Since legendary Apple founder Steve Jobs launched the first iPhone in 2007, the ubiquity of smart phones has triggered a huge change in how society operates. There has been an explosion of data over the internet. Video and streaming have become part of everyday life. Millions of apps have been developed from maps and flashlights to scanners, calculators and share-trading platforms. And that’s before gaming is considered.

People work differently, family dynamics have changed, the main lines of communication between groups of people is now via social media. Retail has altered forever, connectedness has had a massive impact on health (good and bad), advertising, media and manufacturing. In just 12 years, the introduction of smart phones¹ has affected almost every facet of the economy.

It is about to happen all over again, but much more radically.

The 5G revolution is coming and it will transform the way technology is used in society, from buildings and objects through to mobile devices and even our bodies. Billions of people will be connected utilising unprecedented speed, processing power and storage capacity.

Fifth generation wireless networking architecture, or 5G, has the potential to, literally, revolutionise how we live, what we do, how we relate and how society operates.

The new technology is already being rolled out in many countries including China, Japan, South Korea, Australia, the United States and parts of Europe. Huge amounts of money are being spent on networks. Mobile operators are forecasted to invest around $US370 billion in new 5G networks between now and 2025. Around half of that money will be spent in China² alone.

The enormous expense of the new network has already changed corporate behaviour. In Italy, Vodafone and Telecom Italia have decided to merge their network of towers to share 5G costs. The three main tower companies in China have done the same thing.

The introduction of the 5G network is akin to a fourth industrial revolution, after the previous steam, electricity and computing revolutions. But it will take time to deploy. Building the network needs technology and infrastructure to develop together.

For 5G to operate, it needs a critical mass of people and structures to be 5G enabled. For it to operate optimally, it needs everyone and everything to be 5G ready. Some economies and cities already have strategies and spending in place. Others will take decades to fully implement 5G technology.

Understanding 5G

The growth in the number of connected devices over the past decade has been astounding. Next year the number is expected to reach 50 billion according to Cisco, four times the number in 20103 . That’s six connected devices for every person in the world, based on World Bank projections⁴.

In short, the interconnected world has become very crowded. 5G technology addresses the two biggest challenges in the 4G network – congestion and latency – in three ways:

1. 5G will use wider bandwidth channels of spectrum than previous technologies, effectively clearing the path for data transmission. 
2. In a 5G world, latency is expected to decrease by 50 times, falling to one millisecond. 
3. Each cell site using 5G technology will handle at least one million devices per square kilometre, compared to around 2,000 wireless devices under 4G. 

Until now, connected devices have operated in the 3KHz to 6GHz frequency spectrum. 5G utilises high frequency millimetre waves which are broadcasted between 30GHz and 300GHz. Currently those frequencies are utilised by satellite operators and radar systems. It’s akin to a freeway shifting from four lanes to dozens of lanes. Using these frequencies will allow huge amounts of data to be transmitted. Connected devices will operate as designed without the latency experienced under 4G. For example, 5G will enable a high definition video to be downloaded in seconds and enable HD television channels to be streamed without interruption.

How does 5G work?

5G uses new technology and communication techniques to deliver ultra-fast data across devices. There are several critical factors that, combined, allow for the delivery of 5G communications and the benefits that accrue from that.

Millimetre waves

Frequency refers to the number of waves generated in a set period of time and is measured in hertz (Hz). One hertz means one wave per second, while 1MHz (or megahertz) is one million waves per second, and 1GHz (or gigahertz) is one billion waves per second. Each wave carries data (or information).

Since the launch of the First Generation of mobile networks, connected devices have been operating in the 3KHz to 6GHz frequency spectrum, which is now very congested. A critical underpinning of 5G is the use of high frequency millimetre waves which are broadcasted at frequencies between 30GHz and 300GHz. These high frequencies allow a significant amount of data to be broadcasted with very low latency (or delay).

The trade-off is the range and potential for interference from obstacles. High frequency doesn’t work as well when it is blocked by building walls, or nature including humidity and rain. That’s why people talk about line-of-sight paths for 5G.

Massive MIMO

Massive Multiple-Input Multiple-Output (MIMO) technology enables multiple signals to be transmitted and received over the same radio channel. Massive MIMO systems can have 100 antennas, compared to the two to four on standard MIMO networks. The main advantage of massive MIMO is a significant increase in the capacity of a wireless network without using additional spectrum. Like millimetre waves, there’s a trade-off. Massive MIMO systems are more susceptible to interference. Technologies such as ‘beamforming’ have been developed to minimise interference.

Beamforming

Most radio devices send out a signal in multiple directions at once. This isn’t particularly useful in the 5G ecosystem, because the use of millimetre waves and massive MIMO creates potential for much greater interference. Beamforming is a technology that identifies the most efficient route to transmit data from a radio base system, while also reducing interference. Beamforming technology focuses a signal in a concentrated beam that points in the direction of the user. The technology is a key pillar of the 5G ecosystem.

Small cells

Small cells have been around for many years. They are low powered mobile radio access nodes with a short range of up to a few kilometres designed to handle a few simultaneous calls or sessions. So why are small cells so important in 5G? Because they are small. They can be put almost anywhere with relatively little effort. Small cells can be attached to traffic lights, in office ceilings or atop buildings. They will play a significant role in expanding the mobile network coverage through reducing interference and ensuring millimetre waves are travelling an acceptable range. Small cells are critical to delivering high speed, low latency data.

Full duplex

Among the biggest constraints in radio frequency technology to date has been that a transceiver is not able to transmit and receive signals at the same time using the same radio frequency. The signals interfere with each other. It means using double the frequency spectrum – half for transmitting and half for receiving - or taking turns transmitting and then receiving. Full duplex technology can solve this conundrum by allowing signals to travel around each other. Its adoption would double the frequency band and increase the wireless capacity by a factor of two.

How 5G will change the world

The Internet of Things is a phrase first coined by British technologist, Kevin Ashton, at a Proctor & Gamble conference in 1999. It refers to a network of physical devices, vehicles, buildings and objects that are embedded with electronics, software, sensors and network connectivity to enable the collection and transmission of data. For the past two decades it has been an aspiration, but the roll-out of the 5G network will allow for the Internet of Things to come into fruition, creating a very different society.

Smart cities

Urbanisation is a seemingly inevitable by-product of progress. According to leading management consultancy BCG, by 2030 more than 5 billion people will live in cities. By that year, roughly one-sixth of the world’s population will live in 41 very large cities of more than 10 million people⁵ .
The strains this will put on cities is enormous and unprecedented. Technology, and particularly the introduction of 5G, will help redeploy resources more effectively and create a healthier urban environment. It is already happening. Municipalities including Vienna, London, Chicago and Singapore have long-term strategies and are spending billions of dollars to become “smart cities”⁶ . What they need is a fully functioning 5G network to drive the concept of a smart city.

What these cities have, which all municipalities will eventually need, are governments and large businesses working together to create the 5G network. Such a large infrastructure roll-out needs both government and private enterprise support. The pay-off will be enormous – higher quality and standard of living for the citizens who live and work in a smart city.

There will also be large costs. Get ready for decades of debate around the use of data and privacy, neophobia, real estate changes and stakeholder engagement challenges. It’s why governments need to lead the way to grasp the long-term opportunities from the 5G network. While the challenges are significant, there are successful case studies of smart cities. Johns Creek, Georgia in the United States, population 85,000, has worked with Amazon to allow Alexa, the company’s virtual digital assistant, to answer more than 200 questions regarding city operations and services.

Environment

Significantly, smart cities can have huge benefits to the environment. BCG forecasts that digital solutions could generate reductions of up to 30 per cent in carbon dioxide emissions, and energy and water consumption⁷ . Individuals will know exactly how much power they use, the best time to access it and how to minimise carbon outputs. Buildings and cities can operate to minimise loads on electricity grids and optimise green power.