ST. PETERSBURG, FL – Sixty-four percent of experts recently polled believe 5G will become mainstream in the next one to three years; 59% strongly agreed 5G transitions will create opportunities for new telecom companies; and 42% strongly believe a “killer app” will propel 5G’s true potential, according to results from Jabil’s 2022 global 5G survey.

More than half of respondents are considering an open radio access network (RAN) strategy to reduce capital and operational costs.

“Continued growth in 5G complexity and diversity creates a wealth of opportunities, as well as obstacles for traditional telco service providers, equipment manufacturers and software developers,” said Emanuele Cavallaro, president, Communications & Networking division, Jabil. “Our ability to collaborate with companies across the entire 5G ecosystem will push the boundaries of innovation to help 5G stakeholders reach their true potential.”

Participants included 193 stakeholders directly involved in the development, implementation or adoption of 5G technologies at leading telecommunications companies. Decision makers from North America, Europe, the Middle East and Asia-Pacific weighed in on the current and future state of the industry.  

Among other findings, 53% said it will deliver new business models; availability of spectrum, or lack thereof, is the most difficult technology challenge, according to 32% of respondents; almost all respondents (93%) believe 5G will foster partnerships between service providers and software or web services companies.

Respondents believe the financial services sector holds the most promise, with respondents ranking it first. Transportation ranked second, receiving a boost from developments in connected vehicles and autonomous driving. Healthcare came in third, in part due to breakthroughs in wearables and connected auto-injectors.

More than half of the participants (58%) assert the next “killer app” will come from the business world, with only a fifth (20%) looking at consumer-facing apps to accelerate adoption.  

Overall, telecom stakeholders are bullish about 5G’s prospects, with 65% citing it as a superior technology that will dramatically transform telecommunications, up 16% from the 2018 poll.  

Still, business-model challenges remain problematic among those surveyed, with 31% citing the creation of subscription models as the top impediment, followed by government regulations (27%) and erosion of market share by over-the-top providers (25%). Across the board, operational challenges have eased, but network mapping (32%) and lack of 5G-enabled devices (31%) still cause problems.

Interest and adoption of open radio access network (RAN) has continued to expand, along with its potential to transform networks with the prospect of open hardware, software and interfaces for interoperable, cellular wireless networks. Most of those polled (57%) believe open RAN will be ready for widespread deployment alongside 5G within the next two years. In fact, 55% of survey respondents report they are seriously considering an open RAN strategy, while another 22% report already having a viable strategy in place. Across the board, survey participants believe open RAN will reduce capital and operational (capex/opex) expenditures.

Overall, companies were split in assessing where hyperscalers (e.g., Amazon Web Services, Microsoft, Google, etc.) fit into open RAN strategies, with 44% believing they have a place. Two-thirds of respondents (67%) with an existing open RAN strategy report hyperscalers fit into their roadmaps.

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