Silhouette of 5G smart cellular network antenna base station on the telecommunication mast. Silhouette of 5G smart cellular network antenna base station on the telecommunication mast.

 

5G technology provides wireless communication 10x faster than previous generations, rivaling fiber-optic cable speed, and is the first mobile technology capable of extending broadband wireless services to connected devices. An estimated 25 billion connected Internet of Things (IoT) devices will exist by 2025. The race is on to make 5G commercially available everywhere. When that happens, we will see radical changes in the way we communicate—and live. 

5G promises to supercharge the IoT, autonomous vehicles, augmented reality, smart cities, mission-critical manufacturing, 3D videos, remote healthcare and regenerative medicine. Each of these and other 5G-enabled applications could change the shape of legal, risk, and regulatory environments, and collectively, they will usher in the Fourth Industrial Revolution. While prior industrial revolutions harnessed the power of steam, electric and information technology, the Fourth Industrial Revolution will fuse advanced technologies with high-speed wireless connectivity to blur the lines between the physical, digital, and biological spheres. The ensuing impact on our systems will transform how we produce, manage and govern our world and ourselves.

5G's Role in Accelerating the Fourth Industrial Revolution

5G allows near real-time connectivity. Its lower latency and reliability permit faster transmission of massive data streams, even in extreme conditions, and will support a plethora of sensors, wearables and devices. 

As 5G rolls out, artificial intelligence (AI) will be smarter, communicating between devices, hastening digital transformation. Instead of AI living in the cloud (think, slow), AI will become distributed, living on the edge or on IoT devices themselves (think, fast). 

In the healthcare industry, for example, 5G will support a tremendous expansion of preventative and monitoring practices via connected devices, whether wearable or not. Faster speed and network reliability will allow more complex devices, including implanted devices, to provide real-time data streaming to support remote diagnoses, robotic surgery and telehealth. 

Similarly, manufacturing is poised for reinvention via AI and IoT tools to increase efficiency, collect data and predict outcomes. Augmented reality tools will allow technicians to remotely maintain and repair smart factories. Additional applications include continuous monitoring of equipment performance, robotic and autonomous production and predictive analytics.

In the self-driving vehicle space, manufacturers are racing to develop the first commercially viable autonomous vehicle. 5G and edge computing are requisites for scanning the environment surrounding a vehicle and making safe decisions based on that information in real time. 

Additional applications of 5G in retail, energy, entertainment, agriculture, financial services and supply chain management abound. The possibilities brought about by a 5G-enabled world will herald the Fourth Industrial Revolution and nurture the Internet of Everything (IoE).

While the IPO and M&A markets fizzled through the pandemic in the first half of 2020, the pending reopening should engender a reinvigoration. This should drive a whole new wave of investment in businesses powered by 5G. Venture capitalists are scouring the planet for new business models that support the rollout of 5G networks. On the 5G startup investment front in the past year alone, we have seen Mavenir Networks raise $105.3 million, Affirmed Networks raise $155 million and Altiostar raise $357.5 million, among others.

Limitless Potential but Limited Means of Implementation 

For 5G to become an effective servant, significant investments must be made soon, and until 5G is ubiquitous, legal structures must protect network sharing and infrastructure use. 5G's global deployment will not be immediate or streamlined. 5G networks require increased spectrum and greater use of small cells, and will create greater dependence on fiber networks. Legal challenges are likely to arise in the face of network-sharing and infrastructure requirements.

Building the infrastructure for 5G will take time. Though 5G has been touted as the future of technology for years, only recently has real progress been made in creating 5G-enabled cities. Because 5G frequencies travel far shorter distances than current wireless technologies, more cell towers are required. Where, in our cities, will those towers reside?

Only when 5G has been fully integrated will we reap the benefits of smart homes, artificial intelligence, virtual reality devices, drones and autonomous vehicles. While the gargantuan potential of 5G has the ability to fundamentally change the way we interact with each other and the world, our laws will have to adapt to these rapid changes.

What It Means for our Legal Systems 

As we continue to integrate 5G technology into the IoE, the Fourth Industrial Revolution will trigger a plethora of legal questions: How will we implement and roll out 5G service? Who gets access, when and where? How will we pay for it? Where will the data go? How will we safeguard privacy? How will society be protected from authoritarianism? How will we stave off cyber-criminals or state-sponsored cyber-attacks? 5G technology and the Fourth Industrial Revolution that ensues will require legal, risk and regulatory environments to evolve and adapt. 

Since every single part of the global economy will be affected, 5G will not present a niche regulatory issue. Investors seek to capitalize on the benefits of a connected future while navigating a complex global trade and security landscape. Meanwhile, governments will seek to begin deployment while simultaneously reviewing regulatory solutions to privacy, security, and safety concerns. 

5G may be the first technology to gain widespread simultaneous consumer and business adoption. This means that consumer demand will press regulators and lawyers to enable equality of 5G access for everyone. In addition to legal issues relating to accessing 5G, others will need to be addressed, such as reconciling the distribution of sensitive consumer data across multiple jurisdictions with disparate consumer protection laws. 

Because 5G requires a high-density network and an array of local cells, consumer concerns have arisen regarding health risks associated with 5G radio wave frequencies. These concerns could shape the attitudes of local authorities vested with control over planning permissions. 

Regulators, in the past two years, have facilitated negotiations between telcos and landowners with regard to siting telco equipment. This has made it economically feasible for telcos to improve coverage, especially in rural areas. Unless we want continued data inequality, regulation may be needed to ensure equal access.

Privacy: 5G presents numerous privacy issues that accompany increased connectivity. Issues and technology intersect in the smart home. As personal voice activated assistants become prevalent, smart homes become increasingly vulnerable to hacker attacks and resulting loss of privacy. 

Device regulation: 5G will bring about the development of innovative devices. These new technologies will almost certainly be subject to government regulation. Inventors will face the challenges of ensuring that new products conform to already existing regulations, and lawmakers will have to ensure that regulations stay timely and relevant. 

Law enforcement: The interaction of law enforcement with 5G also presents implications and those are likely to increase. Law enforcement will undoubtedly have access to more personal data as 5G becomes more prevalent. We can expect companies to continually update their policies on data collection and cooperation with law enforcement. Similarly, we'll require new laws covering the rights of law enforcement to personal data when individuals are the subject of a criminal investigation. 

An Inevitable Revolution 

5G is here, and it will power a Fourth Industrial Revolution. Investors will deploy untold amounts of capital into businesses that leverage the growth of 5G networks to disrupt entire industries, changing the way we interact with each other. 5G will impact law and policy at all levels of government and across agencies around the world. We have only glimpsed what 5G can do, and the need for legal services in data protection, health, security, and cyber-security, among others, will continue to increase exponentially.

 

Louis Lehot is the founder of L2 Counsel. Louis is a corporate, securities and M&A lawyer, and he helps his clients, whether they be public or private companies, financial sponsors, venture capitalists, investors or investment banks, in forming, financing, governing, buying and selling companies. He is formerly the co-managing partner of DLA Piper's Silicon Valley office and co-chair of its leading venture capital and emerging growth company team. 

Ethan Floyd is a consulting attorney at L2 Counsel and represents a wide range of entrepreneurs and their investors. A graduate of University of California, Berkeley, School of Law, Ethan served as the Editor-in-Chief of the Berkeley Journal of African-American Law and Policy and is also published in the Harvard Journal of African American Public Policy.  

L2 Counsel, P.C. is an elite boutique law firm based in Silicon Valley designed to serve entrepreneurs, innovative companies and investors with sound legal strategies and solutions.