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Apple Buys Into 5G

Apple CEO Tim Cook introducing the new 5G iPhone 12 series. (Photograph: Brooks Kraft / Apple)

Apple is coming out with a full range of new 5G iPhones. The phones have been designed to use the full range of new frequencies that the various cellular companies are touting as 5G, up to and including the millimeter wave spectrum offered in center cities by Verizon. In addition to 5G, the phones have new features like a better camera, better ease at using wireless charging, and a lidar scanner. The last change is the most revolutionary since lidar allows apps on the phone to better see and react to the surrounding environment.

But Apple is going all-in on the 5G concept. It’s a natural thing to do since cellular carriers have been talking non-stop about 5G for the last few years. However, by heavily advertising the new phones as 5G capable, Apple is possibly setting themselves up to be the brunt of consumer dissatisfaction when the public realizes that what’s being sold as 5G is just a repackaged version of 4G. The new features from an upgrade in cellular specifications will get rolled out over a decade, as we saw with the transition from 3G to 4G. In terms of these new phones’ improvements, we are probably now at 4.1G, which is a far cry from what 5G will be like in ten years.

What I find most disturbing about the whole 5G phenomenon is that the cellular companies have essentially sold the public on the advantages of faster cellular speeds without anybody ever asking the big question of why cellphones need faster speed. Cellphones are, by definition, a single user device. The biggest data application that most people ever do on a cellphone is to watch videos. If a 4G phone is sufficient to watch videos, what’s the advantage of spending a lot of money to upgrade to 5G? Home broadband needs fast broadband to allow multiple people to use broadband simultaneously, but that isn’t true for a cellphone.

People do get frustrated with smartphones that get poor coverage inside big buildings, in elevators, in the inevitable cellular dead zones in every town or rural areas too far away from cell towers, but 5G phones won’t fix any of these problems. Poor cellular coverage happens in areas that naturally block or can’t receive wireless signals. No technology can make up for the lack of wireless signal.

The big new 5G feature in the iPhones is the ability to use all of the different frequencies that the cellular companies are now transmitting. However, these frequencies aren’t additive—if somebody grabs a new ‘5G’ frequency, the bandwidth on that frequency doesn’t add to what they were receiving on 4G. Instead, the user gets whatever frequency is available on the new spectrum channel. In many cases, the new 5G frequencies are lower than traditional cellular frequencies, so data speeds will be a little slower.

The cellular companies are hoping that Apple is successful. The traditional frequencies used for 4G have been getting crowded, particularly in urban areas. Cellular data traffic has been growing at the torrid pace of 24% per year, and the traditional cellular network using big towers is getting overwhelmed.

Cellular companies have been trying to offload the 4G traffic volumes from the traditional cellular networks by opening up thousands of small cell sites. But their biggest hope for relieving 4G was to open up new bands of spectrum—which they have done. Every data connection made on a new frequency band is one that isn’t going to clog up the old and overfull cellular network. Introducing new bands of frequency doesn’t do the cellular networks any good unless people start using the new frequency bands—and that’s where the iPhone is a godsend to cellular companies. Vast volumes of data will finally migrate to the newly opened frequency bands as these new iPhones hit the market.

Unfortunately, users will likely not see any advantages from the change. Users will be migrating connection to a different frequency band, but it’s still 4G. It will be curious to see who takes the heat when the expensive new phones don’t outperform the old phones—will it be Apple or the cellular carriers?

By Doug Dawson, President at CCG Consulting

Dawson has worked in the telecom industry since 1978 and has both a consulting and operational background. He and CCG specialize in helping clients launch new broadband markets, develop new products, and finance new ventures.

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