The state of 5G and preparing for 2021

The hype and excitement about 5G technology was high entering 2020.

While firms like Deloitte¹ predicted that 2019 was the year the fifth generation of wide-area mobile networks would arrive at scale, the reality was a different story. Network rollouts in cities around the world were met with delays and issues².

Then came COVID-19. The pandemic has significantly delayed the testing, construction, and issuance of permits to roll out 5G networks³.

However, it has also accelerated the digitalisation of services, processes, and supply chains⁴, emphasising the potential benefits of 5G in driving this digital transformation.

We look back at some of the most significant 5G developments in 2020 and the possibilities ahead for 2021.

The Infocomm Media Development Authority (IMDA) awarded two 5G licences in 2020. Singtel was awarded a 5G licence in June, allowing the company to use spectrum in the 3.5 GHz frequency in tandem with existing 2.1 GHz spectrum⁵. The country’s largest telco also partnered with Ericsson “to commence a period of negotiation to provide the 5G SA Core, RAN and mmWave network, with a view to finalising the contractual terms as soon as practicable.”

The milestone is the culmination of years of 5G testing by Singtel, who together with Ericsson and Singapore Polytechnic, operates the 5G Garage, a facility where enterprises can develop and test their 5G solutions.

In July, Singtel introduced its first 5G use case with 5G Now@UNBOXED⁶, an unmanned pop-up retail store enhanced with 5G connectivity. The integration of 5G has made the modular store, first opened in 2019, even more moveable as it can now be set up anywhere without having to connect to fibre cables.

Fast forward to September, the telco launched its 5G non-standalone (NSA) network—a forerunner of 5G that’s capable of delivering speeds of more than 1Gbps—along with a three-month trial for both consumer and enterprise-level customers.

Despite setbacks caused by the pandemic, Singapore and other countries in the Asia-Pacific region, such as South Korea, China, Japan, and Australia are making significant to moderate progress with 5G. Meanwhile, in an unexpected turn of events, emerging markets like Vietnam and Thailand have also made huge steps to roll out commercial 5G in their respective countries.

Learn more about these developments with this infographic on 5G in APAC.

As the pandemic shut down offices, brick-and-mortar retailers, and restaurants, consumers were forced to adapt by working from home, taking online classes, shopping online, and using food-delivery apps.

This pandemic-induced shift, along with the resulting increase in the adoption of cloud-based services, has only served to highlight the value of 5G, especially in countries that have banned certain 5G vendors.

In the US, the FCC (Federal Communications Commission) notes that this unprecedented switch-over to online infrastructure is a huge test on current telecommunications networks⁷. It also makes the business case for 5G, which has been touted as the solution⁸ to bring underserved rural areas to parity with urban connectivity.

Meanwhile, in the UK, the rollout of 5G could be the catalyst for post-pandemic economic recovery, jumpstarting growth in crippled sectors. High-speed and low-latency networks are predicted to add £38 billion (S$68 billion) to the economy between 2020 and 2025 and £158 billion (S$284 billion) from 2025 to 2030⁹.

The strain on global healthcare systems caused by the pandemic has also accelerated the adoption of 5G and IoT (Internet of Things) technologies. In Thailand, 20 hospitals have been outfitted with 5G network kits¹⁰ to expand their telemedicine capabilities and enable them to treat COVID-infected patients using Internet-connected robots.

Despite its business benefits, deploying 5G continues to be a challenge even in developed markets. For one, there’s the difficulty of building denser, more complex networks than existing infrastructure. While new 5G antennas deliver higher speeds and more bandwidth, they also cover significantly less space than 4G macrocells. This means rolling out a 5G network in Singapore, for example, would require more 5G hardware and supporting software.

There’s also the fact that many enterprises still find it difficult to envision a 5G business use case. With the exception of telecommunications firms, media and entertainment companies, and government agencies, organisations in the APAC region are taking a conservative approach to 5G technology. According to a recent Frost & Sullivan survey¹¹, while many businesses understand the need for 5G, the consensus is that there is still a knowledge gap surrounding 5G connectivity—hence the lack of urgency for its adoption.

Concerns also remain about the ability of a few 5G vendors to secure critical infrastructure from hostile state actors.

Telcos and other 5G players have been collaborating to overcome regional fragmentation and geographical complexities in specific countries. In Singapore, IMDA and Microsoft¹² signed a Memorandum of Intent in 2019 to accelerate the growth of Singapore’s 5G ecosystem. The partnership seeks to make a 5G development environment available for government agencies and enterprises to co-create 5G use cases.

Meanwhile, mobile carriers in China have agreed to build a shared 5G network, making it easy to collaborate on building the thousands of base stations necessary to roll out a new 5G network across 50 cities¹³.

Despite all the setbacks, 2020 was still an important year for 5G technology. Even in a crisis, sales of 5G-equipped phones ended up being as strong as pre-pandemic levels¹⁴. And just like its predecessor, 5G will eventually make its way to midrange devices, making 5G connectivity more accessible to the masses.

All signs point to APAC leading the world in 5G adoption. Research by GlobalData predicts that the region’s 1.14 billion mobile subscribers will account for 65% of the world’s 5G users by 2024¹⁵. Meanwhile, a GSMA report¹⁶ forecasts spending on 5G deployments in APAC to reach the US$331 billion (S$440 billion) mark by 2025.

It will likely take years for 5G to reach scale, but that hasn’t slowed rising interest in private, dedicated 5G networks aimed at enterprises. According to a survey by TECHnalysis Research¹⁷, over 600 IT decision-makers across medium and large enterprises report in the US enormous demand for private 5G networks at their company sites. In Asia, manufacturers are capitalising on the emerging market for 5G private networks¹⁸.

Only time will tell whether 2021 will finally be the year for 5G. But now, carriers and telecommunications players have an urgent reason to roll out 5G technology. Next-generation mobile network technology can improve everything from video conferencing and cloud-based platforms to telemedicine and remote working—all of which have become fixtures of life under the new normal.

Get started with 5G.  

¹ Deloitte, 5G: The new network arrives, 2019.

² CNet, 5G in 2019 underwhelmed. Here's how 2020 should be different, 2019.

³ SDXCentral, Cisco: COVID-19 causing year-long 5G delays, 2020.

⁴ Computer Weekly, Coronavirus accelerates digital transformation, 2020.

⁵ Singtel, Singtel ushers in 5G era with 5G licence, 2020.

⁶ Singtel Unboxed.

⁷ CNBC, Why the coronavirus pandemic may fast-forward 5G adoption in the US, 2020.

⁸ Federal Communications Commission, FCC Establishes a 5G Fund for Rural America, 2020.

⁹ Raconteur, How 5G could boost the post-COVID economy, 2020.

¹⁰ Bangkok Post, AIS uses 5G, robots in pandemic war, 2020.

¹¹ Frost & Sullivan, 5G strategic direction voice of customer, Asia-Pacific, 2020.

¹² Microsoft, IMDA and Microsoft collaborate to accelerate the development of Singapore’s 5G innovation ecosystem, 2019.

¹³ Reuters, China telcos weigh sharing 5G network to cut costs, potentially hurting Huawei, 2019.

¹⁴ CNet, 5G will start to live up to its hype in 2021 -- for real this time, 2020.

¹⁵ Computer Weekly, Asia-Pacific to lead 5G technology adoption to 2024, 2020.

¹⁶ GSM Association, The mobile economy Asia Pacific, 2020.

¹⁷ Technalysis Research, Pandemic-based IT priority shifts: a survey report, 2020.

¹⁸ Nikkei Asia, Apple suppliers eye 5G private network boom, 2020.