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5G Holds the Promise of Being a Game-Changing Technology

5G is the fifth-generation mobile network, surpassing 4G technology. 5G is designed to connect people, machines, objects and devices together seamlessly. 5G wireless technology delivers higher peak data speeds, ultra-low latency, more reliability, increased network capacity and availability, and a markedly better service experience to a broader base of mobile network users.

5G is already creating many opportunities around the world - with material economic, social, and political impact. There was a huge wave of innovation when 4G became a mainstream technology following commercial launch in 2010, and 5G is destined to become a next-generation ‘game-changer’.

The initial impact of 5G will be evident in the enterprise sector. Smart manufacturing, vehicle-to-vehicle communications, automated supply chain management, augmented reality (AR) for troubleshooting are examples of the application areas that are already leveraging the potential of 5G technology.

Large scale, Industrial Internet of Things (IIoT) environments will also become a reality as 5G networks are built out. Private, fully-secure 5G networks will also be a feature of the industrial and commercial landscape over time.

The 5G promise for data-hungry consumers is the ‘always-on’ availability of blazing fast, broadband access to mass market services such as video calling, content streaming and online gaming applications. We also see Fixed Wireless Access (FWA) services - powered by 5G technology - enjoying a ‘renaissance’, both in the residential and small business (MSME) sectors.

Moreover, 5G will change the economics of providing reliable, high-speed wireless connectivity to underserved and unserved communities in remote geographic areas. The phenomenon of the ‘digital divide’ and the consequent ‘education gap’ are issues that have come into sharp focus during the COVID-19 pandemic, particularly in developing economies such as Indonesia.

In our latest Wellington Perspective, we examine the current status of 5G rollout across the globe, within the Southeast Asia region and explicitly for Indonesia.

We also look at the cross-impacts of 5G technology on the ‘triumvirate’ of telecoms industry players - the Mobile Network Operators (MNOs), the Tower Companies (TowerCos) and the Data Center Providers.

There is a clear and present opportunity for these entities to engage in collaborative “Win-Win” partnerships, in order to re-imagine their respective business models and to leverage the open-ended market opportunities presented by 5G technology.

For a deeper dive from us on these three telecoms industry players in Indonesia, kindly check our recent perspectives on MNOs, TowerCos and Data Centers in Indonesia.

If you would like to engage in an open dialogue on any aspect of the 5G opportunity in Indonesia, please feel free to contact us.

Wellington Perspective - The Impact of 5G
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