What role does 5G technology play in the digital economy?

243 commercial 5G networks have been deployed globally

5G is the latest mobile generation that is being commercially deployed by many countries around the world. According to data released in December 2022 by the Global Mobile Suppliers Association (GSA), nearly 4 years after Korea deployed the world's first commercial 5G network in April 2019, there are now 243 commercial 5G networks and 514 mobile operators investing in 5G networks globally.

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A report by Swedish telecommunications equipment supplier Ericsson also shows that 5G technology is expanding faster than any previous mobile generation, with global mobile network data traffic doubling in the past two years, driven by continued growth in smartphone usage, mobile broadband and industry.

Compared to 4G, 3G and 2G network generations, 5G will provide users with completely new experiences such as playing virtual reality games, exercising with a virtual coach, visiting virtual art museums... With an ideal maximum speed 100 times faster than 4G, 5G network is expected to bring users the fastest online learning, shopping and working experience.

5G supports three basic types of information exchange services: Enhanced Mobile Broadband (eMBB), Ultra-Reliable and Low-latency Communications (uRLLC), and Massive Machine Type Communications (mMTC). These three types of services are provided simultaneously on the same mobile network infrastructure based on network slicing technology, a new concept introduced in 5G technology.

eMBB is primarily focused on higher data rates and bandwidth for internet-based applications, with peak speeds of 20Gbps downlink and 10Gbps uplink. This enables people-centric connectivity, including access to multimedia content, services, and data. Common mobile broadband use cases include connecting “hotspots,” developing virtual reality (VR) and augmented reality (AR) applications, streaming UltraHD or 360-degree video streams, industrial automation, and more.

uRLLC provides ultra-low latency and supports ultra-high reliability, with the ability to achieve 1ms latency with 99.999% reliability on the 5G radio channel. This enables the transmission of small data packets (with a size of only a few bytes) over the radio channel within a specified time limit with very high reliability, meeting the requirements for precision control applications. Specifically, this application is used to build smart cities, connecting communication between traffic lights, self-driving vehicles and highways for traffic control; used in remote surgery; radio control in industrial production lines and extremely important applications that do not allow errors to occur.

mMTC enables the simultaneous collection of a large volume of small data packets from a large number of devices. The focus of mMTC is to provide connectivity to a large number of devices, up to 1,000,000 devices per km2, with battery life for terminals that can exceed 10 years. Through the use of IoT, mMTC will reduce device energy consumption and make work more efficient.

How will 5G impact the industry?

Another aspect of 5G technology that we need to pay attention to is the ability of 5G to serve high-speed interactive information exchange between machines to machines (M2M: Machine-to-Machine) in the IoT ecosystem with extremely high reliability, extremely low latency, and large scale of connection and IoT network density. This is the value that 5G can effectively contribute to realizing the smart factory trend of the Fourth Industrial Revolution.

In fact, the goal of 5G development is not only to improve the broadband capacity of mobile networks, but also to provide high-quality wireless connections for many industries, especially in manufacturing with automated and robot-controlled lines.

Companies can use industrial 5G technologies to track goods and materials throughout the manufacturing process and simulate factory operations; use them for real-time M2M communication, augmented reality applications, and product monitoring and asset data.

5G networks are fully capable of creating socio-economic value. At the same time, the impact of 5G technology on specific industries will be huge. According to estimates by the global market research company IHS Markit (UK), 5G networks are expected to generate about $13.1 trillion in revenue for the global economy and more than 22.3 million new jobs by 2035.

Source: IHS Market.

The top five industries expected to benefit most from 5G technology include manufacturing (4,771 billion USD); information and communications (1,493 billion USD); wholesale and retail (1,144 billion USD); public services (961 billion USD) and construction (730 billion USD).

5G and the future of the digital economy

5G networks bring many benefits to the socio-economy as well as to many industries and fields such as manufacturing, healthcare, education and agriculture. Combining digital platforms with 5G networks will promote innovation and facilitate improvements in service quality thanks to the high speed that 5G networks bring.

With outstanding features of 5G technology such as extremely low latency, extremely high speed and allowing the connection of a large number of devices, this new technology will effectively support new applications such as IoT, artificial intelligence (AI) and virtual reality. In addition, they also allow the transmission of data streams in real time to meet services such as self-driving cars, remote surgery...

5G technology will be the premise for all industries and sectors in the economy to carry out digital transformation, ready for the Fourth Industrial Revolution. 5G will help build a connected society, facilitating the deployment of online services on digital platforms to all people and organizations. Countries around the world have been making efforts to develop products and solutions as well as participate in the deployment of digital connection infrastructure and digital platforms, taking advantage of and effectively promoting the benefits of 5G technology, contributing to the construction of digital infrastructure to promote national digital transformation.

5G networks offer manufacturers and telecom operators the opportunity to build smart factories powered by intelligent technologies such as automation, AI and IoT. Some of the areas where 5G can impact and improve the digital economy include:

Internet of Things (IoT)

5G will be a powerful supporting technology to increase connection speed, especially in IoT connection. Nowadays, with the need to process increasing data volumes, telecommunications companies have begun to invest in developing 5G networks and IoT services in all fields. In the near future, 5G networks will be applied to activities such as remote monitoring, automation, connecting vehicles, etc.

Remote monitoring IoT devices ensure operations are conducted in a regulated manner and are more efficient. With asset tracking solutions, IoT devices help companies closely manage their supply chains, collect important data to streamline operations, and identify potential problems that could impact growth. Additionally, IoT-enabled infrastructure such as lighting and smart temperature, humidity, and air quality control systems can help reduce operating costs for companies through automation.

A typical example of using IoT in remote inspection and monitoring is developed by IBM (USA) to monitor bridges, tunnels, highways and railway lines. Accordingly, this solution will use real-time IoT data generated from sensors placed on the structures as well as cameras and drones. Data from IoT devices will be fed into specific analysis models to help identify and measure impacts that can affect the structure such as cracks, rust, corrosion and vibration.

Connected vehicles

5G technology will open up a new direction for transportation, allowing vehicles to connect with each other and with road infrastructure equipment such as traffic lights, signs, etc., thereby forming a smart and safe transportation network.

5G-connected vehicles can receive critical information about traffic conditions such as barriers, traffic congestion, parking locations, vehicle travel conditions, and more.

Currently, many companies are developing C-V2X (Cellular Vehicle-to-Everything) technology, integrating these technologies into vehicles, infrastructure and traffic management platforms, helping to solve traffic management problems and improve the traffic network.

C-V2X is a unified platform for vehicles and intelligent transportation systems. C-V2X connects vehicles to vehicles (V2V), vehicles to infrastructure (V2I), vehicles to pedestrians (V2P), and vehicles to networks (V2N). By connecting individual vehicles and enabling the development of cooperative intelligent transportation systems (C-ITS) to reduce traffic congestion and pollution, the platform has the potential to transform information and safety services on highways and in cities to make travel more convenient.

Better national governance

Governments can develop an effective smart city architecture and e-government framework using 5G technology, through which citizens can experience better public services and receive real-time information from government officials in case of emergency.

The deployment of next-generation mobile networks like 5G will create value for many industries. The technology can be used creatively in a variety of environments. Hospitals will be equipped with 5G-enabled devices to facilitate remote patient monitoring and smart ambulances will connect in real time.

Additionally, with 5G technology, we will be able to conduct seamless financial transactions through digital wallets and applications connected to smartphones, cars, and many other devices. Factories will be 5G-enabled to connect with devices and sensor systems. 5G, combined with AI, edge computing, IoT, and extended reality (XR), can enable businesses to realize the full benefits of these technological advances.

In short, the impact of 5G on the economy will be significant and it will add momentum to the Fourth Industrial Revolution with the acceleration of the Internet of Things. 5G's ability to transmit data quickly, in real time and reliably will bring huge benefits to sensors and controllers installed in vehicles, machines and logistics chains in industries./.