4.5G should in theory provide smartphone data speeds that are three times faster than 4G.

You'd be forgiven for thinking that the latest smartphones were the big news from the recent tech conference in Barcelona.

While devices accounted for the lion's share of media coverage at Mobile World Congress, the most frequently talked about technology was 4.5G, otherwise known gigabit 4.5G or as LTE-A (LTE Advanced).

But what is it, and what does it mean for New Zealand?

READ MORE: NZ has the fastest 4G speeds in the world

4G has revolutionised mobile. Candy bar phones with multi-tap SMS and WAP (anyone remember that?) have long been overtaken by smartphones featuring specifications that rival a lot of PCs from not so long ago.

Email, the web, social networking, navigation, photography and a host of other functionality are all things that we do on the move.

The trouble is that these all consume a growing amount of data.

While 4G was a quantum leap over 3G and help boost smartphone adoption, 4K video, HD audio, virtual reality and multi-player gaming are all categories that are just the tip of a data-hungry iceberg that could all but swamp existing mobile networks.

4.5G should, in theory, provide a short-term solution by offering a theoretical 100Mbps (for mobile users on the move) and a whopping theoretical 1Gbps (for stationary mobile users).

Currently, the average 4G speed for mobile users in New Zealand is 36Mbs.

The real clincher is that although 5G is getting all the hype, it isn't even a ratified standard while 4.5G is real and already being implemented by telecommunication companies.

SO WHAT'S THE BIG DEAL?

While 4.5G has been called gigabit 4G, typical download speeds are more likely to less (but still miles faster than 4G).

In addition to higher speeds, 4.5G should also offer lower latency. In non-geek speak, this should translate into fewer delays between clicking an on the screen and something actually happening.

This should make a lot of online activities feel a whole lot less sluggish. The prevailing consensus from pundits at MWC is that latency levels are likely to be halved which should translate into a sizeable performance improvement.

If speed and latency improvements are likely to be the big drawcards for consumers, 4.5G also offers nifty features for telcos.

For starters, it's far more spectrum-efficient. This means network capacities should also get a boost with minimal outlay for cash-strapped mobile network providers.

Equally compelling for telcos is the ability to use different spectrum bands on the same network service. This means that different chunks of the spectrum can be grouped together to boost performance.

Then there are the added smarts baked into 4.5G.

4.5G technologies are designed to adapt to different cellular radio environments – 4.5G should also be able to switch between macro, femto and pico cell-stations (which should go a long way towards eliminating reception dead-spots), 4.5G devices should also power-down during low traffic periods (which could also help prolong battery life).

There's also a bunch of intriguing 4.5G variants. LTE-U adds additional capacity to 4G networks using unlicensed spectrum to improve indoor coverage.

LTE-Broadcast (otherwise known as LTE-B) offers efficient delivery of video in situations where large numbers of people want access to the same content (such as world cup rugby). LTE-B also offers up the tantalising possibility of telcos partnering with TV broadcasters.

Then there's LTE-M which is designed for machine-to-machine (M2M) applications such as smart metering, LTE-M is designed to be incredibly power efficient (which is a big consideration for battery-powered devices).

WHAT WILL 4.5G BE USED FOR?

Variants aside, the big question is this: How will 4.5G be used in New Zealand?

Chayse Gorton, an analyst at IDC, said network and performance improvements from 4.5G will open up numerous possibilities for the internet of things.

"This will have positive implications for the internet of things, in particular, meaning that hundreds of thousands of connections will be able to connect to one site, so a world where "everything is connected" becomes more viable."

The expected reductions in latency with 4.5G is likely to see new ways of using mobile technologies emerge.

Latency-sensitive applications such as driverless cars or tele-surgery could become possible.

The really big news with 4.5G will be rural broadband.

Fixed wireless broadband will get a significant increase in speed, and rural users won't have to pay a fortune for installing costly antennas and other equipment.

There are however gotchas.

While 4.5G technologies are already in the throes of being adopted by Spark, Vodafone and 2Degrees in the hope of generating a competitive advantage, the reality is that 4.5G uptake is likely to be evolutionary rather than revolutionary.

The key factor that is most likely to hold back 4.5G investment by telcos is limited capital.

Because of this, some providers may choose to deploy 4G to more places before even thinking about rolling out 4.5G.