5G will blur lines between technology and communications

According to French telecom regulator ARCEP, 5G technology aims to create an ultra-connected society within the framework of a disruptive dynamic of more than just an increase in transmission speeds but as an enabler of the digitization of society and the economy.

Jason Tofsky, a Managing Director with Goldman Sachs, recently explained that 5G high-speed access connectivity will likely generate “some interesting combinations of technology companies and telecom and communications companies coming together in a way that ten years ago none of us would have thought was possible.”

5G will therefore drive industrial and societal changes in many sectors such as energy, industry, transportation, media and healthcare and foster the development of artificial intelligence (AI) through potentially ubiquitous communication between machines.

Also, 5G architecture is expected to accommodate a wide range of use cases with advanced requirements, especially in terms of latency, resilience, coverage, and bandwidth, underlined a report by the 5G Infrastructure Association. As a technological paradigm shift akin to the shift from typewriter to computer, 5G will enable USD 12.3 trillion of global economic output and create the “underlying fabric of an entire ecosystem.”

However the significant cost of 5G rollout may cause some adverse effects such as less competition but some real investment opportunities in likely mergers between technology and communications companies. This will also “create massive infrastructure demand on cities,” as traditional cell towers are expected to be supplemented with a system of smaller nodes, added Tofsky.

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