While the mining sector is showing interest and starting to test the value-add of fifth-generation (5G) technologies, mass adoption of the technology is still years away.
A new Fitch Solutions Country Risk & Industry Research report noted that efforts to improve operational efficiency will lead miners down the path to 5G technology eventually; however, the sector remains at the early stages and sectorwide implementation is not expected just yet.
“Our core view regarding 5G is that it will be an evolution first, then a revolution, as more and more industries will use the technology in combination with others as part of an overall trend towards digitalisation,” it said.
The advantage of 5G technology's low latency and high device density will amplify a miner's capabilities to integrate automation alongside other technologies, such as drones and sensors, on a wider scale, and the industry's increasing desire to implement wireless connectivity highlights the potential market for 5G penetration.
However, fourth-generation (4G) technologies are still being rolled out and its capabilities will meet the current technology requirements for some miners.
“Other forms of connectivity, particularly through a combination of 4G and WiFi, have shown to be sufficient for the sector's current needs so far,” explained Fitch Solutions Country Risk & Industry Research.
5G will become a greater priority once miners begin to focus more heavily on entire fleet automation, and the sector's adoption will be slated towards miners with the capabilities to implement automation and vast amounts of sensors.
“The mining sector will eventually use 5G services, especially as more autonomous vehicles and sensors are integrated into an operation, but this will not happen just yet as miners currently focus on testing the technologies value add first,” it said.
5G's technological leap will significantly amplify a firm's capabilities to integrate autonomous vehicles, among other types of technology, paving the way for greater productivity gains.
Out of seven key 5G characteristics, higher density of connections and low latency in the single digit millisecond range will be strong drivers for adoption.
The new generation technology is also wireless, offering greater flexibility than current wired technologies, such as Ethernet, and it is licensed, which means greater security compared with unlicensed technologies.
It offers higher speeds, in the gigabit per second range, and allows for network slicing, enabling for part of the network to be designated and customised for certain tasks.
Private networks can be implemented, giving businesses more control and flexibility.