GSMA Intelligence forecasts that the number of 5G connections globally will reach 1.3 billion by 2025, covering 40 percent of the world’s population or approximately 2.7 billion people. At that time, the Americas region is expected to account for over 260 million 5G connections or 20 percent of the global market.
The question everyone is asking in telco last couple of years is – do we really need 5G? Do we really need that throughput for our voice, video and messaging services? Can we significantly improve real-time communication services so that customers would be willing to pay for it? RCS aka Advanced Messaging is a great example of how difficult it can be to find the right business model for new technologies. EVS supported in 4G is more than what we need for voice calling. Although video calling is possible in 4G, not that many customers are using this option on their mobile devices. More popular than video is desktop-sharing, collaboration and communication in context. Well, lower latency and better throughput can be useful – but is it a reason strong enough to invest into the new 5G infrastructure, when collaboration applies mainly to fixed networks?
Still there are real-time communication applications which require low latency and huge amount of data so that 4G is not enough. Virtual Reality (VR) applications like 360-degree video will necessitate higher resolutions of 8K and above, and stereoscopic video (which separates left and right eye views in VR) also requires additional bandwidth. When most people hear about 3D video, holograms, Augmented Reality (AR) and Virtual Reality (VR), they mostly think about gaming. And yes, gaming can be a good example and people like to spend money for entertainment. But there are other examples, where AR and VR can make a difference.