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New Street Research has been trying to separate the hype from reality for 5G . The traditional cellular business model is already passing, with WiFi now carrying far more data traffic and densification of networks hard for wireless only operators. The gradual arrival of 5G, with huge quantities of high frequency spectrum will mark the end of an era and new business models will take over.Key features of 5G for Telecoms investors:<ul><li>We believe investors should focus on the radio aspects of 5G, not the Internet-of-things (IOT) aspects. 5G will offer very high speeds (Gigabit) to end users thanks to very wide spectrum channels, beamforming and other techniques.</li><li>IOT is only loosely related to 5G with many IOT solutions having nothing to do with 5G (e.g. low power protocols, 2G, 3G and 4G tailored implementations).</li><li>Key unknowns at this stage: <ul><li>Usable ranges</li><li>Penetration of buildings</li><li>Real world performance of ‘spatial multiplexing’</li><li>Timetables and road-maps</li></ul></li><li>5G will compound the threats to the traditional cellular business model. We see wireless only carriers as particularly at risk, although less so in Emerging Markets.</li><li>It is possible that 5G techniques could allow wireless to become competitive with cable and fibre home broadband. This is not our base case as we see too many technical and economic obstacles. This is an area of focus for players live <a href="https://www.smartkarma.com/entities/790" target="_blank" data-smartkarma-citation="entities:790">Verizon Communications Inc</a> at present.</li><li>5G in Emerging markets may still offer upside for wireless only operators as it expands the revenue pie. It could also be positive for tower companies. It shold be positive for wired operators</li></ul>

New Street Research has been trying to separate the hype from reality for 5G . The traditional cellular business model is already passing, with WiFi now carrying far more data traffic and densification of networks hard for wireless only operators. The gradual arrival of 5G, with huge quantities of high frequency spectrum will mark the end of an era and new business models will take over.Key features of 5G for Telecoms investors:We believe investors should focus on the radio aspects of 5G, not the Internet-of-things (IOT) aspects. 5G will offer very high speeds (Gigabit) to end users thanks to very wide spectrum channels, beamforming and other techniques.IOT is only loosely related to 5G with many IOT solutions having nothing to do with 5G (e.g. low power protocols, 2G, 3G and 4G tailored implementations).Key unknowns at this stage: Usable rangesPenetration of buildingsReal world performance of ‘spatial multiplexing’Timetables and road-maps5G will compound the threats to the traditional cellular business model. We see wireless only carriers as particularly at risk, although less so in Emerging Markets.It is possible that 5G techniques could allow wireless to become competitive with cable and fibre home broadband. This is not our base case as we see too many technical and economic obstacles. This is an area of focus for players live Verizon Communications Inc at present.5G in Emerging markets may still offer upside for wireless only operators as it expands the revenue pie. It could also be positive for tower companies. It shold be positive for wired operators

China Communications Services Corp Ltd. (552 HK)

Shenandoah Telecommunications Company (SHEN US)

Beijing Bewinner Communications Co., (002148 CH)

5G Set to Disrupt the Cellular Business Model.