Navigating the 5G Maze: Understanding the Push, Pitfalls, and Profit Motives
Wondering about the frenzy around 5G? The reasons are manifold.
The push to sell 5G capability presents a substantial opportunity for telecommunications companies. But proceed with caution.
Understanding the underlying profit motives can offer clarity amidst the shopping chaos.
Ever noticed the bombardment of “5G! 5G! 5G!” in commercials? It’s the telecom giants like Verizon, AT&T, and T-Mobile vying for attention. With each leap in wireless technology, they see a chance to enhance their bottom line without losing customers.
While this isn’t necessarily detrimental to consumers, it does warrant a closer look at your wallet next time you’re in the market for a new phone. Ensure your purchase aligns with your needs, not just theirs.
Recent discussions have shed light on the exaggeration surrounding the current state of 5G. Despite the hype, the reality often falls short.
Sure, 5G holds promise for faster speeds and groundbreaking technologies, but the full potential is yet to be realized. Meaning, the urgency to upgrade isn’t as pressing as it seems.
(For readers outside the U.S.: Your mileage may vary. Some countries have made significant strides with 5G, which I’ll delve into in a future newsletter.)
Yet, for telecom companies, the present moment is ripe with opportunity. Encouraging consumers to opt for new, 5G-enabled devices often leads to pricier service plans.
While these plans, including those boasting “unlimited” data, suit many, they’re not always the most economical or flexible option for everyone.
To be fair, the hefty investment in 5G infrastructure warrants a return. But there’s more to it than recouping costs. Telecoms are seizing the chance to nudge up our monthly bills.
Customer retention and revenue growth top the agenda for telecom giants. Transitioning to 5G serves both objectives.
While their profit motives aren’t inherently harmful, it’s worth heeding Brian’s reminder: Telecoms always come out on top.
Before splurging on a new smartphone
In a recent newsletter addressing the drawbacks of 5G in the U.S., many readers pondered: Is it worth opting for a 5G-capable smartphone when upgrading?
In short: Even if you’re due for an upgrade, opting for a slightly older model sans 5G might be the wiser choice. Save your dollars for treats.
Elizabeth Schultz from Manchester, N.J., faced this dilemma. Debating between the budget-friendly iPhone SE and the pricier iPhone 12 series, she sought clarity on future-proofing her investment.
Rob Pegoraro, cellphone service expert at The New York Times’s Wirecutter, weighed in:
Given AT&T’s limited ultrafast 5G coverage, sticking with the iPhone SE seems prudent. Moreover, concerns about 4G obsolescence are unfounded for current smartphones. Additionally, newer 5G-equipped phones often come with trade-offs like increased size and battery drain.
Consider reviewing your cellphone plan too. While prices have dropped industry-wide, companies won’t always volunteer that you’re overspending.