The Economic Incentives for Implementing 5G Inside of Properties : A study of indoor 5G and how it affects the management and value of retail properties

Abstract: The real estate market is in constant motion. New trends in the real estate industry such as urbanization, digitalization, and sustainability have been hot topics in recent years, and today's property owners are rapidly facing new challenges and opportunities. Above all, the progress of digitalization places new demands as the use of data has increased drastically in recent years. As new emerging technologies are introduced to the market, the existing network infrastructure must be upgraded to the next generation. A study was carried out to gain an increased understanding of indoor 5G and what opportunities it can create. The purpose was to understand whether indoor 5G connectivity is a profitable investment for real estate owners. The study used a qualitative research method in which semi-structured interviews were conducted with real estate owners and experts within the field of 5G, IT, and digitalization. The data from the interviews were later analyzed through a thematic analysis. The themes that have been identified are how to organize indoor 5G, use-cases of indoor 5G, profitability drivers, challenges and risks, and sustainability. The study shows that real estate owners are piloting indoor 5G technologies in order to test their concept and if cooperation between the different actors is a possibility. Three organizational concepts have been identified, single operator, multi-operator, and neutral host. In addition to this, the study highlighted that there are no immediate benefits to implementing indoor 5G at the present. However, there will be opportunities for cost efficiencies through reduced need for vertical solutions, sustainability benefits, and increased revenue when new technologies that take use of indoor 5G emerge. The conclusion that can be drawn from this study is that real estate owners must increase their knowledge of this new technology and develop a strategy for their role. Telecom operators will also be required to agree on a new business model for sharing the same infrastructure in individual buildings. The starting point should be that operators, third parties, and property owners share risks and opportunities in the development of indoor 5G.