2016 is all about 5G, IoT, Cloud and virtual reality. Latency is key to the futuristic growth solutions such as ehealth and the connected car, which require immediacy of connectivity otherwise the safety functionality is compromised. 5G is seen as a core network for the IoT whereas 4G remains a video solution.
Small-cell technology is where innovation appears to have been most significant, as the size of equipment for hanging on lamp posts and bus shelters has shrunk. This improves the practicality of the product equipment and opens up more potential sites. The challenge with small cells is backhaul. 4G will likely remain the predominant mobile video technology and will lead to significant network densification in the mid-term. In the long term 5G will drive down latency but this comes with lower signal propagation that in turn leads to further densification. We think tower companies are positioned to become the hosts for these additional base stations and small-cells.
