What is 5G?

5G is the fifth generation of wireless technology. It builds on the capabilities of its predecessors (3G and 4G) to deliver improved speed, reliability, and connectivity. Where 3G was all about voice and data, and 4G enabled faster mobile internet and video streaming, the 5G upgrade goes a stage further.

5G was developed to cope with increased demand from mobile internet users (almost 96 percent of the global digital population in 2023, according to Statista). It offers faster data transfer, higher bandwidth, lower latency, and the ability to support many more connected devices.

5G can operate across various frequencies, including low-, mid-, and high-band. Millimeter-wave (20-60 GHz) is the highest frequency, which gives the fastest speeds but isn’t available everywhere. At the lowest end of the spectrum is sub-6 GHz, which is more widely available but offers slower speeds.

The benefits of 5G for businesses

Whether you’re in retail, manufacturing, or healthcare, 5G opens up a world of possibilities for organizations of all sizes. Here are just some of the positive 5G implications for business.

Speed and efficiency

5G is super-fast — potentially up to 10 times faster than 4G. This enables you to almost instantly transfer large amounts of data and carry a much higher volume over the same bandwidth. It’s especially suitable for businesses with high data demands.

Increased speed leads to improved user experiences and overall business efficiency. For instance, productivity (and therefore operational costs) will improve because you don’t have to wait ages for large files to download or access cloud data.

Reliable connections

5G gives you highly reliable and stable connectivity with low latency, often below 1 millisecond (latency represents the time between sending and receiving data). This is ideal for real-time applications like video conferencing, with less risk of dropped connections.

You don’t have to worry about losing contact during an important online meeting or a VoIP call, while instant messaging is more efficient. 5G also boosts performance for interactive customer service tools. This reliability makes your communications consistent and professional.

Work from anywhere

5G ensures that your remote and hybrid employees can work effectively from wherever they happen to be, getting the same level of connectivity as office-based staff. They can connect to the Internet wirelessly and enjoy high-speed business Internet access on their mobile devices.

This makes it easier for workers to stay connected to colleagues and customers and for your business to offer flexible working practices to attract and retain talent. You can also recruit globally and set up a network of connected offices worldwide.

Support for multiple devices and IoT

5G can support multiple connected devices per square kilometer, which is useful when employees are accessing the internet via computers, laptops, tablets, and cell phones all at the same time. Even if your business is in a densely populated area, you shouldn’t get any lag.

Meanwhile, 5G’s integration with IoT (Internet of Things) means you can run smart offices with connected devices and sensors to automate tasks, monitor systems, and collect data.

Flexibility and customization

5G gives businesses plenty of configuration options with secure individual frequency bands for private networks. It also enables “network slicing”, which allows you to set up multiple virtual networks within one physical 5G network.

Each “slice” functions as an isolated end-to-end network, meaning you can separate different parts of your operations — such as keeping priority data separate from other network traffic. 

Advanced analytics

Thanks to its high speeds, 5G helps businesses collect more data (including real-time data) about operational performance and customer preferences. This enhances data processing capabilities and makes leveraging AI and machine learning easier for predictive analytics, data-driven decisions, and personalization.

Improved customer experience

With 5G, you’ll be able to exceed customer expectations. It ensures glitch-free video and voice calling for customer support and supports virtual reality (VR) and augmented reality (AR), enabling you to offer immersive experiences. This has applications for e-commerce, in-store retail, marketing, and enhanced training for your customer-facing teams.

Future-proofing

The future of 5G looks set to bring developments such as connected buildings, more efficient energy grids, and greater integration with technologies like AI, IoT, and edge computing. By embracing 5G now, businesses can jump ahead of their rivals and remain competitive as the tech matures.

Is 5G for small business use cases still good value?

It might seem as though the futuristic world of 5G is restricted to large enterprises, but that’s not the case. The technology is perfectly placed to support smaller businesses, especially given the potential cost savings it brings.

These savings are realized through increased efficiency and productivity, enabling you to do more with fewer resources. 5G also replaces expensive wired cables with cellular 5G business routers and improves battery life for your devices because they don’t require as much computing power.

Because 5G facilitates remote work, a small company can reduce costs by downsizing its office premises or even operating the whole business remotely. Kiosks, food trucks, and pop-up shops will always have connectivity for POS systems and contactless payments.

A faster network with higher bandwidth means small businesses can access technologies like automation, AR, and VR. This helps them stay competitive and prepare for future growth and increased data and communications volumes.

With improved experiences for employees and customers, 5G helps to boost retention and reduce acquisition costs. Yes, it requires some investment, but the benefits ensure you get value for money.

The challenges of 5G for businesses

While 5G Internet for business is advantageous in most cases, like any new technology, it does come with a few potential drawbacks:

Cost

To implement 5G in your business, you’ll likely need to upgrade your existing infrastructure and hardware, which can be a significant investment (as well as time-consuming). For example, you may need new antennas and base stations and potentially update or replace devices and applications to support 5G.

Availability

5G is still a new technology. Although 5G coverage has grown hugely, especially in the US, it's still not universally available. There’s a disparity between urban and rural areas because devices using the highest-band frequency (millimeter-wave or mmWave) must be very close to a 5G node to get a signal. The low-band sub-6Hz spectrum allows wider coverage but slower speeds.

Security

5G networks have a wider “attack surface” due to the increased number of connected devices and IoT integrations. The good news is that security capabilities are designed into 5G by default. However, businesses still need to minimize the potential risks by implementing advanced security measures such as encryption, network segmentation, and verification.

Compliance

As 5G develops globally, we expect to see different countries and industries introduce regulations and standards for the technology. Currently, the Federal Communications Commission has no 5G-specific rules but is modernizing outdated regulations to factor it in. Businesses need to stay aware of changes to remain compliant.

What does 5G mean for business? Industry examples

The increasing availability of 5G is expected to create millions of new jobs and enable business and innovation to flourish in rural communities. But how will 5G in business benefit specific industries?

Healthcare

5G’s fast speed lends itself to the healthcare sector, opening up new possibilities for expanding telehealth into rural areas, monitoring patients remotely with wearable devices, and swift transmission of test results and insurance documentation.

It means healthcare providers can assess and diagnose patients before and during transport, and even carry out remote or robotic surgery thanks to near-zero network latency. Enhanced data collection and analysis is also helpful for medical research.

Retail

5G has applications for both online and in-store retail. It enables businesses to take payments faster, process customer data for personalization, and offer mobile sales in any location. With IoT sensors, you can track inventory and identify problems such as low or damaged stock.

5G also lets you offer enhanced shopping experiences through AR and VR. For example, online shoppers can visualize products in their own homes or virtually try on clothing. In stores, they can view product information via a phone camera.

Manufacturing

5G is ideal for Industry 4.0, emphasizing digital manufacturing and automation. With high-speed network access, firms can develop smart factories with sensors to monitor quality control, inventory levels, and workforce safety.

You can quickly download data from your equipment to evaluate operational performance and run predictive maintenance. 5G also facilitates autonomous mobile robots (AMRs) and in-depth staff training with virtual reality. 

Education

5G allows educational institutions to offer remote and hybrid learning to suit a wider range of students, including those in rural areas. Enhanced learning is made possible with VR and AR, while the ability to process and analyze data quickly is useful for research projects.

5G enables connected campuses, with IoT sensors monitoring attendance, security, and resource use. It provides full on-site connectivity, which is essential for young students who always expect internet access. Enrollment and student support are also more efficient.

Financial services

The speed and reliability of 5G services allow near-instant data transfer for financial transactions and more efficient backend operations for financial institutions. They also enable high-level security measures, such as wearable devices that use local authentication to access accounts.

Customers can receive AI-powered real-time recommendations for managing their finances and enjoy glitch-free video calls with financial experts. 5G also supports automated calling systems and chatbots or virtual agents.

Entertainment and events

There are many exciting benefits from using 5G for entertainment, not just for improved online gaming. For instance, fans attending live sporting events can access stats, instant replays, and multiple viewing angles from their smartphones.

Whether it’s a game or a concert, VR and AR bring the front-row experience to people seated anywhere in the stadium and those watching at home. Reduced network congestion at large events means that security teams and emergency responders can communicate, increasing safety.

Transportation

It’s well-known that 5G supports the development of self-driving or autonomous guided vehicles (AGVs) since its low latency allows almost instantaneous communication between vehicles and traffic signals. It can also be used for smart traffic lights to reduce heavy traffic

5G enables live digital signage and on-board internet access for public transportation. Operators can get real-time information on scheduling, routing, vehicle capacity, and transactional data for payments and ticketing.

How to choose 5G Internet for your business

Once you’ve decided to adopt 5G for your business and established that you have the right equipment or integrations to support it, you’ll need to choose a provider and a package.

This choice will depend on your business's specific nature and requirements, as different providers offer different features and capabilities. For example, if you want to set up separate networks for different operations, look for a network-slicing feature.

You should also consider the frequency bands each network uses and the signal strength it will provide. A 5G network based on millimeter wave (mmWave) has the highest speeds, but you’ll only get full coverage in a metropolitan area. Mid- to low-band-based 5G offers a wider reach but at a slower speed.

You’ll also need to consider the applications and systems you can build on your chosen 5G network. For example, Vonage (which won Gold for 5G Networks in the Telecom category at the 2024 Merit Awards) is part of Ericsson, so its communications services are built on Ericsson’s 5G network.

Final thoughts on 5G for business

As the technology continues to evolve, the advantages of 5G for businesses are clear. With high-speed data transfer and low latency, you can enjoy network connectivity, improving efficiency, communication, and employee and customer experiences.

With the number of 5G subscriptions in North America alone expected to approach 432 million by 2029, the time is right for businesses to seize the opportunity — whether it’s streamlining operations or interacting with customers through the technology.

Find out how you can harness the power of 5G by using Vonage Network APIs to create 5G-driven applications.