When 5G was introduced, it was hailed as a cutting-edge technology that would revolutionize mobile connectivity. We were promised gigabit per second speeds and low latency. Sales of 5G smartphones have shown that consumers are enthusiastic enough about the technology to upgrade their phones.

However, expectations are far from reality. Speeds are comparable to 4G networks due to poor 5G coverage in most areas. There is no mobile app that uses gigabit speeds, even if you could get them.

The Financial Times now claims there has been a slowdown in consumer demand for 5G.

Even in Southeast Asian markets, which adopted 5G much faster than most European and North American countries, consumer demand for 5G smartphones has just begun to decline. In the second quarter of this year, there was a 7% drop in shipments of 5G devices to 24.5 million, according to a recent report by Canalys, a firm that analyzes technology markets.

“The hype about 5G has died down and demand has shifted to more practical aspects of smartphones, such as battery life, storage, processor speed and camera quality,” said Chiu Le Xuan, an analyst at Canalys. “Everyone is feeling the pinch and the practical applications of 5G are not yet visible.” He claims that in the vast majority of cases, 4G speeds are sufficient for everyday use.

Is 5G worth it? Users lose interest

Smartphone companies have invested hundreds of billions of dollars in 5G infrastructure and spectrum, and now many are unsure whether their investment will pay off. Carriers are trying to recoup some of their infrastructure investments. By persuading customers to switch to higher tariffs that give more bandwidth. Because fierce competition keeps the price of fifth generation devices cheap.

However, this technique may be threatened by the global crisis in the cost of living. Especially considering that most new items are only marginally superior to their predecessors.

Gizchina News of the week

However, the 5G consumer market should expand in Asia in the coming years. Some of the factors that cause demand to slow down are only temporary. Such as lower consumer confidence amid inflation.

The fact that so few operators have deployed the most advanced version of 5G, known as “5G standalone”. When the network core uses cutting-edge technology, this can contribute to the problem. More than 200 operators have launched fifth generation services worldwide. But only about 30 of them have done so with standalone 5G, according to research by Omdia.

Telecom companies are waiting for profit


Operators argue that the main benefit of 5G is the improvements it can bring to businesses. Not the stunning new apps it will bring to users. Digital twins are one commonly mentioned application of this type. It is essentially a cloud environment that simulates the real world

Businesses can make wise decisions about how to optimize their workspaces and work practices. By taking massive amounts of real-world data and analyzing it quickly. Digital twins have been a concept for some time. But the introduction of 5G allows the technology to advance rapidly. Its use in industries such as manufacturing, ports and mining is becoming increasingly apparent. However, most projects are still in the testing phase.

In private networks, spectrum is essentially offered directly to businesses. So they can run their own independent network, which is another touted enterprise use for 5G.

The catch is that there is a very real threat that telcos will be cut out of much of this business. Several countries, including the US, France, Germany, Japan, South Korea and India, have started making some 5G spectrum available to companies to buy directly from the government, according to research by Omdia, and are no longer selling it exclusively to telecom groups. In some cases, this means that companies can simply sign a contract with an equipment supplier to build their own private networks.

The battle is for the telecom groups that have poured so much money into 5G to prove that this time they are the ones to gain the most from the latest generation of telecom technology.

Users are losing interest in 5G

Previous articleZoom (ZM) Q3 2023 Earnings
Next articleApeCoin DAO Debuts Its NFT Marketplace; Sizzles Up Competition for OpenSea, MagicEden