We've all heard of 5G but do you know exactly what it can do?
The newest cellular network promises much faster download speeds and 100x traffic capacity which means that winning 5G is very important to telecoms firms.
So much so that - in the US - 81 billion dollars was spent on FCC spectrum auctions alone. FYI:
A spectrum auction is a process whereby a government uses an auction system to sell the rights to transmit signals over specific bands of the electromagnetic spectrum and to assign scarce spectrum resources.
In order to recoup that massive investment telcos will need to sell much more than simply data to their customers.
One option is creating products for the metaverse - a buzzy sounding name that describes virtual shared spaces where users are present - perhaps including AR or VR.
Here's the thing!
High-speed 5G networks will power the metaverse.
Bloomberg actually state that 5G spend could reach $720B between 2021-2025!
Also, nearly every tech company of note is dabbling in the metaverse. For instance, Facebook's CEO says the social network will be known as a "metaverse company" in the future and MIcrosoft's CEO has mentioned the phrase "enterprise metaverse."
We could be entering a new phase here folks. Let's see!
Telecom providers will spend $720B on 5G. How will they make money back? You’ve probably seen ads for it, but what is 5G? It’s the newest cellular network which promises faster download speeds and 100x traffic capacity (translation: a lot more Netflix streaming). Winning 5G is so important for telecom firms that — in the US — a record $81B was spent just on FCC spectrum auctions (3-4x estimated spend). To recoup that massive investment… … telcos need more streams of revenue than simply selling data to customers. One potential option: creating products for the metaverse, the buzzy term to describe virtual shared spaces where users are present (which may include AR or VR).