As hardware vendors and cellular carriers prepare deployment of fifth-generation wireless networks, you may have noticed that the hype has gotten a little out of control. Claims that 5G will magically revolutionize the broadband sector sound nice and all, but as we've noted repeatedly, 5G is really more of a modest evolution in existing networks, not some kind of revolutionary panacea that's going to change everything. Still, claims that 5G will somehow usher in amazing smart cities or somehow result in a four day work week for everyone (what?) get far more traction than they probably deserve.

Alongside the generalized hype, carriers are pushing another narrative: that 5G wireless is so incredible, it's going to fix all of the telecom sector's biggest problems by delivering a massive new wave of competition. This competition will be so amazing that net neutrality will apparently be made irrelevant. It's largely bunk originating with telecom industry marketing departments, dutifully swallowed and regurgitated by an unskeptical press.

The problem: 5G, like 4G before it, isn't going to be cheap. Companies like Verizon, AT&T, and CenturyLink still enjoy a monopoly over the backhaul and core transit lines that feed these networks, meaning they're going to do everything in their power to keep prices high along the chain. Protectionist blacklisting of cheap Chinese network hardware and the death of net neutrality isn't likely to help, and Wall Street is making it clear they want 5G priced at a premium to quickly recoup any investment cost:

"How might this look? Well, we could borrow from some other industries. One simple way would be a flat premium price, similar to the "tiers" of Netflix for a higher number of devices or 4K/Ultra HD. So, perhaps $10 per line for 5G, or $25 for a family plan. Another approach would be more akin to broadband, where there are pricing tiers for different levels of service performance. So if the base 4G LTE plan is $50 per month today, for an average 100 Mbps service, 5G packages could be sold in gradations of $10 for higher speeds (i.e. $60 for 300 Mbps, $70 for 500, $80 for 1 Gbps, and so on)."