What’s the Story?

There is the feeling that 5G has finally arrived in the US, with the launch of Apple’s iPhone 12 with 5G in September, although the technology has been under development for several years and has been available on the market for more than a year. Apple’s 5G handset launch is a significant catalyst for the arrival of the tech, since it is the leading US smartphone vendor, with a 46% market share in the second quarter of 2020 (Samsung was second with 25%), according to Statista.

Why It Matters

5G is more than just a “speed bump” offering incremental speed increases over 4G. It offers superior performance on many fronts—capacity, latency (the time it takes to connect to the network) and bandwidth—that will change how consumers use their phones and enable many new business models. The number of 5G subscribers is expected to grow at a dramatic rate, as wireless networks are turned on, subscribers upgrade and prices of handsets decline with volume over time, representing a large base of technology-adopting consumers. The global share of 5G subscribers is expected to approach 50% of the total wireless market by 2025. [caption id="attachment_119089" align="aligncenter" width="700"] Source: Electronic Frontier Foundation/GSM Association/Coresight Research[/caption]  

5G Wireless: In Detail

Technology Overview 5G wireless offers greater performance than today’s 4G in several areas:

• Capacity—A larger number of devices can connect to the network
• Bandwidth—A greater amount of data can be transmitted or received per second
• Latency—A shorter time to connect the network
• Power Consumption—Lower power consumption due to more efficient data compression, i.e., extending device battery life

Benefits of 5G Wireless Tech In Figures 2 and 3, we summarize the tangible benefits that 5G wireless technology offer for retailers and consumers.

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Figure 2. Benefits of 5G for Retailers [wpdatatable id=548]

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Source: Coresight Research  

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Figure 3. Benefits of 5G for Consumers [wpdatatable id=549]

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Source: Coresight Research   Recent 5G Developments The table below includes significant recent 5G developments.

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Figure 4. Selected Recent Developments in 5G [wpdatatable id=550]

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Source: Company reports/Coresight Research   The recent developments outlined in Figure 4 support earlier, significant announcements in the 5G space, including the following:

• Dec 2019—The US Federal Communications Commission announces plans for a $9 billion fund to support 5G in the rural US.
• Oct 2019—Qualcomm Ventures announces a $200 million fund to support companies building up the 5G ecosystem.

5G Availability Networks supporting 5G are already turned on in many geographies, with other areas currently deploying infrastructure or making investments to facilitate the rollout of this wireless technology. Infrastructure The image below shows 5G deployment around the world, including areas where 5G networks have been launched, technology has been deployed and investment is undergoing. Areas with launched 5G networks comprise Australia, Brazil, China, North America and Western Europe. [caption id="attachment_119090" align="aligncenter" width="700"] Source: GSA 5G Market Snapshot[/caption]   All three major US carriers have launched 5G wireless services in the past two years

• AT&T—December 2018
• T-Mobile—August 2020
• Verizon—April 2019

Handsets An essential component of a 5G network is the handset or other terminal. Early handsets became available in 2019 and now have broader availability. Figure 5 lists selected handset vendors, models and prices. [caption id="attachment_119091" align="aligncenter" width="700"] Source: CNET/company reports/Newegg.com[/caption]   Will 5G Displace Cable Modem or Fiber-to-the-Home? The simple answer is “no.” Figure 6 shows that, despite the dramatic increase in bandwidth in 5G versus 4G, the performance of cable and fiber remain vastly superior. Still, residential 5G is currently available and could represent a viable option for residents that are not on fiber or cable networks, as well as offering a broadband solution that requires less investment in physical infrastructure (which necessitates digging trenches and laying cable). [caption id="attachment_119092" align="aligncenter" width="700"] Source: Electronic Frontier Foundation[/caption]  

What We Think

With networks around the world increasingly turned on and handsets now in the hands of consumers, the field is wide open for retailers and content developers to invent new uses and business models that take advantage of the dramatic expected growth in the number of 5G subscribers. Implications for Brands/Retailers

• Brands can explore how to use the greater bandwidth of 5G to provide more engaging content.
• Retailers can use the greater capacity to increase supply chain visibility, on-shelf availability and improve the customer experience through magic mirrors and other uses of high-definition video.
• Brands and retailers can also use AR/VR/MR to enhance the product-discovery and shopping experience.

Implications for Real Estate Firms

• Real estate firms can install infrastructure to ensure that 5G coverage is available and strong on their properties to enable retailers to take advantage of its features.

Implications for Technology Vendors

• As 5G is an emerging technology, there are numerous opportunities to add new hardware and software capabilities to handsets to enable new functionality and experiences.
• There are also many opportunities for software developers to develop frameworks and apps, including games, that enhance the 5G experience and online shopping.
• Capabilities such as antenna functionality, processor speed, battery life and displays continue to improve over time, offering additional opportunities for handset vendors.