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The real costs of 5G: What businesses can expect

The Daily Guardian

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March 12, 2025

In wireless technology, 5G is recognized for its potential to provide lower latency, faster speeds, and improved connectivity for a larger number of devices.

- GAURAV GANDHI

The real costs of 5G: What businesses can expect

In wireless technology, 5G is recognized for its potential to provide lower latency, faster speeds, and improved connectivity for a larger number of devices. However, consumers often associate 5G as an expensive technology largely due to chipset, overlooking broader cost factors. The costs involved are not part of the complete picture, even if they are surely a component. Beyond only the technology, 5G's true cost includes the infrastructure, recurring costs, and above all, the long-term advantages it offers to businesses.

COST OF 5G HARDWARE When you think about 5G, it is easy to get caught up in the price of the chips. Although 4G chips are already less than $10, 5G chips are still more than $100. However, limiting the discussion to chipset costs misses the broader picture. The real expense of 5G lies in the infrastructure required to support it. Telecom providers must invest heavily in establishing new base stations, fiber optics, and antennas to enable the network. While these initial costs are heavy, they are expected to decrease over time as telecom companies deploy more 5G networks, making the technology more widespread and accessible.

For instance, in the past, new technologies such as cloud computing and smartphones were expensive when they first hit the market. However, as demand grew and adoption increased, prices gradually declined. A similar trend is expected with 5G. Businesses may initially face high prices, but these will eventually decrease, making 5G more widely accessible.

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