The Impact of 5G on Global Economy-Chetna Rana

The Impact of 5G on Global Economy

Chetna Rana

Research Assistant, Kurukshetra University

Email: ranachetna198@gmail.com

Abstract

The next generation networks (5G) have faster speed, lower latency and ability to connect vastly higher numbers of devices than previous generations of networks. The U.S, Europe, China, some countries of Asia and even the Arab world are competing to become world leaders in this new and fast speed technology. It provides the ultra-fast broadband. The rise of 5G has grown more critical today, as owners and entrepreneurs consider how best to repair, rethink and reconfigure their business for the post-COVID-19 world.

As 5G’s adoption, firstly this paper is begun to quantify the technology’s impact in economic terms. this paper is focused on five industries- Healthcare, Industrial manufacturing, consumer and media, financial services and education-That estimated the potential benefits of 5G technology as well as what those benefits might entail by 2030.

This essay explains 5G technology, its history, how it differs from other technologies, how it affects the global economy, and some of the challenges it faces in terms of policy.

Key Words: generation, networks, latency, connect

Research Article

The next generation of mobile networks, or 5G, is predicted to revolutionize how people live and work while also opening up a whole new range of technological items. Following 1G, 2G, 3G, and 4G networks, it is a new international wireless standard. Virtually everyone and everything, including machines, objects, and gadgets, can be connected by 5G technology. With the aid of wireless technology, new sectors can be connected to each other. By 2025, 5G networks are expected to have more than 1.7 billion customers and represent 25% of the global market for mobile technology, according to both Statista and the GSM Association.

In previous iterations of mobile communications, a single technology or closely similar system was the main focus:

1G: The first generation of analogue mobile phone technology, popularized by the “Advanced Mobile Phone System” (AMPS) and its offshoot, the “Total Access Communications System,” was first presented in the 1980s (TACS).

2G: The General Packet Radio Service (GPRS), which was improved by the “Enhanced Data rate for GSM Evolution,” and the second-generation digital cellular phone standard Global System for Mobile communications (GSM), which was established in the 1990s (EDGE).

3G: The International Telecommunication Union (ITU) supported a set of standards in the 2000s that increased the data capacity of 2G to allow for the realization of mobile Internet access, fixed wireless Internet access, video calls, and mobile TV, even though the data rates could not support the widespread uptake of these services.

4G: Following an approximately 10-year cycle similar to that of other wireless generations, 4G began to be widely used in the 2010s. Unlike earlier generations of mobile telecommunications, which were based on the outdated idea of circuit-switched telephone, 4G is based on Internet Protocol (IP) technology and has data rates that can provide a reliable mobile internet experience. Now called “Long-Term Evolution,” 4G technology is widely used (LTE).

Therefore, 5G follows this 10-year generation cycle and is a technology that will be available in the 2020s. Although nations, networks, and vendors are attempting to brand their products as “5G,” it will likely be another 10 years before 5G reaches the reliability, penetration, and pricing associated with earlier generations of wireless networks.

The 3GPP is in charge of organizing the 5G standard documents (3rd Generation Partnership Project). The International Telecommunication Union’s IMT-2020 standard, which included other standards and a theoretical peak download speed of 20 gigabits per second and a 10 gigabit upload speed, is where the phrase first came from. Then, as their plan supports many more connected devices, including self-driving cars, the industry standards group 3GPP adopted the 5G standard along with LTE.

Compared to 4G technology, 5G technology performs more broadly and better. Depending on the RF channel and BS load, 5G speed will range from about 50 Mbps to 1000 Mbps (1 Gbps). The mm Wave bands would have the fastest 5G speeds, reaching 4 Gbit/s with carrier aggregation and MIMO ( which is assuming a perfect channel and no other BS load). The optimal “Air Latency” for 5G is between 8 and 12 milliseconds, ignoring HARQ retransmissions and other delays. For accurate comparisons, “air latency” must be multiplied by backhaul latency to the server and retransmission latency. To maintain a very low bit error rate (BLER), 5G uses an adaptive modulation and coding system (MCS) and also the Range of 5G depends on many factors like:- frequency, transmit power, and interference.

History of 5G Technology:-

• Geoff Brown and Machine-to-Machine Intelligence (M2MI) Corp. joined forces with NASA in April 2008 to create a fifth-generation communications technology strategy. In accordance with the provisions of the third CRD agreement in NASA history, m2mi and NASA Ames will collaborate to create nanosats, or extremely small satellites, for the space industry.
• In 2008, the “5G mobile communication systems based on beam-division multiple access and relays with group collaboration” South Korean IT R&D programmer was established.
• The world’s first academic research center combining the investigation of cutting-edge wireless technologies, computing, and medical applications was announced by New York University and Polytechnic Institute of NYU (NYU-Poly) in August 2012 with National Instruments joining them as the founding industrial sponsor.
• The EU project “Mobile and wireless communications allow for the Twenty-twenty Information Society” (METIS), which is working to define 5G, begins its activities on November 1, 2012. Early international agreement on these systems was attained through METIS.
• Samsung Electronics announced that they had created a “5G” system on May 12, 2013. The maximal speed of the core technology is tens of Gbit/s. In tests, the “5G” network’s data transfer rates delivered data at 1.056 Gbit/s using an 8*8 MIMO to a distance of up to 2 kilometers.
• India and Israel decided to collaborate on the creation of fifth-generation (5G) telecom technologies in July 2013. When Israeli Minister of Telecommunications and Information Technology Kapil Sibal visited, the issue was raised.
• On November 6, 2013, Huawei stated intentions to devote at least $600 million to research and development for the next-generation 5G networks, which will have speeds 100 times faster than current LTE networks.
• South Korea adopted 5G as the first nation on April 3, 2019. Only a few hours later, Verizon announced the launch of its 5G services in the US, disputing South Korea’s claim to have the world’s first 5G network because, according to Verizon, the country’s 5G service was initially only available to six South Korean celebrities, allowing it to make this claim.
• After Globe Telecom commercially launched its 5G network in June 2019, the Philippines became the first nation in Southeast Asia to roll out a 5G network..

Impact on Global Economy:-

The widespread adoption of the 5G communication network in conjunction with other connection options will enable the Fourth Industrial Revolution and its associated new technologies to fully realize their positive effects. A wide range of options will become available as a result of 5G’s major functional drivers, including improvements in service delivery, decision-making, and end-user experience. By 2035, this will add $13.2 trillion to the global economy and create 22.3 million employment in the 5G global value chain alone. The varied effects of 5G technology on various economic sectors include:

Healthcare Sector:- During the COVID-19 pandemic, the quick development of telemedicine offers a glimpse into what healthcare could look like in the future. Through advancements, 5G will increase production and efficiency in hospitals such as tracking of medical equipment and patient beds made possible by 5G, as well as the use of AI to process 5G sensor data to automate activities and speed up patient handoffs. The key drivers of the expanding use of 5G include technological innovation, robotics advancements, and artificial intelligence developments. It will make it possible for a brand-new, networked healthcare ecosystem to emerge that is in line with the idea of “4P” medicine: participatory, preventative, predictive, and preventative.

• shorter hospital stays and fewer:- By providing continuous and real-time connection both within and outside of hospitals, 5G will significantly improve communication between doctors and with patients. Doctors will be able to use their time more effectively as a result, leading to better patient outcomes and shorter hospital stays.
• Improved telemedicine experience and effectiveness:- 5G mobile technology is better able to facilitate distant, real-time interactions between doctors and patients because it combines higher speed and efficiency with lower latency than earlier generations of mobile technology. Remote health monitoring and telemedicine programmers will be more accessible and effective thanks to 5G, even in remote places without convenient access to hospitals.
• Enhancing patient-doctor relationships 5G:-powered mobile health platforms will make it possible for health information to be collected and shared more quickly and accurately between healthcare systems as well as between patients and healthcare professionals. These tools help doctors make better use of their time.

Industrial Manufacturing: – Applications and technology for 5G could increase the manufacturing sector’s contribution to the global economy. By replacing cables with wireless connectivity in factories, 5G can free up machinery from being fixed to one location and pave the way for more adaptable and responsive production lines that can be reconfigured more quickly and with less effort. Additionally, 5G will hasten the creation of intelligent ecosystems that are self-organizing and connected and are capable of quickly identifying and addressing problems and opportunities.

Robots and self-driving cars using AI and laser-based perception will be able to navigate through buildings safely thanks to 5G technology. It will provide efficient, reliable, safe, and intelligent transportation with the use of autonomous devices which will work together with chargers, software and services. It will also use robotics platform within industrial centers and reduce the need of labor to work in factory operations.

Financial services:- The pandemic has had significant knock-on effects on the financial services sector, accelerating both institutional and retail customers’ transition to digital interactions and channels. With the advent of 5G and other digital devices, there are now opportunities for businesses to redesign their customer strategy and journey around more profound experiences. which enables them to cut back on or do away with expensive physical channels.

• Improved customer channels for banks are provided:- The customer channels for banks, insurance companies, and investment advisors are improved by 5G technology. Customers have access to a wide range of amenities thanks to 5G’s massive bandwidth and widespread connectivity.
• Reduced fraud losses: 5G will make security advancements possible, like the use of facial recognition and fingerprints to authenticate users of ATMs and other devices. These developments will make it possible for customers to quickly access their accounts without the need for a card and will contribute to making transactions more secure, lowering the risk of fraud, etc.
• Helpful for customers: -Customers can benefit from in-branch 5G enabled AI advisers who can communicate with them and assist them with financial transactions. The growing use of mobile technologies and smartphone data will make it simpler to push marketing or advisory content to customers at particular times when they are in need.

Media and Consumer: – During the COVID-19 pandemic, mobile connectivity was becoming a more significant factor in the consumer and media industries. All of this has been made possible by the development of 5G technology, which can provide dependable, high-quality content experiences for users whether they are at home or on the go. 63% of survey participants said they have increased their online grocery shopping since the pandemic began, and 86% said they are likely to keep doing so. The following examples show how 5G could improve consumer and media applications and increase economic value: –

• Real-time marketing: – As consumer adoption of 5G handsets increases, businesses will increasingly use the technology to capture and enhance customer interactions as well as to open up vast new opportunities in sales and customer service. Strong analytics capabilities will come with 5G. AI and marketing automation will allow campaigns to be constantly optimized and tweaked. 5G will also enable companies to capture and analyses data for customers or visitors in real and near-real time.
• Delivery of online gaming and OTT media:- When gaming is delivered over 5G, whether it be online or in the cloud, the gaming hardware doesn’t need as much processing power. These computations could take place nearby the user. More immersive gaming experiences will become available thanks to 5G, which was not possible with 4G or previous technology generations.

Sector of Education: – Online learning will be accelerated by 5G technology during the COVID-19 pandemic. Online lectures, live streaming, and video watching are all part of the online learning experience. Fast internet connectivity is necessary. Virtual and augmented reality will be possible thanks to 5G. In contrast to augmented reality, which adds specific digital elements to live views, virtual reality allows for hands-on experience, enhancing the learning process and making it more exciting and innovative. This aids students in acquiring, processing, and remembering new information efficiently. there some main benefits are:-

• Personalized and flexible learning:- Students can access educational resources wherever they are and in comfort thanks to high-speed internet. In order to better understand a subject, students will be able to access the same information more than once thanks to 5G.
• Faster access to cloud-based data:- This type of data enables the storage of unlimited amounts of academic institutions’ data on a single platform, including student records and official institute records. With the aid of mobile edge computing and distributed clouds, 5G will enable data access from any location. so that each person can work at their own pace, convenience, and comfort.

New Opportunities for Indian Economy:-

At the sixth India Mobile Congress, Indian Prime Minister Narendra Modi introduced 5G services on October 1, 2022 in Pragati Maidan, New Delhi. With 350 million 5G subscriptions anticipated by 2026 and their transformative capabilities, India is on the verge of a revolution. To ensure that 5G can help deliver government initiatives like the digital India, Smart Cities, Smart Village mission, and Aatmanirbhar Bharat mission, the Indian government has established a 5G High Level Forum. Following this, the chairman of Bharti Airtel declared that the telco had begun offering 5G services in eight cities, including New Delhi, Varanasi, Mumbai, Bengaluru, and others, while rival Reliance Jio would do the same in four major cities by Diwali. Both Telco’s aim to serve the entire nation.

The 5G network will open up new use cases and revenue streams in India through creative business models. It will support the startup scene and make India a center for 5G research and development. There will be a significant effect on all industries. The most extensive 5G and IoT opportunities in India are found in the engineering and most sophisticated manufacturing sectors. It will gain from improved safety standards, higher productivity, more efficient production, and cutting-edge knowledge.

As it gets ready to adopt new, disruptive technologies to boost productivity, India’s manufacturing sector is expected to gain the most from 5G applications (25% of total benefits), followed by retail (12%) and ICT (11%). Additionally, 5G will improve connected car features in the autonomous age.

Policies Challenges:-

5G technology faces many policy challenges which are discussed openly by experts in the field. Some of their examples are:-

High Cost of Electricity Power Supply:- An electricity supply will be necessary for many small radio stations. In addition, installing and maintaining these small radio sites is expensive. It is a major challenge for 5G technology because some small rural areas cannot afford the high costs. It may be necessary to meter these expensive power supplies separately from the electricity supplied to the structure or infrastructure to which the base station is connected.

High Power Consumption:- The power consumption of a dense network of base stations with intricate signal processing needs to be evaluated. If the number of base stations increases as predicted, each base station’s power consumption must be reduced by an order of magnitude just to maintain costs.

Proximity:- Although mobile networks are regularly installing more 5G towers and transmitters, proximity will still be a problem. You must be close to 5G infrastructure in order to receive the best 5G connections. Although there is very little 5G coverage in rural areas, it will be better in densely populated urban areas. For instance, I struggle to receive 4G LTE signals because I live in a rural area.

Flash network traffic:- As a result of flash network traffic in network areas, there are many end-user devices and other significant amounts of new technology.

Harmful for Wildlife:-The 5G technology is particularly harmful to the insect and bird populations. All living things—including humans—suffer adverse effects from prolonged exposure to non-ionizing microwave radiation, including animals, birds, insects, plants, and trees. Colony collapse and impaired navigational abilities are consequences of the declining bee population.

Not focused on Rural Areas:- Up until now, 5G rollouts have been primarily concentrated in urban areas. The majority of urban build outs won’t likely be complete until well after rural and remote areas have 5G service. The most necessary applications of 5G technology are in mining and agriculture.

Signaling Storms:- In distributed control systems, coordination is required, and as a result, signaling storms are reduced.

Battery drain on devices:-:- Cellular devices connected to 5G are unable to use their batteries for an extended period of time. Therefore, better technology must be developed to support this kind of connectivity. When using 5G technology, some users claim that their cell phones are getting hotter and hotter.

Space Debris:- Space debris is made up of a variety of particles, including microscopic particles, old satellites, rocket bodies, momentum flywheels, nuclear reactor cores, and leftover pieces from collisions or debris breaking up.

Privacy Risk:- Data, location, and identity could all pose serious privacy risks. Before being installed, the majority of smartphone applications demand specifics of the subscriber’s personal information. Threats like semantic information attacks, timing attacks, and boundary attacks primarily aim to violate subscribers’ right to privacy of where they are. In 5G mobile networks, access point selection algorithms have the potential to reveal location privacy. The various parties involved in the process, such as users, network operators, service providers, application developers, etc., should mutually agree on data usage and storage in order to solve this problem.

Conclusion:-

This is the 5G era, which has emerged following the pandemic period and is assisting in the introduction of the following generation of intelligent business applications. Despite all the advantages, these technologies also have built-in difficulties and detrimental effects, which have been emphasized in this paper. Both the public and private sectors should need some strategic approaches to find solutions to these problems.

5G holds enormous promise for the public sector and governments in terms of a variety of industries as well as our environment, but it will only succeed if governments establish industry-specific regulations as well as laws and orders to protect the environment and wildlife. It is also the duty of the government to ensure that devices and networks are well secured and safe for users. Cost is the main problem with 5G; it is very expensive. It will also be very expensive to deploy, maintain, and power the vastly increased number of base stations. As a result, the government should concentrate on creating new vertical markets in sectors like distance learning, healthcare, transportation, and utilities.

Consider how 5G can enable improvements and opportunities for the private sector and businesses as they evaluate their business models and operational procedures. Additionally, they will need to work closely with partners across a variety of industries, such as technology, media, and retail, and they will also need to combine 5G with other enabling technologies, like AI and IoT.

References: –

1. “Minimum requirements related to technical performance for IMT-2020 radio interface” by Radio communication Sector of ITU (ITU-R).
2. Flynn, Kevin, ” workshop on 3GPP submission towards IMT-2020″ by 3GPP. organization.
3. News related to Indian economy from The Economic Times and Telecom.com
4. “Positive 5G outlook Post COVID-19: What Does it mean for avid gamers?” by Forest Interactive .
5. ” Overview of 5G Security Challenges and Solutions “by Ijaz Ahmad, Tanesh Kumar, Madhusanka Liyanage, jude Okwuibe, Mika Ylianttila, Andrei Gurtov.
6. ” On the Flexibility and Autonomy of 5G wireless Networks” by M. Simsek, D. Zhang, D. Ohmann, M. Matthe, G. Fettweis in IEEE Access, 2017
7. some Data source from Internet websites like:- Wikipedia, Investopedia, TechTarget, Research Gate etc.
8. ” Latency critical IoT Applications in 5G : Perspective on the Design of Radio interface and network Architecture” by P. Schulz et al.
9. Proceedings of the 11th IEEE International Symposium.