6G: network operators want profitable returns on 5G first

This month, a consortium of global telecoms standards organisations declared plans to work on a sixth generation of superfast wireless cellular communications specifications. But consumer take-up of 5G has been lacklustre. One wonders whether 6G, due out next decade, will attract much attention.

Mobile carriers such as Verizon, AT&T and T-Mobile promised that 5G networks would transform our lives. Auctions for bandwidth hit a record in 2021 when Verizon bid more than $45bn. Yet many smartphone customers struggle to notice any difference.

About two-thirds of US mobile phone customers have tried 5G networks, according to a survey by Global Wireless Solutions. Still, ABI Research expects more subscribers to use 4G by the end of 2023.

Blame the way in which 5G was rolled out. Upgrades were piecemeal and offered little improvement. Extra speed, capacity and connectivity available on standalone networks have yet to be used fully.

The 4G networks released in the early 2010s enabled mobile phone users to stream videos, play games and make conference calls. 5G can be used for high-quality virtual and augmented reality and allow instant communication between devices such as autonomous vehicles. But these latest functions have yet to gain mass appeal.

New 6G could enable data speeds up to 50 or 100 times faster than 5G. Companies such as Huawei and Nokia say it should be ready to roll out in the early 2030s. Both the US and China are determined not to let the other gain an advantage.

However, data from CB Insights shows that mentions of 5G during earnings calls peaked in 2021 and have since fallen. Network operator capital spending growth is expected to dip next year. Operators want to see better returns on their investment in 5G before they contemplate further network upgrades.