What form of connectivity do I need for this project? 5G or WiFi? Wired or wireless? Terrestrial or satellite?
In today’s fast-paced digital world, you might ask such a question. The right connectivity choice can be the difference between thriving and merely surviving. Choosing the right technology is crucial for ensuring seamless operations, regardless of geographical constraints.
Drawing on insights from industry experts at Mobile World Congress 2024, this guide aims to help businesses navigate these choices and ensure they leverage the optimal connectivity solution for their needs.
Understanding the connectivity spectrum
If you run a business, chances are the endless question about who would win in a fight out of 5G or WiFi plagues you to no end. But, before placing your bets, it’s probably best you get to know the major players:
5G: The Speedster — In the red corner, known for its high speeds and low latency, coming straight in to connect all your mobile devices, we have the reigning champion of the Telecoms Title, 5G. According to its advocates, 5G is vital for enabling real-time data transfer needed for applications such as IoT and AI. But critics claim its rollout — which kicked off in 2019 — was lacklustre, requiring significant investment.
WiFi: The Ubiquitous Connector — In the blue corner, we have ubiquitous, convenient, and ever-reliable WiFi. It’s a collaborative effort, mostly running on wired broadband networks. WiFi has evolved and adapted over the years, with WiFi 6 and beyond providing greater speeds and more efficient data handling.
Wired: The Workhorse — Perched just outside the ring, puffing on a cigar, is the old, grizzled figure of Wired connectivity (Ethernet/fibre). While offering one of the most stable and reliable forms of connectivity, ideal for high-speed transfer in fixed locations, wired connectivity is limited by its static nature.
Satellite (NTNs): The Overseer — Finally, live-streaming from space (or perhaps just the upper atmosphere) is Satellite connectivity. While certainly not new, satcomms have seen rapid changes in recent years thanks to the launch of Low-Earth Orbit (LEO) satellites. Traditionally a key supplier for remote or underserved locations where traditional infrastructure isn’t feasible, could satellites be making a comeback?
The case for 5G
5G technology is distinguished by its high-speed, low-latency capabilities. It’s ideal for scenarios requiring high mobility and real-time data access, such as logistics tracking or field services, where real-time data access and transfer are crucial.
Chris Keone, a director at BT’s Division X, champions 5G for its transformative potential in fields requiring meticulous precision and real-time oversight. He states:
There are specific use cases related to things like asset tracking capability, surveillance, and so on. We’re able to use a private 5G network to provide full coverage across that area.”
The capacity of 5G to support a dense network of devices within a square kilometre makes it the go-to choice for deploying IoT solutions at scale.
“Think about vast geographical open spaces, for example — there’s another good use case here within ports and airports where you’ve got very wide coverage,” Keone adds.
However, the fifth generation of mobile connectivity has faced challenges.
After being significantly hyped by the telecoms industry and politicians, take-up has been positive. Forecasts by Statista anticipate mobile data traffic will reach almost 330 exabytes per month by 2028. However, according to a report from the industry body of the TM Forum, it has failed to offer the return on investment that most telcos were hoping it would bring.
Regional disparities in 5G adoption also highlight the importance of finding alternative solutions. Statista’s data says, “The North America, Developed Asia Pacific, and Gulf Cooperation Council (GCC) regions are set to have surpassed 90% adoption by 2030, while adoption in Sub-Saharan Africa is projected to remain below 20%.”
Nonetheless, 5G is seen as a potential solution to narrow the digital gap through Fixed Wireless Access (FWA). FWA can provide high-speed broadband in regions without fixed broadband, bridging the digital divide for consumers and businesses in otherwise difficult-to-connect locations.
Why-Fi?
WiFi technology remains a cornerstone of digital connectivity, offering reliable, high-speed access — primarily inside buildings. Its widespread adoption in homes, businesses, and public spaces underlines its importance in the current connectivity landscape.
WiFi is indispensable in office environments. It facilitates everything from email communication and access to cloud services to video conferencing and collaborative online workspaces. It allows flexible work arrangements, including hot-desking and remote access within the office perimeter.
Cities worldwide also deploy public WiFi networks to provide residents and visitors free internet access, enhancing the urban experience and supporting smart city initiatives like real-time traffic monitoring and public transportation updates.
Nabil Bukhari, CTPO at Extreme Networks, suggests that WiFi is often the most economical option. “It’s built into pretty much everything, and everybody has it. As an enterprise, your first thought should be ‘Can I do it on WiFi?”
“If you can do it and already have the infrastructure for it, the economics would be better.”
But he acknowledges its drawbacks, “When you need connectivity outside, not in a building, or you need it on long ranges, or ultra-low latency, for it to be very deterministic, that’s a use for 5G.
“We’ve all seen videos of demonstrations of things like a surgeon doing remote surgery, for example. Don’t do that on WiFi!”
Panch Chandrasekaran, head and director of ARM’s 5G carrier infrastructure segment, supports this by saying:
In a factory environment, things are moving towards wirelessly connected factory equipment. There are no more cables.
“If you’re sitting at home, WiFi is perfectly fine. Reliability and security of your connectivity are less of a concern.”
He adds, “WiFi has definite problems in terms of reach, different access points interfering with each other, and security is a concern.”
For telecom companies, enterprise has long been seen as the “golden goose”, but there is an unspoken fear within the industry that they will be limited to providing just connectivity – something that would significantly undermine profits.
That’s why France’s incumbent telco Orange revealed an overhaul of its enterprise division last year, then named Orange Business Services (now just Orange Business) to offer digital services on top.
Telco vendors are also getting involved in the act. Finnish equipment provider Nokia has been developing products specifically for enterprises for years, explains Rafael De Fermín, senior vice president of Network Infrastructure RBC Europe at Nokia
“We have an ambition to play increasingly significant roles with enterprises. We’ve been doing that for quite a while,” he adds.
“We sell a lot of routers and optical communications to enterprises. That business is growing significantly for us, and we’ve doubled down in our efforts. We have products that are specifically built for the enterprise market.”
Read all about Orange’s shift to enterprises here
Reach for the skies
Even with 5G’s reach growing and more backbone cables being built than ever before, some places just cannot be connected by a terrestrial network.
Take, for example, an oil rig out at sea or parts of the Arctic, where the landscape changes drastically every year.
Non-terrestrial networks (NTNs) are emerging as a pivotal part of the enterprise connectivity landscape. Satellite has long been the dominant player for NTNs, but new technology is promising to extend the reach of network services far beyond the confines of terrestrial and traditional infrastructure.
Peter Kibutu, TTP‘s 5G NTN lead, explains in more detail. “Although satellite connectivity is not new, satellite services are now provided for niche markets and more prominent companies. It’s become revitalised because of this non-terrestrial component, which means services provided via the terrestrial network can now also be provided via satellite.
“One satellite can see a huge region from the sky. So, it can provide coverage in all those spots that are not economically viable for the use of standard terrestrial mobile networks,” he adds.
“So, the technology offers ubiquitous coverage. From an enterprise point of view, good connectivity anywhere means you can receive a Teams call in the desert, for example. It can open economic activity in areas it has never been before.”
NTNs go beyond satellites, too. Google previously trialled balloon-supported connections through its (now defunct) Google Loon project, while several companies are trialling unmanned aerial vehicles, such as drones, that can provide connectivity.
Place your bets!
The landscape might be more complex than 5G or WiFi, but Bukhari suggests this isn’t the right question.
“The future is not about choosing between 5G and WiFi, but about how these technologies can work together to meet business needs,” he says.
“WiFi and 5G are not the only ways to provide connectivity. Most devices are still connected via Ethernet, for example.
Ethernet is still one of the best technologies in the industrial sector. Not only can it provide all the bandwidth that you want, but it’s also very deterministic and can deliver power to your devices as well.
BT’s Keone agrees, “Crucially, the answer is not always plain to see. There’s a lot of testing and learning. Customers don’t really care or understand the technology; they’re most focused on the outcome the technology can bring them.”
So, what should business leaders do?
If you’re still struggling to keep your head in the game, Bukhari explains how businesses should decide between 5G and WiFi.
Step One: “You should really look at if you have a use case today that is important to you and cannot be done on existing technology — be it on WiFi or Ethernet, etc. Then, pick the technology that you need for that. If that happens to be 5G, then absolutely do that; that’s the first step!”
“If you do end up selecting 5G, the next question is, are you going to end up having to create an entire team in a silo that only works on 5G? If the answer is yes, then rethink. That’s a very costly way of doing things.”
Step Two: “Ask yourself, what operating model will help me run 5G and WiFi together simultaneously? Then, you will need to find a vendor that can provide that.”
He concludes, “In the end, if you invest in any new technology without knowing the outcome, you will struggle with determining the ROI. If you can’t determine and clearly show the ROI, then the economics will not make sense.
“There are exceptions to that rule. But I think an enterprise that follows that way of thinking will find itself in a better position.”
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