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3 years ago

5G Economy: Opportunities and challenges

Arirang News
Arirang News
Just about a week ago, South Korea's three major mobile carriers launched the world’s first commercial 5G services.
For more on the opportunities, socio-economic effects and possible future challenges,... Kim Hyesung reports.

On December 1st, South Korea became the first country in the world to launch 5G mobile network for business users.
Twenty times faster than 4G LTE, a 5G network can transmit 20 gigabytes a second...or in other words, users can download a 90 minute-long movie in a single second.

"By launching standard 5G mobile network services ahead of countries like the U.S. and China, South Korea can now lead the standardization of 5G in the world. That means setting standards for 5G devices, equipment and content services. There will be new investment and technological innovation that will create new momentum for growth."

Known as the key infrastructure that will enable the fourth industrial revolution, 5G technology revolutionizes connectivity across industries, thanks to its speed and reliability...leading advances in areas like driverless cars, telemedicine, smart factories and more.
5G is expected to create an economic value of nearly 43 billion U.S. dollars by 2030 in South Korea by expanding the supply chain value system such as business equipment, 5G smartphone and apps, media content and the Internet of Things.
Globally, market researcher IHS Markit says 5G will generate over twelve trillion dollars of global economic output and support 22 million jobs by 2035.
To seize the opportunity, three major telecom operators in South Korea said they will allocate a combined 18 billion dollars as an initial investment, but it might take a while before they reap the rewards.

"There's a lot of hype about the fourth industrial revolution. But really, the market hasn't been created yet. 5G B2B and B2C markets like driverless cars will need time to take hold....meaning investors might have to wait more than ten years for a return. Investors need to look at 5G as a long-term investment, and government incentives like tax cuts, or the early creation of smart cities will be helpful in driving innovation."

Safety, privacy and industry guidelines are also critical issues that businesses and the government need to address.
But the era of 5G services has just begun...and its development depends on how users adopt them.
Experts say the near-term direction of development will become clearer after 5G services and smartphones for individual consumers are launched in South Korea in March 2019.
Kim Hyesung, Arirang News.
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