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Is 5G underperforming?

Summary:
…Samsung, which makes both handsets as well as 5G network equipment, told investors on its own call that it expects its 5G business in South Korea to “shrink somewhat compared to last year.” That last revelation is sobering. South Korea was the first market to deploy 5G services on a wide basis. Service launched in April 2019, but by year’s end consumers already were complaining that it didn’t live up to the hype. Part of the problem is that services marketed under the 5G label can vary widely in terms of speed and availability. Some aren’t much faster than existing 4G networks. And the fastest—including those using millimeter wave technology—currently are available only in certain dense urban areas due to their signal limitations. Meanwhile, 5G devices remain expensive. Samsung’s new 5G

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…Samsung, which makes both handsets as well as 5G network equipment, told investors on its own call that it expects its 5G business in South Korea to “shrink somewhat compared to last year.”

That last revelation is sobering. South Korea was the first market to deploy 5G services on a wide basis. Service launched in April 2019, but by year’s end consumers already were complaining that it didn’t live up to the hype. Part of the problem is that services marketed under the 5G label can vary widely in terms of speed and availability. Some aren’t much faster than existing 4G networks. And the fastest—including those using millimeter wave technology—currently are available only in certain dense urban areas due to their signal limitations.

Meanwhile, 5G devices remain expensive. Samsung’s new 5G phones range in price from $999 to $1,399.

Here is more from Dan Gallagher at the WSJ.  All the more reason to make sure your 5G rollout has the right provider.

The post Is 5G underperforming? appeared first on Marginal REVOLUTION.

Tyler Cowen
Tyler Cowen is an American economist, academic, and writer. He occupies the Holbert C. Harris Chair of economics as a professor at George Mason University and is co-author, with Alex Tabarrok, of the popular economics blog Marginal Revolution. Cowen and Tabarrok have also ventured into online education by starting Marginal Revolution University. He currently writes the "Economic Scene" column for the New York Times, and he also writes for such publications as The New Republic, the Wall Street Journal, Forbes, Newsweek, and the Wilson Quarterly.

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