More and more businesses are recognizing that maximizing the potential of optimal and fast data connectivity, 5G or the Internet of Things (IoT) can transform their business models and create new revenue streams. From transport and logistics to construction, manufacturing and agriculture, many sectors also in Hungary could benefit from the potential of advanced telecoms infrastructures and related 5G services - with more than half of the companies in some sectors already being interested in specific solutions.
UK5G, the national innovation network to accelerate 5G deployment, has surveyed 300 businesses in the UK and found that 70 percent of them are already using 5G or plan to do so. Although there are barriers to implementation, the biggest of which is the cost of infrastructure, businesses are already preparing plans to take full advantage of 5G.
Almost three quarters of respondents (73%) think they are aware of the benefits of 5G and 70% have a plan on how they will use it to gain a competitive advantage. The maturity of 5G innovation is demonstrated by the fact that businesses understand the benefits the technology offers. For example, two thirds (66%) believe 5G will positively contribute to their corporate sustainability efforts and help improve customer experience (65%).
"Digitalization is based on advanced telecommunications infrastructure that provides broadband connectivity wherever it is needed. This can simply mean adequate outdoor and indoor mobile network coverage, also in remote or isolated areas, but, depending on the use case, a private network with 5G capability. This could transform business models and create new revenue streams in many sectors by leveraging the Internet of Things," said Judit Kübler-Andrási, CEO of CETIN Hungary Zrt. - "As an integrated telecom infrastructure provider, we are able to build and operate mobile service provider independent infrastructures where there is demand."
The deployment of private 5G networks in several industries has many benefits. In agriculture, for example, smart farm solutions - automated energy supply, irrigation or feeding, sensor-based monitoring of temperature or humidity, camera systems and drones - make production more flexible, reliable, and therefore more efficient. In industry, 5G networks can be applied from design to operation and maintenance. Smart factories can take advantage of technologies such as automation, artificial intelligence, or augmented reality for troubleshooting. Large-scale machine-to-machine communication minimizes human error. In transportation, 5G can make roads safer and greener, and businesses' logistics, fleet management and inventory control more cost-effective. In the construction industry, whether it is an office building, a residential building or an industrial facility, a stable broadband connection is a basic requirement. In the case of complex neighborhood development, network infrastructure can also be used to deploy smart sensor and machine vision solutions to improve the quality of life, for example by automating site security or developing intelligent building management and parking systems.
In the UK, there are still barriers preventing businesses from investing or maximizing the potential of 5G. 63% of respondents cited the complexity and cost of infrastructure, deployment, and integration as the biggest challenges to overcome. In addition to the cost of deployment, the fact that organizations still do not fully understand how to deploy 5G solutions remains a problem, with more than half (53%) of businesses saying this is a barrier.
UK5G research shows that despite these challenges, 45% of businesses plan to invest in 5G by 2023. In line with this, executives are actively seeking information and experience to support successful deployment. Almost two-thirds (66%) would be encouraged to invest by the industry-specific benefits of 5G, but by their own admission, technology leaders need education in this area: almost three in five (58%) want further guidance on how 5G can be integrated with existing infrastructure, and more than half (51%) want to learn best practices to support deployment. Organizations would also like support from the technology and telecoms industry. 46% believe it should be up to large technology companies and 40% to mobile network operators to explain how 5G can be rolled out in a commercially viable way.
In Hungary, there is also a growing demand for tailor-made telecommunications infrastructure solutions based on the actual needs of businesses, which are capable to meet specific quality requirements beyond the level of service available to all. For example, a factory, an industrial park, a hotel, an office building or even a housing estate, which is being built as part of a major investment project, may have specific requirements that can only be met by a customized telecommunications infrastructure development. In addition, there may be a need for upgrades related to already operational functionalities - for example, where a convention center wants to increase its competitiveness by paying more attention to improved customer experience that comes with the availability of stable and fast broadband data connectivity. "CETIN's own experience is that more than half of businesses in the industries concerned are already interested in such solutions. We are taking an active role in this education process." added Judit Kübler-Andrási.