Key 5G limitations facing enterprises

As interest in 5G cellular technology grows, enterprises should also consider 5G limitations as they plan for 2020 and beyond. Although 5G technology offers a significant expansion of today’s cellular infrastructure, the technology also has drawbacks, including the following:

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1. To take advantage of the full 5G capabilities, 5G devices need to be deployed on both ends of the connection. On the client side, 5G phones or 5G IoT devices are needed for mobile communications. On the operator side, 5G antennas and infrastructure are needed. On the mobile phone side, Android smartphones have a 5G advantage because several 5G phones are already available. However, there is no 5G iPhone yet, and this may not change for some time as Apple phone designs shift between 5G modem manufacturers. 5G IoT devices are also starting to be launched. However, as smartphones transition to 5G, many IoT vendors will see 5G giving up 3G and 4G spectrum for IoT, and IoT will have more freedom in the low-speed bands of 3G and 4G.

2. Proximity is another disadvantage that businesses must consider. 5G uses millimeter wavelengths, which are smaller than 3G and 4G, and they do not travel very far. Although 5G coverage is smaller, 5G signals can carry more data. To overcome this limitation, operators are planning larger antenna networks to provide adequate coverage. For businesses looking to take advantage of 5G technology, they should investigate their operator's 5G coverage map. Currently, operators are starting pilot projects, but coverage is limited to a few urban areas; this will expand over time as large-scale deployments begin.

3. Rural and remote areas may not see 5G service anytime soon. While 5G applications abound in areas such as agriculture and mining that require remote access, operators may find that it is not cost-effective to deploy 5G in certain remote areas. However, remote deployments may also occur if large customers are willing to help cover the costs, or if existing wired backhaul already exists.

4. Early purchases of 5G services may initially incur a premium as operators attempt to offset the significant capital investments in these new technologies. 5G deployment costs will be high, so operators may segment the market early to optimize their short-term revenues. Ultimately, however, broader competitive pressures will force operators to lower 5G prices to remain competitive.

5. Finally, 5G will have a different security model than 3G and 4G, and it will include new security features. The good news for enterprises is that the carriers will handle most of this deployment. However, for enterprises building network services on 5G cellular networks, they should understand these new security models, which is critical to ensure that they build fully secure services.

While 5G limitations are clear, the long-term advantages of 5G will outweigh the disadvantages. And, overall, 5G will open up new opportunities for businesses to become more agile and competitive over time.