The importance of the 5G network

3 min. reading
5G Technology / 27 May, 2021

Edgar Mondragón Tenorio Journalist

Are you interested in investing in the most relevant companies and ETFs dedicated to 5G Technology?

Open an account

All the great technological changes in history did not remain stagnant or reserved in their respective areas of knowledge, but transcended and disrupted all aspects of life, profoundly transforming everyday social life.

In this sense, the emergence and expansion of the 5G network promises to be one of those technological advances that will change the way we live.

5G technology, an industry called to change the world

5G technology, an industry called to change the world

The 5G generation is expected to generate a worldwide economic value of 12.3 billion dollars by 2035, which represents an important field of action for investors.

The background

In this path of technological advances, as far as information and communication technologies are concerned, we started by having a truly pocket-sized device that was used to make and receive calls from (almost) anywhere. This was the first revolution, the first generation (1G).

Later we complemented that need with the possibility of choosing to send a text message instead of making a call, through 2G technology, while still having the first option on the same device.

Our information consumption habits began to change and increase, bringing with it the need to be able to access the internet wherever we were, and this was also made possible through our cell phones with the evolution and implementation of 3G technology. 

This trend continues to this day, where our infinite need for information is reflected in our daily surfing, which includes instant communication through social networks, the reproduction of videos in real time, the use of multiple and diverse applications to meet our needs for financial services, transportation, and consumption. 

All this through our smartphones and other mobile devices incorporated into the 4G network.

5G and Industry 4.0

Of course, this fourth industrial revolution includes all sectors, and practically forces them to incorporate automation processes in their production lines, the use of instant communication technologies, the incorporation of Big Data tools or the incorporation of more devices to the network (IoT).

And new industries are also being generated in parallel, sectors that are so common today, but previously unknown and are still developing, as well as generating large investment flows around them.

These new sectors are as novel as artificial intelligence, information storage in the cloud, or blockchain technology to make processes that previously could take a long time more efficient and secure.

Faced with the constant and dizzying changes in information consumption needs, Industry 4.0 requires and needs the goodness and benefits brought by the fifth generation in the evolution of the network through which that information travels, i.e., the 5G network.

The changes

Although these changes may seem few, they will be very significant, for example, the decrease in latency, which we understand as the response time or data load, will increase by almost 20 times, i.e., to approximately 10 gigabytes per second. 

This means that a download would take about 5 milliseconds, almost imperceptible to humans, i.e., practically in real time.

Such a fast download speed will necessarily translate into the improvement of practically all processes, making them truly real-time and remote.

This download capacity also implies the possibility of having many devices connected to the network, exchanging information, to meet the specific needs of users.

All the above means that, in the not-too-distant future, we will live in an environment of massive interconnectivity (smart cities), which, of course, includes improved urban services.

This exchange will promote better use of resources, reduced travel times, optimization of public services, among other things.

The importance of the 5G network lies in understanding the fact that its implementation is the next step in the evolution of civilization and its coexistence with the environment, to improve its quality of life and even make this ambition environmentally friendly.

 

×

How to invest in 5G Technology?

From BBVA New Gen we have compiled the companies and investment funds that are dedicated to 5G Technology?. Find out how to invest in the companies that are revolutionizing the sector

How to invest in 5G Technology?

Related news

  • Advantages and disadvantages of 5G technology

    To think that the future is still far away is to forget that tomorrow is already the future, and we will be living it as soon as we open our eyes at dawn. In this path of technological advances, we went from having a truly pocket device that was used to make and receive calls from (almost) anywhere (1G), to being able to make up for that need by choosing to send a text message instead of calling (2G).