Korea Investment Festival
“Advances in IoT tech are more important than speed
The dip in related stocks is due to the investment cost recovery”
On the 10th, during the ‘Korea Investment Festival (KIF) 2021’, SNU ECE Professor Byonghyo Shim said that it is premature to conclude that the 5G mobile communication business has failed. However, he emphasized the need for a ‘killer application’ to attract consumers.
On this day, Professor Shim made a presentation on the topic of ‘5G Mobile Communications-Hope and Reality’. He said, “In order for people to take interest in 5G, the high transmission speed is not the issue. We must work on devices and technology for connection from the view point of Internet of Things(IoT).” He placed emphasis on the fact that 5G is a foundational technology of the Fourth Industrial Revolution.
Professor Shim said, “Promising technologies such as autonomous vehicles, smart factories, and virtual reality (VR) are services that are born through 5G.” He explained, “With 5G, the speed would increase, but it will also attain new value by supporting IoT devices and increasing energy efficiency and such.” For example, in order for an autonomous vehicle to be highly functional, it has no choice but to rely on the assistance of communication, such as through instantaneous data transmission when detecting an obstacle.
Regarding the fact that related stocks are being neglected despite the fact that 5G is a necessary technology, Professor Shim pointed to investment cost recovery as the reason. He said, “A large-scale investment is made when 5G is first started, followed by a secondary investment to repair the network. It is characteristic of 5G related stock prices to rise very quickly when the investment is made and slow down when the cost must be recovered later on.”
Professor Shim maintains that in order for investment in 5G related stocks to gain momentum, there must be technological advances, and that killer applications are key. He said, “One of the reasons 5G is not a major hit is because the development in technology is unsatisfactory. 5G technology has yet to support the smooth driving of autonomous cars, but it will be possible if we use the various frequency characteristics appropriately and achieve seamless communication.” He added, “There must be more killer applications that allow connections in the view point of IoT for more people to become interested in 5G.”
Translated by: Jee Hyun Lee, English Editor of Department of Electrical and Computer Engineering, firstname.lastname@example.org