5G ROI is a no-brainer for us – Orange

5G is clearly critical for the digital economy of tomorrow, but the expensive job of rolling out the networks take a bit more cunning thought.

Speaking on a panel session at Total Telecom Congress in London, Arnaud Vamparys, SVP Radio Networks at Orange pointed out there is no debate on the ROI for 5G. It’s simple; 5G enables us to deliver data significantly cheaper. With internet traffic continuing to explode, and mobile usage heading north as well, why wouldn’t anyone want to invest in something which can make business operations cheaper.

But here is the clincher; rolling out these networks is an expensive job, and ROI still hasn’t be completely justified. Telcos will have to accept the ‘build it and they will come’ attitude, though trying selling that to accountants. As Takehiro Nakamura, General Manager of 5G Labs at NTT Docomo pointed out, 5G will not just be there overnight, the rollout out will be gradual and it will be years before the concept of nationwide if even close to a reality because of this very reason.

For 5G to realise its potential, there will need to be considerable thought to identify the services which can be offered from Day One. It isn’t going to be as simple as offering a sweeping portfolio of new services, with the progressive rollout which many telcos have in mind, with 4G and 5G working alongside for years to come, difficult choices will have to be made.

Fortunately, a lot of these services can be offered on 4G, though as Ramy Boctor, CTO of Vodafone Qatar, pointed out, the performance will just be better on 5G. Perhaps this will play into the hands of the telcos; limited supply and potentially high demand, a perfect recipe for making money.

This is perhaps a fact which is lost in the buzz and hype; 5G will be incredibly limited for years to come. The rollout will take time, upgrading existing sites will take time, densifying the network with new sites will take time. This is not something many people seem to be saying, but it is worth remembering.