Market Insider By Peter Tremblay 119 Views

5G Presents Boon For Canadians Say Advocates

The introduction of new 5G wireless networks is expected to contribute as high as $40 billion annually to the Canadian economy by 2026, according to a report from Accenture.

The report titled: Fuel for Innovation—Canada’s Path In The Race To 5G, was commissioned by the Canadian Wireless Telecommunications Association (CWTA), reporting that the deployment of 5G networks across Canada will result in anincrease of employment opportunities.

With more than 150,000 short-term jobs likely to be created between 2020 and 2026—in conjunction with an estimated $26 billion investment by facilities-based carriers required to deploy the networks—5G is bound to create 250,000 more permanent jobs annually by 2026.

“New generations of wireless technology have consistently brought waves of economic growth by improving the way people live and work, and the findings of this report show that 5G in Canada will be no exception,” said Tejas Rao, a managing director at Accenture and global 5G offering lead for the company's Network practice in a report.

“The investment in 5G will be a significant driver of jobs and provide new opportunities for innovation to drive Canada's economy forward.”

5G simply refers to the fifth-generation of mobile networks, which will introduce a faster, denser and more reliable wireless connections, ultimately giving rise to a world of limitless interconnectivity. Basically, 5G is the set of standards and technology that will enable future networks.

Nonetheless, to completely achieve a consensus on what 5G really is, certain standards are required and currently, various standards-making bodies are working to adequately define its performance requirements. Though these prevailing standards may not be launched until when the 3rd Generation Partnership Project (3GPP) releases its 5G New Radio standards later this year.

However, it is already proven that 5G networks will be exponentially faster and more reliable than their predecessors. Conservatives equally estimate a point to end-user experience speed that is at least 20x faster than 4G networks.

The transition to 5Gis more than just an increase in network speed. The capability of the 5G network is bound to revolutionize our current connectivity.

Currently, a few major equipment manufacturers are dominating the market for 5G technology and according to The Financial Times, Ericsson, Huawei and Nokia make up more than 90 percent of “co-operation deals” with wireless network operators globally.

However, implementing this next generation of network will require heavy investment from telecommunications equipment providers like Nokia.

The Federal government and Ontariohave given $40 million and $12 million respectively to Nokia to facilitate the introduction of 5G in the country.

“Nokia is shaping the future of the technology to intelligently transform human experiences,” said Richard Herald, Canada Market Head for Nokia.

Canada's largest wireless service providers have already indicated that they are ready, willing and able to make investments to deploy 5G wireless infrastructure, and Nokia has an end-to-end 5G offering that can enable Canadian mobile operators to upscale to 5G quickly.

Nokia’s 5G Future X portfolio provides the full suite of end-to-end technology and expertise to speed up mobile operator’s 5G implementation process.  Considering the wide range of economic opportunities 5G offers, it would be advantageous for it to come early into the Canadian market.

5G brings immense value to various vertical industries and not just the telecommunication sector. Accenture reports that 5G networks will drive innovation across industries and improve the quality of life of Canadians—with new applications in areas in transportation, healthcare, manufacturing and agriculture.

“Wireless in Canada is a success story for our country because it is an industry that works: Canada's wireless networks are among the fastest and most advanced in the world, and 5G offers a chance to build on this leadership,” said Robert Ghiz, president & CEO of the CWTA.

“This report highlights the opportunities that lie ahead with 5G — opportunities for all Canadians, including those in rural areas where 5G can close gaps in broadband service using fixed wireless. To grasp these opportunities, stakeholders will need to work collaboratively to ensure that 5G will be a success here.”

Herald noted that 5G presents limitless opportunities and its applications would continue to grow along with its adoption.

“When you talk about latency, there are many other applications. On the medical side, you can do remote surgeries, which has enormous potential in Canada because of its remote population,” he said.

“5G is important when you need to track shipments, container handling, and safety when ships come into port. In this case, you don’t need the latency, but you certainly need the capabilities.”