In Short:
5G technology costs are decreasing, leading to increased adoption in industries like ports, mining, and media. Telecom operators struggle to monetize 5G but see opportunities in B2B and enterprise sectors. Manufacturing, healthcare, and education are predicted to adopt 5G extensively. 5G Fixed Wireless Access (FWA) is a revenue opportunity for telcos, along with IoT applications. GlobalLogic is developing 5G use cases with startups to advance network technology.
5G Adoption Cost Reduction to Drive Industry Verticals, says GlobalLogic Executive
Cost Reduction in 5G Technology
A top executive of the US-based digital transformation solutions provider GlobalLogic stated that the reduction in costs associated with 5G technology will lead to its adoption across various industry verticals like ports, mining, and media.
“We think 5G is a network that supports outdoors better than indoors. As the cost of adoption goes down, there will be more and more B2B (business-to-business), and business-to-enterprise use cases,” said Vikram Puranik, SVP, Engineering and Head of Consumer, Communications, and Media, GlobalLogic APAC.
Monetisation Challenges of 5G
Despite the potential benefits of 5G, telecom operators and partners are facing challenges in monetizing the technology due to high investments in spectrum, equipment, and IT/OT systems. Enterprises are seeking cost-effective and better connectivity options.
Industry Vertical Adoption of 5G
During the recent ETTelecom 5G|6G Congress 2024, it was discussed that manufacturing, healthcare, and education sectors would be among the top industry verticals adopting 5G extensively. 5G Fixed Wireless Access (FWA) and RedCap for IoT devices are seen as significant applications in the consumer segment.
Initiatives by GlobalLogic
GlobalLogic is working on developing telco use cases through a GenAI studio and a 5G testbed lab. The company is also collaborating with startups to build innovative 5G solutions and aims to host a showcase for startups to present their use cases.
5G Growth Forecast in India
Ericsson predicts a significant growth in 5G subscriptions in India, with numbers expected to reach 860 million by 2029. The company also forecasts 5G to represent 57% of mobile subscriptions in the country by the end of 2028.
Acquisition by Hitachi Group
In 2021, Hitachi acquired GlobalLogic for $9.6 billion to enhance its digital portfolio. This acquisition allows GlobalLogic to leverage Hitachi as a platform to introduce mature platforms to new customers worldwide.
