Introduction:
The development of 5G technology faces many challenges and debates regarding its real value and commercial significance. This situation is not much different in Pakistan due to limited market demands, low device penetration, and a lack of profitable applications. The country’s pursuit of 5G seems to be more influenced by global trends rather than actual customer demand.
Chairman of Digicel Group, Denis O’Brien, describes 5G as a disaster for telecommunications companies due to a lack of convincing business justification. He argues that unless the companies responsible for the majority of internet traffic, known as “over-the-top” companies, participate in network development expenses, the implementation of future technologies will be difficult.
Financially, major global telecommunications companies are struggling with massive corporate debts, partly due to significant investments in 5G technology. Industry leaders such as the CEO of AT&T and the CFO of Verizon are aware of the burden caused by these investments and prioritize debt reduction.
In South Korea, which led the global deployment of 5G, factors contributing to the underestimation of the technology include low market demand, limited device availability, and regulatory barriers. While the number of 5G subscribers exceeded 30 million in four years, it took 4G 2.5 years to achieve the same result. Globally, only 45% of 5G-capable smartphones were activated on 5G networks in 2022, indicating a decline compared to the previous year.
Julian Gorman, Head of APAC GSMA, explains that the initial promises of 5G lacked real business needs and were more of a technological demonstration. The 5G ecosystem still defines what new services and technologies are actually needed in the market.
However, despite significant investments in 4G deployment, Pakistan’s telecommunications sector operates with an average revenue per user below one dollar. Pursuing 5G without available applications and minimal device penetration seems to be more motivated by the desire to follow global trends rather than meeting actual customer demand. Moreover, with a large percentage of the population unconnected and lacking basic access to telecommunications, it is essential to prioritize connecting these individuals through transformative 4G technology instead of rushing into uncertain and complex 5G networks.
FAQ:
What are the challenges of implementing 5G technology in Pakistan?
Implementing 5G technology in Pakistan faces challenges related to low market demand, limited device availability, and a lack of profitable applications.
Why does the Chairman of Digicel Group refer to 5G as a “disaster” for telecommunications companies?
According to Denis O’Brien, Chairman of Digicel Group, 5G is a disaster for telecommunications companies due to a lack of convincing business justification and a lack of cooperation from “over-the-top” companies responsible for the majority of internet traffic.
What are the reasons for the underestimation of 5G technology in South Korea?
Reasons for underestimating 5G technology in South Korea include low market demand, limited device availability, and regulatory barriers.
Source:
Article Source
Pakistan’s Role in 5G Technology: Is it Worth it?
Pakistan’s telecommunications sector should focus on bridging the gaps in accessibility and improving 4G technology to meet the needs of a larger population, instead of hastily focusing on 5G, which currently serves only the elite.
The source of the article is from the blog foodnext.nl