In recent years, many conversations have taken place about 5G. Most of the dialogue revolves around businesses buying into the promise of 5G technology for broadband cellular networks. But companies are also discussing what benefits it offers, how much will 5G cost to implement and the return on investment (ROI).
So, what will 5G cost, and what are the different cost models? What are the benefits of 5G that shape the ROI leaders can expect? It's important to get a clear understanding. Let's break it down.
How much will 5G cost to implement?
The key question for most organizations is: What will 5G cost to implement? Unfortunately, there's no one definitive answer to this question. The cost will depend upon 5G consumption models—whether that's localized private on-site networks with accompanying devices or publicly delivered 5G services with enterprise-owned 5G end devices.
Essentially, the answer to the question of how much will 5G cost to implement depends on whether your business implements 5G with private Wi-Fi providers or regular networks. First, we'll unpack these cost models. Then, we'll discuss the ROI you can expect on your 5G investment and how long it will take to see bottom-line benefits.
Regular networks
Most regular networks aren't offering 5G just yet. While there are some, most are still deploying the latest 4.9G (an upgraded version of LTE) services. 4G networks can only support a maximum of 100,000 devices per square kilometer, while 5G will eventually be able to connect up to a million. It's also important to determine whether or not the services your business receives are within a private network or public network.
5G services with enterprise-owned 5G
The potential benefits of 5G go well beyond speed. As organizations continue to move toward greater technology and digital systems, 5G capabilities can support this change. 5G service could allow remote workers to access large, bandwidth-intense resources over a cellular connection—especially beneficial in today's business climate.
Businesses do not have to break the bank to afford customized 5G services to help their digital transformation. When considering what will 5G cost for your organization, factor in these benefits.
Technology at the speed of business
5G services are expected to improve businesses across all industries. From the healthcare systems to international car manufacturers, 5G will improve existing processes and help accelerate new ones, too. This fifth generation of wireless networking technology has the potential to support speeds of around 10 gigabits per second to phones.
How fast is this? That would be 600 times faster than typical 4G speeds. Leveraging this speed, 5G could help enhance human interactions with technology and digital systems in ways that haven't been possible before.
With better technology, processes and faster connectivity, 5G can improve ROI for businesses utilizing these services. 5G can increase production and reduce loading and saving times for digital systems and applications.
While these solutions were merely a dream a few years ago, businesses now have a stronger sense of how much will 5G cost to implement and know that, if implemented, it will be worth the initial investment.
What will 5G cost? Maximizing business ROI
Ultimately, businesses want to know: What will 5G cost, and how long will they have to wait to see bottom-line benefits? When you implement 5G services to your business, you can take advantage of emerging technologies and leverage them through a robust network. In many cases, like connected retail experiences or enabling end-to-end supply chain visibility, the ROI should be realized in the near term.
Take supply chains, for example. 5G can shine a new light on supply chain management, potentially improving visibility and preventing inventory shrink. 5G's low latency and faster throughput can enable improved product tracking and more accurate product location tracking. These benefits represent solutions for the pain points supply chains were experiencing before the availability of 5G.
Often, the only thing preventing 5G from helping your business is the amount of time before you commit to adopting the technology. The longer companies wait, the longer it will take to see the ROI and investment.
For businesses that rely on network-related tasks, access to faster internet means they can work more efficiently. From online sales to working on files on the cloud, tasks can occur more quickly.
Like any critical ROI planning, you'll want to incorporate model building and comprehensive data collection. Finally, when considering how much will 5G cost to implement, remember strategic partnerships are key to optimizing these costs.
Learn more about Verizon's 5G business solutions and how they drive new ideas, products, services and business models.