Why the U.S. Rollout of 5G Is So Slow

The promise of fifth-generation wireless networks has drawn headlines for at least three years, but 5G that lives up to the hype has yet to arrive for most Americans. All of the major US wireless carriers say they have nationwide 5G service, but industry analysts say that service is largely indistinguishable from 4G LTE service. The first carrier isn’t expected to reach two-thirds of the country with significantly higher-speed 5G until 30 months after the first 5G-capable phones made their debut in mid-2019, compared with about 18 months for 4G following the launch of the first 4G-capable phones in fall 2010.

A combination of factors play into the relatively slow rollout of 5G. Some of the problems involve network infrastructure: The availability of space in the portion of the airwaves that strikes a balance between fast transmission speeds and long signal ranges is limited. 5G also requires deployment of new network equipment, a sometimes cumbersome process. And much of the new equipment isn’t manufactured in the US, meaning purchases can take longer than buying domestic. Industry observers also cite the lack of killer apps to spur demand and drive adoption the way mobile video did for 4G. And while telecom companies have recently started allocating billions of dollars in capital expenditures for 5G, they likely won’t speed up build-out efforts until there’s clarity around future 5G-related revenues, says John Roese, chief technology officer at Dell Technologies Inc. and a former executive with companies including Huawei Technologies Co. and Nortel Networks Inc. “They got burned once before,”Roese says, referring to telecom carriers’ disappointing returns on their investments in 4G networks, which he says mostly benefited technology companies that offered apps and other services over those networks. “So they’re very cautious about it.”