5G in Australia: Everything you need to know

5G is upon us. Australian telcos have been trialling the next generation phone network for years, and it's finally here. The first commercial 5G devices are available right now.

In this guide, we'll look at:

What is 5G?
Why do we need 5G?
When will we get 5G?
How fast is 5G?
Who will make 5G phones?
Will 5G replace the NBN?
5G FAQs

So what is 5G?

5G is the next major evolution in mobile network technology. As with 4G before it, 5G is focused on mobile data. 5G will promise three major improvements:

Faster network speeds: 5G networks will be capable of download speeds as fast as 20Gbps. The exact speeds an individual user will get will depend on how the network has been configured, the number of devices on the network, and the device in their hands. The 5G specification states that individual users should see a minimum download speed of 100Mbps. That's the fastest NBN speed as a minimum.
Lower latency: In plain terms, latency is perhaps best described as the time it takes information to get from your phone to the wider internet and back again. The typical latency for a 4G network is around 60 milliseconds, whereas 5G could decrease this to as low as 1 millisecond. This massive decrease in latency will be vital for technology such as self-driving cars, where every millisecond could make a difference in preventing a crash.
More simultaneous connections: 5G will allow more devices to connect to the network at the same time. While smartphone usage continues to grow, this is especially important because 5G is set to facilitate new developments in autonomous cars, connected machinery, and Internet of Things devices.

These improvements mean you could almost call 5G "Fibre to the Phone". The aforementioned have historically been the domain of fixed line networks, which are far less flexible due to the need for a physical link to the internet.

While 5G will succeed 4G, it will not replace it. 4G and 5G networks will exist simultaneously, and Australian telcos intend to keep 3G networks around until at least 2020.

Why do we need 5G?

There's been plenty of ink spilled about how 5G could change self-driving cars, manufacturing, medicine, and more, but what about you and me? What will 5G mean on a day-to-day basis in terms of your smartphone and internet connection? Right now, there's three popular answers:

More reliable video streaming at a higher quality
Faster fixed wireless internet
"Uh, let's wait and see"

While the potential of 5G is almost limitless right now - we're talking about things like a surgeon operating on a patient thousands of kilometres away using a virtual reality headset and a robot - there's currently no killer app that's guaranteed to drive adoption. But that's okay. We saw the same story unfold with 4G, with plenty of doubt about whether we'd need internet speeds ~this fast~ on a mobile network.

As 5G networks go live around the world next year, we'll see people trying to take advantage of ultra-fast connectivity with new applications and technologies. And in the same way that 4G helped bring about real-time video streaming tools like Facebook Live and instant video sharing apps like Snapchat, we'll surely see plenty of weird and wonderful technology brought to life by 5G.

To get excited about the possibilities, read our guide on how 5G might change life in Australia as well as what upgrading to 5G could mean for you.

When will we get 5G?

Australian 5G networks are being switched on right now, and Telstra is already selling its first 5G devices: the Galaxy S10 5G, the Galaxy Note 10+ 5G, the OPPO Reno 5G, LG V50 ThinQ, and the HTC 5G Hub portable hotspot.

Optus also is forging ahead. The telco recently announced that about 140,000 premises around can now order its 5G home broadband service. Optus also has three 5G ready handsets: the Galaxy Note 10 5G+, the Galaxy S10 5G, and the OPPO Reno 5G.

Vodafone is set to follow in 2020.

Of course, as Optus and Telstra networks are still being rolled out, you may not get connectivity where you live and work right away. And if you do, you'll need a 5G-ready phone or mobile broadband modem to take advantage. We're already seeing the first of these devices but it will probably take a few years for 5G to become a standard feature in phones and modems. Wide availability of devices is likely to coincide with wide availability of 5G networks.

You can read more about Telstra's 5G network here, and Optus' 5G network here.

As to whether or not all Australian mobile providers will offer access to 5G anytime soon, assuming history repeats itself, Telstra may not resell 5G services to its MVNO partners - Woolworths Mobile, Boost, and Belong, to name a few - initially. Telstra only started offering MVNOs 4G access in 2015, almost four years after it switched on 4G for its own customers.

Optus, on the other hand, allowed its MVNOs - such as amaysim - to resell 4G services around a week after it switched on its 4G network. However, not everyone jumped on board straight away. amaysim, for example, didn't move to 4G until 2015.

How fast is 5G?

5G networks will theoretically be able to reach speed as fast as 20Gbps. In terms of real world usage, you - or any individual user - won't see this kind of performance (at least in the short term). Exact network performance will depend on how the network has been built.

In a 5G test designed to simulate real-world network conditions in Frankfurt and San Francisco, Qualcomm achieved the following results early last year:

Qualcomm 5G simulations

	Frankfurt	San Francisco
Technology	3.5GHz	mmWave
Median Browsing Download Speed	490Mbps	1.4Gbps
Gain over 4G	~900%	~2000%
Median Latency	17ms	4.9ms

The Frankfrut test was performed using a 3.5GHz network, while the San Francisco test was based on mmWave bands. 3.5GHz is similar to the underlying spectrum in existing phone networks, whereas mmWave bands are extremely high frequencies starting from 26GHz. While mmWave bands can offer faster speeds than mid-band frequencies such as 3.5GHz (also referred to as sub 6), their range is smaller. Australian 5G networks will use a combination of these technologies.

In Telstra's Gold Coast 5G trials, it achieved network speeds of around 3Gbps using mmWave bands. That's roughly 3,000Mbps, or 30 times as a fast as the maximum speed of an NBN 100 connection.

Initial Australia 5G networks are being built using mid-band sub 6 frequencies. Australian telcos will be able to bid for access to mmWave spectrum at the start of 2021. This means it is unlikely we'll see any mmWave 5G connectivity in Australia late 2021 or early 2022.

If you're after a real world example of what these speeds mean, 5G could provide a massive improvement in mobile video streaming. Qualcomm expects 5G's median streaming quality to be 8K at 120 FPS with 10-bit HDR colour, up from 2K at 30 FPS with 8-bit colour over 4G. While this might sound like complete overkill for regular video streaming, this kind of quality could make immersive virtual reality 360-degree video streaming a reality.

Real world performance could be more varied. For example, Optus says its 5G wireless broadband customers are currently experiencing average speeds of 164Mbps at peak times, with speeds reaching as high as 400Mbps during less busy periods. Optus hasn't made specific promises about the speeds you can expect to get (and may be restricting maximum speeds), but its initial unlimited data 5G home wireless plan comes with a network satisfaction guarantee. This will let you cancel the service if you're not getting speeds of at least 50Mbps.

Telstra achieved download speeds of 1.2Gbps per second on a Galaxy S10 5G at its offices in the city, but this was likely the only device connected to the network at the time. Depending on congestion, Telstra suggests owners of devices should comfortably be able to achieve twice the speeds they'd get on the Telstra 4G network in 5G areas. In our testing so far, we've achieved real-world 5G speeds of between 100Mbps and 400Mbps in Telstra 5G coverage areas in Sydney. We expect these to improve as work on the network continues.

Who will make 5G phones?

The entire alphabet of smartphone manufacturers - from Apple to ZTE - will sell 5G handsets sooner rather than later. It might take a few years for every single device to be 5G, but we're already seeing 5G phones this year.

Samsung has two: the Galaxy S10 5G and the Galaxy Note 10+ 5G. Both are available on Telstra and Optus. The OPPO Reno 5G is available on Telstra and Optus too. Telstra also has one 5G phone you won't find elsewhere: the LG V50 ThinQ. And while it's not a phone, Telstra also has the HTC 5G Hub portable hotspot.

Alcatel intends to launch a 5G smartphone by early 2020, which is notable, given the company's reputation for selling budget devices. While it took a couple of years for 4G to trickle down to more affordable phones, we could see that happen a lot faster with 5G.

Alcatel's Regional MD Sam Skontos told us that the company will find a way to bring a 5G phone to market next year that's "very price competitive". It could even launch as a prepaid device.

Other manufacturers that have confirmed they'll build 5G phones include Sony, HMD Global (Nokia) and ZTE. Reports suggest that Apple won't launch a 5G iPhone until 2020.

Will 5G replace the NBN?

5G is set to be a viable alternative to the National Broadband Network for some - Optus is already preparing to offer 5G-powered home wireless solutions in the first half of this year.

However, 5G won't replace the need for an NBN. While 5G networks will bring many of the perks of a fixed line connection, data costs are likely to remain higher on mobile networks for some time.

Optus seems to be positioning its 5G Home Wireless Broadband plan as a genuine NBN alternative, however. Rather than offering sky high 5G speeds, Optus says customers on its 5G home service are more likely to experience speeds around 100Mbps - similar to a top-tier NBN plan. Optus will charge $70 per month for an unlimited data 5G Home Wireless Broadband plan, in line with its NBN 50 plan pricing.

Telstra on the other hand sees 5G as a complementary product and is not positioning it as an NBN alternative.

Compare NBN alternatives

Frequently asked questions about 5G

Want to know more about 5G? Here are a few of the questions that we get asked most often.

Should I run out and buy a 5G phone straight away?

Given the time it will take for the 5G network to be widely available in Australia, we wouldn't recommend rushing out to buy a 5G smartphone as soon as they become available. If the phone you're after happens to have 5G, that's a nice bonus, but in the short term, we don't think 5G is a feature explicitly worth upgrading for.

Will Aussie 5G phone plans be more expensive?

While there weren't any significant pricing changes to phone plans with the move from 3G to 4G, it's a little more complicated when it comes to 5G.

Telstra will offer 5G connectivity for free to all customers for at least 12 months. When this 12 month offer is over, 5G connectivity will only be free on Telstra's two most expensive plans. Other customers will have to pay $15 per month to add connectivity to their plans.

Optus isn't planning on charging extra for 5G for the time being, but we're not sure Vodafone will do when it comes to 5G phone plan pricing.

In the longer term, 5G could make phone plans cheaper according to Telstra Chief Operating Officer Robyn Denholm.

"There's no question that 5G will enable us to reduce the cost of traffic," said Denholm, speaking at last year's Mobile World Congress. "From a consumer perspective that should enable cheaper data prices."

Of course, the faster speeds that 5G enables could mean you're burning through your data at a quicker rate since you're doing more on your phone, and in turn, you may need a larger plan. This would however come down to your personal usage.

Regardless of plan pricing, the initial wave of 5G smartphones are set to be pretty pricey. Initially, 5G functionality is expected to add around $300 to $700 to the price of a device. The LG V50 sells for $1,729 outright. For comparison, its predecessor - the LG V40 - retails for $1,299. The primary difference between the two phones is a newer processor and 5G connectivity. This premium will almost certainly come down as 5G technology matures. The OPPO Reno 5G sells for $1,499 outright, whereas the 4G variant goes for $1,199.

Read more about the cost of 5G smartphones here.