A new wave of mobile technology is on its way, and will bring drastic change

The advent of 5G is likely to bring another splurge of investment, just as orders for 4G equipment are peaking. The goal is to be able to offer users no less than the “perception of infinite capacity”, says Rahim Tafazolli, director of the 5G Innovation Centre at the University of Surrey.

Rare will be the device that is not wirelessly connected, from self-driving cars and drones to the sensors, industrial machines and household appliances that together constitute the “internet of things” (IoT). It is easy to dismiss all this as “a lot of hype”, in the words of Kester Mann of CCS Insight, a research firm. When it comes to 5G, much is still up in the air: not only which band of radio spectrum and which wireless technologies will be used, but what standards makers of network gear and handsets will have to comply with. Telecoms firms have reached consensus only on a set of rough “requirements”. The most important are connection speeds of up to 10 gigabits per second and response times (“latency”) of below 1 millisecond. Yet the momentum is real. South Korea and Japan are front-runners in wired broadband, and Olympic games are an opportunity to show the world that they intend also to stay ahead in wireless, even if that may mean having to upgrade their 5G networks to comply with a global standard once it is agreed. AT&T and Verizon both invested early in 4G, and would like to lead again with 5G. The market for network equipment has peaked, as recent results from Ericsson and Nokia show, so the makers also need a new generation of products and new groups of customers. On the demand side, too, pressure is mounting for better wireless infrastructure.