27 Feb Investors low on confidence on 5G transition globally: Study
New Delhi: Enterprises making investments in next generation 5G technology globally are skeptical about the transition because of lack of knowledge of use cases and difficulty in integration with existing technologies, a study reveals.
According to a survey report by EY, 15 per cent of enterprises are currently investing in 5G, yet less than half (48 per cent ) are confident they can transition to 5G-based Internet of Things (IoT), with 74 per cent indicating that they need to overhaul the operating model to realize implementation. Of those investing in 5G today, 67 per cent are either engaging in trials or are in discussion with suppliers, rather than moving to the operational phase.
Key factors affecting enterprises include knowledge gaps around use cases and a perception of 5G as an incremental progression on 4G. In addition integration with existing technologies is the biggest internal barrier to 5G adoption while the perceived immaturity of 5G technology tops the list of external challenges, the study highlights.
“Enterprises are aware that 5G can fundamentally reshape their organizations. To succeed, they need to develop a road map that is aligned to the broader landscape of technology transformation, but anxieties persist around technology integration, maturity and cybersecurity. To overcome this inertia, 5G vendors need to articulate a more compelling vision of the opportunity, while enterprises need to educate themselves on the game-changing possibilities that go beyond efficiencies alone,” said Tom Loozen, EY Global Telecommunications Sector Leader.
5G and IoT will turbo charge the enterprise transformation journey since 5G enabled digitalisation is over US$25 billion opportunity by 2026 with nearly 45 per cent of applications driven by Smart Cities and Industry 4.0 use cases, said Prashant Singhal, Emerging Markets -Technology, Media and Telecom Leader, EY.