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Internet of things and the economics of 5G-based local industrial networks

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  • Knieps, Günter
  • Bauer, Johannes M.

Abstract

Fifth generation (5G) networks raise governance and management challenges that did not exist in 3G and 4G wireless technologies. Advanced wireless functionality enables new applications and services based on smart, physical, network infrastructures, many of them expected to be localized. As a general-purpose technology, 5G can be configured in numerous ways to support innovative applications across many sectors. Smart network applications and services must integrate physical and virtual components in innovative ways. In addition, general capabilities of 5G must be combined with complementary technologies, such as big data analytics and edge cloud services, to create services for specific use cases. Varying throughput and latency requirements of distinct use cases require differentiated technical solutions. Appropriate frequencies must be aligned efficiently with other features within the footprint of particular, local industrial networks. National policy makers, suppliers, and users are responding differently to these governance and management challenges. These approaches balance differently the trade-offs between experimentation, differentiation, and harmonization. Comparative analysis can inform gradual improvements of the governance of 5G-based, local industrial networks.

Suggested Citation

  • Knieps, Günter & Bauer, Johannes M., 2022. "Internet of things and the economics of 5G-based local industrial networks," Telecommunications Policy, Elsevier, vol. 46(4).
    • Handle: RePEc:eee:telpol:v:46:y:2022:i:4:s0308596121001658
    DOI: 10.1016/j.telpol.2021.102261
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    Cited by:

    1. Markendahl, Jan & Beckman, Claes, 2022. "Can local 5G networks using local spectrum be used as platform for digitalization of industrial systems and services?," 31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes 265657, International Telecommunications Society (ITS).
    2. Guenter Knieps, 2023. "The Governance of Big Data and Artificial Intelligence in Network Industries," Competition and Regulation in Network Industries, , vol. 24(2-3), pages 57-71, June.
    3. Benseny, Jaume & Lahteenmaki, Jarno & Toyli, Juuso & Hammainen, Heikki, 2023. "Urban wireless traffic evolution: The role of new devices and the effect of policy," Telecommunications Policy, Elsevier, vol. 47(7).
    4. Heikkilä, Jussi & Rissanen, Julius & Ali-Vehmas, Timo, 2023. "Coopetition, standardization and general purpose technologies: A framework and an application," Telecommunications Policy, Elsevier, vol. 47(4).
    5. Whalley, Jason & Curwen, Peter, 2024. "Creating value from 5G: The challenge for mobile operators," Telecommunications Policy, Elsevier, vol. 48(2).
    6. Parcu, Pier Luigi & Pisarkiewicz, Anna Renata & Carrozza, Chiara & Innocenti, Niccolò, 2023. "The future of 5G and beyond: Leadership, deployment and European policies," Telecommunications Policy, Elsevier, vol. 47(9).

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    More about this item

    Keywords

    Internet of things (IoT); 5G; Local industrial networks; General-purpose technology; Edge cloud; Spectrum policy; Innovational complementarities;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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