The new 5G mobile phone standard is spreading rapidly across the world – and Switzerland is right at the forefront. Swisscom and Sunrise, for instance, have already begun to build their networks. In fact, all regions should already be able to enjoy ultrafast mobile communications by the end of the year. While there will only be just under 12 million users in 2019, this is primarily due to the fact that the smartphone industry has not yet brought a sufficient number of devices onto the market. Once the mobile phones are fully available across the market, however, this could change rapidly. The first iPhone with 5G capability is expected in 2020, for instance. Experts anticipate that the number of 5G users worldwide will reach the billion mark as early as 2023. On a regional comparison, the predictions are that Asia will lead the field, followed by North America and western Europe.
That global enthusiasm for 5G is so high is down to a simple reason: the mobile phone standard offers extremely fast transmission rates. Download speeds can reach up to ten gigabits per second, for instance, equivalent to a speed 625 times faster than a DSL landline. The theoretical download time for a 1.77GB file is then around 1.2 seconds. By comparison, in 2004, when the then highly praised UMTS (3G) started, it would have taken a good 660 minutes. The latency, i.e. the delay in the mobile phone network, also achieves breathtaking speed. In the ideal scenario it is one millisecond for 5G, and thus around 300 times faster than the blink of an eye. This would equate to a reduction in the signal delay by a factor of 40 compared with the current LTE standard. A response in real time delivers a kick-start to issues of the future such as “Industry 4.0” or “autonomous driving”. In private internet browsing too, though, it brings a whole raft of benefits. The high speeds make it possible to live stream with virtually no delay. View more information on investment solutions on the topic “5G – The world starts up the data turbo”.
Many industries want to have a slice of the new communication standard cake. Network providers, smartphone manufacturers and equipment suppliers are already getting themselves in position. According to the renowned market research institute IDC, sales with 5G network technology could rise from USD 528 million in 2018 to an immense USD 260 billion in 2022. But better times could also now be ahead for the since saturated smartphone segment. While the ultrafast mobile phones only account for a vanishingly small market share of 0.5 per cent this year, it is predicted that they will very soon be transformed into top sellers. IDC is forecasting an increase to 26 per cent for 2023, which corresponds to 401 million units sold. This gives an average annual growth rate of 23.9 per cent. By 2025, then, 1.5 billion 5G smartphones could already be sold worldwide.
US semiconductor manufacturer Qualcomm is among those driving the development of mobile phones. With its “Snapdragon 835” processor, it even supplied the basis for the first 5G-compatible device together with Motorola. The US group has since taken this chip a stage further, and the successor “Snapdragon 855” is now being used in many Samsung Galaxy models as well as in devices from LG, Sony and even the Chinese Xiaomi. However, the 5G equipment from Qualcomm doesn't just include chips: the company also offers corresponding antenna and radio frequency modules. Its competitor Broadcom, whose takeover bid for Qualcomm last year fell foul of the veto of US president Donald Trump, is also playing a decisive role in the 5G sector. In the view of well-known tech analyst Ming-Chi Kuo of TF International Securities, the company is set to supply the power amplifier for the hotly awaited 5G iPhone from Apple. The company’s strategy is being well received on the stock market: over the last five years the stock has appreciated by almost 300 per cent. Industry giant Intel, by contrast, is withdrawing from mobile phone modem development. This does not mean that the US group is finished with 5G, though: on the contrary, Intel is now concentrating primarily on the network infrastructure business.
