While 5G has hit adoption milestones faster than any previous generation of wireless, consumer use cases arguably weren't the point of the move to the next generation of mobile tech - the big selling point of 5G was always intended to be its support for businesses and new verticals.
5G promised support for the IoT revolution, with enterprise use cases from smart factories featuring automated guided vehicles (AGVs) and robotics; seamless connectivity that could provide the foundation for new industries such as remote surgery or autonomous cars; integrated XR experiences to enhance meetings, training workshops, and analytics, and much more.
However, the rollout of advanced features enabled by 5G in support of the enterprise verticals has so far been slow to materialise, which has created some uncertainty around how 5G can properly support enterprises. Additionally, the low return on investment from 5G has made it a less than desirable investment opportunity. To unlock the promised benefits of ultra-reliable low latency communications (URLLC), massive machine-type communications (mMTC) and enhanced mobile broadband (eMBB), developers must address the limitations of current 5G infrastructure and actively involve businesses in the development of next-generation solutions.
What’s holding UK businesses back?
The initial rollout has not gone far enough to meet enterprise needs. The implementation of 5G in the UK has primarily relied on building its network on the back of existing 4G LTE infrastructure, which has limited the potential advancements and capabilities that true 5G technology can offer. This non-standalone (NSA) approach has resulted in incremental improvements rather than the revolutionary changes promised by 5G. This has meant that many enterprises have been left underwhelmed by what early 5G has delivered, particularly given their expectations that it would unleash innovation and fuel productivity. As a result, they’ve been left less inclined to invest in future 5G opportunities.
There is a gap between the technological capabilities of 5G and the practical needs of enterprises. This lack of understanding leads to hesitation and slower adoption rates. Moreover, the current ecosystem has not adequately involved enterprises in the early stages of 5G development, resulting in solutions that do not fully address the unique requirements of different industry sectors.
In addition, implementing 5G technologies can be costly, and without a clear return on investment (ROI), enterprises are reluctant to make significant financial commitments. Against the backdrop of several years of economic uncertainty in the UK, businesses are also less likely to put money behind something they don’t yet fully understand - or haven't been able to get a handle on given 5G's inherent complexities. To overcome these barriers, there needs to be a more collaborative approach between technology developers and businesses, ensuring that 5G solutions are designed with direct input from businesses and end-users.
How can enterprises be more involved?
The next phase of 5G, known as 5G-Advanced, gives businesses a chance to approach the technology with a clean slate. 5G-Advanced introduces features specifically designed for enterprise applications, such as reduced capability, which will lower costs and the power required for IoT deployments, as well as ambient IoT which will enable IoT devices to integrate seamlessly into the environment, helping to deliver operational efficiency through real-time data monitoring and analysis.
However, technological improvements are not enough. For 5G to truly benefit UK businesses, there needs to be a concerted effort to involve enterprises in the development process from the outset. This means moving beyond the traditional top-down approach and fostering a collaborative environment where businesses can provide input on their specific needs and challenges before deployment.
This collaborative approach ensures that the capabilities of these technologies align with the practical requirements of different sectors. For example, understanding how factory floors operate, what security protocols are used for data sharing, performance and latency requirements in healthcare, scalability and understanding its potential for growing the enterprise. This way developers have a keen understanding of how to fit the need rather than find problems after the solution is built.
The perfect time for investment
One Vodafone study reported that the UK is at risk of being outpaced by European rivals that are investing in superfast 5G solutions. Although government has tried to incentivise 5G adoption through grants, the report states that the UK is still on track to miss out on £8.6 billion a year in productivity savings due to the slow roll-out of standalone 5G. Despite there being an opportunity to grow their capabilities, it’s clear that enterprises are still hesitant to make any big moves.
Uncertainty is the greatest hurdle, if enterprises don’t see the technology in play, they’re not going to explore its potential. To address this, a report from UKTIN outlined some recommendations which included:
• Government needs to be the catalyst for high quality network deployment to drive awareness and impact economic development.
• Widespread wireless service coverage to prevent the manifestation of a “digital divide”.
• Have a focused testbed for research for 6G technologies and a qualified expenses to R&D tax credits.
5G-Advanced is arriving at the right time – the UK is on a path to economic recovery, so businesses are more of a captive audience when presented with new opportunities that promise to unlock significant economic value and help them to realise their digital transformation ambitions. All UK telecoms public and private stakeholders have an opportunity to rethink their approach towards 5G-Advanced and focus on supporting the practical and commercial needs of enterprises first, so the rate of adoption increases.