APAC verticals slow to adopt 5G

Most vertical industries, except for telecoms, government/public sector, media and entertainment, have adopted a conservative approach in the APAC region, stated analyst firm, Frost and Sullivan.

During 2020, Frost & Sullivan’s Information and Communications Technology (ICT) team conducted a small-scale survey, 5G Strategic Direction Voice of Customer in the APAC region, to gain insights on the general awareness of 5G adoption within the region and a viable framework to expedite incorporation of 5G technology into the industry ecosystem.

The study provides insights and a top-level assessment of the general sentiments of the industry toward the adoption of 5G, along with the possible opportunities and challenges. It also highlights best-practice considerations for 5G deployment and scalability.

“In terms of the relative timeline to embrace 5G technology, most vertical industries, except for telecoms, government/public sector, and media and entertainment, have adopted a conservative approach. Even though the telecoms industry is pushing for early 5G deployment, the end-user segments are not as keen,” said Mei Lee Quah, ICT associate director at Frost and Sullivan.

For the industry ecosystem to develop, it is necessary to discuss how to bring 5G to the next level. Possible regional drivers include new applications that can be monetised, solving pain points for consumers, and inclusion of 5G in government policies and public-sector projects, she noted.

“The preference for these varied by country and vertical industry. While these seem obvious, there is much room for improvement before 5G can truly scale globally.”

Key findings:

• 88 per cent of respondents stated their intent to implement 5G in Asia-Pacific.
• 74 per cent of respondents said they understand the impact of 5G and the clear need for it. Of those respondents, 32 per cent shared that the inclusion of 5G in government policies and public sector projects was the most critical enabler.
• The Philippines and South Korea showed high levels of understanding of the impact of 5G at 90 per cent and 100 per cent, respectively, whereas Malaysia, Indonesia, Singapore, and Japan showed below-average levels (67 per cent).

There is a supply-demand gap due to differences in incentives or preferences. Telecommunications companies need to address it by reassessing how they meet the needs of end-users per vertical.

In-country focus is a priority, but global connectivity may be required as well; 49 per cent of respondents shared that the 5G solutions will require connectivity across multiple cities (mainly in-country) with global connectivity as a secondary requirement. About 35 per cent of respondents said new applications that can be monetised are the most critical enabler of 5G.