5G and the Midwest.
The Midwest economy matters because of its size. The collective economic output of Ohio, Michigan, Indiana, Illinois, Wisconsin, Iowa, and Minnesota is larger than India’s economy. And roughly the size of Canada’s economy and Brazil’s economy if you combined them.
Size and economic influence are two major reasons why it is imperative that the Midwest’s cities, suburbs, industry parks, campuses and transit systems aggressively chase the opportunities that 5G communication networks and Internet of Things (IoT) technologies create. Communities across North America and the world, that benefit from products and services originating in Midwest, have a huge stake in how Midwest governments handle this next iteration of the internet revolution.
As a quick refresher (to save you the trip to Wikipedia), 5G is the fifth-generation technology standard for broadband cellular networks. Cellular phone companies like Verizon and AT&T began deploying 5G worldwide in 2019 as a successor to the 4G networks which provide connectivity to most current cellphones. 5G is up to 100 times faster than 4G.
Due to the potential for increased bandwidth, 5G networks will not exclusively serve cellphones. 5G will also be used as general internet service providers for laptops, desktop computers, connected road infrastructure, autonomous vehicles, manufacturing equipment and many other types of hardware.
This will scale the number of applications that use internet of things (IoT) technologies and other forms of machine-to-machine communications. The term Internet of things (IoT) describes a network of physical objects that are embedded with sensors and software for the purpose of exchanging data over the Internet. A 2018 Wired article defines IoT as a conversation had between objects – from simple sensors to smartphones and personal wearables – all connected, all talking. From safety glasses and vests to smart mirrors and scales.
In some ways it is a second chance for many Midwest cities that missed the third industrial revolution, which marked the advent of computer-based technologies that created the economies of Silicon Valley, Tel Aviv, and Austin. In the next few years, IoT and 5G will connect 50 billion devices – cars to robots to kitchen appliances to products not invented yet. This is a monumental shift that will impact the majority of things being made in the Midwest. 5G networks are predicted to have more than 1.7 billion subscribers worldwide by 2025, according to the GSM Association.
For state and local governments, 5G is a significant catalyst for information sharing. But it is still just means to an end. The real story of investing in smarter technologies is that cities and regions in the Midwest will have greater opportunities to attract new business by building unique incentives, data exchanges and strategic public-private sector partnerships. Not to mention making community services more accessible.
For Midwest cities and industrial centers, it will be important to have a robust technical backend that can create sustainable business models and improve end-data collection. Simultaneously, a front-end geared toward ease-of-use is critical.
5G could impact the Midwest in several positive ways if governments and industry invest in it. 5G would super-charge activity along the Midwest's freight corridors and logistics networks as post-pandemic supply chains localize. 5G would support cities as sidewalks and streets increasingly become places people want to be rather than just a way to get from point A to point B. A versatile 5G testing environment (that includes public roads) should be one of the first selling points for how local and out-of-state companies can work with governments on the future of connectivity. 5G testing environments can also help underserved communities gain access to employment, to medicine, to family, to public services – to a fundamental sense of dignity.
For industry, 5G will allow the Midwest's factories and service providers to collect more information and make quicker decisions. This will allow the region to more effectively compete with peer economies like Canada, Brazil and India as they use 5G to compete with us. The future is here, let’s chase it.
Interested in learning more about the impact of Michigan’s mobility ecosystem? Visit michiganbusiness.org/mobility and sign up for the Michigan Mobility Report here, a biweekly newsletter.