What telcos want: better performance, lower cost from 5G

IHS Markit study shows extreme mobile broadband is the highest-rated 5G use case
5G, Business, Telecommunications, Telco, Tech, Data, Use

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Telecoms operators say that the chief technical drivers for 5G adoptions are ultra-low latency, decreased cost-per-bit and increased network capacity.

According to a global survey of major operators by IHS Markit, 82% rated ultra-low latency (ULL) as the chief technical driver for 5G, followed by decreased cost per bit (76%) and increased network capacity (71%). Extreme mobile broadband is the highest rated use case.

The study canvassed 17 of the world's largest service providers, who account for 43% of the 6 billion mobile subscribers worldwide.

Eighty-two percent of operators polled for the study said they are already trialing 5G, while 12% of those surveyed expect to roll out the technology by end of year.

"Get ready, 5G is around the corner," said Stéphane Téral, executive research director, mobile infrastructure and carrier economics, IHS Markit. "5G is going live in North America by the end of 2018, and then in South Korea in 2019. Most operators in Europe, however, aren't planning to deploy 5G until 2021 or later."

"Every technical aspect that's related to substantial improvement in network performance -- lower latency, higher capacity, higher bandwidth, higher throughput --while decreasing the cost per bit continues to receive high ratings in our survey," Téral added. "This is logical because it's the foundation of the 5G definition."

Meanwhile, the most challenging network development item on the 5G agenda is radio, according to the ‘Evolution from 4G to 5G: Service Provider Survey'. Fifty-three percent of operator respondents said radio is the area of the network that will require the biggest development effort to make 5G happen, followed by transport (24%) and management (14%).

Extreme mobile broadband (eMBB) was the highest-rated 5G use case driver among survey respondents, followed by real-time gaming. As real-time gaming requires a super-fast network with low latency, it cannot occur in the absence of eMBB; the same applies to high-definition (HD) and ultra-high-definition (UHD) video services and tactile low-latency touch and steer. Even so, respondents expect fixed-wireless access (FWA) to be ready for commercial deployment first.

"The bottom line is early 5G will be an extension of what we know best: broadband, whether in FWA or eMBB form," Téral said. "Don't expect factory automation, tactile low-latency touch and steer, or autonomous driving to be ready on 5G anytime soon despite being touted as the chief 5G use cases."

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