5G is at the peak of the hype cycle. Now telcos will prioritize, and we’ll see densification and optimization, says Sami Badri, Senior Equity Analyst, Credit Suisse
5G will come in several phases: first every network will densify their infrastructure with small cells. Phase two is densification of the data center with the right core switches. The third phase is optimization with virtualization and software defined networking (SDN).
There are good standards for 5G, but it won’t reach consumers till 2020 and 2021. Till then: “It’s a race to make sure your network is ready.”
It’s an Edge play, but indirectly. “Edge will densify the metros, and make sure high bandwidth is available. This allows more Edge applications to work more smoothly.”
Edge applications aren’t working well yet, but as a by-product of 5G this will improve. The timeline will be longer than people expect: “There’s a peak in the hype cycle right now.”
Telcos will have to prioritize, because considering all the possible options, “there’s no way they can spend that much capital right now, to address all the deployments options.” There will be a slow ramp from 2020 till 2025, while 5G phones go mainstream.―DCD