Nokia has identified main barriers to the adoption of 5G

5G-enabled industries have the potential to deliver $8trn* in value to the global economy by 2030 according to new research from Nokia and Nokia Bell Labs. The 5G Business Readiness Report surveys 5G adoption among businesses around the world, providing a cross-sector view of the path to full 5G deployment. Find out barriers to the adoption of 5G.

SIM card e SIM shop

The Covid-19 pandemic is forecast to increase the value creation potential of 5G in the medium and long-term by accelerating digitization, particularly among the least digitally advanced industries.

The report highlights a correlation between 5G deployment and business performance. Companies at an advanced level of 5G adoption were the only group to experience a net increase in productivity (+10 percent) following Covid-19, and the only group able to maintain or increase customer engagement during the pandemic.


Expectation vs reality: the anticipated impact of 5G by organizations yet to invest, and the actual impact felt by those who have

Expectation vs Reality

5G mature companies are growing faster than their peers: 49 percent of companies in the expansion phase and 37 percent in the implementation phase – representing the two most advanced stages of 5G maturity – achieved growth last year, compared with 20 percent in the planning, 11 percent in discovery and 5 percent in passive phases.

These findings show that the companies who are most 5G mature, and therefore likely also the most advanced in their overall digital transformation, are showing the highest impact in business performance.

Despite the economic challenges of Covid-19, a boom in 5G investment will see 72 percent of large companies invest in 5G over the next 5 years. The report forecasts a rapid uptick in investment over the next three years as enterprises seek to expedite digitalization. A third of companies across all regions fear being outpaced by the competition should they not invest in 5G within the next 3 years.

Across 8 economies  – Australia, Germany, Finland, Japan, Saudi Arabia, South Korea, the UK and the US – 50 percent of companies are at the midway level on 5G readiness, between initial planning, trials and deployment, compared to 7 percent that are classed as 5G mature.

While 13 percent of organizations in Saudi Arabia and 12 percent in the United States rated as 5G mature, fewer than one in 20 were classed as such in Germany (3 percent), Finland (2 percent) and the UK (4 percent).

While many organizations are at the implementation stage, for most this still means trials, pilots or early stage deployments such as 5G mobile phones or limited 5G connectivity for fleet services or rural locations. Few have yet to realize the true breadth, depth and potential of 5G.

86 percent of decision makers said they have some kind of strategy for 5G, and over a third fear being outpaced by the competition should they not invest in 5G in the next 3 years. Only 15 percent are currently investing in its implementation, and over a quarter (29 percent) of businesses are not planning any 5G investment in the next 5 years.

Organizations must start or intensify their planning now and accelerate business model innovation to remain competitive in a rapidly digitalizing global economy. This will require digitalizing operations, processes and ways of working to capture the full potential of 5G,” Gabriela Styf Sjoman, chief strategy officer at Nokia, said. barriers to the adoption of 5G

Barriers to the adoption of 5G

  1. Ecosystem availability

Limited availability of key infrastructure outside urban centers was cited by 28 percent of decision-makers.

2. Education and understanding

17 percent said a key barrier is that decision-makers within their business do not understand 5G, while 14 percent said they don’t know enough about it themselves.

3. Awareness

Over a fifth of technology buyers (22 percent) said that 5G implementation is not a current priority for their business.

4. Cost and complexity

15 percent said they were not confident their company would be able to implement the necessary technologies.

5. Security

Over a third (34 percent) said that they are concerned about the security of 5G. The report did not mention about Huawei network that is reported to have posed security challenges to telecom operators.

The findings suggest that 5G mature businesses have been better able to grow rapidly, maintain productivity, engage customers and instill confidence in employees.

A call to action

The report identifies three key catalysts for change in order to bring about improved understanding, confidence and ultimately adoption of 5G. These are: improved regulation, collaboration and willingness to innovate.

  1. A third of technology buyers said that government investment in infrastructure or subsidies to drive down costs would encourage them to invest more in 5G. Enterprises will not adopt 5G unless the supply from network operators is presented and priced appropriately, which in turn relies on governments and regulators making 5G spectrum in low, mid and high bands available and affordable.
  2. The lack of understanding that exists within some businesses around 5G must be directly addressed. Companies and consumers alike need more information about the technology and how it can both improve operations and solve real world problems, ranging from enterprise use cases to telehealth to green technology. barriers to the adoption of 5G
  3. As companies better understand 5G, they must boldly move to overhaul their operations to accommodate it, for example, exploring how they could use 5G to streamline and more effectively monitor their mobile workforce, fleet or supply chain.

View the full interactive report here:

Like this? "Sharing is caring!"