The Dawn of 5.5G: AI Capabilities Amplify on Mobiles as 5G Paves the Future

The ever-evolving domain of telecommunications is now steering towards a fresh horizon - the advent of 5.5G. This conceptual leap signifies more than just an increase in speed; it embodies the unlocking of unprecedented Artificial Intelligence (AI) capabilities for mobile devices. Meanwhile, the industry is adamant on capitalizing on the considerable potential of existing 5G networks, which remain in the prime of their proliferation, more than four years following their debut.

This narrative took center stage at this week's Mobile World Congress (MWC) in Barcelona—undoubtedly the tech industry's most grandiose event dedicated to mobile connectivity. With a staggering attendance of approximately 101,000 participants, the conference heralded the unveiling of various sophisticated mobile phones, laptops, and other connected gadgets, all poised to leverage the combined power of AI and cloud computing.

Current statistics by GSMA Intelligence (GSMAi) reveal the staggering upsurge of 5G adoption. By January 2024, commercial 5G services have been rolled out by 261 operators across 101 countries. In a rapid ascendancy that challenges previous generation networks, 5G connections are projected to represent a whopping 51% of total mobile connections globally by 2029, with a forecast to slightly increase to 56% by the end of the decade. Reflecting upon the penetration levels as of last year, GSMA Intelligence research reported 1.6 billion 5G connections.

A probing dive into these ventures shows that out of the 261 commercial 5G services provided globally, 47 hail from 5G Standalone (SA) networks, regarded for their inherent efficiency and advanced capabilities. Additionally, another 89 planned deployments are on the near-term horizon.

Another burgeoning sector reflected in the data is the enterprise space, now amassing 10.7 billion IoT connections, overriding the consumer segment's 10.5 billion. Spiraling ahead, these enterprise connections are anticipated to more than double, reaching 38.5 billion by 2030. Smart buildings and smart manufacturing are anticipated to contribute significantly, constituting 34% and 16% of the total enterprise connections, respectively.

The research also highlighted a shift in operator expectations towards deploying 5G-Advanced solutions soon after they hit the commercial space. This thrust is predominantly driven by urgent use cases, including 5G multicast services and low-cost IoT support.

Peter Jarich, the head of GSMAi, pointed out the evolving nature of 5G applications, “The early success of 5G was driven by enhanced mobile broadband (EMBB) and related network traffic needs. However, we're now traversing beyond consumer requirements. We are witnessing opportunities in areas including API monetization and 5G RedCap for enterprise IoT – all underpinned by 5G-Advanced and 5G SA networks. 5G SA fulfills the initial promise of 5G, with slicing, low-latency, and massive IoT capabilities tailored to enterprise service demands. 5G-Advanced is set to broaden this scope even further."

Moreover, GSMAi accentuated how new use cases will curate novel revenue streams for operators, giving rise to a renewed focus on billing for 5G services. With the rise of more 5G SA networks, the introduction of a new billing standard was deemed essential to back the propagation of refined network services. The GSMA, collaborating with heavyweights like AT&T, Deutsche Telekom, Swisscom, and Vodafone, introduced the Billing and Charging Evolution (BCE) standard to overhaul the previous Transferred Account Procedures (TAP). This new standard simplifies the charging model and is pivotal for operators eager to deploy 5G SA networks efficiently, enhancing value from wholesale roaming settlements across 5G, LTE, and the efficiency frontier of IoT.