Fast – faster – 5G

The impact of a 5G network rollout on the digital signage industry

Consumers have barely converted to 4G but the successor is already on the doorstep. Changes due to digitalization are already normal, but what is special in this time is the speed with which changes are introduced. Companies no longer have years to adapt, but must implement new business models within months, preferably weeks. 5G will definitely have a decisive influence on exactly this and an impact on companies, but also on the end consumer.

The impact of a 5G network rollout on the digital signage industry

Consumers have barely converted to 4G but the successor is already on the doorstep. Changes due to digitalization are already normal, but what is special in this time is the speed with which changes are introduced. Companies no longer have years to adapt, but must implement new business models within months, preferably weeks. 5G will definitely have a decisive influence on exactly this and an impact on companies, but also on the end consumer.

man on top of a tower

With 5G, there are mainly two points to be equated. On the one hand, 5G offers the possibility to process data faster (1-3 Gbit/s), on the other hand data can be easily stored on cloud applications. In short, more data can be processed in less time than with the 4G network. At the same time, real-time apps open up completely new possibilities for communicating with customers in the digital signage sector.

What are the obstacles for kiosk systems?

The use of 5G will offer new opportunities for self-service kiosks. However, 3G is currently the predominant technology used and a conversion to 4G is still required. At the same time, the 3G network will be deactivated in connection with the expansion of the new mobile phone standard. Verizon, a U.S. phone company, plans to switch off 3G in 2020 or allow it only for customers with outdated contracts. As a result, an update is not only desired but also absolutely necessary. This raises the question of how far the upgrade should go. Is an investment in 4G still sufficient or should it be upgraded directly to 5G? To answer this question, it must be clear what the objectives of a company are. After all, 4G is sufficient to run most applications without problems.

Another factor is the expansion of a 5G network, which will probably take years. However, if a company wants to survive in the market, it is essential to upgrade to 4G-enabled devices and use an external router. This router can then be replaced when 5G is better developed. Kiosks with an integrated board would have far more complex problems when switching to 5G.

With 5G, there are mainly two points to be equated. On the one hand, 5G offers the possibility to process data faster (1-3 Gbit/s), on the other hand data can be easily stored on cloud applications. In short, more data can be processed in less time than with the 4G network. At the same time, real-time apps open up completely new possibilities for communicating with customers in the digital signage sector.

What are the obstacles for kiosk systems?

The use of 5G will offer new opportunities for self-service kiosks. However, 3G is currently the predominant technology used and a conversion to 4G is still required. At the same time, the 3G network will be deactivated in connection with the expansion of the new mobile phone standard. Verizon, a U.S. phone company, plans to switch off 3G in 2020 or allow it only for customers with outdated contracts. As a result, an update is not only desired but also absolutely necessary. This raises the question of how far the upgrade should go. Is an investment in 4G still sufficient or should it be upgraded directly to 5G? To answer this question, it must be clear what the objectives of a company are. After all, 4G is sufficient to run most applications without problems.

Another factor is the expansion of a 5G network, which will probably take years. However, if a company wants to survive in the market, it is essential to upgrade to 4G-enabled devices and use an external router. This router can then be replaced when 5G is better developed. Kiosks with an integrated board would have far more complex problems when switching to 5G.

road with lights

What does 5G provide for the digital signage industry?

With the help of 5G two relevant factors can be improved. On the one hand, even more quality content can be made available to customers in real time. This means, for example, that streaming offers can be optimized and better tailored to customers. Due to the amount of data that can be processed. On the other hand, applications can be accessed via clouds so that the data no longer needs to be stored locally. Furthermore, the primary objectives of kiosk systems for example in retail include strengthening customer satisfaction and the customer experience. Video will become extremely important for communicating with customers.

Possible sectors that are prone to 5G-based applications in digital signage are:

In the health care sector, for example, video transmission at kiosk devices can be used to carry out treatments or consultations separately at different locations. This requires a secure and fast connection with short latencies.  Moreover, 5G will be an important topic in the automotive industry to enable AI, Smart Cities and ultimately self-driving cars. In the Retail & Wholesale area, the customer journey in stores will be optimized as already described. As mobile shopping becomes more and more popular, brick & mortar stores have to adapt their assortment. Additional in-store kiosk systems are therefore required to enable customers to do endless aisle shopping or BOPIS (buy online, pick up in store). Augmented reality applications also fascinate customers and add considerable value to their shopping behaviour.

When is 5G coming?

5G will play a major role, especially in everyday life, through smartphone use. However, the big breakthrough that was promised 1-2 years ago is currently missing. What will happen in the future is hard to say. Already 4G had a big impact on e-commerce or social media applications, which was hardly imaginable. From an economic point of view, completely new business models could be developed and from a social point of view, 4G has also shaped our cultural behaviour. Changes can therefore be expected, but the extent of these changes is difficult to calculate. At present, it can only be said that 5G is an integral part of the vision of the future for numerous IT companies and will therefore be introduced globally.

What does 5G provide for the digital signage industry?

With the help of 5G two relevant factors can be improved. On the one hand, even more quality content can be made available to customers in real time. This means, for example, that streaming offers can be optimized and better tailored to customers. Due to the amount of data that can be processed. On the other hand, applications can be accessed via clouds so that the data no longer needs to be stored locally. Furthermore, the primary objectives of kiosk systems for example in retail include strengthening customer satisfaction and the customer experience. Video will become extremely important for communicating with customers.

Possible sectors that are prone to 5G-based applications in digital signage are:

In the health care sector, for example, video transmission at kiosk devices can be used to carry out treatments or consultations separately at different locations. This requires a secure and fast connection with short latencies.  Moreover, 5G will be an important topic in the automotive industry to enable AI, Smart Cities and ultimately self-driving cars. In the Retail & Wholesale area, the customer journey in stores will be optimized as already described. As mobile shopping becomes more and more popular, brick & mortar stores have to adapt their assortment. Additional in-store kiosk systems are therefore required to enable customers to do endless aisle shopping or BOPIS (buy online, pick up in store). Augmented reality applications also fascinate customers and add considerable value to their shopping behaviour.

When is 5G coming?

5G will play a major role, especially in everyday life, through smartphone use. However, the big breakthrough that was promised 1-2 years ago is currently missing. What will happen in the future is hard to say. Already 4G had a big impact on e-commerce or social media applications, which was hardly imaginable. From an economic point of view, completely new business models could be developed and from a social point of view, 4G has also shaped our cultural behaviour. Changes can therefore be expected, but the extent of these changes is difficult to calculate. At present, it can only be said that 5G is an integral part of the vision of the future for numerous IT companies and will therefore be introduced globally.