Despite rising investment, UK businesses lack confidence over 5G

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Shadrach   in Technology & IT

26 February 2020, 04:02 GMT


Less than half of UK businesses are confident they can implement 5G-based technology successfully despite growing investment in the new mobile network, new research has been revealing.

According to an EY study by City A.M., around 15 percent of British companies are currently investing in 5 G, with figures expected to rise to 70 percent within three years.

But only 44% said they could successfully implement the Internet of Things (IoT), a 5G-based system of interconnected devices.

The lack of confidence is largely due to the perceived complexity of 5 G implementation, with three-quarters of respondents reporting that they needed a major overhaul of their operating model to make the technology work.

But organisations also cited a lack of understanding of 5 G's benefits, with many admitting gaps in knowledge about use cases and saying that they perceived the new network as just an incremental 4 G or wifi upgrade.

Enterprises in the UK are keen to invest in 5 G, but this does not match the capabilities of most organisations.

said Praveen Shankar, Head of Technology, Media and Telecoms at EY UK & Ireland.

To overcome this challenge and reach 5 G's full potential, providers need to articulate a more compelling vision of the opportunity, while businesses need to learn about the game-changing opportunities.

Despite the hesitation, UK businesses appear to be ahead of the 5 G priority curve, with just over one-third of respondents identifying 5 G's impact on business models as a focus area, compared to 28% worldwide.

Meanwhile, 31% saw higher participation in 5 G trials as a top priority compared to 25% of global firms.