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Get to Know the Top 5G Facts

Hello from SpyGlass Technology Audit Insider — your go-to resource for challenging the technology cost status quo through industry-leading trends, insights and tips.

In this issue we’re providing technology service expense insight into one of today’s most talked about topics: 5G.

With the promise of higher speeds, wider bandwidth (much faster than the internet!), lower latency (instantaneous video playback!), and more advanced capabilities, the fifth generation of wireless is key for leveraging new opportunities and better serving your customers. While there are many 5G opportunities ahead, no technological evolution comes without challenges.

Dig into some top 5G facts, what they mean to you, and how to proactively empower your fifth generation technology service costs.

5G Fact: Out with the old, in with the new

Since its initial deployment in 2018 by global mobile network carriers, total access to 5G seemed a distant reality. Now it’s certain the fifth generation’s expansion and availability is good news for the growing number of those with 5-G enabled devices.

But to clear the path for the future carriers need to say goodbye to 3G to make room for more advanced networks, like 5G. While the 3G shutdown may not mean much to your current mobile use, it’s important to understand getting rid of the older technology will cause dated cell phones to be unable make or receive calls and texts, including calls to 911, or use data services.

Recent reports show each carrier has a different 3G shutdown timeline:

  • AT&T will finish shutting down its 3G network by February 2022.
  • Verizon will finish shutting down its 3G network by December 31, 2022.
  • T-Mobile announced it will finish shutting down Sprint’s 3G CDMA network by March 31, 2022 and Sprint’s 4G LTE network by June 30, 2022. It also announced it will shut down T-Mobile’s 3G UMTS network by July 1, 2022, but has not yet announced a shutdown date for its 2G network.

At the beginning of 2022, 5G deployment faced setbacks when concerns were raised by the airline industry about potential interference with radio altimeters on airplanes. As a result, both Verizon and AT&T agreed to delay their 5G rollouts in the C-Band spectrum.

5G Fact: Access equals $$

Moving to 5G hasn’t been easy or cheap. With networks requiring dense clusters of antennas and masts, the laying of fiber-optic cable, and in some cases, upgrade existing 4G, the costs have added up. According to McKinsey, networks will have to increase their expenditure by 60% from 2020 to 2025 to be 5G ready.

It’s also been reported that unlike previous iterations of connectivity, 5G will cost more. To get the most out of 5G, companies will need to prepare for the technology evolution’s extra costs ranging from $85 to $100 per month from the top carriers. For instance, Verizon’s 5G prices are an average of $18 higher than 4G, but come with free roaming in Canada and Mexico.

A recent statement from AT&T seems to sum it up: “5G brings capabilities that are going to cause us to think differently about pricing. We expect pricing to be at a premium to what we charge today.”

5G Fact: Reliability, flexibility sets us *free (*if you amp up the cloud)

A reliable widespread 5G network is literally the key to set us free — to work virtually anywhere, on any device.

With the power of remote work a top priority in post-pandemic days, recent IDC research predicts that up to 90% of enterprises will permanently use a hybrid work model by the end of 2022. To make the remote work environment succeed via 5G, businesses will need to continue their transition to cloud communications.

The movement from on-premise data centers into the public cloud, including Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS) escalated overnight when the pandemic hit. With so many quickly tapping into whatever cloud services needed to manage remote work, it’s no wonder a recent survey found 93% of businesses face challenges with budgeting infrastructure cloud costs.

SpyGlass experts deliver a thorough inventory of all technology services to provide the best cost breakdown for 5G savings.