Venture: Wave of 5G
5G
With the recent release of the iPhone 12 many consumers have become interested in the latest and greatest cellular tech: 5G. What most do not realize is that even though the phone is 5G network compatible, most carriers do not actually provide 5G currently. 5G networks are still very new and have yet to become ubiquitous globally. Many companies are battling to obtain 5G satellite contract deals to secure the ability to provide acce
5G has already made landfall in the UK, and companies are struggling to get a leg up on competitors. This new network is being rolled out in a very slow and staggered manner, and many people have lost interest since its May 2019 release. People have heard of impending 5G since the release of 4G LTE, though consumers have grown weary and wary of continuously developing tech. Regardless, UK mobile providers like EE, Vodafone, and Three UK have been in competition from the start.
All are trying to gain a majority of the 5G network coverage UK wide. A task which is made more difficult by the necessity to keep consumer costs low. Unlike many phone company providers in the US, some providers in the UK are not planning to charge extra for 5G usage. Naturally, this is an effort to attract customers who are largely frightened by the prospect of rising coverage costs.
In the US, 5G is getting picked up by major cellular providers like Verizon, AT&T and T-Mobile. These companies are trying to entice customers by offering free new iPhone 12s, if they sign up for a multi-year commitment.
Lightshed analyst Walter Piecyk and Joe Galone stated this “is the largest promotion we have ever seen on an iPhone launch day, topping the $650 offers by all carriers back in 2016 and topping the $700 that Verizon offered to new subscribers last year…a fat subsidy.” What most consumers do not realize is that companies are trying to lock in many of these customers by singing them in multiyear contracts.
Even though much of the 5G network is still being developed in the US, most companies are stating that they will have nationwide coverage when the new phones are released. It seems that many consumers are willing to hop on this boat and be the guinea pigs for everyone else.
This network in the United States will provide many advantages, but the infrastructure as of present is likely unable to handle a large user load. Ergo, companies are purposefully withholding information to increase sales in the initial release of the phones.
All the carrier promotions have many similarities, such as trading in an old phone and committing to monthly payments. These lock-in commitment plans are what carriers have been relying on for many years to ensure sustainable cash flow.
Carriers do not normally make customers pay the full amount of a new phone upfront, rather they suck in customers with a $30-$50 monthly charge. A range, which for most people, seems reasonable enough.
Apple CEO Tim Cook said last December, “One of the things we are doing is trying to make it simpler and simpler for people to get on these sort of monthly financing kind of things.” Apple has done this by releasing their own financing programs, such as Apple Card, allowing users to finance iPhones through Apple.
It will soon be revealed how reliable the 5G network is, and if it is worth changing to a new phone. It will, however, only be revealed through consumer reviews and usage.