How to approach 5G policies 3.1. What is 5G? At first glance 5G is just an extension of the previous trend when governments allocate nation-wide private spectrum to the telecoms (wireless) industry, which then provides specific services to the public using such spectrum. In 2G this was mainly personal mobile voice communication and messaging, in 3G and 4G it was smartphone data and video. However, let’s note that 2G, 3G and particularly 4G have unleashed dramatic changes in the economies and our lifestyle, driven by the internet and digital technologies. 5G has potential to take this to yet a fundamentally higher level. Fig. 1 | Key features of 1G, 2G, 3G and 4G 1G in 1980s 2G in 1990s 3G in 2000s 4G in 2010s PURPOSE selected consumer wireless communication PURPOSE mass market consumer wireless communication PURPOSE mass market consumer wireless data with constrains PURPOSE mass market consumer wireless data including video TELCO first wireless businesses, sometimes monopolies TELCO licence induced ‘oligopolies’ TELCO regulation moves to tackle the oligopolies, data-driven cannibalization begins, data quality is imperfect TELCO spectral efficiency induced excess capacity, larger scale cannibalization of voice/ SMS, video-driven demand INTERNET early days INTERNET largely focused on wireline, WiFi INTERNET e-commerce and social networks on mobile INTERNET boom in consumer services including video GLOBAL CAPEX (US$tn) 0.6 GLOBAL CAPEX (US$tn) 1.6 GLOBAL CAPEX (US$tn) 2.3 GLOBAL CAPEX (US$tn) 3.1 Source: Digiteccs Associates, estimates based on OECD reports, PWC reports About 5G 15