Why Twin Cities residents and businesses should care about 5G

From the U.S. Bank Stadium to downtown Minneapolis and St. Paul, Twin Cities residents are reading more and more about the 5G rollout with its claims to revolutionize connectivity. Outside of being able to download your Netflix queue in seconds, residents may be wondering, "What's in it for me and why do we need 5G?" They are not alone. There are many unanswered questions around 5G and rightly so, as there is so much left to be imagined.

By the end of 2020, network providers are saying that the majority of major cities across the U.S. will be outfitted with 5G, and according to Accenture's new research, more than half of Minneapolis business executives say they are going to invest in 5G. That said, there's no better time than now to take a look at 5G, what it is, and why it's important for Twin Cities residents and businesses alike.

What exactly is 5G, and why is it such a big deal?

At its core, 5G is the next generation of wireless technology after 4G. Because 5G networks rely on much smaller and more closely deployed antennae that can be fixed to existing buildings, light poles and other structures — instead of traditional cell towers — signals will be carried faster and more reliably. It doesn't just mean faster streaming for your bingeworthy shows, it means better business opportunities.

Nearly 70% of Minneapolis business leaders agree that 5G will revolutionize their industries through new products and services, according to Accenture's 2019 Technology Vision report.

It's clear that 5G will be a game-changer, changing everything from how people use their connected devices to the types of products and services businesses offer.

The key benefits of 5G include:

• Speed — With a much faster network, 5G will work up to 100 times faster than existing 4G networks.

• Latency — Users will see much less delay or lag time when using their devices. To put it into perspective, 4G network latency is typically around 40 to 50 milliseconds. With 5G, it should be 1 millisecond or less, going undetectable to the user.

• Reliability and capacity — With a much greater capacity, 5G will be able to cope better with many high-demand applications at once, so you can stream, text, tweet and more without delay.

2019 saw continued progress on 5G. One carrier — Verizon — has deployed 5G in Minneapolis, with the other three major carriers not too far behind.

2020 will be a building block, and we're sure to see advancement starting with network deployment, followed by 5G-enabled devices and, finally, new services and experiences created by organizations.

These aspects are the three legs of the 5G stool and they grow interdependently. For example, the network build-out will accelerate the demand for and adoption of 5G devices and 5G-enabled experiences.

As a result, the demand for new, enhanced 5G-powered experiences will drive more network deployment and device purchases this year and beyond.

In our survey we found that nearly half (49%) of Minneapolis business leaders believe 5G will have a significant effect on their business within one to two years. However, as with any transformational technology, there are perceived barriers to adoption among executives, including upfront investment, security and employee buy-in, which will need to be addressed.

To begin, possibilities are endless for nearly all key Minneapolis' industries. Take for example the retail sector — just think about how, with faster speeds, retailers will be able to have seamless interactive store experiences including an augmented reality dressing room allowing customers to try on clothing virtually.

Another area 5G can be applied is smart vehicles, connected roads and other municipal infrastructure. It is estimated that smart city applications made possible by 5G networks could create 3 million new jobs and contribute $500 billion to U.S. GDP over the next five years, while making lives safer and more convenient.

Above all, as Minneapolis continues to drive toward being a market synonymous with innovation plus sustainable, thriving and inclusive economy — we simply can't take our foot off the gas in the 5G race.

While there is still so much unknown when it comes to disruptive technologies like 5G, the one thing we know for sure is that as business leaders, we cannot afford to ignore it.

Joseph Doering is a senior managing director at Accenture who leads the company's communications, media and telecom business across the Midwest. He is based in Kansas City.