The launch of 5G networks on Wednesday marks the realization of years of hype and investment.

• On Wednesday, Verizon and AT&T activated a significant portion of their 5G networks.
• The wireless service provided by networks is expected to be significantly faster than the current 4G service, utilizing C-band wavelengths to cover a broad area of the country.
• On Wednesday, individuals with compatible phones could experience a 10-fold increase in download speeds by observing a network symbol change on their smartphone screens.

On Wednesday, a major new part of their 5G networks was turned on, marking the culmination of a yearslong process that involved both carriers investing billions in spectrum and equipment to upgrade their networks.

On Wednesday, networks that turned on utilized C-band wavelengths to provide wireless service across the country, which should significantly enhance the speed of the current 4G service.

This month, Verizon will provide 5G access to 90 million individuals in major cities such as New York, Los Angeles, and San Francisco. Meanwhile, AT&T aims to cover 75 million people with its C-band network by the end of the year.

The successful implementation of the rollout has resulted in significant 5G investments from both carriers. Verizon invested $45.5 billion in a government auction to secure the necessary wavelengths for its network, while AT&T spent more than $23 billion. Following this, the carriers have spent additional billions to construct the networks and install equipment on cell towers.

Verizon CTO Kyle Malady stated that the company has invested approximately $53 billion to acquire spectrum and clear it, with an additional $10 billion to be spent over the next three years to further develop its network.

The ‘Goldilocks band’

Some forms of 5G were already available to wireless subscribers in the U.S.

Both Verizon and AT&T advertise two types of 5G services, which are low-band and millimeter-wave. While low-band service covers vast regions, it only provides speeds that are similar to those of previous generations, whereas millimeter-wave service offers significantly higher speeds, but only over small areas, such as street corners or sports stadiums.

Since 2020, T-Mobile, the third major carrier, has been providing "mid-band" 5G services on the 2.5GHz band it acquired through its purchase of Sprint. T-Mobile claims its network covers 186 million people in the U.S.

The C-band networks coming online on Wednesday are distinct. They employ new wavelengths, ranging from 3.7 to 3.98GHz, which can transmit data over long distances and provide faster internet speeds.

The "Goldilocks band" in the industry refers to the unique wavelengths that led to their substantial price at auction due to their ideal position for 5G services.

Malady praised the excellent performance of the network, stating that it had a great amount of bandwidth, propagated well, and went through buildings. He attributed the success of the network to the U.S. government's efforts in putting a lot of spectrum up for auction, which was a rare opportunity. As a result, they were aggressive in the auction to acquire this spectrum.

The C-band networks were scheduled to launch in December, but the release was postponed twice due to Federal Aviation Administration worries that their frequencies might disrupt the safety of pilots' landing tools.

On Tuesday, both Verizon and AT&T announced that they would postpone launching their service near airports until the issues are resolved, while their new networks would be activated everywhere else.

An AT&T spokesperson stated on Tuesday that the company is frustrated by the FAA's inability to safely deploy 5G technology without disrupting aviation services, as 40 other countries have done, and urged the FAA to do so promptly.

To entice customers to choose more expensive 5G plans and expand into new markets, such as replacing cable internet access, Verizon and AT&T must demonstrate that their investments in 5G technology will result in improved wireless service.

What is the return on investment for 5G, as Credit Suisse analysts questioned last October?

Douglas Mitchelson, a Credit Suisse analyst, stated that 5G defensively helps networks meet traffic and consumer expectations, but it is not the primary driver of consumer demand for operators' services.

Earlier this month, Verizon introduced new plans that offer 5G service and unlimited data, while AT&T's unlimited plans provide access to 5G service.

Look for the 5Guw or 5G+ symbol on your phone

The rollout of Verizon's network could take up to 12 hours, as reported by Malady, from the East Coast to the West Coast.

According to carriers, people with compatible phones could see their smartphone screen display a network symbol change on Wednesday and experience peak download speeds 10 times faster than an LTE network.

For Verizon subscribers, the new network will display "5Guw" for 5G ultra-wideband, while AT&T subscribers will see "5G+" on their devices.

The iPhone 12 and iPhone 13, as well as newer Samsung Galaxy phones and Google's Pixel 6, are capable of supporting the new network. However, users must be on a plan that includes 5G service.