Our 5G future – More spectrum, smaller cells, greater impact

Rising data demand requires a shift to small-cell architecture and higher frequency spectrum to ensure network capacity.

Venture Insights · Venture Insights1 January 2016Period: 20163 min read

Last updated 10 June 2026

400%↑

Estimated increase in data consumption by 2020

50 billion↑

Upper estimate of connected devices in operation by 2020

Locked

Companies covered:OptusnbnFacebookInstagramYouTubeSnapchatNetflixStanAppleGoogle

Abstract

This report analyses the impending shift in the Australian spectrum environment, forecasting a four-fold increase in data consumption by 2020. It identifies small-cell infrastructure and spectrum availability as the two primary hurdles for 5G deployment. The analysis highlights that while the US is moving toward millimetre-wave spectrum, Australia is likely to follow European standards, with initial 5G implementations expected in the fixed wireless space to address capacity and latency needs.

Key Takeaways

Data consumption is forecast to grow four-fold by 2020, driven by a fundamental shift in consumer technology habits.
The transition to 5G requires a move toward small-cell architecture to address capacity and latency constraints.
Spectrum auctions for 5G bands in Australia are anticipated to occur around 2019.

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Frequently Asked Questions

Data consumption is forecast to grow 400% by 2020, driven by a fundamental shift in consumer technology habits. Operators must transition to small-cell architecture to manage the resulting capacity and latency constraints.

High-capacity 5G services require spectrum allotments of at least 200 MHz. Currently, only Optus and nbn possess the holdings necessary to meet this requirement, making the 2019 spectrum auctions a critical inflection point for other carriers.

Initial 5G rollouts will target the fixed wireless sector rather than mobile handsets to address immediate capacity needs. This infrastructure will support a global ecosystem of up to 50 billion connected devices by 2020.

Australian spectrum auctions for 5G bands are anticipated to occur in 2019. While the US is pursuing millimetre-wave spectrum, Australia is expected to follow European standards for its initial implementation.

Our 5G future – More spectrum, smaller cells, greater impact

Abstract

Key Takeaways

Frequently Asked Questions

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