How will 5G Impact Wireless Retailers?

To say that 5G will have an impact is an understatement. With the rising expectations of today’s tech-savvy consumer, retailers need a way to keep up with the trends and on top of the competition; this new, improved network could be just the thing. But when will these changes take place and what are the risks? To better understand how 5G will impact retailers, it’s important to understand all the stipulations this system will come wrapped in. Doing so will mean retailers can maximize revenues as 5G becomes mainstream.

How will 5G Impact Wireless Retailers?
How will 5G Impact Wireless Retailers?

What’s Inside: Future-proofing your business may seem like a daunting task, but when you’ve researched and prepared, implementing new wireless technologies will be a breeze. Leveraging strategies that prepare your wireless retail business for 5G will mean a world of difference when it comes to outmaneuvering your competition.

What’s in a G?: Does one more G really make that much of a difference? When the technology is still mostly theoretical, it’s important to understand its base definition so you can be prepared for when the 5G reality hits.

Worth the Wait: While whispers of this new wireless system have been passing through retailers for what feels like years, new networks take a while to implement—and for good reason. When it comes to a successful rollout, testing and patience are the key ingredients.

It Pays to Plan Ahead: Preparation is for any retailer who wants to jump into the 5G waters and not be swept away by the current. Some retailers may not survive the move to this improved system, but success is contingent on making plans. Those who strategize and do their best to embrace 5G will surely thrive.

Content Summary

What Is 5G?
When Will 5G Be Widely Available?
Benefits Of 5G For Wireless Retailers
Short-Term Impacts
Long-Term Impacts
How to Prepare

Many industry watchers think that the race to 5G will significantly change how wireless companies do business. 5G is expected to provide major improvements in speed, bandwidth, and coverage once the 5G network is in place. Because of this, many believe that the industry must make big changes to reap the benefits of these improvements. For consumers, this could mean large updates to the technologies used for personal or business purposes. For wireless companies that are researching and preparing to make the switch to 5G, here is how the new network will impact their business as retailers.

What Is 5G?

5G is essentially the latest version of cellular network technology for wireless carriers. Many of the problems that wireless customers and businesses face are due to problems and limitations in the current 4G system. Leading tech companies partnered with wireless companies to help refine the current architecture into a new, more functional, and far more efficient system to run wireless networks.

Once deployed, 5G is expected to provide significant benefits to wireless customers. Enhanced speed and more reliable signals could mean increased efficiencies and faster operational processes with companies implementing 5G into their day-to-day. So, switching to 5G is an important consideration for many major businesses, including wireless retailers.

What Is 5G?
What Is 5G?

When Will 5G Be Widely Available?

Like any major system change, the switch to 5G will take some time. The new infrastructure design has to be deployed and tested in real-world situations before becoming the default system for wireless carriers. This gradual roll out process could take years to complete but the good news is that the first iteration of 5G is already being deployed in some cities.

The roll out for 5G began in April 2019 in Chicago, Illinois. Most of the city receives 5G coverage now, and it is serving as a testing ground to work out any bugs in the system and also to find an efficient way to roll out the new system to other areas. As the testing area expands over the next year, major wireless carriers are preparing their own system launches to get their customers onto the 5G network. Verizon and AT&T are already working on their roll out plans and are expecting a 2020 launch.

Benefits Of 5G For Wireless Retailers

When launched, 5G is expected to bring major benefits to wireless retailers. Their clients will see a significant improvement in performance across several areas, with the most notable being the increased revenue potential. The 5G network will be compatible with 5G-enabled phones and accessories only; therefore, anyone wishing to access the 5G network will need a new phone or a way to enable their old phone. There is a lot of potential for retailers that distribute cell phones and related accessories to maximize profits as consumers begin the migration from 4G devices. However, the potential revenue also comes from the ability to do more business.

Since 5G is expected to be much faster than the current system, companies that rely on wireless systems will be able to do their work more quickly. 5G has low-latency performance, which reduces the time lag between the signals being sent and signals being received. This increase in speed will allow businesses to complete operations faster and, in turn, assist more customers in the same amountof time.

Another major benefit for retailers and their customers is higher bandwidth, or the amount of data that can be sent at one time. Information is sent through wireless signals as small packets of information, and the system’s bandwidth determines the size of those packets. Higher bandwidth means bigger packets, less time spent sending them, and smoother signals.

Another major benefit for retailers and their customers is higher bandwidth, or the amount of data that can be sent at one time.

For retailers, that means customer accounts will be handled more effectively and in a shorter amount of time. Also, the type of data being sent will be able to change. For example, it takes more bandwidth to send videos or large data files than it does to send a standard email or text message. If retailers need to send a lot of information, having higher bandwidth means the system won’t slow down, because it can send more of it at the same time.

All of these changes lead to improvements in one key area: customer experience. Customers will have a better experience both in-store and while using the network in other places. The signals used on the 5G network are more reliable, so customers will have better connections in most places. This will reduce dropped calls, poor audio quality, and trouble finding signals—all things that create a bad customer experience.

Benefits Of 5G For Wireless Retailers
Benefits Of 5G For Wireless Retailers

Short-Term Impacts

While the full implementation of 5G will produce major benefits, there are several short-term impacts. Initially, the 5G network that is available will be overcrowded as more people switch to 5G early. This might be problematic for businesses — it slows down the network since it is being overused by a larger number of users than it was designed to accommodate. The increases in speed and efficiency will help, but customers will likely experience diminished performance. For businesses, this could mean slower transactions, among other issues. According to Stacy Hamer, Vice President of Operations for Wireless at iQmetrix, “not all retailers can survive the transition to 5G. Good operators that embrace the change and focus on customer experience, who can sell the right peripherals to customers who think they know everything and provide a seamless experience” will thrive.

There is also a fundamental misunderstanding of how 5G works, which means that customers and staff members need to learn more about it. But remember, 5G—for all of its possible improvements—is still mostly theoretical at this point. It is nearly impossible to predict how it will act when implemented on a wide scale. Another issue is that the different networks set up around the world may not resemble each other, making it harder for different devices to communicate with each other. Before 5G becomes an operational standard for retailers, there is a lot more that everyone needs to know about it.

But remember, 5G—for all of its possible improvements—is still mostly theoretical at this point. It is nearly impossible to predict how it will act when implemented on a wide scale.

Long-Term Impacts

One of the biggest long-term impacts is that it could take a long time before a full roll out of 5G is started. This is because the current infrastructure is not capable of handling the 5G system quite yet. In most areas, the number of cell towers and transmitters must increase to provide full coverage. Unfortunately, some regulations prevent the addition of new towers, and the approval process for new ones is lengthy. So, distributing 5G everywhere could take a long time.

Some of the existing infrastructures are changing as new construction projects are using the updated wiring and support systems needed to handle 5G signals. While this will help reduce the time needed for a full 5G roll out, new buildings are not built often, and many still use older technology.

Switching to 5G is expected to be a long and costly process, especially for the roll out to be complete. Many smaller companies will not see 5G until it has had a lot of time to be established across communities. Collin Prior, Research Lead at iQmetrix, says that “while technically 5G is on the way, it is going to take some time to get 5G to roll out and be economically viable. It’s best to first target big event spaces, like stadiums, where the demand for access is high.” That means that larger companies and high-traffic venues will see faster implementation of 5G than smaller businesses.

Regardless of the benefits, some entities want to slow down the implementation of 5G. The U.S. government is one of them as it wants to use 5G as a competitive advantage. “The race to 5G is the new space race,” says Prior. “There have been some political moves, such as sanctions, to try to slow things down to give the U.S. a more competitive stance.” Because of this, the roll out of 5G will likely take much longer than it needs to, especially in international companies and organizations.

Companies can also begin to prepare for the transition by developing an effective customer service experience. For many customers, that will make the biggest difference in their decision.

How to Prepare

Preparing for the switch to 5G is simple, for the time being. For most companies and consumers, now is the time to do the research and begin saving for later investments. There is a lot we don’t know yet about 5G, including specifics of how to implement it and create the infrastructure needed. However, companies can start to try to understand how the technology works so that they can find ways of using it in their operations. This transition process within companies can be lengthy and require a fair amount of due diligence in advance of committing to the change. As more information becomes available, it’s important to keep up with it to know where and when an area will be covered by 5G.

Companies can also begin to prepare for the transition by developing an effective customer service experience. For many customers, that will make the biggest difference in their decision. “Sprint has the most competitive plans but customers flock to other carriers due to their user experience and questions about the future of the carrier,” says Stacy Hamer. By working on their customer experience now, many companies can ensure that they can keep and attract new customers looking to switch to 5G.

Source: iQmetrix