KUALA LUMPUR (March 11): A recent study undertaken by EY on enterprises showed that investment in 5G technology is set to soar, but more than half lack the confidence to implement it.
The study entitled, “Maximising the 5G opportunity enterprise” which surveyed more than 1,000 enterprises globally on 5G opportunity found that 15 percent of enterprises are currently investing in 5G.
It said the number will rise to 69 percent within three years.
“Fifteen percent of enterprises are currently investing in 5G, rising steeply to 69 percent within three years. Yet, less than half (48 percent) are confident they can transition to the 5G-based Internet-of-Things (IoT) with 74 percent indicating that they need to overhaul the operating model to realise implementation,” it said in a statement today.
According to the study, 74 percent of the enterprises believed 5G will enter the fabric of their business over the next five years.
However, of those investing in 5G today, 67 percent are either engaging in trials or are in discussion with suppliers, rather than moving to the operational phase.
The study also found that enterprises in the US lead the 5G adoption curve with 19 percent currently investing compared with 13 percent in Europe and just 10 percent in the Asia Pacific.
EY Global Telecommunications Sector Leader Tom Loozen said enterprises are aware that 5G can fundamentally reshape their organisations.
“To succeed, they need to develop a road map that is aligned to the broader landscape of technology transformation, but anxieties persist around technology integration, maturity and cybersecurity,” he said in the statement.
Meanwhile, EY Global Telecommunication Lead Analyst Adrian Baschnonga said, 5G providers, need to reinvent themselves as trusted partners, prioritising access to an ecosystem of competencies that can deliver 5G capabilities at scale.
EY is a global leader in assurance, tax, transaction and advisory services.