A hybrid fesitval experience will use ultra-fast bandwidth to "produce immersive live collaborative performances across multiple venues".
Digital Catapult is leading the 5G Festival alongside Warner Music, Brighton Dome & Brighton Festival, the O2 and other partners.
Initial trials in March tested audio latency; a second trial is planned for June, with the final showcase expected early in 2022.
The festival aims to have physically distanced artists performing live in synch, responding to the expected demand for digital experience post-pandemic.
"In practice, this means musicians can perform together from different venues at the same time, completely in-sync with one another, and audiences can have a wider choice of where and how they can experience live music."
Funding for the showcase comes from a £200m Government fund for trialling new 5G initiatives.