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South Korea was the first country to launch a fifth-generation mobile network in 2019, heralding a warp-speed technological transformation to self-driving cars and smart cities.

Some 45% of the country’s people are now on 5G, one of the highest rates globally, after some $20 billion in spending on network upgrades that have boosted connection speeds five-fold. But telecommunications companies have not been willing to invest in the fancier technology that would ramp speeds by 20 times over 4G technology.

“When households begin to have robots at their homes, for instance, telcos would then start ramping up infrastructure investments, so the highest-speed 5G will be partially available around 2025,” said Kim Hyun-yong, an analyst at Hyundai Motor Securities. Asia’s fourth-biggest economy has remained the 5G pioneer, but the hype had begun to fade even before COVID-19 slammed demand for 5G devices. Companies have baulked at investing the estimated $370 billion needed to set up the fastest 5G, and revenue growth has stalled.

The ultra-shortwave mmWave would require 15 to 20 base stations per square kilometre , compared with just two to five for 4G, according to a McKinsey report.South Korean telcos have built around 215,000 5G base stations, but only 2% of them can handle mmWave. Other countries that have introduced 5G, such as the United States and China, also largely rely on the slower mid-band spectrum.

 

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