Gartner: End-Users Willing to Pay More for 5G
Internet of Things Communication Is Expected to Be the Most Popular Use Case
September 27, 2017
Share this

A recent global Gartner survey revealed that 75 percent of end-user organizations would be willing to pay more for 5G mobile capabilities.

Only 24 percent of the survey's respondents would be unwilling to pay more for 5G than for 4G.

"Those in the telecom industry are more likely to be prepared to pay more than those in other industries," said Sylvain Fabre, Research Director at Gartner. "End-user organizations in the manufacturing, services and government sectors, for example, are less likely to be willing to pay a premium for 5G than telecom companies, which are willing to pay a 5G premium for their internal use."


In addition to offering better prices for industries in which users are less convinced of the business benefits of 5G, communications service providers (CSPs) must create value propositions that entice customers to start 5G migration projects sooner.

Although most of the respondents think their organizations would be prepared to pay more for 5G, few (8 percent) expect 5G to deliver cost savings or increase revenues. 5G is seen principally as a network evolution (59 percent), and only secondarily as an enabler of digital business (37 percent). The survey also found that respondents from the telecom sector are less persuaded than those in other industries that 5G will be a revenue enhancer.

"They tend to see 5G migration as a matter of gradual and inevitable infrastructural change, rather than as an opportunity to generate new revenue," said Fabre.

Internet of Things Communication is Top Use Case for 5G

The survey found that almost half the respondents intend to use 5G to access videos and fixed wireless capabilities. More interestingly, though, the majority pf respondents (57 percent) believe that their organization’s main intention is to use 5G to drive Internet of Things (IoT) communication.

"This finding is surprising, as the number of deployed 'things' that need cellular connectivity won't exceed the capacity of existing cellular IoT technologies before 2023 in most regions," said Fabre. "And even once fully implemented, 5G will suit only a narrow subset of IoT use cases that require a combination of very high data rates and very low latency. In addition, 5G won't be ready to support massive machine-type communications, or ultra-reliable and low-latency communications, until early 2020."

This finding may also be a sign of confusion about 5G's applicability, as many proven and less expensive alternatives already exist for wireless IoT connectivity — use of Wi-Fi, ZigBee or Bluetooth, for example, would avoid the cost and complexity associated with cellular communications.

A degree of misunderstanding is probably also apparent in the expressed belief by a large majority of the respondents (84 percent) that 5G will be widely available by 2020. By contrast, CSPs' plans indicate that wide availability may not be achieved before 2022.

Gartner predicts that, by 2020, only 3 percent of the world's network-owning mobile CSPs will have launched 5G networks commercially.

"Although standards-compliant commercial network equipment could be available by 2019, commercial rollouts of 5G networks and services by CSPs before 2019 are likely to use prestandard equipment," added Fabre.

CSPs' marketing organizations need realistic roadmaps for 5G coverage and typical performance, so that they communicate with customers accurately. They also need to publish clear 5G rollout plans for the years 2019 to 2021 to help innovators understand when and where 5G will be available for IoT applications.

Share this

The Latest

May 28, 2024
When it comes to ensuring the effectiveness of a software application, it's paramount to ensure that the application can handle varying degrees of demand. Performance testing is a crucial aspect of the software development cycle ...
May 23, 2024

Hybrid cloud architecture is breaking the backs of network engineering and operations teams. These teams are more successful when their companies go all-in with the cloud or stay out of it entirely. When companies maintain hybrid infrastructure, with applications and data residing across data centers and public cloud services, the network team struggles. This insight emerged in the newly published 2024 edition of Enterprise Management Associates' (EMA) Network Management Megatrends research ...

May 22, 2024

As IT practitioners, we often find ourselves fighting fires rather than proactively getting ahead ... Many spend countless hours managing several tools that give them different, fractured views of their own work — which isn't an effective use of time. Balancing daily technical tasks with long-term company goals requires a three-step approach. I'll share these steps and tips for others to do the same ...

May 21, 2024

IT service outages are more than a minor inconvenience. They can cost businesses millions while simultaneously leading to customer dissatisfaction and reputational damage. Moreover, the constant pressure of dealing with fire drills and escalations day and night can take a heavy toll on ITOps teams, leading to increased stress, human error, and burnout ...

May 20, 2024

Amid economic disruption, fintech competition, and other headwinds in recent years, banks have had to quickly adjust to the demands of the market. This adaptation is often reliant on having the right technology infrastructure in place ...

May 17, 2024

In MEAN TIME TO INSIGHT Episode 6, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses network automation ...

May 16, 2024

In the ever-evolving landscape of software development and infrastructure management, observability stands as a crucial pillar. Among its fundamental components lies log collection ... However, traditional methods of log collection have faced challenges, especially in high-volume and dynamic environments. Enter eBPF, a groundbreaking technology ...

May 15, 2024

Businesses are dazzled by the promise of generative AI, as it touts the capability to increase productivity and efficiency, cut costs, and provide competitive advantages. With more and more generative AI options available today, businesses are now investigating how to convert the AI promise into profit. One way businesses are looking to do this is by using AI to improve personalized customer engagement ...

May 14, 2024

In the fast-evolving realm of cloud computing, where innovation collides with fiscal responsibility, the Flexera 2024 State of the Cloud Report illuminates the challenges and triumphs shaping the digital landscape ... At the forefront of this year's findings is the resounding chorus of organizations grappling with cloud costs ...

May 13, 2024

Government agencies are transforming to improve the digital experience for employees and citizens, allowing them to achieve key goals, including unleashing staff productivity, recruiting and retaining talent in the public sector, and delivering on the mission, according to the Global Digital Employee Experience (DEX) Survey from Riverbed ...