As 5G becomes the norm across North America, conversation has already turned to the development of 6G technology. The arrival of 6G will shape the future of the telecommunications industry, but it will also greatly impact the telecom retail landscape. 6G promises even faster speeds and better capacity. Undoubtedly, the improved connectivity of 6G will significantly benefit telecom businesses and telecom retailers in terms of customer experience and operational efficiency.
Understanding the next stage of network deployment
Before we get ahead of ourselves, we need to acknowledge that 6G will take a while to implement. The 5G rollout in North America has been slower than in Asia, partly due to the pandemic, but also because of lower population densities and hotly-debated concerns about 5G’s potential to interfere with GPS and other networks. Rollout of 5G began in 2019, but currently, only 29% of all North American connections are 5G [1], and that’s following a year-on-year growth of 64%.
The global mobile core network market has decreased in compound annual growth rate (CAGR) to less than 1% [2], a trend that has continued for many years because of the reduction of 5G Standalone (5G SA) networks, as opposed to 5G Non-standalone (5G NSA) networks. However, projections show greater adoption of 5G SA in North America in 2024, which may facilitate 5G expansion and enable faster rollout of 6G.
Despite the slow adoption of 5G, companies are already working to develop 6G technologies faster. NVIDIA is spearheading a platform powered by AI [3], and Nokia’s research arm Bell Labs [4] is also aiming to realize 6G sooner. But it might still take until 2028 for 6G networks to roll out. With every new generation of connectivity, the network infrastructure will need to be built first and only then can products, devices and services be created. Essentially, 6G-connected technology will only become commercially available around 2030 [5].
Yet, it isn’t too soon to prepare for the coming of 6G, because 6G expansion will impact North American wireless retailers, carriers, and device manufacturers.
Impact of 6G on telecom retailers
The increased network capabilities of 6G will allow wireless carriers to charge higher rate plans. But this revenue-generating channel will be required due to the higher cost of 6G implementation.
From the telecom retail perspective, the advent of 6G devices will mean an increase in sales as demand for faster devices grows. However, we’re already seeing a drop in smartphone shipments and a consumer preference for longer-lasting devices. With 6G devices lasting even longer than current technology, there will likely be an offset to the new revenue generated from devices sold with fewer customers buying new devices more regularly.
Where 6G should have the biggest positive impact on telecom retailers is in creating customer value and experiences. While better speeds and lower latency are a given with newer technologies, 6G should be used for strengthening customer connections, analyzing data to personalize customer experiences, and building better omnichannel experiences. Since the pandemic, consumers are using multiple channels to make purchases, often researching and ordering online and picking up in-store. These in-store visits could be optimized to upsell customers.
6G connectivity could also be a boon for inventory visibility and management and improving supply chain logistics, which will help improve employee experiences, increase employee retention and reduce the rate of labor shortages.
6G and sustainability
The development of 6G technology and devices must go hand-in-hand with sustainability. In 2022, 62 billion kgs of e-waste was generated, and is now on track to surpass 82 billion kgs in 2030 [6]. A sustainability-forward approach is required for all aspects of 6G, from building to maintaining the network. The entire lifecycle of 6G needs to be taken into consideration. 6G network development should make very little negative impact on the environment in terms of greenhouse gas emissions and resource consumption. Operating 6G networks should also be done with a sustainability mindset. According to research by Ericsson [7], there are several ways to develop and operate 6G technologies in a sustainable way.
6G can also be used to implement sustainable practices in not just the telecommunications and technology sectors, but beyond. 6G can improve connectivity across vast distances, enabling a stronger job market, reduced resource consumption, faster evolution for applications and devices, as well as greater connectivity via the Internet of Things.
The growing importance of AI
Artificial intelligence, and particularly machine learning, also has a role to play in the growth and optimization of 6G networks [8]. Machine learning can examine patterns and make suggestions for equipment and implementation. AI can also predict network trends to improve resource usage.
But much of this is academic at the moment, since 6G is in the ideation phase. However, AI use is currently spreading across the telecom and telecom retail sectors. We are seeing significant discussions around how GenAI can reduce cost and improve employee efficiency [9].
Despite the fact that online device purchases and eSIMs have gained popularity, brick and mortar telecom retail stores are still getting significant footfall. Once 6G devices enter the market, continued success for telecom retail stores will rely heavily on better customer experiences, more cohesive omnichannel infrastructure, and faster device activation.
These processes for customer experience must be established now while the 5G market is booming. When 6G transforms into reality, telecom retailers will find themselves ramping up sales to cater to growing demands. AI will become a necessary tool for improving in-store consumer experiences. Not only can AI be used for faster data collection and analysis, it will be essential for delivering personalized, one-to-one experiences to customers. Additionally, AI can be used to speed up queueing times and device activation. Sales representatives will be able to access rate plans, product data and customer information quickly with AI technologies.
But it’s important to remember how and why data is collected. Privacy concerns must be kept top of mind, and telecom retailers need to recognize that data bias can exist. After all, AI algorithms are built by humans who have their own biases. Policies need to be implemented for the ethical use of AI in data collection [10] to ensure consumers can trust the brand.
Integrated technologies and 6G
The potential of sixth generation mobile networks is immense. While we still have a way to go, it isn’t too early for the telecom industry to prepare. An integrated approach to technology is vital for the success of 6G implementation. Interconnected retail technologies can also help retailers match the rapid expansion of the telecom industry.
6G may take some time to implement but telecom retailers can pre-empt the vast changes 6G will bring by adopting integrated systems and setting standards for customer experiences now, rather than later.
References
[1] www.5gamericas.org/global-5g-connections-surge-to-1-76-billion-66-percent-growth-year-over-year-as-north-america-leads-charge/
[2] www.delloro.com/news/mobile-core-market-stagnant-due-to-lack-of-5g-standalone-deployments/
[3] www.itpro.com/infrastructure/networking/nvidia-wants-telcos-to-ramp-up-6g-research-and-its-betting-ai-will-be-the-key-to-future-development
[4] www.nokia.com/about-us/newsroom/articles/if-we-want-6g-to-really-matter-we-must-make-collaboration-the-biggest-priority/
[5] sponsored.bloomberg.com/article/gearing-up-for-the-6g-era-
[6] api.globalewaste.org/publications/file/297/Global-E-waste-Monitor-2024.pdf
[7] www.ericsson.com/en/blog/2023/8/6g-sustainability-first
[8] www.msn.com/en-us/money/technology/unveiling-the-future-the-intersection-of-6g-networks-artificial-intelligence-and-machine-learning/ar-AA1nQo3B
[9] omdia.tech.informa.com/om033326/csps-moving-ahead-with-genai-for-cost-reduction-and-efficiency-gains
[10] internationalfinance.com/magazine/technology-magazine/regulation-around-ai-is-needed-iqmetrix-senior-vp-of-revenue-jason-raymer/
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