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Deployment of 5G Networks and Their Impact on the Supply Chain

In April 2019, South Korea launched the world’s first full-fledged 5G network, beating American company Verizon. According to the deputy president of Ericsson, by 2024, the 5G network will have coverage of 40% of the Earth’s surface and serve 1.5 billion people.  

The next generation of cellular communication networks will be 20 times faster than the current one, and with data compression technologies, we will reach data transfer speeds we couldn’t even dream of. How will this change the entire management and consumer perception in the supply chain? Today, for example, refrigerators and cargo shipments are connected to trackers that report real-time location.  

When the network becomes faster, not only will the reliability of reporting increase, but also the ability to connect trackers to specific products during shipment without burdening the data traffic.
 

Yes, maybe in another 5-10 years, when you order something from ExpressX for $2, you will also be able to know its real-time location.  

The demand for transparency throughout the supply chain is growing, and technology is required to provide solutions. The more connected devices there are, the more bandwidth will be needed.  

Additionally, bandwidth affects the ability to store and process critical data in the shipping world – not only location but also temperature and air pressure, a critical aspect in controlled shipping. Although Korea surpassed the Americans, there is currently one small thing missing, and that is devices capable of communicating with 5G networks.  

However, that will also arrive soon. Although in Israel, a home internet speed of 40 Mbps is considered an achievement, and there are still organizations that work with fax machines.  

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