The 5G Monetization Challenge

The new 5G mobile technology is here. One of the most important things that the telephone companies should do is to focus on how to monetize the new 5G technology, and since the investment is quite high, it is essential that long-term monetization turns into a high ROI.

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The leap from 4G to 5G technology is directly proportional to the investment in technical improvement. The new technology will be contributing to the end-user, for example, it will boost the Internet of things. Take a look next at the benefits of the new technology to understand how to monetize them.

  • More and more speed: Something that is evident is the speed of the network. And, as 4G has obtained 200 Mbps, about 1,200 Mbps with 4G + and 5G networks will download up to 10,000 Mbps, which means 10 Gbps.
  • Broad Coverage: On the one hand, the 26 GHz frequency will give the maximum speed of 10 Gbps. It will be used only at specific points. In the cities, it seems that there will be abundant networks between 1.5 GHz and 3.6 GHz, which will give us between 1 and 3 Gbps. In the rest of the areas, we will have the 700 MHz networks, which will allow a speed of about 100 Mbps, which is not bad and will be stable both in long distances and in areas with many walls.

5G monetization challenge

  • Significant increase in response time: In addition to more speed, 5G mobile networks will have another significant advantage, latency. And, in current networks, we have about 20 milliseconds of latency, something that will be reduced to 1 millisecond with 5G networks.
  • Enhancing remote artificial intelligence: By improving connection speed, they can take advantage of the artificial intelligence that is calculated on servers of large companies. At the moment, a very concrete implementation of artificial intelligence is planned, especially in the camera of telephones. It is the processor that is responsible for executing the brutal calculations that artificial intelligence needs, but with mobiles connected by 5G, those calculations could be made on servers. Thanks to the bandwidth of the 5G network, the mobiles would not need to perform all the calculations locally, saving resources and, above all, evolve as the servers themselves do.

It is not necessary to explain the disadvantages of 5G technology in a lengthy section.  Its weaknesses can be summarized in the enormous cost of development, testing, and implementation.

Going into detail about monetization, one of the best ways to monetize will be to take advantage of the speed offered by 5G technology. Today on average, a user has from 5 to 10 devices, their own video cameras for streaming or surveillance. A business model can be taken into account where the number of devices is exploited against the speed offered to the final customer.

Another idea on ​​how to monetize the speed of 5G technology is virtual reality, where one could think of a model of remote management where the speed of connection and latency is vital — for example, the remote driving of a car or remote medical assistance in real-time. 

It can definitely be concluded that speed and latency will be the important factors to monetize. However, once the first tests of the 5G technology are completed, the idea of ​​how to make money in the best way with this technology could be closed.

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