Has 5G fulfilled its enterprise promise?

5G was heralded as the generation to transform connectivity, vastly outperforming 4G across multiple metrics. Operators and enterprises alike were eager to explore its potential, hoping it would unlock new revenue streams for the telecoms industry.

However, another telecoms boom never quite materialised. Several years after its launch, the financial reports of most mobile operators reflect only modest gains, stagnation, or even losses.

Consumers did not rush to upgrade their contracts, leading operators in developed markets to bundle 5G into existing plans at no extra cost. In response, the industry shifted its focus, positioning 5G as an enterprise enabler. Key use cases such as private 5G networks, network slicing, and ultra-reliable low-latency communication (URLLC) were highlighted as essential for industrial automation, autonomous systems, and seamless machine operations.

But has 5G delivered on this enterprise vision?

Adoption still lagging

Jordan Cox, Research Manager at the Global Mobile Suppliers Association (GSA), told Developing Telecoms: “The short answer is: not yet.”

He explained: “5G – especially 5G Standalone (SA) – was positioned as a game-changer for enterprises, offering URLLC, massive IoT support, and network slicing. However, adoption has been slower than expected, though there are signs of growth. Many enterprises are still evaluating the business case, and some of 5G’s most advanced features are still maturing in real-world deployments.”

Cox noted that while private 5G networks are “gaining traction,” adoption is hindered by high investment costs, expertise gaps, and integration challenges.

“That said, we are seeing growing momentum in industries like manufacturing, mining, and transport, where private networks and dedicated slices are being tested and deployed. Operators and vendors are working to make 5G SA solutions more accessible through cloud-based deployments and managed services, helping to lower adoption barriers.

“So, while 5G SA’s full enterprise promise hasn’t yet been realised, the foundations are being laid. We expect more tangible impacts over the next few years as the ecosystem matures and businesses see clearer ROI.”

GSA data shows 1,603 private 5G networks worldwide by the end of 2024. Of these, 738 (46%) use 5G, and only 85 run on 5G SA – highlighting the still-nascent stage of the market.

Meanwhile, the GSMA predicts that advanced connectivity and mobile technologies will contribute US $11 trillion (8.4%) to global GDP by 2030, significantly higher than its original estimate of $6.5 trillion. Key sectors expected to drive this surge include manufacturing, financial services, automotive, and aviation.

Industrial applications and productivity gains

Emmanuel Routier, VP of Smart Industries at Orange Business, shared how the company has equipped chemical, oil, gas, and shipping industries with 5G connectivity to enhance productivity and safety.

“We’ve helped companies deploy reliable communication systems in extreme environments, including those requiring breathing apparatus. Our infrastructure allows field technicians to access real-time data for machine maintenance.

“In one case, we helped a client reduce the time spent on root cause analysis by 40%. Since root cause analysis accounts for 50% of a field technician’s workload, this significantly improved efficiency.”

While such examples highlight 5G’s practical benefits, some analysts remain sceptical about its transformative potential.

Clutching at straws?

Independent telecoms consultant William Webb, a Fellow of the Institute of Electrical and Electronics Engineers (IEEE), has long been critical of 5G. When the technology began rolling out in 2016, he described it as “not particularly useful.” Nearly a decade later, his stance remains unchanged.

“The main proponents of 5G seem to have abandoned the idea that it will transform consumer connectivity. Now, they’re grasping at straws, insisting that it’s primarily for private networks and industry verticals.

“Yes, we’ve seen some adoption, particularly in ports, mining, and large factories. But in the grand scheme, the numbers remain small.”

Webb pointed out that while 5G has been deployed at 25,000 UK cell sites, the number of ports and large mining operations worldwide is only in the thousands – a fraction of the scale required to drive significant industry-wide adoption.

“Ports have seen modest productivity gains – perhaps 5% or 10% – which is valuable, but not revolutionary. It won’t double the number of ships a port can handle overnight. The impact is incremental rather than transformative.”

Moreover, Webb argues that industries have little need for 5G since Wi-Fi already serves their connectivity needs at a fraction of the cost of a private 5G network.

He also noted a lack of transparency regarding private 5G deployments. Unlike public mobile networks, which are tracked by regulators, there is no independent data source verifying the actual adoption of private 5G networks.

“If private 5G were truly taking off, vendors like Ericsson and Nokia would be shouting about it. The fact that we’re not seeing that suggests uptake is slower than expected.”

5G in Africa: Work in progress

MTN Nigeria CEO Karl Toriola acknowledged that 5G for enterprise remains a work in progress, with most deployments currently focused on fixed wireless access rather than industrial use cases.

“The oil and gas industry is leading adoption, but demand isn’t explosive. However, we believe there will be an inflection point where companies gain a competitive edge by leveraging private 5G. Others will quickly follow – much like how 3G initially had limited use beyond BlackBerry emails before the smartphone era took off.

“We’ve signed agreements with some of the biggest oil and gas players in Nigeria for private 5G networks, and we anticipate significant growth.”

Padma Ravichander, CEO of BSS provider Tecnotree, echoed this sentiment.

“There are great ideas for 5G in enterprise, but they’re still evolving. Sectors like e-health, e-education, and connected cars hold promise, but deployments remain patchy.

“MTN Nigeria has been proactive in investing in 5G infrastructure, and other enterprises should follow suit to unlock its potential.”

A slow-burning transformation

5G arrived with grand promises of revolutionising industries, but the initial hype has cooled. Yet, rather than fading into irrelevance, it appears to be in a holding pattern, waiting for pioneering companies to set examples that others will follow.

The data confirms that private 5G remains a niche market – but it is growing. The question is whether it will truly provide the foundation for digital transformation or if it has already hit its plateau.