In some ways, it is premature to evaluate the value of 5G, as the networks are still early in deployment (or non-existent) in most countries. Early in 2023, for example, only about 35 percent of humans globally had the option of buying 5G service from at least one mobile service provider.
And where it is already widely deployed, the variety of types of spectrum used mean coverage and capacity are uneven. So even where theoretically available, 5G signal strength might be low enough that devices revert to 4G.
Beyond that, some customers might not own devices capable of using 5G, or might not enable 5G on their devices.
|
Country |
Population |
5G Availability (Percentage) |
5G Usage (Percentage) |
|
South Korea |
51.8 million |
72.9% |
45.2% |
|
United States |
332 million |
62.5% |
30.8% |
|
United Kingdom |
67 million |
53.2% |
33.4% |
|
Canada |
38 million |
50.4% |
29.2% |
|
Germany |
83 million |
48.8% |
27.9% |
|
Australia |
25.7 million |
47.3% |
26.7% |
|
China |
1.44 billion |
46.2% |
26.1% |
|
Japan |
125.5 million |
45.1% |
25.2% |
|
France |
67.3 million |
44.0% |
24.2% |
|
India |
1.4 billion |
42.9% |
23.2% |
The point is that, whatever one thinks about 5G value and development of new use cases, apps and business models, we still are too early to draw definitive conclusions, as most humans still cannot buy 5G or use it routinely.
And even once deployment is substantially complete, the expected upside from 5G might still lag. That was the case for 3G and 4G as well.
3G was first introduced in 2001, and it was expected to enable new applications such as video calling, mobile TV and mobile gaming. Some of that happened, but often not what was expected. In many ways, 3G apps such as messaging, email and turn-by-turn directions seem to predominate.
4G was supposed to enable new applications such as real-time video streaming, virtual reality, and self-driving cars. In most cases, 4G enabled apps many thought would happen during the 3G era, or at least enabled an adequate user experience for anything related to video.
By some estimates, apps allowing people to communicate seem to predominate on 3G networks.
|
3G Apps |
Estimated number of users |
Hours used per week |
|
|
2 billion |
25 hours |
|
Facebook Messenger |
1.3 billion |
20 hours |
|
YouTube |
1.5 billion |
15 hours |
|
Skype |
660 million |
10 hours |
|
|
1 billion |
5 hours |
|
Snapchat |
500 million |
3 hours |
|
Spotify |
365 million |
2 hours |
|
Netflix |
203 million |
2 hours |
|
Google Maps |
1.5 billion |
1 hour |
|
Gmail |
1.5 billion |
1 hour |
4G apps tend to revolve around working or transactions, while content consumption and connectivity trends from 3G remain in place. But 4G seems much more useful for entertainment on the go.
|
4G Apps |
Estimated number of users |
Hours used per week |
|
Uber |
110 million |
10 hours |
|
Airbnb |
800 million |
5 hours |
|
WeWork |
500,000 |
3 hours |
|
DoorDash |
50 million |
2 hours |
|
Lyft |
100 million |
2 hours |
|
Slack |
12 million |
1 hour |
|
Zoom |
300 million |
1 hour |
|
Google Drive |
1.5 billion |
1 hour |
|
Microsoft Office 365 |
300 million |
1 hour |
|
Salesforce |
150,000 |
1 hour |
Overall, it can be said that many expected use cases for 3G did not actually emerge as mass market realities.
|
3G use case |
Experts’ expectations |
Actual outcome |
|
Video streaming |
Experts believed that 3G would enable streaming of high-quality video, such as live sports events and movies. |
While 3G did enable some video streaming, it was not as widespread as experts had predicted. This was due to the limited bandwidth of 3G networks and the high cost of data plans. |
|
Mobile gaming |
Experts believed that 3G would enable a new generation of mobile games that were more immersive and interactive. |
Mobile gaming did indeed become more popular with the advent of 3G, but the games were not as groundbreaking as experts had predicted. This was due to the limitations of 3G networks, such as latency and packet loss. |
|
Mobile office |
Experts believed that 3G would make it possible for people to work from anywhere, using their mobile devices to access email, files, and applications. |
Mobile office did become a reality with 3G, but it was not as widespread as experts had predicted. This was due to the lack of 3G coverage in many areas and the high cost of data plans. |
|
Mobile commerce |
Experts believed that 3G would enable a new wave of mobile commerce, with people using their phones to make purchases online and in stores. |
Mobile commerce did indeed grow with the advent of 3G, but it did not reach the levels that experts had predicted. This was due to security concerns and the lack of a standardized mobile payment system. |
|
Location-based services |
Experts believed that 3G would enable a new generation of location-based services, such as turn-by-turn navigation and targeted advertising. |
Location-based services did become popular with the advent of 3G, but they were not as revolutionary as experts had predicted. This was due to the limited accuracy of 3G location data and the high cost of data plans. |
The same might be said of 4G networks as well.
|
4G use case |
Experts’ expectations |
Actual outcome |
|
Ultra-high-definition (UHD) video streaming |
Experts believed that 4G would enable streaming of UHD video, such as 4K and 8K content. |
UHD video streaming is now possible over 4G networks, but it is not as widespread as experts had predicted, in part because mobile operators often do not support it. |
|
Virtual reality (VR) and augmented reality (AR) |
Experts believed that 4G would enable the widespread adoption of VR and AR applications. |
VR and AR applications are becoming more popular, but they are still not as widespread as experts had predicted. T |
|
Real-time gaming |
Experts believed that 4G would enable real-time gaming, such as multiplayer games that require fast and reliable connections. |
Real-time gaming is now possible over 4G networks, and it is becoming increasingly popular. However, it is still not as widespread as experts had predicted. |
|
Cloud computing |
Experts believed that 4G would enable cloud computing applications, such as the ability to run high-performance applications on remote servers. |
Cloud computing applications are now possible over 4G networks, and they are becoming increasingly popular. However, they are still not as widespread as experts had predicted. |
|
Connected cars |
Experts believed that 4G would enable connected cars, which would be able to communicate with each other and with the infrastructure around them. |
Connected cars are still not as widespread as experts had predicted. |
The bottom line is that it still is too early to tell how 5G will develop, and whether the expected new apps and use cases will emerge as expected. History suggests patience will be needed.
