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ON THE HORIZON

The truth about 5G: It’s not (only) about

downloading movies faster!
Andrew Park a, Nura Jabagi b, Jan Kietzmann c,*

a
Beedie School of Business, Simon Fraser University, Vancouver, BC, Canada
b
Concordia University, Montreal, Quebec, Canada
c
Gustavson School of Business, University of Victoria, P.O. Box 1700, STN CSC, Victoria,
BC, V8W 2Y2 Canada

KEYWORDS Abstract Likened to the discovery of electricity and the introduction of the
5G network; internet, the arrival of 5G network technology has been met with great enthusiasm
Technological and high expectations for its futuristic potential uses. Envisioned 5G-enabled appli-
innovation; cations include autonomous vehicle fleets; fully immersive, continuous virtual real-
5G-enabled applications ity; a tactile, sensor-based internet; and billions of peer-to-peer connected
Internet-of-Things devices. Despite the hype, a recent survey suggests that most
business managers and executives do not understand the technology and its trans-
formative potential nor how to assess its appropriateness for their existing opera-
tions. In this article, we explore the potential future applications of 5G, where
we are today with the technology, its adoption challenges, and how managers
should evaluate investing resources into 5G.
ª 2020 Kelley School of Business, Indiana University. Published by Elsevier Inc. All
rights reserved.

1. 5G: Feel the power!
Hotels offer high-speed internet, service providers
sell premium upload and download speeds, and
PureFibredCanada’s Fastest Internet Tech-
nologydguarantees dedicated internet lines that
do not slow down, even at peak times (Telus,
* Corresponding author
E-mail addresses: andrew_park@sfu.ca (A. Park),
jkietzma@uvic.ca (J. Kietzmann)
2020). The introduction of 5G comes with even
bigger promises. Verizon Wireless (n.d.) invites
consumers to “feel the power of ultra-fast internet
with 5G Ultra Wideband,” while AT&T (n.d.) ad-
vertises 5G as “a whole new kind of net-
workdfaster, smarter, and more responsive” that
will “change the way you talk, text, and connect.”
These highly advertised performance promises
raise several questions, including whether more
speed is always better (do we need to text faster?)
and what performance measures, in addition to
speed, we should use to determine if 5G is right for

https://doi.org/10.1016/j.bushor.2020.09.009
0007-6813/ª 2020 Kelley School of Business, Indiana University. Published by Elsevier Inc. All rights reserved.

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 20
us and our organizations. Will we, as advertised,
feel the power, and what does that even mean?
Given that 5G is poised to have a global eco-
nomic impact of $13.2 trillion and create 22.3
million jobs, answering such questions is necessary
to reap the full benefits of this new technology
(Qualcomm Technologies Inc., 2019). Yet, despite
the highly promoted advantages, a recent survey
of nearly 2000 executives from mid- and large-
sized businesses across industries in 10 countries
found that slightly more than 50% do not expect 5G
technology to enable them to do much more than
what they can already do using today’s networks.
The study further suggests that executives neither
understand the technology nor its disruptive po-
tential. While fewer than 40% of executives expect
“5G to bring a ‘revolutionary’ shift in speed and
capacity,” nearly 75% expressed that they need
help imagining 5G use-cases (Accenture, 2019).
Despite a lack of clarity and understanding on
behalf of executives, venture capitalists are
injecting money into 5G enterprises in Silicon
Valley. Last year, Qualcomm announced the launch
of the Qualcomm Ventures 5G Ecosystem Fund, a
$200 million investment fund to back early-stage
startups developing 5G-enabled wireless applica-
tions beyond smartphones in what looks to be an
effort to accelerate the adoption of the new
technology (Qualcomm, 2019).
In this context, the goal of our article is to intro-
duce entrepreneurs, managers, and executives to
5G network technology, its business potential, and
the types of decisions they will face in evaluating,
adopting, and implementing 5G. First, we provide a
brief introduction to 5G technology, describing what
it is, what it is not, and why it is important. Next, we
present the use-cases and business opportunities
enabled by 5G’s enhanced capabilities. Following
this, we consider the challenges managers will face
in adopting and implementing 5G technology and
provide guidelines on how managers should evaluate
investing resources into 5G.
2. How to measure network
performance
Organizations almost exclusively depend on internet
connectivity to run their day-to-day operations
(Smith, 2017). Reliable network performance is the
lifeblood of almost every organization whether the
internet is used to email employees, customers, and
suppliers; to access cloud-based software as a ser-
vice (SaaS) platform; or to run advanced Industrial
Internet of Things (IIoT) applications. Poor network
performance, with delays and downtimes, can lead
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ON THE HORIZON
to a loss of employee productivity, revenue, and
reputation. Understanding measures of network
performance is important, especially when faced
with the opportunity to upgrade to a new network
generation.
Our dependence on wireless network perfor-
mance is particularly astonishing given that wire-
less and mobile data networks are still relatively
recent developments. Yet, despite their compar-
atively short lifetime, they have enabled dramatic
improvements in consumer, corporate, and gov-
ernment communications applications. Beginning
with the first and second generations of mobile
networks, both 1G and 2G (where G stands for
generation) allowed for the improved accessibility
of voice communications across much larger pop-
ulation bases, including those in the developing
world. Following suit, 3G and 4G LTE (long-term
evolution) mobile network generations introduced
mobile data and the mobile internet respectively,
where data transfer expanded far beyond analog
and digital audio signals. Over the last decade, the
ability to transfer data anywhere, anytime has
given rise to software-based technology paradigms
such as the Internet of Things (IoT) and prompted
business leaders and technologists alike to envision
new and radical applications such as fully auton-
omous vehicles, remote medical procedures, the
tactile internet, improved aerospace utilities, and
more (Li et al., 2018).
Until recently, many of these futuristic in-
novations were distant dreams because of network
limitations. It is not just a lack of speed that is
holding back these innovations. Two other network
variables, namely bandwidth and latency, need to be
improved to bring new network applications to life.
Luckily, for these applications, we have now entered
the world of 5G technologies, which promises un-
precedented data throughput, network efficiencies,
and device uptime compared to 3G and 4G LTE1 (see
Table 1).
To truly grasp the value of 5G technology, we need
to define some key terms. 5G has three generation-
defining features, namely: high speed, expanded
bandwidth, and low latency. Although all three fea-
tures work together, they have different meanings.

In network terminology, speed refers to the
rate at which data packets can be sent and
received along a network. Network speed is
measured in bits, or more commonly as
1
As a note, although 4G is technically faster than 4G LTE,
given its extended dominance and popularity, we focus on 4G
LTE as the network technology that bridges 3G and 5G.
 ON THE HORIZON
Table 1. Comparison of 3G, 4G LTE, and 5G network technologies
3G (2011)
Speed 1.5 Mbps
Data transfer rate
Bandwidth 5 Mbps
Data transfer capacity
Latency 100e500 ms
Network responsiveness
Note: It is important to note that 4G LTE is not a new technology. It may be helpful to consider 4G LTE as similar to the S series of
iPhones. While 4G LTE offers an improvement over its 3G predecessor, the improvement is incremental and not enough to qualify
as a new generation. Think of 4G LTE as 3G S (Signal Booster, 2019).
megabits (Mbps) per second, or gigabits per
second (1 Gbps Z 1,000 Mbps) where higher
rates suggest higher speeds.

The term bandwidth refers to the data
transfer capacity of a computer network.
Like network speed, bandwidth is also
measured in megabits per second (Mbps). It
is easiest to visualize the concept of band-
width and its relationship to speed by
thinking about a water pipe. Using this well-
known analogy, bandwidth can be thought of
as the diameter of the pipe. In the same way
that the width of a water pipe allows a
certain maximum flow rate of water per
minute, a network’s bandwidth enables a
certain amount of data to be transferred
between two points within a network over a
specific unit of time. Doubling the pipe’s
diameter will double the maximum flow
rate. While bandwidth determines the
theoretical data transfer capacity of a
network, the data transfer rate (i.e., the
actual speed of a network) also depends on
the network’s latency.

The term latency refers to a network’s
responsiveness to user requests. Going back
to our pipe analogy, latency determines how
fast the contents of a pipe can be trans-
ferred from one end of the pipe to the other,
and back. In the 5G context, latency refers
to the round-trip time, measured in milli-
seconds, for a data packet to travel on the
network. Lower latency, of course, is better.
Latency is important since high-latency net-
works result in bottlenecks that cause web-
pages to load slowly, online games and video
streams to lag, and voice and video calls to
be less clear.
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4G LTE (2012) 5G (2020) Wired internet (2020)
50 Mbps 100 Mbpse1 Gbps 300 Mbps
300 Mbps 1 Gbps 500 Mbps
50 ms w 1 ms 20e50 ms
With these key terms in mind, we can now see how
5G fares compared to today’s 4G LTE network
technology. By relying on a “different suite of
spectrum than 4G LTE,” 5G will be able to deliver
faster connection speeds, increased bandwidth to
support higher volumes traffic, and ultra-low
levels of latency (IT Pro, 2020).

With the increase in speed comes the po-
tential for a vast array of new consumer
applications. Fiber-like speeds can bring
augmented reality (AR) and virtual reality
(VR) experiences to concertgoers in 100,000
seat venues to create fully immersive
entertainment experiences. Faster connec-
tion speeds also bring the possibility of new
and improved industrial applications such as
real-time monitoring across supply chains
and the increased use of robots in factories.

With latency levels as low as 1 ms, 5G can
enable innovations such as telerobotic sur-
gery, fully autonomous cars, and smart
highways, where a high-latency connection
could have serious, potentially life-
threatening consequences (Jabagi et al.,
2020).

Finally, by tapping into a different, and less
crowded, part of the spectrum, 5G networks
can allow for a 100-fold increase in network
traffic as compared to 4G LTE. Similarly,
whereas 4G can support around 2,000 con-
nected devices per 0.38 miles, 5G can sup-
port up to 1 million devices. As a result, 5G
has the potential to create a hyperconnected
world where networks of physical objects,
including machines, wearables, appliances,
automobiles, and even buildings, are not
only connected to users but each other
(Talluri, 2017).
2022.
 22
Compared to previous generations, the real game
changer with 5G is its expansion into a much
broader range of the wireless spectrum. By relying
on a higher frequency than its 4G LTE counter-
part, 5G has the “ability to support fast data
without interfering with other wireless signals or
becoming overly cluttered” (Fleck, 2018). This
expansion in frequency is important since the In-
ternational Data Corporation (IDC) predicted
recently that there will be an astounding 41.6
billion connected IoT devices producing 79.4 zet-
tabytes (ZB) of data by 2025 (International Data
Corporation, 2019). Given that 5G is also ex-
pected to reduce the energy consumption of
connected devices, 5G networks are set to open
the door to a host of connected devices that are
being designed to “bring new services and deliver
new levels of efficiency and safety all around
usdin homes, businesses, cities, and across in-
dustries” (Talluri, 2017). In short, 5G is not simply
an incremental performance improvement over
4G LTE; rather, it is a radical expansion of mobile
network technology into new spectrum bands and
regulatory paradigms (Qualcomm Technologies
Inc., 2016).
3. The promises of 5G
In this section, we explore several ambitious ap-
plications of 5G, each with varying degrees of
transformational potential. 5G use-cases are
generally grouped in three classes of services: (1)
enhanced mobile broadband, (2) mission-critical
communications, and massive IoT (Qualcomm
Technologies Inc., 2019). We examine potential
real-world use-cases within each of these classes.
Table 2 provides a summary of 5G service classes
and exemplar use-cases, and is presented at the
end of this section.
3.1. Enhanced mobile broadband
These applications are centered around the
improved performance of mobile phones and
increased utility of immersive experiences
including VR and AR (Farshid et al., 2018). One
proposed benefit of 5G is that it is expected to
improve the communication of user devices signif-
icantly with satellites and cellular towers. This
would not only lead to better user experiences in
the developed world, but it would also allow users
in developing countries to access high bandwidth
and data-intensive services such as video confer-
encing and big data transfer that are unavailable to
them today. This would involve a dynamic
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ON THE HORIZON
integration between satellite (high bandwidth) and
terrestrial (low latency) networks in which services
that require each property could dynamically
switch between satellite and land-based services
(Liolis et al., 2019). These services can be delivered
to users’ homes on their personal devices, thereby
eliminating the need for centralized spaces to ac-
cess services that require high throughput, low la-
tency, and high connectivity.
Another enhanced mobile broadband 5G oppor-
tunity, for entrepreneurs and users, is the appli-
cation of AR and VR in fields such as education.
Augmented reality incorporates additional envi-
ronmental information for a user, usually through a
handheld device. Virtual reality is the simulation of
a brand-new reality, unencumbered by images and
space constraints of existing environments. Both
provide immersive experiences for the user and are
expected to improve remote services and quality of
life for people with disabilities. In the educational
context, several challenges exist that prohibit the
widespread use of AR and VR. These challenges are
largely centered around the need for high-quality
images delivered in real-time through low latency
and high connectivity. The unsatisfactory state of
current 4G LTE technologies is seen in music and
theatre education, which require consistent image
and sound delivery with perfect timing and little to
no lag. Since 5G is purported to offer highly reliable
services with low latency, it could improve the
current user experience of AR and VR and enhance
remote classroom instruction. Several experiments
related to education delivery using 5G AR and VR
have already begun in Europe, led by the 5G
Infrastructure Public Private Partnership con-
sortium (Baratè et al., 2019).
3.2. Mission-critical communications
Mission-critical communications are predicated on
improving and developing new use-cases for in-
dustries that require ultra-reliable low-latency
data transfer. For example, in medical care de-
livery, 5G may enable better real-time monitoring
so caregivers can act quickly in an acute setting if
a patient’s condition deteriorates (AT&T, n.d). In
addition, caregivers may be able to deliver more
effective prophylactic measures through the use of
wearables and other continuous monitoring sys-
tems. Any interruptions to service or loss of con-
nectivity can have serious consequences on health
outcomes and 5G could improve the reliability of
current and future telemonitoring systems. Many
drone applications have also emerged as mission-
critical services for the military as well as for
commercial and industrial purposes. Mapping,
 ON THE HORIZON 23

Table 2. The rollout of 5G service classes

Service classes Use-cases Timeline
Enhanced mobile Near-term
broadband (EMBB)
Mixed reality (MR): a form of ‘enhanced AR’ which eMBB use-cases are those
Services that focus on brings together real world and digital elements. MR most likely to have near-
driving network allows users to interact with and manipulate both term economic and social
efficiencies through virtual and physical items/environmentsa. impacts as most
lower cost-per-bit for applications are typically
data and enhanced
Videoconferencing: Improved virtual meetings with incremental improvements
user experiences. 360o video and even real-time language translation of existing 4G LTE use-
cases.
Livestreamed in-vehicle infotainment

Improved telemedicine and eHealth

Massive Internet of Mid-term
Things (MIoT)
Precision agriculture The shift from IoT to MIoT is
Services that center already underway. Annual
on enabling Massive
Remote industrial monitoring spending in IoT is set to
Machine Type grow by double-digit rates
Communication
Industrial robotics (e.g., highly coordinated ware- through 2022b, showing that
(mMTC) to create a house robots) executives have moved
hyperconnected from wondering whether
world across devices
Cloud-based robotics for remote surgical procedures they should adopt IoT to
and users. how best to do so. Economic
Smart grocery stores (i.e., automated disposal of and social impacts are
expired items and dynamic temperature control) expected to be realized in
the mid-term.
Mission-critical Long-term
communications
Autonomous vehicles MCS applications have
(MCS) strong security
Services that require
Remote control of critical infrastructures requirements, and most
ultra-reliable and low applications are still
latency data transfer
Smart grid automation (e.g., automated communi- considered nascent. As a
(also known as cation between a multitude of homes, power plants, result, economic and social
URLLC). wind farms, city buildings, and more) impacts are only expected
to be realized over the long-

Connected vehicles (automated communication be- term.
tween vehicles, highway infrastructure, network
services)
a
Source: (Intel, n.d.)
b
Source: (Harvard Business Review, 2019)

inspections services, and large cargo logistics are a
few examples of mission-critical services within
the growing drone industry (Giones & Brem, 2017).
Another example of a mission-critical commu-
nication 5G use-case is the development of
autonomous vehicles. While the development and
deployment of autonomous vehicles are already
underway, numerous safety concerns must be
addressed before they become commonplace.
Perhaps the biggest hurdle impeding the wide-
spread adoption of autonomous vehicles is poor
network latency (Chekired et al., 2019). Autono-
mous vehicles must create and send data to an
internal or remote data processing utility to
rapidly process information. Changing road and
weather conditions must also be dynamically
transmitted to the vehicle so it can adjust and
change course if necessary. Existing communica-
tion networks do not have the necessary band-
width, nor the latency, to support the nearly four
terabytes (TB) of data per day required for
autonomous vehicles to function as intended
(Miller, 2017). 5G could be the solution as it allows
for billions of connections simultaneously, enables
for very high data throughput, and offers ultralow
levels of latency.

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 24
3.3. The Massive Internet of Things
Today’s 4G wireless networks are currently limited
in their ability to handle simultaneous connections
reliably, as they were mostly designed to connect
users, not machines (Agiwal et al., 2019). As a
result, machine-to-machine applications today are
limited, and most mobile technologies are based
on user-to-user or user-to-machine interactions.
Unlike its predecessor, 5G technology is designed
to handle a large number of connections simulta-
neously, because of its low latency design; it is also
expected to require less battery usage than
existing mobile devices. Consequently, the arrival
of 5G is set to shift today’s IoT paradigm to the
Massive Internet of Things (MIoT). MIoT is a
description of a future in which billions of devices
are interconnected and sharing data.
MIoT solutions are growing in popularity in the
agriculture industry with applications based on
network ubiquity and sensors designed to monitor
everything from the soil and external environment
to farming products and equipment, as well as the
people involved in the growing of crops (Krotov,
2019). In fact, one of the fastest-growing areas
for sensor-based business opportunities, especially
animal wearables to track the health of livestock,
is in agriculture (Brown, 2017). Another example of
a 5G enabled MIoT use-case is smart grid automa-
tion in the energy and utilities sector. Continuous
communication between nodes in the energy grid
such as power plants, wind farms, data centers,
buildings, and homes would allow for the rapid
detection of failures, and backups could be
deployed instantaneously. Moreover, excessive
energy usage from a consumption node such as a
large building could immediately be communi-
cated to power centers, and excess capacity could
be diverted from other consumers to prevent
power failures (Pasqua, 2019). Moreover, 5G could
allow for greater usage of warehouse robots,
which are currently limited by safety concerns.
More reliable sensors enjoying near 100% uptime
could reduce concerns of catastrophic failures
within robots, allowing for increased automation
of repetitive tasks such as packing and moving
warehouse goods.
4. 5G: We’re not (quite) there yet
Although potential 5G use-cases abound, it is
important to recognize that the 5G rollout is still in
its nascent stages. Although the four major carriers
in the U.S.dVerizon, AT&T, Sprint, and T-Mobi-
ledhave all announced some form of 5G, their
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ON THE HORIZON
speeds, bandwidth, and range are still nowhere
near the grandiose promises of 5G. It is important to
note that significant infrastructure upgrades are
required before 5G becomes ubiquitous, particu-
larly in the U.S. where 4G LTE networks dominate.
5G devices are still tethered to 4G LTE networks and
it will likely still be several years before 4G LTE and
4G networks are replaced with standalone 5G net-
works. All 5G-enabled devices to be launched over
the next year are expected to rely on the 4G or 4G
LTE wireless spectrum (Segan, 2020). Another
concern related to the expansion into 5G is the fact
that 5G networks are less reliable and more sus-
ceptible to interference than their 4G or 4G LTE
counterparts. As compared to 4G or 4G LTE tower
signals, which can reach up to 30 miles, a typical 5G
network can reach a range of less than half a mile
(Jabagi et al., 2020). Therefore, substantial in-
vestments will be required to install a sufficient
number of 5G towers.
Despite the technological challenges that must
be overcome for the world to realize the ambitions
of 5G, these challenges have not dampened the
enthusiasm of scholars, policymakers, and busi-
ness leaders alike. While there seems to be no
shortage of predictions about the potential of 5G
networks (Abbosh & Downes, 2019), we believe the
current hype surrounding its transformational
impact is premature. As such, “there is far more
work that needs to be done before networks can
start delivering upon the upper echelons of what
5G has promised” (IT Pro, 2020). Thus, similar to
that adoption pattern of 4G LTE, we do not expect
5G to become ubiquitous for several years,
possibly even longer given the large leap in tech-
nology compared to the one between 4G LTE and
3G. However, this does not mean business leaders
should delay thinking about and preparing for 5G.
Instead, managers would be wise to start evalu-
ating the merits of this upcoming technology, so
that they can make informed decisions about their
IT investments in anticipation of its arrival.
5. An evaluation and adoption
framework for 5G
As with many new technologies, it is concerning to
see global business managers who are too opti-
mistic about 5G and very excited about immediate
opportunities, particularly in the near term. Iron-
ically, industry surveys suggest that despite having
a low awareness for 5G and its real-life applica-
tions, 70% of executives believe that 5G applica-
tions will provide a competitive edge with
customers (Accenture, 2019), and 84% agree that
 ON THE HORIZON
“5G is worth paying more for” (PSB Research,
2016). This willingness to parlay investment into
a technology that is not well understood is
potentially worrisome and highlights the need to
provide managers with tools that can enable them
to answer questions focused on the future of 5G:
With the widespread deployment of 5G likely far in
the future, how can managers decide which of its
use-cases will materialize first? Also, how can they
prepare for the realization of longer-term use-
cases?
When a specific timeframe for nascent tech-
nologies is uncertain, researchers can turn to more
generic adoption frameworks. For example, Iansiti
and Lakhani (2017) noted that foundational tech-
nologies evolve based on two dimensions: novelty
and complexity. Novelty measures how new the
application is and how much work will be required
to convince users it should be used. Complexity
measures the level of coordination between all the
various industry ecosystem participants (e.g.,
suppliers, distributors, consumers, government,
competitors, and all of their processes and prod-
ucts) required to create and capture value from
the technology. While Iansiti and Lakhani (2017)
applied these dimensions to prognostication of
the adoption of blockchain use-cases, their
framework is equally applicable to 5G.
In this framework, novelty is drawn as the X-
axis, and complexity is drawn as the Y-axis. Each of
the resulting quadrants represents a specific stage
in 5G technology development. By understanding
which quadrant relevant use-cases fall, managers
can better understand the level of complexity and
Figure 1. 5G adoption framework
Source: Based on Iansiti and Lakhani (2017).
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25
effort required to generate and capture value from
the technology. They can also refer to the place-
ment of their use-cases in this chart to better
determine when and what level of investment they
should make in each specific application. Figure 1
illustrates various 5G use-cases along the novelty
and complexity dimensions.
The single-use quadrant contains the simplest
use-cases. These low novelty and low complexity
use-cases may lead to incremental improvements
in the mobile internet and result in marginally
better performance improvements for existing
mobile internet users. The single-use example is
restricted to this specific application and does not
have far-reaching effects for other business, soci-
etal, or technology domains. A typical example of
a single-use application is a mobile user enjoying
faster download speeds of a video residing on a
cloud server. Interesting single-use applications
are already underway, as some U.S.-based mobile
internet user groups have begun conducting
ongoing testing near 5G cell sites, noting small
performance improvements on newer 5G-enabled
devices (Segan, 2020). Business managers will
likely want to investigate single-use applications.
Since large capital outlays to coordinate with
other third parties are not necessary, managers
can incorporate 5G in areas where incremental
performance improvements in data transfer and
connectivity will yield positive results. Think of a
fleet of grocery delivery drones that can service
remote areas far more reliably and at far greater
distances than they can today due to improved
connectivity with their central servers.
The localization quadrant houses the use-cases
that have high novelty but require minimal coor-
dination between end-users and ecosystem part-
ners, making them potentially attractive
investments for managers. We expect VR and AR
applications designed for a single or a few users to
emerge as viable, localized use-cases. For
example, the app VRPhysio supports physical ther-
apy in VR with very little coordination with other
ecosystem players. Specifically, the vendor of such
a game would require minimal inputs from other
users and little to no input from other downstream
or upstream innovators to release their product,
and patients need to simply purchase the product
to begin using it. The vendor can continue to
release similar games for a wide variety of other
physical rehabilitation cases with minimal friction
from other ecosystem players, with the possible
exception of having to acquire the appropriate
licenses for healthcare regulatory bodies. Another
example of a localized VR application is a heavy-
duty machine repair shop’s use of virtual overlays
 26
of machine parts with integrated repair instructions
for components that are too hot to touch. After
single-use cases, managers should consider local-
ized VR and AR applications with a low number of
required users, assuming they are relevant to the
business’ operations and revenue model.
The substitution quadrant contains 5G use-
cases that exhibit low novelty but require a high
level of coordination across numerous ecosystem
partners. Remote physician consultation, a subset
of telemedicine that is also known as telehealth, is
an example of a substitution application. This use-
case is not particularly novel, as companies such as
Live Care have already begun piloting larger scale
video consultations between physicians based in
large cities and patients residing in underserved
northern communities in Canada (Premier Health
Group Inc., 2019). However, for remote physician
consultation to become the industry standard,
large coordination needs must be satisfied be-
tween industry and public sector stakeholders
including patients, payers, physicians, regulatory
bodies, and telehealth service providers. As
demonstrated by this example, although substitu-
tion cases exhibit low novelty, they are nonethe-
less significant insofar as they aim to replace
entire systems and business processes. Given their
scope and the extensive coordination required
across ecosystem participants, substitution cases
can be both costly and time-consuming. There-
fore, substitution applications are typically public
use-cases, and they should be approached with
caution by business managers.
The transformation quadrant contains use-
cases that are highly novel and require coordi-
nation among industry participants. As can be
expected, these applications are the furthest
away from reality, particularly as they face the
greatest number of regulatory, legal, and tech-
nical obstacles. An example of a transformational
5G use-case is smart grid automation. Where
power generation and delivery are conducted
today with a significant amount of manual inter-
vention, this entire infrastructure could be auto-
mated through effective machine-to-machine
communication, with resources allocated and
adjusted dynamically based on the power needs
of individual buildings and houses. This automa-
tion could lead to fewer power interruptions,
more efficient use of existing power supplies,
lower costs, and increased safety for end-users.
However, a significant amount of coordination
will be required between the creators of these
applications, private and public energy vendors,
regulatory agencies, municipal engineers, and
more. We have a long way to go to realize such
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2022.
ON THE HORIZON
use-cases, but they have the greatest potential to
improve societal, economic, and technological
outcomes. They may even lead to changes in
regulatory policy that guide and enable the future
of the technology for public benefit.
Much like substitution cases, transformation
must be carefully considered before any invest-
ment is made. Not only are these technologies
currently highly uncertain, but they also suffer
from the high costs that are required to raise
awareness of the technologies among all
ecosystem participants. In addition, industry in-
cumbents must be competitively displaced for the
new use-case to become a standard, which will
certainly be met with strong opposition. With that
said, transformational use-cases will likely lead to
significant value creation and capture in the long-
term. A shrewd business manager who can opti-
mally manage risk in this nascent stage of 5G
development yet also avoid underestimating the
transformational impact of 5G in the long term
will benefit their organization.
6. Creating a 5G strategy
As demonstrated in the previous section, Iansiti
and Lakhani’s (2017) adoption framework can
help managers evaluate the attractiveness of 5G
potential use-cases. However, evaluating use-
cases is only the first step. Once an opportunity
has been identified and deemed an organizational
fit, business leaders must move quickly and delib-
erately to create their 5G strategy. To support
businesses interested in adopting and implement-
ing 5G technology, be they mature organizations or
startups, we offer a few guiding principles for
creating a 5G strategy while considering each of
the four generic use-cases.
Given that 5G hardware will be more expensive
than that of 4G, organizations must start budget-
ing for the investment now. In doing so, organiza-
tions will be more likely to have 5G-ready
equipment once there is a full-scale rollout of the
technology. As Abbosh and Downes (2019) urged, a
balanced portfolio of corporate venture funding is
likely to be critical to the success and profitability
of 5G-powered endeavors. This may be particularly
true for substitution and transformation use-cases
given their scope and complexity. Thus, business
leaders and entrepreneurs should start identifying
ecosystem stakeholders now, as collaboration and
co-investments will often be required to make a
reasonable business case. For instance, many
business executives and organizations are
currently forming or expect to form partnerships
 ON THE HORIZON
with telecom companies to support their 5G
journey (Accenture, 2019).
In setting budgets and strategic plans, organiza-
tional leaders must also recognize that measuring
the value, or ROI, of certain 5G use-cases may be
more difficult than others. For instance, estimating
the value of low complexity use-cases is likely to be
a feasible exercise given that most single-use cases
and some localization use-cases tend to be
enhanced mobile broadband (EMBB) applications
that offer incremental improvements over existing
4G-enabled services and offerings (Jabagi et al.,
2020). However, many experts agree that such
use-cases are only likely to offer modest increases in
revenue unless businesses can offer a unique value
proposition that reaches beyond increased speed.
On the other hand, translating transformational 5G
use-cases, such as MIoT applications, into mone-
tized reality and measurable ROI expectations will
be significantly more complicated. This is because
transformational 5G use-cases are still embryonic,
and many of their most significant impacts are ex-
pected to proliferate across a range of industries
and user communities.
Beyond the financial factors, 5G strategic plans
must take into consideration the human aspects of
the organization. Change management experts
have long espoused that organizational change is
more easily accepted when those impacted find
value in the proposed change. Business leaders
cannot assume that everyone will understand what
5G technology is and, more importantly, what it
means for the company. This will be especially
true for 5G applications that are high in novelty
(e.g., substitution and transformation use-cases)
that must compete with existing, well-entrenched
solutions that are difficult to dislodge. Rather,
managers and employees must be educated on 5G
technology as well as how it can support business
goals. Clear communication strategies and training
programs are crucial for getting buy-in. Organiza-
tions that build 5G into the organizational culture
from the outset are likely to realize the intangible
benefits of 5G faster and more fully than other
organizations.
7. The potential reach of 5G
Unlike earlier generations of mobile technology, 5G
promises to not only improve connections between
users but also support connections between users
and devices as well as between devices and devices.
When fully implemented, 5G is expected to be the
biggest generational shift in mobile technology to
date (Abbosh & Downes, 2019). With the “Law on
This document is authorized for use only in Prof. Radhakrishna Pillai R's Digital Disruptions Through Internet of Things-- at Indian Institute of Management - Kozhikode from Jun 2022 to Dec
2022.
27
the Effect of Technology,” Roy Amaradthe late
American researcher, scientist, and futur-
istdpointed out that people tend to overestimate
the effect of a technology in the short run and un-
derestimate the effect in the long run. It is with this
time horizon in mind that astute business leaders
today will start to properly manage risks while
evaluating and incorporating 5G technologies into
their operations. These forward-looking individuals
and their firms may enjoy an early-mover advantage
when the technology improves and coordination
costs between necessary ecosystem players
decrease. Ultimately, because of its far-reaching
potential, it is likely 5G technology will impact
most, if not all, technology-based businesses in the
future. When and to what extent remains the key
question for managers today.
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