Achieving the Tipping Point for 5G
The market for 5G mobile networks is influenced by network effects, as the use gained from 5G depends on how many others are using 5G and how many compatible devices are available. Increased usage will spike popularity and trust in the product, as well as demand for the necessary infrastructure to be built, which in turn leads to higher usage. However, despite the upsides of 5G, including faster speeds, low latency, and high bandwidth, the excitement around the network has yet to translate to public adoption.
The current estimated tipping point for 5G market penetration is 10%, and globally, only 14% of 5G operators have been able to reach this milestone. Although part of this is on the shoulders of providers due to the lack of infrastructure, poor marketing also leads to lack of consumer adoption. The general public lacks knowledge about 5G from the way that it works, how to subscribe to 5G, availability/coverage, and even terminology, and thus they are not compelled to buy into the service. Improved marketing aimed at closing this knowledge gap can jumpstart the amount of initial users to reach the “tipping point” that would signal future widespread use. An article on Ericsson outlines three key factors that can boost 5G popularity past the 10% mark: an increase in transparency about the details of 5G, clarification of the benefits of 5G, and finally, exclusive services not available on 4G. As talk surrounding 5G and the need for faster internet speeds increases in this digital age, 5G is likely to take off; however, strong marketing is the deciding factor as to when this change happens.