Five things you need to know about 5G infrastructure
As digital natives, millennials are not only creating a Supertrend, but they’re also able to explain leaps in technology to us, such as 5G's potential for the telecommunications sector. Five facts you need to know about the mobile internet of the future.
1. Mobile internet access: Wirelessly connected
5G will surpass the line speed of your fixed network – and all without a jumble of cables. It will be possible to do video streaming, audio streaming, online gaming, and a lot more – simultaneously. All without a single internet cable. It's no exaggeration!
2. Fast, very fast – and in real time
4G transfers about 100 megabytes (MB) per second. That's about five times the speed of 3G (20 MB per second). But 5G will offer 10,000 MB per second. That's roughly 500 times faster than was possible with 3G and it transfers ten times faster per second than your fixed network. That's a rush of speed you can look forward to! Because new possibilities create new offers and new investment opportunities.
For example: Only when cars are able to communicate in real time will autonomous mobility be possible. Autonomous vehicles will become traveling data servers. Statista predicts that by 2021, nearly 200 million cars will be fully autonomous road users thanks to 5G. The result? Data transfer will explode. Cables will disappear. Mobile communications will replace fixed networks. 5G changes our mobility, our cities, our company, and our lives.
MB per second will be provided by 5G: 500 times faster than 3G
3. Mobile communications companies – the future kings of mobile data
We know that nearly everything we enter on our computer or smartphone is stored, categorized, and sold by Google, Facebook, and other data aggregators. Big data is the most precious commodity of the 21st century.
But did you know that as soon as the transition from the fixed to the mobile network takes place, mobile communications companies will have access to more data than Google, Facebook, Amazon, and Apple combined? A 5G mobile communications provider potentially has access to 100% (!) of all its clients' internet interactions. Compared to that, today's discussion about data handling at Facebook, Google & co. will seem like a proverbial storm in a teacup.
4. Our country first!
5G has triggered an international race among nations. No country wants to lag behind. Governments around the world are discussing whether they want to surrender this vital infrastructure to the global market or choose national champions for this purpose. High infrastructure costs, revenues expected to be just as high, and economic, social, and security considerations come into play here.
It would not be surprising if, considering this conflict of interest situation, we see a renaissance of national infrastructure policy. Suitable consultation processes are already the norm in Europe, China, and the US. Even an emerging market such as South Africa is considering a governmental, go-it-alone 5G approach.
5. Available for you soon
By 2020, 5G is expected to be available in urban centers of many countries. In the EU, Asia, and the US, authorities and leading mobile communications companies have announced corresponding plans. Companies like Samsung, Qualcomm, TSMC, Nokia, and Ericsson have already begun working under pressure on globally scalable components for hardware, software, system architecture, and online applications alongside mobile communications providers.
Whether you're an investor, data user, or data protectionist, it's time for a comprehensive 5G strategy. Given the hidden treasures, low valuations, and high dividends of the telecommunications sector, we adhere to our overweight. Yes, maybe it’s worth looking over the shoulders of millennials and digital natives...