5G Enters a New Phase, as User Experience, AI, and New Services Shape the Next Cycle

The evolution of 5G networks is entering a new phase in which the focus is gradually shifting from infrastructure deployment toward user experience, new business models, and service innovation enabled by artificial intelligence and advanced network architectures. According to Fiona Armstrong Mills, Principal Analyst at Opensignal, the global market is currently around the midpoint of the 5G lifecycle, while the first deployments of 5G Standalone networks and early steps toward 5.5G are beginning to emerge. 

Armstrong Mills explains that the initial phase of 5G rollout has already delivered measurable benefits to end users. “Early-stage 5G delivered some really great benefits to consumers – faster speeds, better consistency, and lower latency,” she says. As networks evolve toward more advanced implementations such as 5G Standalone and eventually 5.5G, further improvements in performance and stability are expected.

“In some markets we are already seeing that 5G Standalone offers a demonstrable increase in performance and consistency for users,” Armstrong Mills notes, pointing to markets such as Singapore, the United States, and Spain. At the same time, she emphasizes that many countries are still in the early stages of infrastructure development. Key challenges remain spectrum availability and network densification, both of which are essential before users can fully experience the capabilities of next-generation mobile networks.

One of the central questions for the industry is how to monetize 5G and develop new services, particularly in the enterprise segment. According to Armstrong Mills, the industry is still exploring the most effective use cases for advanced capabilities such as network slicing and private networks. “We’re still navigating the question of 5G use cases,” she says.

Nevertheless, some areas are already showing strong momentum. Fixed Wireless Access is one of the most prominent examples, particularly in the United States. “We’ve seen great success with 5G FWA, especially in the US,” Armstrong Mills explains, noting that new applications are emerging that require specific network characteristics.

Artificial intelligence and new device ecosystems are expected to play an increasingly important role in shaping these services. “We’re building networks for a future where AI will require dedicated network capabilities, whether that’s latency requirements or uplink performance,” she says. Technologies such as network slicing allow operators to tailor network performance to specific applications and industry needs.

At the same time, new categories of connected devices are starting to appear. “AR glasses may still be in their infancy, but they are certainly on the horizon, and we’re seeing more of them,” Armstrong Mills says, suggesting that such technologies could gradually become part of operators’ service portfolios.

Another important trend is service convergence. Combining mobile, fixed, and digital services is proving to be an effective strategy for increasing customer satisfaction and reducing churn. “Converged customers have lower churn and higher NPS,” Armstrong Mills explains, emphasizing that customer satisfaction is becoming a key competitive differentiator for telecom operators.

The rapid growth of video consumption is also reshaping the ecosystem and increasing the need for collaboration between telecom operators and digital platforms. “Partnership between OTT providers and telcos is crucial to ensure consumers receive a trusted and reliable experience,” she says.

In Europe, however, regulatory fragmentation remains a major challenge. While consolidation of the telecom sector is often discussed, Armstrong Mills points out that there is no single formula that fits every market. “It’s an immensely complicated question, and there isn’t one right answer for every market,” she notes.

Ultimately, she argues that ensuring sufficient industry revenue is critical for continued investment in next-generation infrastructure. “We need to make sure there is enough revenue in the market to support ongoing network development,” Armstrong Mills concludes, adding that the industry is only just beginning to see returns from 5G investments while already looking ahead to the next technological cycle – the future of 6G.