Redefine the customer experience with 5G

As 5G rollouts begin in earnest across the world, many customer-facing businesses, especially those in the hospitality and retail sectors, are looking to the new communications technology for opportunities to enhance customer experience and engagement in order to set themselves apart from the laggards.

5G is the fifth generation of wireless technology that promises higher data speeds, ultra-low latency and massive network capacity. What really sets it apart from its predecessor 4G is the opening of "high-band" short-range airwaves or millimetre waves that will enable peak speeds greater than 10 Gbps with a service latency of less than 1ms¹. In terms of capacity, it can connect a lot more devices simultaneously – an estimated 1 million devices within a square kilometre² compared with less than 70,000 for 4G. These capabilities make it ideal for applications such as augmented reality (AR), virtual reality (VR) and the Internet of Things (IoT).

To parlay these advances into a competitive advantage, hospitality and retail businesses need to start thinking about the potential applications that could fit into their customer experience roadmap and reshape the way they do business.

For hotels, 5G has the potential to redefine the guest experience by escalating the adoption of technologies such as VR/AR, IoT, artificial intelligence (AI) and data analytics. For example, 5G’s speed and low latency, combined with edge computing, paves the way for robots, IoT devices and AI to come together to deliver new personalised experiences in real time based on sensor feedback and preferences.

Application possibilities include real-time wayfinding, the use of VR/AR to “transport” guests to tourist sites in the vicinity, in-room VR exercise options such as rowing and indoor cycling, and holographic interactions for business guests conducting 3D virtual meetings.

With the exponential increase in capacity over 4G, 5G will also enable far more IoT sensors to be connected to the network, paving the way for highly automated smart hotels. The sensors can monitor different aspects of the guest experience from room temperature to lighting and plumbing.

They will also be able to communicate with each other to boost the efficiency of hotel operations and ensure the safety of guests. For example, patrol robots can communicate with CCTVs, motion detectors and other sensors to deliver intelligent safety and security solutions indoors and outdoors.

Likewise, in the retail industry, 5G will enable the deployment of technologies such as AR and IoT which, when combined with data analytics and AI, will impact the customer experience whether in-store, at home or whilst on the move.

A faster connection means more efficient loading time for online retail stores, reducing the chances of consumers abandoning the website while waiting. According to Google’s research cited in a report³ by Retail in Asia, 53% of mobile users leave a site if it takes over 3 seconds to load. The average loading time for sites over 4G is around 14 seconds; 5G could bring this down to a just over a second.

But beyond the speed difference, 5G presents many new exciting opportunities for retailers to deliver seamless, personalised engagement with customers. For example, it can enable immersive experiences such as interactive in-store fitting rooms leveraging AR and VR, where users can try on clothes, request different sizes and ask for immediate assistance through interactive mirror interfaces. It can also enable customers at home to try on clothes or make-up via AR.

Customers’ preferences can be tracked across physical stores and online channels, and with data collected, stored, analysed and deployed at 5G speeds, it is possible to create and deliver personalised omni-channel shopping experiences.

However, the full 5G experience may not be here just yet. Implementing 5G, especially high-band 5G, is going to require some major changes. 5G signals traveling in the high-band spectrum have a shorter range and have difficulty penetrating walls, windows and other hard surfaces.

Moving to 5G will require network service providers to make significant investments in infrastructure. More antennas and base stations will have to be installed, together with extra repeaters to extend the range of the waves. 5G capabilities also need to be added to devices and buildings, and applications must be built to take advantage of the exponential improvements in speed, latency and capacity. According to a report on Mobile Operator 5G Capex⁴, some US$88 billion will be spent on 5G globally by 2023.

Non-standalone 5G (5G NSA) presents a less risky route to 5G. 5G NSA, which is an option in 5G specifications, blends both 4G and 5G capabilities whilst offering different service levels to enhance the customer experience. It allows for a quick 5G deployment by utilising existing LTE core networks and base stations, so there is no immediate need to completely overhaul entire networks with new hardware. This offers fast on-boarding and quick monetisation opportunities and has been a key factor in accelerating 5G commercialisation.

5G NSA will be faster than 4G LTE, but the high-speed, low latency 5G technology that businesses are expecting is really 5G standalone (5G SA). Rollouts for this have already started and 5G-related investments are expected to resume⁵ in 2021, following a hiatus in some countries due to the pandemic.

Meanwhile, service providers and enterprises should make use of this opportunity to re-imagine their business processes and identify use-cases that will truly leverage the capabilities of 5G. Forward thinking will be crucial in shaping the apps and devices that will strengthen the business case for 5G and ensure that it becomes a commercial success.

Speak to us to find out how to improve your customer experience with 5G.

¹ 5G Low Latency Requirements Broadband Library.

² 1 Million IoT Devices Per Square Km- Are We Ready for the 5G Transformation? CLX Forum, March 2019.

³ How is 5G transforming the retail industry? Retail in Asia, August 2019.

⁴ Mobile Operator 5G Capex Forecasts: 2018-2023 Heavy Reading.

⁵ 5G Investment Upcycle in Global Telecoms Fitch Ratings, September 2020.