Today’s world looks vastly different from twenty years ago. Economies, industries and businesses have evolved digitally, and with this evolution has come a need for enhanced connectivity and wireless communication. This digital transformation has significantly impacted the telecommunications industry and the specific demand for faster and more efficient network offerings. This resulted in the adoption of various wireless network technologies like Long Term Evolution (LTE) and, more recently, the deployment of 5G. Below we examine these two networks in more detail and answer the question, “How do they differ, and what do they offer?”.
An introduction to LTE and 5G
To understand the value and differences between these wireless communication networks, we need to define what they are.
In simple terms, LTE is a Fourth-Generation network often referred to as the LTE 4G wireless standard. Standard 4G LTE is now considered outdated, and more modern 4G networks are based on LTE-Advanced technology. LTE-Advanced is, therefore, an evolved version of the older LTE architecture.
Over the last two decades, this LTE 4G network has provided increased network capacity and speed for mobile devices compared to what the third-generation 3G technology was able to provide. LTE has several different features that include:
- Audio and video streaming – LTE has faster download and upload speeds than 2G and 3G.
- Real-time connection to services – Voice over LTE enables users to talk to others without experiencing any delay.
- Carrier aggregation – LTE-Advanced provides improved network capacity, adding bandwidth of up to 100 MHz across five component carriers (bands) with 20 MHz bandwidth each.
As digital transformation has revolutionised industries, there has been a need for even more network capacity. This is why the 5G network was deployed. 5G is the Fifth-Generation of wireless technology. It provides increased speed, lower latency, and improved reliability.
Not only is 5G faster than 4G and significantly more secure and stable than older networks. 5G ultimately allows data to go from one place to another with a much shorter delay between submission and arrival. This process is known as latency.
The International Telecommunications Union recently released several statistics highlighting the difference between LTE and 5G. According to their findings, 5G networks aim to deliver:
- 1000 times higher mobile data volume per area
- 100 times the number of connected devices
- 100 times higher user data rate
- ten times longer battery life for low-power massive-machine communications
- five times reduced end-to-end latency
From the above, it is clear that 5G offers more connectivity, so much so that GMSA recently stated in their 2023 Mobile Money Report, that 5G will overtake 4G in 2029 to become the dominant mobile technology. According to this report, as of January 2023, there were 229 commercial 5G networks worldwide, and over 700 5G smartphone models had been launched.
It is essential to mention that the LTE 4G networks will remain in use globally, especially as connections from legacy networks (2G and 3G) are migrated over to LTE 4G and 5G.
From the above, it is clear that both LTE and 5G networks have a place in today’s world as they offer several benefits for industries, businesses and consumers. We examine how these wireless communication networks work in more detail below.
The difference between LTE and 5G
It is easy to identify key differences when looking at 5G and LTE. LTE is a standard for wireless broadband communication that has been around since 2009, while 5G, or Fifth-Generation network, is the newest wireless standard currently being rolled out.
When comparing both networks side by side, we can underpin the following differences:
- LTE vs 5G Speed: LTE offers speeds of up to 100Mbps, while 5G can deliver speeds of up to 1Gbps.
- LTE vs 5G Coverage: LTE has widespread coverage, but 5G is still in the early stages of deployment.
- LTE vs 5G Capacity: LTE can support up to 1000 devices per cell, while 5G can support up to 10,000 devices per cell.
From the above, it is clear that 5G offers more speed, coverage and capacity compared to LTE. With this comes access to a greater spectrum at higher frequencies. This means that networks will be able to support more high-demand applications at the same time and, in doing so, provide a fibre-like experience for fixed wireless applications. This will specifically benefit those in areas that don’t allow for effective connectivity.
5G also has several other deployments that make this network powerful. These include:
- Enhanced Mobile Broadband (eMBB) – The high bandwidth and speeds of 5G enable ultra-high-definition video and data volumes. This allows for virtual and extended reality applications that require rich data transfer in both upstream and downstream directions to run.
- Massive Internet of Things (mIoT) – The enhanced connectivity of up to 1 million connections per square kilometre is critical to implementing advanced massive IoT applications.
- Private Wireless – A private 5G network supports indoor and outdoor operations without the impact of legacy and ad hoc wireless designs while supporting and securing business-critical operations.
- Network Slicing – A network slice is useful for wide-area networks. It allows a Telcommunication (Telco) to create a fit-for-purpose connectivity solution for a customer, which enables them to get a “slice” of the public network tailored to their specific needs.
Although there are several benefits to 5G deployment, there are also some challenges compared to the LTE network. For 5G services to run effectively, Telecommunications would need to use a combination of different spectrum bands. This plays a vital role in the speed and range of coverage.
For 5G applications like on-demand video and autonomous vehicles to function, Telecoms companies must have access to large amounts of spectrum. The problem is that spectrum is a scarce resource. This means that Telecoms globally must use a mix of low-band, mid-band, and high-band spectrums to deliver the 5G user experience customers expect. Operator trade organisations such as GSMA recommend that regulators and government agencies that control 5G spectrum allocation make 80-100 MHz of contiguous spectrum available per operator in prime 5G bands and about 1 GHz of spectrum per operator available in millimetre wave bands. This challenge will continue to impact the rollout and delivery of 5G globally.
Strategic Implications for Businesses
From the above, it is clear that LTE has played a significant role in digital transformation and has been associated with having helped create “The App Economy”. This term specifically refers to the smartphone and tablet revolution and the deployment of mobile applications for everything from banking, retail, entertainment and more. These mobile applications relied heavily on LTE and its connectivity evolution to run.
LTE created a dynamic shift in several industry verticals, and we can expect 5G to have an even bigger impact. The higher bandwidth, near real-time responses, IoT, and mission-critical products and applications made possible with 5G will change how businesses operate, business models and how whole industries conduct business. Through these technologies, businesses can improve productivity, reduce costs, increase economic output and optimise customer service. One of the most beneficial implications for businesses will be the rapid data and insight-driven decision-making that 5G makes possible.
5G will make the following possible across industries:
- Manufacturing – the higher flexibility, visibility, and security that 5G provides will allow for the development of configurable factories, mobile robots and time-sensitive networks resulting in increased productivity and lower operational costs.
- Automotive – 5G can improve transportation safety, especially with automated vehicles. It also offers higher bandwidth and edge computing power to allow for vehicle-to-infrastructure (V2I), vehicle-to-network (V2N) services and machine-to-machine (M2M) feedback loops.
- Retail – 5G will reinvent the shopping experience using technologies like virtual reality (VR) in the metaverse.
- Healthcare – through processing high-quantity medical data and low latency, 5G will allow for effective, reliable and quality medical-related home care.
- Utilities – 5G can enhance worker productivity and safety and improve asset management through real-time data monitoring and risk mitigation. It can also provide the foundation for grid modernisation and resiliency, optimising operational costs, and monetising assets.
- Education – 5G can create more interactive and connected classrooms through augmented reality (AR) and greater access to resources to enhance accessibility.
Looking to the Future
From the above, it is clear that 5G is set to change industries as we know them. Although there is much excitement around 5G, it must be noted that many developing and emerging markets still need to catch up regarding 5G deployment. This is essentially a result of a need for more infrastructure and investment. Many Telecoms companies globally are continuously working to focus their efforts on expanding their fixed wireless access offerings to new areas to provide 5G access within these markets. In doing so, these Telecoms companies continue to upsell smartphone adoption and other digital services.
5G global deployment has also led to much talk about the metaverse. This specifically refers to a collective, virtual and open space developed by integrating virtually enhanced digital and physical reality to provide an immersive experience to customers. Over the next few years, the metaverse will continue to gain traction, mainly as this provides Telecoms companies with an innovative way to create new revenue streams.
Conclusion
There is no doubt that LTE has a significant impact on industry verticals in terms of enhanced connectivity. This network has provided speed, reliability, security, privacy, and bandwidth. Still, as things have evolved, there is a need for even more, and this is where 5G and its network capability are stealing the show. The cellular network evolution has seen 5G change how businesses operate and provides significant opportunities for innovation. As we continue to utilise LTE and adopt 5G, the sky is the limit regarding what is possible in businesses. This makes this an exciting space to watch.
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Experienced Software System Engineer with a demonstrated history of working in the information technology and services industry. Skilled in Technical Solution Design, Management and Large Scale System Integration and Architecture. Strong engineering professional with an Engineer’s Degree focused in Computer Engineering from University of Pretoria/Universiteit van Pretoria.
