The Tangible Benefits of 5G
By Huawei
Conversations about 5G networks can range broadly in topic, but they are usually very similar in tone – there is an obvious excitement around 5G’s potential to transform the ways people experience everyday life. The impact of 5G will be felt across industries and communities, powering new technologies through greater levels of connectivity than are possible today.
When considering the differences between 4G and 5G networks, the first thing many people think of is network speeds. 5G networks will allow data transfers to happen in real time, even large transfers that would slow today’s 4G networks speeds to a crawl. While the increased capacities and speeds of 5G networks will be hugely impactful, the biggest differences will actually be realized in the decreases that 5G enables, namely in network costs and energy consumption.
For any market or industry experiencing data growth, 5G network services will be cheaper than 4G. This is a direct effect of reduced costs for network operators, who will be able to invest the same amount they would in a 4G network but provide services to more people.
The ability to put more users on the same network allows operators to price services competitively, generating savings for the consumer. According to a recent report from Oxford Economics, consumers will also realize a financial benefit through stimulated economic activity, which could be worth up to “$719bn in GDP and support around 10 million jobs in the US by 2035.”
Network operators will also see greater savings when it comes to network operating costs. 5G networks require less electricity to perform as well as or better than 4G networks, making them not only more cost-efficient, but more sustainable. Sustainability is a main concern when it comes to future technology. Therefore it only makes sense to start by ensuring that the networks used to power that technology are operating sustainably themselves.
According to Swedish researcher Anders Andrae, the Information and Communication Industry (ICT) will be responsible for 3.5 percent of annual global carbon emissions in 2020, equal to the emissions generated by the aviation or shipping industries. If the goal is to work toward a more sustainable future, the ICT industry will have a huge impact on achieving a successful outcome.
There are several means through which network operators can save energy with 5G networks. The first is the fact that 5G is so much more powerful than 4G. On a 4G network, a single kilowatt hour (kWh) of electricity is enough for a user to download approximately 300 movies in high definition. Compare this to a 5G network, where one kWh would enable a user to download up to 5,000 movies in ultra-high definition. Simply put, a significant amount of energy savings will be attained, because it will take less electricity for consumers to use 5G networks in the same ways they currently use 4G networks.
Another major contributor to ICT carbon emissions is the amount of energy necessary to cool data transmission equipment, which currently accounts for about half of the total electricity consumed by data stations. New 5G base stations currently being deployed in China use nearly 20 percent less electricity than current 4G stations, saving each station an estimated 4,130 kWh of power per year. This translates to approximately 1,125 kg of carbon emissions being removed from the atmosphere annually.
The positive impacts stemming from the efficiency of 5G networks when it comes to both energy and cost are obvious for the ICT industry, but these impacts will also lead to direct benefits in nearly every industry and, in turn, for almost every consumer. The ability to collect and analyze huge amounts of data in real time will increase connectivity across industries, allowing healthcare providers to better serve patients, retailers to provide customers with more personalized experiences and even improved agricultural outcomes.
Communities around the world will experience a similar increase in connectivity. Currently, many remote and rural communities do not have access to broadband services, and in most cases this is because these communities do not have the budget to update their network infrastructure. Because 5G is so much more efficient than 4G and costs to deliver these services will decrease, there will be more opportunity to connect these communities and bridge the current digital divide.
Increased access is not the only factor bringing more users online. According to the GSM Association (GSMA), 43 percent of the world’s population have access to broadband but don’t use it, mainly because of a lack of need and lack of interest. The services enabled by 5G networks will encourage users to get online and take advantage of them, further increasing global digital inclusion.
It is clear that those who are excited by conversations about the potential of 5G networks are rightfully so. The impact will be enormous, with benefits flowing down from industry to society as a whole. Countries have the opportunity to embrace this technology and collaborate with network infrastructure providers and operators to improve the lives of their citizens and increase economic activity, while at the same time reducing their carbon footprint. Collaboration will be the key to 5G’s success and will allow everyone to benefit from a more connected world.
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