The Evolution of 5G and What it Means for British SMEs

The arrival of 5G in the UK market was transformative for many small businesses, offering new opportunities. The technology arrived on British shores in 2019, though only two networks, EE and Vodafone, initially provided plans. Since then, all major networks have begun offering 5G services in selected areas.

With news that a cohort of big-name providers has completed a successful test in Germany and Spain, the UK’s 5G capabilities could reach new heights. This promising outlook stems from recent reports that a new technology capable of download speeds close to 1.8 Gbps could soon be available.

As the next generation of mobile internet rolls out nationwide, business owners must understand what 5G entails and how to leverage it.

What is 5G?

5G is the fifth generation of wireless technology. It promises faster download and upload speeds than its predecessor, 4G, lower latency and the ability to connect many devices simultaneously.

With speeds reaching up to 10 Gbps, 5G is a mind-boggling 100 times faster than 4G. The evolutions of mobile technology have been transforming how British businesses operate over the past few years, so enabling faster 5G speeds could help companies reliant on mobile connectivity.

Seamless Connectivity

One of 5G's most significant advantages is much-improved connectivity. This uplift means seamless video calls, rapid data transfer, and real-time communication for SMEs. All of these uses can improve everyday productivity and efficiency.

With advancements in 5G tech, businesses can complete tasks that previously took minutes or even hours in seconds. This efficiency is particularly beneficial for companies that rely on data-heavy applications such as real-time analytics and online sales platforms.

Lessened Latency

Latency, the delay before a data transfer begins following an instruction, is drastically reduced with 5G. This low latency is crucial for applications which call for instant feedback, such as augmented reality (AR) and virtual reality (VR).

Implementing innovative customer experiences, like product visualisation or VR-based training, may have previously been considered impractical for small businesses, but it's now possible.

The World of IoT

5G's capability to support a vast network of connected devices opens up the world of IoT for small businesses. Connected machinery and automated systems can revolutionise sectors like construction, manufacturing and logistics.

For retail businesses, inventory levels could be automatically monitored and restocked. Factory workers could predict equipment maintenance and address issues before they arise. For construction, points and grades could be taken with millimetre accuracy, preventing costly reworks. Advancements like these could lead to cost savings across various sectors in the UK.

Flexible Working

The COVID-19 pandemic highlighted the value of remote work capability and tools enabling virtual collaboration. Advanced 5G tech significantly boosts these capabilities. Reliable internet connections mean colleagues can seamlessly access files, join high-quality calls and collaborate on projects from anywhere.

For SMEs, this flexibility can lead to a better work-life balance for employees, increased productivity and the ability to tap into a broader talent pool.

Challenges and Considerations

Initial Costs

One of the primary challenges small businesses faced when adopting 5G was the initial cost of upgrading to 5G-compatible devices. These include smartphones, tablets, routers and other essential hardware. While compatible devices are more accessible in 2024 than when 5G was first available, significant upfront investments can be daunting for those operating on a tight budget.

Instead of upgrading everything at once, companies can adopt a phased approach, prioritising critical equipment that will benefit the most from 5G. The Government offers grants and subsidies to support businesses in upgrading their technology. Business owners should explore this to help offset some of the costs associated with 5G adoption.

If the cost of exploring the world of 5G is still restrictive, many reliable lenders offer financing options that could allow small businesses to spread the cost of new devices. This approach can ease the financial burden and make the transition more accessible.

Bandwidth Limitations

One significant drawback of 5G technology is its bandwidth limitations compared to 4G, which necessitates considerably more infrastructure. While 5G offers higher speeds and lower latency, its high-frequency signals have a shorter range and lower penetration, which means more transmission towers are needed, particularly in cities where buildings can interfere with signals.

Businesses can collaborate with local councils and service providers and take a strategic approach to mitigate these challenges. Additionally, exploring public funding opportunities, such as grants and subsidies, can alleviate some of the financial burden of upgrading to 5G infrastructure.

Cyber Security Concerns

The increased connectivity and data exchange accompanying 5G heighten the risk of cyber attacks. With more devices on the network, weak points open themselves up to wily cyber criminals, making small businesses more vulnerable to data breaches and ransomware attacks.

Investing in robust cyber security solutions is crucial for SMEs growing their network with 5G. These include advanced firewalls, detection systems and encryption protocols. Having a comprehensive response plan ensures that the company can respond to minimise damage in the event of a cyber attack.

Cyber insurance, sometimes called ‘cyber liability insurance’ or ‘cyber risk insurance,’ is designed to shield businesses from the risks of storing and managing digital data with 5G. This cover extends to a company's accountability in case of data breaches involving sensitive customer or employee information.

Connecting to the Future

The future of 5G in the UK is bright. By embracing the evolutions of this technology that are taking place in mainland Europe, small businesses in the UK can unlock new levels of efficiency and innovation.

While valid concerns persist, the potential rewards far outweigh the risks, making 5G a vital consideration for any forward-thinking SME. As the technology continues to evolve and become more accessible, early adopters could be well-positioned to benefit from an increasingly digital society.

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