How IT service providers optimally leverage current wireless trends

The Significance of 5G for IT Service Providers in Switzerland

WHAT IS THE DIFFERENCE BETWEEN 5G AND WI-FI?

In essence, 5G represents the fifth generation of mobile technology and encompasses various components. Mobile networks operate on licensed frequency bands, which are auctioned to the highest bidders. Operators must pay for the use of these frequency bands. To ensure coverage, they must establish a network of connected base stations capable of emitting a signal robust enough to serve multiple users simultaneously (thousands in urban areas). To make their investment profitable and expand network infrastructure further, they rely on subscription payments from users.

On the other hand, Wi-Fi operates on an unregulated frequency range accessible to everyone but with a relatively weaker signal. Users pay an Internet service provider (ISP) to deliver Internet to their homes and then utilize a router to provide Wi-Fi within their premises. The use of the same Wi-Fi frequency band as neighbors can pose challenges, particularly in densely populated areas with limited bandwidth. Wi-Fi operates primarily on two frequency bands: 2.4 GHz and 5 GHz. In simple terms, 2.4 GHz offers lower potential maximum speeds but better penetration and greater range compared to the higher-frequency 5 GHz, which can deliver faster speeds but may face challenges in penetrating walls.

Summary:

// Technology Type: Wi-Fi 6 is a wireless LAN technology, whereas 5G is a cellular technology.

// Licensing: Wi-Fi operates on unregulated frequency bands and does not require licensing, while 5G relies on licensed frequency bands.

// Frequency: Wi-Fi 6 operates at 2.4 GHz and 5 GHz, while 5G utilizes various frequency bands such as 600 MHz, 800 MHz, and millimeter waves.

// Authentication: Wi-Fi networks require an SSID and password for authentication, while 5G employs various authentication types.

// Network Security: Security is a crucial consideration with 5G due to potential high costs and increased security concerns. However, 5G introduces various security concepts, such as security anchor functions and subscription identifiers, enabling seamless and secure re-authentication of devices when transitioning between networks. Historically, Wi-Fi networks have been easier to secure than mobile networks, but Wi-Fi 6 attempts to enhance this further. Wi-Fi Protected Access 3 (WPA3) supports Wi-Fi 6 security, enhancing authentication security and encryption, addressing weaknesses in its predecessor, WPA2.

// Cost: Wi-Fi 6 is generally more cost-effective to deploy and operate, while 5G requires higher investments for infrastructure build-out and acquisition of licenses for frequency bands.

// Use Cases: Wi-Fi 6 is suitable for indoor use and high user density, whereas 5G is developed for various outdoor use cases, such as supporting autonomous vehicles or mobile backhaul.

5G SITUATION IN SWITZERLAND

The introduction of 5G technology is often portrayed as revolutionary due to its potential to enhance wireless connections and enable new use cases. According to a study by Ericsson, approximately 2.6 billion 5G connections are projected worldwide by 2025, implying that IT service providers investing in 5G deployment can offer their customers faster speeds, lower latency, and improved network performance.

In Switzerland, frequencies for privately used 5G (3.4-3.5 GHz) were allocated on January 1, 2024, allowing for the operation of entirely independent private 5G networks. This development opens up new models independent of telecommunications providers and expands opportunities for 5G utilization in industrial settings, although corresponding offerings still need development.

While Wi-Fi is established as the standard technology for private mobile data transfer in businesses, 5G is considered the standard technology for mobile data transfer in public spaces. Both technologies complement each other due to their respective strengths. Wi-Fi is versatile and cost-effective, while 5G is globally available and suitable for global end-user mobility.

However, there are niches where 5G may be more suitable than Wi-Fi, such as on large premises, in hospitals for guest networks, or for businesses lacking their own infrastructure. In-house 5G involves extending a provider's public network into private buildings through in-house antennas, while Private 5G describes operating a private 5G network, enabling various operating models, including the use of provider components.

Although frequencies for Private 5G were recently allocated in Switzerland, it will take time and experience to turn this development into a success story. The future evolution of 5G utilization in Switzerland and emerging new use cases remain to be seen.

CHALLENGES OF IMPLEMENTING 5G FOR IT SERVICE PROVIDERS

The rollout of 5G presents several challenges for IT service providers. Transitioning to this new wireless technology requires expertise, infrastructure investments, and meticulous planning to fully leverage its benefits.

One of the primary challenges is the complexity of 5G. This technology is significantly more complex than its predecessors, necessitating a deep understanding of its technical aspects and integration into existing network infrastructures by IT service providers. According to a Deloitte study, 69% of IT service providers encountered implementation difficulties with 5G, underscoring the need to acquire specialized knowledge and adequately train employees.

Infrastructure is another critical factor. To harness 5G's full potential, IT service providers must upgrade or modernize their networks. This entails substantial investments, both in terms of finances and time. Smaller companies may face financial constraints in this regard.

Additionally, security considerations cannot be overlooked. 5G introduces new security risks and network threats. Therefore, IT service providers must implement appropriate security measures to ensure data confidentiality, integrity, and availability. Besides physical security measures, network components, devices, and transmission channels must be safeguarded against potential attacks.

WILL 5G REPLACE WI-FI?

Data and insights from various studies and surveys indicate that both 5G and Wi-Fi 6 have both similar and different strengths. Both technologies play vital roles in the future of wireless connectivity, for both consumers and businesses.

Wi-Fi 6 has gained a significant lead over 5G in implementation, primarily due to cost considerations and the existing infrastructure. Wi-Fi 6 devices are currently widely adopted and more affordable compared to 5G devices. Moreover, Wi-Fi networks are established globally, with many IT departments already possessing experience in deploying and managing Wi-Fi networks.

Nevertheless, the proliferation of 5G is expected to continue evolving in the coming years. Both Wi-Fi 6 and 5G complement each other and are being tested and implemented concurrently in many companies. They offer similar features such as higher speeds, lower latency, and increased device and network capacities. However, their differences lie mainly in areas such as coverage range, mobility support, and cost structures.

Overall, the future of wireless connectivity is likely to involve a combination of Wi-Fi 6 and 5G, as both technologies have their respective advantages and use cases. While 5G adoption will continue to expand, particularly in scenarios requiring broad coverage and mobile applications, Wi-Fi 6 will remain prominent for local networks and private applications. Companies are likely to adopt a hybrid approach that best fits their specific requirements and use cases. Therefore, rather than supplanting Wi-Fi entirely, 5G is anticipated to complement it, contributing jointly to the enhancement of wireless connectivity.

Internet of Things (IoT) and Its Impact on IT Service Providers in Relation to Wireless Technology Trends

The Internet of Things (IoT) plays a pivotal role for IT service providers amidst evolving wireless technology trends. Interconnecting devices and systems offers businesses vast opportunities to craft innovative solutions and cater to the diverse needs of their clientele.

Recent findings from Gartner indicate that global spending on IoT surpassed $268 billion in 2022. Projections suggest a compound annual growth rate (CAGR) of 15% for IoT devices from 2021 to 2025. With the market being fragmented, entry barriers for providers remain relatively low.

The "State of IoT 2023" report by IoT Analytics forecasts over 29 billion IoT connections by 2027. Nevertheless, challenges persist, including limited chipset supply due to high demand and uncertainties stemming from trade tensions in China.

Wi-Fi, Bluetooth, and cellular IoT stand out as the leading IoT connectivity technologies, comprising 31%, 27%, and nearly 20% of connections, respectively. Expectations point towards continued growth in these areas.

Cisco Systems serves as a prime example of effective IoT solutions implementation in the IT industry. Through IoT technology integration, Cisco has collected real-time data and enhanced network connectivity, facilitating customized solutions for efficient data transmission and analysis.

Similarly, IBM has leveraged IoT solutions to develop intelligent analytics platforms, empowering clients to optimize data utilization and make well-informed decisions.

In essence, the Internet of Things presents substantial opportunities for IT service providers to innovate and enhance customer processes' efficiency. As Head of IT, it is incumbent upon us to seamlessly integrate IoT solutions into our services, ensuring competitiveness and delivering tangible value to our clientele.