Traditional 5G investment slowed in 2023 creating these technology sectors
At CES 2024 there will be plenty on hot new wireless technologies including private wireless, 5G-A, fixed wireless access (FWA) and 5G home internet. We have watched the growth and transformation of the wireless industry worldwide for decades. First, it was analog, then digital, then moving from 2G to 5G. Now wireless is growing beyond its core and creating these new market segments.
At the same time all this new technology is hitting the streets, the wireless marketplace is getting louder and more chaotic. That makes it tough for competitors to be seen and heard. That is a weak link in an otherwise strong and long wireless chain.
One key challenge is how companies can get their messages heard and get noticed in a very noisy industry. These are going to be important sectors going forward.
Let’s look at the next steps wireless is taking to lead us to these new areas.
#CES2024 will show 5G wireless industry shifting gears to new areas
First, wireless has been with us for roughly 50 years. It started as an analog, voice only service. Then in the late 1990’s it changed from analog to digital. Then from 2G to 5G and beyond.
Today, we use wireless for so many new services. In fact, the super smartphones like iPhone and Android are the center of our universe. We browse the web, watch TV and movies, listen to music, pay for things, text, email, take photos, use more apps than you can count and so much more.
Second, 5G is faster than ever before, and with lower latency. This lets us do things we could never do before like remote surgery, self-driving cars, autonomous vehicles and so much more. And it will keep getting faster and better.
It gives us ways to connect our smartphones, tablets, watches, headphones and computers to the cloud and AI in new ways and to do more, no matter where we are or what we are doing.
Third, private wireless is a relatively new idea. It lets enterprise customers build their own wireless connectivity on their own private network. This affords more control, better security and better coverage and quality.
Fourth, the move from 5G to 5G-Advanced. 5G-A takes wireless to the next level with even faster service with even lower latency before going to 6G.
Fifth, FWA lets wireless carriers offer in-home and in-office broadband connection, without a cable.
These are solid, new areas the wireless industry is now focusing on for growth.
Weak economy slows traditional 5G wireless growth in 2023
Investing in 5G has slowed in 2023. The next question is will it resume in 2024?
The industry is focusing on new areas for growth. Today, 5G is expanding and moving into new areas and directions for growth.
This is the beautiful part of this story. The power of the human mind to think in new ways when new challenges and growth opportunities present themselves.
There are reasons for 5G weakness like the bad economy causing users to look for money saving alternatives. They do want 5G, but they also want to spend less. In fact, there are many reasons.
At the same time, wireless networks are all still investing billions of dollars to upgrade their networks for competitive reasons. You see, wireless carriers need to continue their 5G upgrade because their competitors are doing so.
New wireless growth; private wireless, 5G-A, FWA, 5G home nternet
All that being said, don’t be confused, wireless remains one of the most important and impactful industries we have. It will continue to grow. Wireless is not going away.
In fact, wireless is the core communications technology for every citizen, every company of every country, worldwide, going forward from now on.
Until the economy strengthens once again, the wireless industry will continue to wrestle with growth from traditional areas. That’s why we are seeing them find new areas of growth.
And it seems to be working.
That’s why today we are seeing several new sectors starting to capture the attention of the marketplace, business customers and consumers and investors.
Companies who are active in these new areas are showing signs of growth.
Some companies are further along than others. Some are striking out on their own, while others are partnering for a more rapid rollout of services.
US Cellular, Betacom, Huawei, Samsung, Juniper Networks and others
That’s why private wireless, 5G-Advanced, FWA and 5G home internet are getting so much attention. These are the growth engines the industry is shifting to today.
Private wireless gives the enterprise community more control and better security and that is exactly what they are looking for. This will help the Business Services side of the industry.
5G-A represents the next generation of wireless, before jumping to 6G. It is similar to what the industry went through decades ago moving from 2G to 2.5G. This is for both the consumer side and Business Services.
FWA or Fixed Wireless Access and 5G home internet let’s wireless carriers provide broadband Internet access to the home using a wireless connection rather than a cable. This is for both the consumer and business side.
A few of the leaders in these sectors include network builders like Qualcomm, Betacom, Huawei, Samsung, Ericsson, Nokia, NEC and Juniper Networks.
Wireless carriers AT&T, T-Mobile, Verizon move in new directions
Plus, service providers like Xfinity, Spectrum, Altice, Cox Communications, AT&T Mobility, T-Mobile, Verizon Wireless, US Cellular, C-Spire, KORE Wireless and others.
These new services are both for the business services side and the consumer side.
Expect these companies and more, whether they be network builders or network services to radically change the wireless industry in coming years.
Part of the reason for this is these three areas look like a solid source of growth and revenue. And this is what every one of these company’s needs.
Will traditional 5G wireless investing resume in 2024?
Any way we slice it, wireless continues to be important and grow moving forward. It is just taking new and different paths.
This rocky road of investment in traditional 5G continues in 2023 and will hopefully improve again in 2024?
I look forward to meeting some of these innovative players at #CES2024 and seeing what we can expect going forward.
So, while investment in traditional 5G has slowed in 2023, the growth path veered into new directions like private wireless, 5G-A, FWA and 5G home internet. These could prove to be real sources of growth for both the business and consumer markets for years to come.
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