Research
Sector Report

Barriers for 5G and its position in 2019

  • Multi Asset
  • TMT
  • North America

5G is generally touted as the driver of the “fourth industrial revolution” and is expected to improve global productivity and economic growth. 5G’s pending arrival is shrouded in skepticism as the market appears pessimistic about the timeline for 5G and its ability to meet public demand. During Q2 2019, Third Bridge Forum investigated the 5G roll-out and the barriers that could prevent the technology from becoming widely available in the next year.

4G LTE technology is undeniably mature, however, it is also still gaining traction and could remain the leading network type for the foreseeable future. Our market coverage suggests that this 4G loyalty boils down to a reluctance to absorb the expenditure associated with the rollout until 5G clearly identifies a financial advantage for the consumer, original equipment manufacturers (OEMs) or service providers. Additionally, the infrastructure and components required for 5G are intricate and costly, the development of which could offset any initial financial gain.

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