How 5G Will Affect Businesses?

5G is the latest buzzword in the telecommunication sector. For a layman, it is difficult to understand what the buzz really is all about. Modern-day consumers have lived through the introduction of 3G and 4G. They believe that 5G will just be a minor enhancement over the way things are currently functioning now.

However, that would be an inaccurate assumption. According to experts, 5G is not a minor enhancement. In fact, it is quite the opposite, 5G is a technological revolution. The difference between 4G and 5G is the same as the difference between a typewriter and a computer. It is important to understand that 5G is a paradigm shift because it is not only about a network. Instead, it is about an ecosystem of devices and sensors which can be intelligently connected in order to overhaul business and economic policy.

The seamless connectivity that 5G promises to provide will change the business ecosystem forever. Business, as we know it, will change after the introduction of 5G. There are some industries which will see positive effects as a result of this change whereas there are others which will be negatively affected. In this article, we will have a closer look at the industries which will face this change.

Who Will Be Positively Affected?

The industries that will be positively affected by this change are as follows:

• Automobiles: The automobile will be fundamentally changed because of 5G technology. Firstly 5G technology will make it possible for vehicles to connect with each other and communicate seamlessly in a reliable manner. This will make it possible for driverless technology to become mainstream. Also, 5G technology will prove to be a major impetus for the energy industry. This will make smart grids possible. Smart grids are extremely important for electric charging. Once the infrastructure for electric charging is spread across the globe, the automobile industry will move from a combustion engine to electric engines. Both these changes are likely to have a positive impact on the automobile industry.
• Healthcare: Up until now, the health care sector has been largely reactive. This means that once people fall sick, procedures are undertaken and medicines are given to cure them of their ailment. With the advent of 5G technology, the medical field is about to see drastic changes. Firstly, healthcare will now be proactive instead of reactive. Patients will now be encouraged to use wearable devices which can transmit real-time information about the patient’s health to the medical professionals. Also, 5G will make it possible for hospitals to embed microchips in all their devices as well as equipment. This will help them track the productivity of this equipment in real time. There are estimates which suggest that this could improve productivity by as much as 40%.
• Internet of Things: The Internet of Things has already been around for many years. However, at the present moment, the devices work in isolation. The 5G connectivity will enable these devices to be connected and will help them work as a system. Real-time data collection and analysis is only possible if there is network connectivity which would enable backend operations to be performed seamlessly. 5G services will take seamless connectivity to the next level. One popular example is the possibility that in future carpets will have sensors by which they will be able to signal to vacuum cleaners whenever they need to be cleaned.
• Manufacturing: The manufacturing of the future is going to be very different. Robotic process automation already has a significant role to play in the manufacturing sector. With the advent of 5G, the automation will become more advanced. Technologies like 3D printing augmented reality and cloud computing can only be implemented once 5G services are already in place. There is a study conducted by Oxford University which claims that in the next few years, automation will take away all the jobs which are considered to be dangerous and/or menial. 5G will be the key driver behind such innovation.

Who Will Be Negatively Affected?

Some industries suffer whenever technological changes of this magnitude take place. Some groups of people who will be negatively affected as a result of this change have been listed.

• Media & Entertainment: Entertainment companies will have to completely overhaul their business model. At the present moment, the business is centred around the cinema experience. However, customers of the future would like to live-stream entertainment within their houses. 5G connectivity will be able to provide the seamless connectivity that will make it possible. The world is likely to move towards Netflix type business models. The business models of companies like Warner Bros etc. may face a significant threat from 5G.
• Real Estate: 5G connectivity will make it possible for most tasks to be done remotely. Hence, the need for face-to-face interaction for commercial purposes will be eliminated. It is likely that this will exert negative pressure on the commercial real estate market. The demand and the prices are likely to go down in the future.
• Salaried Individuals: Since the need for offices is likely to be eliminated, so will be the need for salaried personnel. The entire world is moving towards a gig economy. Improved remote access will convert the entire world into a single labour market. Competition and increased connectivity will pose immense challenges for the salaried personnel.