5G will be 'revolutionary' - but security concerns remain high

Although research shows that 5G technology will be the most "revolutionary" network evolution to date, concerns about 5G security remain.

According to a global study by Accenture, one in five respondents (79%) believe 5G will have a significant impact on their organization, with 57% believing it will be revolutionary. In contrast, only one in four (24%) said they believed the impact of 4G was revolutionary.

The study surveyed more than 2,600 business and technology decision-makers across 12 industries in Europe, North America and Asia Pacific.

However, the optimism does not overshadow security concerns about 5G, which increased slightly last year, the report said.

Specifically, more than a third (35%) of respondents in the most recent survey expressed concerns about the security of 5G, compared to 32% in last year's survey. In addition, more than six in ten (62%) respondents in the latest survey expressed concerns that 5G will make them more vulnerable to cyberattacks, and companies believe that most of the risks will start at the user level, whether it is equipment or personnel.

The survey shows that businesses are thinking ahead about how to address these challenges, with three quarters (74%) of respondents saying they expect to redefine security-related policies and procedures with the advent of 5G.

5G costs and prospects

The cost of adapting to the changes brought about by 5G is also weighing on business leaders’ minds. In particular, the operational costs of 5G are a hot topic, with four in five (80%) respondents believing that the cost of managing their IT infrastructure and applications will increase. At the same time, nearly a third (31%) of respondents still believe that the upfront costs of implementing 5G are too high.

In addition, the study found that businesses are beginning to realise that they need external support to unlock the potential of 5G. For example, nearly three-quarters (72%) of respondents said they needed help imagining future possibilities for 5G connected solutions, while the percentage of businesses looking to develop 5G applications in-house fell last year, from 23% in the previous year’s survey to 14% this year.

The survey results show that despite the challenges of 5G, there is a bright future for enterprises embracing 5G technology as global enterprises realize the huge potential of 5G. The benefits are multifaceted and people's awareness of them is increasing. For example, 85% of respondents said they expect to use 5G technology to support employees in the mobile field within the next four years, up from 68% in last year's survey.

Ben Morgan, managing director of Accenture New Zealand, said New Zealand businesses that can quickly adopt this new technology will have a competitive advantage over those that are slow to adapt. He believed the global research reflected the local context and provided a good perspective on business 5G considerations - both positive and negative.

“The COVID-19 pandemic has demonstrated the importance of this technology as more people work from home and many businesses move their products and services online,” Morgan said.

"5G is a huge opportunity for New Zealand businesses. Superfast download speeds, increased connectivity and low latency will enable businesses to communicate and collaborate seamlessly with partners and customers both domestically and internationally.

“The rollout of 5G will transform consumer expectations and lead to changes in the way businesses deliver services,” he said.

“Support for products and services will increasingly be provided via video rather than over the phone or email. This will allow businesses to demonstrate how to use products and resolve customer issues, creating greater engagement between businesses and customers.

“On the other hand, 5G also brings some security challenges such as user privacy, the number of connected devices and networks, service access and supply chain integrity, which enterprises need to keep in mind,” Morgan said.

“In fact, we are already dealing with these challenges now in light of COVID-19.”

Morgan said: “We expect that with the government allocating 5G spectrum last month, there will be increased interest and awareness among businesses about this ultra-fast next generation technology.

“Having the right strategy and strategic partnerships is critical to leveraging this technology,” he said.