The biggest problem with 5G: not the technology, but the lack of “killer applications”

The global 5G progress forecast released by Credit Suisse shows that the biggest problem facing 5G in the future is not technology, but the lack of "killer applications."

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Credit Suisse said that by 2024, 5G mobile phones will drive 5G users to 2.3 billion, and global revenue is expected to reach $383 billion. The release of the 5G iPhone will be a catalyst. However, due to the lack of "killer applications", the expected revenue growth rate is only 1.3% per year.

While there may be exciting 5G applications in the future, so far there is no 5G "killer app" for mass consumers like streaming media did for 4G.

As a result, so far, most of the 5G commercial promotion is still focused on large data traffic packages and 5G mobile phones, rather than new services that users are willing to pay for.

For example, South Korean operators promoted 5G usage by offering unlimited data packages, while relying heavily on 5G phones as a marketing tool. Operators encouraged users to use 5G to get the latest popular models and phone colors. Initially, operators also provided large mobile phone subsidies, but now they have gradually reduced subsidies to improve profitability. The situation of Chinese operators is similar, except that they do not provide mobile phone subsidies.

In addition, European operators are also focusing on large data packages, encouraging upselling to existing customers who use high-priced packages. In the United States, the launch of 5G Apple phones is crucial to the popularization of 5G, and profitability will largely depend on the level of subsidies. Credit Suisse said that globally, the lack of "killer applications" will limit the revenue growth rate of the 5G field to 1.3% per year in the 2019-2024 fiscal year.

Regarding the 5G streaming service that many people are optimistic about, Credit Suisse said that streaming is the main consumer usage scenario of the Internet today, both in terms of overall Internet traffic and user usage time. However, the perfect 4G network can already provide smooth streaming services, even high-definition videos.