UK expected to lag behind US and China in race for 5G connectivity
The UK and Europe are likely to lag behind the likes of the US and China in the race to roll out 5G connectivity, new research published today has shown.
Technology research group CCS Insight predicted that the US could roll out 5G as soon as 2018, while China will establish itself as a leader in connectivity by 2020.
But Europe and the UK are expected to fall behind in their roll-out of 5G technology.
Read more: Mobile phone giants buy 4G and 5G spectrum in £1.4bn Ofcom auction
Around 100m connections are expected to be made in Europe by 2023, compared to China which will reach that number as early as 2021.
Globally, CCS Insight reckons that 5G connections could grow as high as 60m by 2020, while the one billion mark is expected to be breached by mid-2023.
Kester Mann, principal analyst covering operators at CCS Insight, said:
The industry might be struggling to establish the business models for investment in 5G, but this isn’t stopping leading operators battling for bragging rights to launch the first networks. Competitive forces and the need for capacity are the leading drivers of early deployment, although we caution this could set unrealistic expectations for initial network capability.
A breakthrough was made in getting 5G onto the UK’s networks last week, as Ofcom announced the winners of its 4G and 5G spectrum auction.
Companies who won big included Hutchinson 3G, Telefonica, EE and Vodafone, who all got a slice of the spectrum at auction.
When the result of the auction was announced, analysts said that the high prices paid by telecommunications firms for a slice of the network were justified by the importance of using up-to-date technology.
David Madden, analyst at CMC said: “The companies paid above what analysts were expecting, which shows how firms in the telecommunications sector will pay whatever price to stay at the forefront of technological trends.
“Companies have got to keep up with their UK competitors as well global firms, especially in an industry which is famous for having products and services go out of date quickly.”
In May 2017, O2 announced plans to build 1,400 mini-masts across London to boost connectivity and prepare the capital for 5G.