Measuring the impact of 5G
04 January 2021
5G is coming. For many, that short statement is both a beacon of hope and a source of trepidation. This is especially true for test equipment manufacturers.
While 5G offers the opportunity for healthy growth, there are several factors that will make reaping benefits from this generation of wireless broadband technology more challenging than it was for its predecessors.
Let’s start with the current situation for electronic test and measurement (ETM) manufacturers. What generates growth in the wireless ETM business is the combination of new handset models, an increasing volume of annual handset shipments, and wireless technology advancements that drive new infrastructure equipment. We have seen a reduction in the growth rate of handset shipments and, at the same time, mergers and acquisitions in the wireless infrastructure industry have reduced the number of customers in that segment. Finally, ETM manufacturers have also been coping with delays in the deployment of LTE-advanced carrier aggregation in major markets. The result is a slowing market for LTE R&D and production test equipment, as the industry awaits the technology shift to 5G.
5G is coming – with challenges
As wireless broadband technology has evolved from generation to generation – and especially from feature to feature – ETM manufacturers have often been able to rely on software upgrades to adapt to changes. The move to 5G, however, is seen as a giant stride forward that will require new and far more complex solutions.
Read the full article in the January issue of DPA
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