UK enterprises look to 5G to alleviate pressures - EY

UK enterprises are looking to 5G to help alleviate immediate business pressures brought by the Covid-19 pandemic and related global events, according to the third edition of the EY Reimagining industry futures study.

EY 's findings indicate a defensive approach toward 5G, with enterprises seeking to bolster business resilience, meet corporate priorities and respond to stakeholder demands.

Advanced 5G use cases featuring virtual or augmented reality are cited by just 22 per cent of UK respondents as a key application, compared to 49 per cent who favour process optimisation.

A range of external factors underpin this trend. Eighty per cent of respondents say the impact of the global health crisis is driving their interest in 5G, up from 62 per cent in last year 's study. Seventy-nine per cent say supply chain disruption has galvanised their 5G pursuit, while 68 per cent cite the focus on environmental, social and governance (ESG) issues.

However, there is some way to go in realising these ambitions. Forty per cent are concerned that 5G and internet of things (IoT) vendors ' current use cases do not meet their business resilience and continuity needs, and 51 per cent do not think their sustainability goals are addressed by today 's use cases.

Praveen Shankar (pictured), EY UK and Ireland Technology, Media and Telecoms (TMT) leader, said: “While the hype around how 5G low latency could power the metaverse or commercialise augmented reality continues to build, the study shows that the technology has moved out of its infancy, with enterprises ' interest now fuelled by real-world challenges. This should be applauded, with 5G following the same innovation cycle of other transformative technologies. Sophisticated use cases will become important in time. More pressing, however, is the need for 5G providers to adapt their solutions to the practical demands of industry 4.0 today. ”

The study further finds that UK enterprises are becoming increasingly receptive to 5G solutions delivered through disruptive business models. Seventy-one per cent of enterprises are interested in using private networks to support implementation of 5G and IoT use cases, and 66 per cent are interested in buying 5G through an intermediary.

However, despite this promising outlook for adoption, enterprises are less confident than before that they can deploy 5G to the best of their ability. Only 18 per cent are very confident that they can successfully implement 5G (down 4 per cent year-on-year).

Sixty per cent of respondents stated that they already collaborate with other organisations as part of a business ecosystem. However, the findings indicate that businesses are being bolder in their approach to partnerships, with 38 per cent seeking vertical partnerships with companies in other sectors (up from 20 per cent last year), and 65 per cent are prioritising suppliers that can offer ecosystem relationships as part of their 5G capabilities.

At MWC Barcelona 2022, EY will be exploring how connecting industry ecosystems can help support technology-based transformation, build resilience, and create long-term value.

Find out more here.