The Verge has an interesting article that discusses the other side of 5G, which was touted as the revolutionary future of mobile communication, promising to unleash a wave of transformative technologies from autonomous vehicles to remote surgery. Yet, three years after its hyped debut at CES 2021, the reality of 5G falls short of those initial expectations. While progress has been made, the killer apps haven’t arrived, leaving carriers burdened with debt and scrambling for ways to recoup their investments. The article [1] delves into the current state of 5G, exploring the gap between hype and reality, the financial struggles of network operators, and the uncertain future of a technology still in its infancy.
If there’s a poster child for the whole 5G situation in the US, it’s Verizon: the loudest and biggest spender in the room. The company committed $45.5 billion to new spectrum in 2021’s FCC license auction — almost twice as much as AT&T. And we don’t have to guess whether investors are asking questions about when they’ll see a return — they asked point blank in the company’s most recent earnings call. CEO Hans Vestberg fielded the question, balancing the phrases “having the right offers for our customers” and “generating the bottom line for ourselves,” while nodding to “price adjustments” that also “included new value” for customers. It was a show of verbal gymnastics that meant precisely nothing.
The Carrier’s experience with 5G
While Verizon has been the most prominent voice in the 5G conversation, investing heavily in spectrum and aggressively promoting its capabilities, their recent earnings call paints a different picture. The absence of transformative use cases like robotic surgery and autonomous vehicles indicates that the initial hype surrounding 5G has not fully materialized.
Despite Vestberg’s attempt to balance customer offerings with profitability through “price adjustments” offering “new value,” the lack of concrete progress towards these visionary applications raises questions about the return on investment for such substantial expenditures.
Furthermore, Verizon’s history of overpromising on 5G technology, first with mmWave and then with low-band 5G, undermines its credibility and fuels investor anxieties. The ongoing transition to standalone 5G, essential for enabling many anticipated applications, underscores the long-term nature of this technology’s rollout.
While private networks represent a promising avenue for 5G monetization without a complete network overhaul, Vestberg’s minimal mention of this strategy during the earnings call raises concerns about its prioritization within Verizon’s overall 5G roadmap.
Additionally, Kinney’s point regarding the lack of industry-specific sales expertise poses a significant challenge for carriers like Verizon. To effectively capture the potential of 5G across diverse verticals, they need to develop specialized sales teams with a deep understanding of each industry’s unique needs and challenges.
Overall, the current state of 5G at Verizon, despite the significant investments and initial hype, is characterized by a lack of tangible progress toward transformative use cases and a shift toward monetization strategies that prioritize profitability over revolutionary applications. This necessitates a reassessment of priorities and a commitment to building the necessary expertise to unlock the true potential of 5G across various sectors.
Summary of the article “The 5G Reality Check”:
The 5G hype of CES 2021 hasn’t materialized. Fantastic use cases like robot surgery and AR haven’t arrived. Instead, we have faster streaming and fixed wireless access (FWA). Carriers are struggling to recoup their massive 5G investments. They have taken on significant debt and are now trying to boost profits with higher prices.
The promised fourth wireless carrier, Dish Network, is still struggling. It hasn’t attracted enough subscribers and needs to significantly invest in infrastructure to meet coverage requirements.
While 5G offers improvements, its transformative potential is still years away. Standalone 5G, necessary for many advanced applications, is still in progress.
Key points:
- The current state of 5G doesn’t live up to the initial hype.
- Networks are burdened with debt and pushing for higher prices.
- The fourth wireless carrier, Dish, faces challenges and may need partnerships.
- Technological progress is often slow, and 5G’s full potential will take time.
Overall, the article paints a more realistic picture of 5G, acknowledging its limitations and the challenges faced by carriers and the industry.
Conclusion: Embracing a Future of Endless Possibilities
The M&E industry in 2023 was marked by innovation, inclusivity, and a commitment to enhancing user experiences. From the integration of metaverse technologies to the rise of niche platforms and sustainable practices, the industry demonstrated its adaptability and responsiveness to evolving consumer demands. As we move forward, these trends serve as a testament to the limitless possibilities that technology and creativity can unlock. With the streaming landscape continually evolving, one can only anticipate that the future will bring even more exciting developments, shaping the way we connect with the world of digital entertainment. The journey into the future of streaming has only just begun, promising a world of immersive experiences and boundless imagination.
[1] https://www.theverge.com/23991136/5g-network-att-verizon-tmobile-cost-competition
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