Key Innovations in 5G Technology in 2022

The latest GSMA Mobile Economy Report predicted the number of global 5G connections to tip 1 billion by the end of 2022 and double to 2 billion by 2025 – at which point, 5G will account for a quarter of all mobile connections globally. 

The demand for 5G has been stronger than expected in China, North America, and South Korea. These countries have been pioneers in the global 5G landscape, driving the growth of 5G in 2021. In 2022, 5G rollout will continue at pace, particularly in Europe, which has until now lagged with 5G adoption due to market fragmentation and delays in spectrum assignments due to the pandemic, as well as issues around supporting multiple network generations.

There’s no denying that 5G will revolutionize how mobile networks are designed and used globally, opening up new business opportunities that were not previously possible. The following are some key factors impacting the 5G rollout globally in 2022.

Calls for Government Backing & Multi-Sector Collaboration

The GSMA estimates that in order to get 5G networks off the ground, $600 billion will be needed between 2022 and 2025 to upgrade infrastructures. This presents a challenge for operators globally. The GSMA has called for governments to back the telecommunications industry by directing public funds to connectivity, as well as investing in digital skills training for connected devices and prioritizing the digital transformation of government services. The GSMA also appealed for an end to the use of spectrum restrictions to maximize access to affordable, reliable, and practical mobile broadband services.

In addition to government backing, key Silicon Valley businesses and streaming giants such as YouTube and Netflix, who rely heavily on strong telecommunications networks, are being called to invest in the infrastructure necessary to support increased data use. Ensuring networks can service this increase is significant given that mobile data use expected to more than triple in most regions over the next six years.

Increasing Incentives for Deployment of Open RAN (O-RAN)

Commitment from a wide range of stakeholders, including governments, to accelerate Open RAN adoption is growing, driven by a belief that wider adoption of O-RAN networks will improve competition and network flexibility and reduce costs. Europe is at the forefront of encouraging open RAN deployment. The UK government has offered funding incentives and set targets for 35% of the UK’s mobile network traffic to be transmitted using open RAN by 2030, while the German government has established a €300 million fund created to develop and evaluate open RAN technology and has chosen the first projects to receive a grant. 

Standalone 5G Networks on the Rise

Clear business cases are emerging for 5G networks, with standalone 5G expected to be adopted by enterprises across the globe. Standalone 5G provides additional capacity and delivers significantly lower latency for particular uses such as industrial IoT, Industry 4.0, and augmented and virtual reality for business. Data from the GSMA reported 22 commercial 5G standalone networks operating in 16 different countries worldwide, with many more standalone networks predicted to launch in the next few years. Standalone 5G networks benefit businesses in several ways, such as Machine2Machine communication, simplified network architecture, and optimization of network costs.

Focus on 5G for Sustainability

5G can help organizations with their sustainability obligations and targets. We found that 5G can increase the efficiency and productivity of smart cities through remote monitoring and optimization of manufacturing processes. For example, a report from McKinsey found that by 2025, cities that deploy smart-mobility applications have the potential to reduce commuting times by an average of 15 to 20%. This means that in highly populated cities with complex transport networks, smart technologies could save commuters up to 15 minutes a day. In contrast, in developing cities with more difficult commutes, this may increase to 20 to 30 minutes daily. These technologies currently exist; however, uptake is low. Energy-intensive industries such as transport, construction, energy, and manufacturing are encouraged to take advantage of these technology benefits. The GSMA has claimed that uptake of these technologies in the four energy-intensive industries would facilitate global savings of about 11 Gigatonnes of carbon emissions by 2030.

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