OTTAWA – While the arrival of 5G is widely expected to propel Internet of Things (IoT) applications and self-driving cars to mainstream, it is still unclear whether new business models will arise to provide a return on the massive investments required by telecom carriers, according to The Conference Board of Canada.
5G Networks—The Future is Here! says that it is unlikely that this technological advancement will lead to significant increases in household spending on telecom services in Canada, unless it results in completely new ways to communicate with one another.
With consumer spending plagued by high indebtedness levels and the growing likelihood of a significant slowdown in the housing market, the Conference Board predicts that the deployment of 5G will not result in the Canadian telecom industry gaining any major traction in the short term.
“The more likely near-term outcome is that new business models will emerge in the corporate sector, especially as IoT applications and their associated data take off”, writes senior economist Kristelle Audet. “Large firms will be keen to leverage 5G networks to tap into these invaluable data pools, which may help them uncover trends from all spheres of life, improve efficiency, and gain a competitive advantage.
“All in all, 5G will likely speed up the innovation cycle and may mark the next phase of robust growth for the Canadian telecom industry.”
