5G to offer 40 times capacity improvements on LTE

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5G will increase mobile network capacity to 40 times that of 4G, driving the likes of immersive virtual reality, according to new studies by Nokia.

The report also found 5G could substantially reduce cost-per-device in smart city deployments.

It said 5G would be capable of delivering the close to 100 percent reliability and low latency required for ‘Industry 4.0’ applications.

The studies also explored the return on investment based on specific scenarios, showing that "5G to the Home" would break even after four years as long as the average revenue per user remains above €40.

5G events and hotspots in locations such as stadiums, meanwhile, would have a one-year payback period depending on the number of events held there. The study said five events per month would need to take place to ensure a profitable business case.

Joe Madden, Principal Analyst at Mobile Experts, said: "While market news has recently focused on the announcement of 5G technologies that drive increased network performance, it's important to discuss how these low latency broadband connections will translate into customer value.”

Previous forecasts have focused on the overall revenues and connections available from 5G. According to research from Ericsson, operators could see 5G-related annual revenues of $582 billion by 2026.

Research from the GSMA suggested 5G will account for 12 percent of total mobile connections in 2025, or 1.1 billion in total.