No matter how one looks at the 5G business model, there are huge questions. Consider the fundamental issue of how big incremental new revenue opportunities will be. The "big three" use cases always are said to be enhanced mobile broadband; low latency apps and massive machine-to-machine apps.
Briefly, here are the unknowns. Much of the 5G upside from enhanced mobile broadband initially will come from users upgrading from 4G. There is some incremental revenue upside, but most of the revenue will simply come from users switching from 4G to 5G.
In the IoT area (massive machine-to-machine apps), there are questions about which networks will gain. Not only are multiple network platforms conceivable, ranging form Wi-Fi and other local access options, but also dedicated IoT networks (LP-WAN), as well as 4G and 5G.
Will enterprises choose a 4G or 5G solution when looking at mobile networks for IoT connectivity?
As use of internet of things services grows, the value of connectivity services is a key concern for mobile and fixed network operators, as every sensor has to be connected, and billions of new sensors are expected to be deployed.
In the early going, no clear pattern other than “all the above” has emerged. Wi-Fi, mobile networks and fixed networks all are used, according to a Vodafone report. That could change as the business grows, but so far, there is no clear pattern.
Going forward, enterprise executives say they are looking at both 5G and low power wide area networks as possible platforms.
Of the new LP-WAN platforms, NB-IoT, running on 4G and LTE Cat-1 and Cat M-1 are getting attention, as are the specialized LP-WAN networks.
The proportion of companies using the internet of things has more than doubled, a new report by Vodafone says. Adoption has risen from 12 percent in 2013 to 29 percent in 2017, Vodafone says.
Transport and logistics (19 percent to 27 percent) and retail ( 20 percent to 26 percent) have shown the largest year-on-year gains from 2016.
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