Industrial companies want to rapidly implement 5G

[nusratjahan]

There is widespread confidence in the potential of 5G, with nearly two-thirds of industrial companies planning to implement it within the first two years of the technology's market launch. Larger manufacturers are much more likely to implement 5G first than the industry as a whole: companies with annual revenues of more than $10 billion plan to begin using this technology within the first two years, compared to companies with revenues between $500 million and $1 billion.

A third of industrial companies are planning to purchase their own 5G license

Just under half of the companies in the sector are shop already expressing strong interest, stemming from a desire for greater autonomy and security , combined with concerns that telecommunications operators are too slow in implementing the public 5G network. However, various regulatory barriers will remain, depending on the geographic area.

Operational and security benefits will drive 5G adoption
When respondents were asked about the business reasons driving them to invest in 5G, more than half cited increased operational security and efficiency, combined with cost savings. Companies also claim that 5G will help enable or improve use cases, such as real-time analytics, video surveillance, remote control of distributed production, AI-enabled or remotely controlled movements, remote operations through the use of AR/VR, and so on.

Industrial companies will pay more for premium services
Despite uncertainties surrounding the speed of deployment, manufacturers are already willing to pay a premium for the increased connectivity that 5G will bring. Most industrial companies will pay more for increased mobile broadband speeds and capacity, but only a fraction of telecom operators believe there is genuine interest. This presents an opportunity for industry players to develop a strategy for building a highly profitable 5G business model .

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