone.

On the present, executives from a few of these corporations that they had been working towards rolling out a brand new technology of cell web.

That will allow much more superior functions than the data-intensive apps we have all come to make use of at present, reminiscent of Facebook, Instagram, YouTube, Netflix, and TikTok.

These apps are already nicely served by the present cell web, however sooner or later 5.5G is anticipated to energy extra superior functions.

Deutsche Telekom CEO: Europe has lost its momentum in the digital world

That features blended actuality headsets, that are getting increasingly more highly effective with tech giants like Apple launching its Apple Imaginative and prescient Professional and Meta upgrading with its Meta Quest Professional headset final 12 months.

However it additionally means a few of the issues that 5G promised us years in the past, reminiscent of self-driving vehicles, unpiloted air taxis, and good manufacturing enabled by way of the so-called web of issues (IoT), will begin to change into a actuality, too.

What’s 5G?

5G is the subsequent technology of cell web after 4G, which guarantees superfast information speeds and higher protection.

You in all probability keep in mind cell community operators raving in regards to the promise of 5G a number of years in the past. Carriers in China, South Korea, america, and Europe, correctly obtained underway with launches of 5G networks in 2019.

Now, almost 5 years on, penetration of 5G amongst shoppers stays low.

The variety of shoppers with a 5G connection is rising. However it’s nonetheless nicely beneath “mainstream” ranges.

5G has been the quickest cell technology rollout thus far, surpassing 1 billion connections by the tip of 2022, rising to 1.6 billion connections on the finish of 2023 and 5.5 billion by 2030.

5G connections are anticipated to symbolize greater than half (51%) of cell connections by 2029, although, and that’s forecast to then rise 56% by 2030. These numbers are updated as of January 2024, GSMAi stated.

Watch CNBC's full interview with Orange CEO Christel Heydemann

5G has been positioned by the telecoms business not simply as a client product for quicker obtain speeds, however as a community that would underpin new applied sciences like driverless vehicles or unpiloted air taxis.

That’s because it has lower latency than 4G. Which means the time it takes for gadgets to speak to one another is considerably lowered, a function essential in situations the place information must be delivered rapidly.

Nonetheless, after a whole bunch of billions of {dollars} of funding into 5G networks, carriers have struggled to see the return. Analysts say that the true potential to monetize 5G is likely to be on the horizon.

What’s ‘5.5G,’ and why are telcos speaking about it?

5G Superior, or the identify for the subsequent stage of 5G, is the subsequent evolution of cell networks.

Telecommunications networks require requirements. These are globally accepted technical guidelines that outline how a expertise works and its interoperability all over the world — interoperability is the power for 2 or extra programs to work collectively.

These requirements take a number of years to give you and finalize and contain a number of gamers from corporations to teachers and business our bodies.

The standards-setting physique 3GPP, which contributed to 5G, makes use of a system of parallel “releases” to offer builders with a platform to implement new options at a given level after which permit extra performance to come back in additional releases.

Within the 3GPP releases system, 5G is taken into account launch 17. Which means 5.5G is dubbed “release 18” by the business.

Launch 19 is what’s going to successfully be 6G, one other main community improve. Work can also be underway on 6G requirements, however it’s nonetheless within the early levels.

Microsoft president says AI could be the defining technology of our generation

“Main priorities for developing 5G Advanced standards are to increase commercial relevance of 5G by expanding vertical markets, resolve deployment issues, and continue technology evolution to build a bridge towards 6G,” Milind Kulkarni, vp and head of InterDigital’s wi-fi labs, informed CNBC.

“Research in standards have introduced, improved, and finalized several new enterprise-specific features for 5G Advanced, including network slicing, the integration of private and public networks, enhanced positioning, and even applications specific to each enterprise vertical.”

Howard Watson, the chief expertise officer of British telco large BT, stated that 5.5G will promise quicker uplink speeds, that means you can stream video, submit issues on-line, and play multiplayer video games, a lot quicker than earlier than.

“My children’s generation, or even dare I say it, my grandchild’s generation … that generation, they share a lot. And clearly, sharing requires quite a lot of upstream,” Watson informed CNBC on the sidelines of MWC. “There will probably be a doubling of upstream capacities coming in release 18.”

Additional advantages to 5G Superior over present 5G, telco execs say, is that it’s going to make the networks themselves extra “intelligent” by way of the appliance of AI and machine studying, whereas additionally boosting efficiency and decreasing general energy consumption.

CEO of BT Consumer explains partnership with EE

Mats Granryd, director common of the GSMA, informed CNBC he hopes the business can proceed specializing in staying in a 5G setting for years to come back, as there’s nonetheless loads of work to be completed on monetization.

“I hope that we can stay in 5G territory for long, because normally in the 4G environment, you and I were the consumers. And it’s quite quick for us to just say, change a SIM card,” Granryd informed CNBC’s Karen Tso. “In 5G, 5G is a technology standard that is predominantly towards business to business. And it takes a longer time for businesses to convert and use new technology.”

“This normal of 10 years between standards, I wonder if that’s going to be enough,” Granryd added. “We hope that we can stay in a 5G environment. 5G advanced — 5G standalone, that’s absolutely fine. But push out the time and make sure that we have enough mileage to capitalize and monetize and show the world that 5G is a fantastic technology.”

With 5G Superior, telecoms corporations might begin to make more cash from their 5G rollouts by charging greater costs. And, with a key focus of 5G being enterprise functions, that may very well be a way more vital cash maker for community operators than shoppers.

Telcos have not but revealed how rather more a 5G Superior information plan will price in contrast with 5G. However analysts count on they’re going to look to generate profits from 5G Superior by getting intelligent about subscriptions and utilizing AI and different applied sciences to function their networks extra effectively.

With a key focus of 5G being enterprise functions, that may very well be a way more vital cash maker for community operators than shoppers.

The telco business has been awash with speak about so-called “private 5G” networks, nonpublic cell networks which are put in on-premise at corporations’ work websites for instance, in a wise manufacturing unit, or distant surgical procedure operation.

When will 5G Superior be right here?

Chinese language telecommunications gear provider Huawei expects 2024 to be the 12 months that industrial deployments of 5G Superior formally start. For Huawei, 5.5G is a community that can be able to 10 Gbps downlink speeds — and in case you are questioning, sure, that could be very quick.

Europe is falling behind on digital infrastructure, says Nokia CEO

Huawei revealed eight 5.5G “innovation practices” final week which it says will assist operators construct 5.5G networks throughout all frequency bands. The corporate is working with carriers within the Center East, Europe, Asia Pacific, and Latin America to deploy 5.5G.

It’ll take some convincing for shoppers to go from 5G to 5G Superior, given the little noticeable enchancment they’ve seen from their telephones upgrading to 5G up to now 5 years. However Philip Track, Huawei’s chief advertising and marketing officer of the service enterprise group, stated that it is essential telcos convey the use circumstances of 5G Superior to shoppers nicely.

“The most important thing for us is how can we support the customers,” he stated at a press briefing final Tuesday, in response to a CNBC query. The “biggest success” for five.5G will solely arrive if carriers “acknowledge solutions” and convey that throughout to clients sufficiently.

In some markets, operators are nonetheless engaged on deploying 4G, Track stated — however he would not suppose that issues as a result of completely different elements of the world “are at different stages.”

Watson informed CNBC that he thinks 5G Superior will arrive on the EE community later this 12 months. That is as a result of the 3GPP customary launch 18, or 5.5G, is already open for experimentation and telcos have been engaged on trials. It’s anticipated to conclude by June 2024, by which era the protocols that allow 5.5G must be secure.

“Release 18 we will start to roll out this year,” Watson informed CNBC. “We also plan to launch 5G standalone this year as well.”

Europe's investment landscape is in a 'dire situation,' says GSMA director general

5G standalone is completely different from 5G Superior. Typically known as “true” 5G, it refers back to the growth of a 5G community that makes use of expertise unbiased of 4G and comes with the promise of realizing 5G’s full potential.

5G Superior, alternatively, is an entire evolution of the community.

There is no definitive date for when 5G Superior will begin to be rolled out, although. And telcos are on the clock to get it up and operating.

“I hope that we will be at the bandwidth, the latency, the capability needs to be sufficient,” Mats Granryd, director common of the GSMA, informed CNBC’s Karen Tso at MWC final week.

“That’s what we’re struggling with to see in Europe. In five years, we’re going to have a quadrupling of data usage. And I am really concerned about what’s going to happen at that stage.”

“Will we have cut-offs? Will we have congestions?” he added. “Will we have a much much worse situation, a much worse landscape? By having that worse landscape, the competitiveness of Europe will go down.”

— CNBC’s Arjun Kharpal contributed to this report

SHARE THIS POST