5G to generate over two-fifths of global operator revenue by 2025 | Mobile | News | Rapid TV News
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Dispelling the fears of many in March that Covid-19 would stall severely the rollout of next-generation architectures, operator billed revenue from 5G connections is projected to reach $357 billion by 2025; rising from $5 billion in 2020, its first full year of commercial service according to a study from Juniper Research.
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Moreover, the study, Operator Revenue Strategies: Challenges, Opportunities & Forecasts 2020-2025, noted that if this growth was realised it would mean that 5G revenue would represent as much as is anticipated to 44% of global operator billed revenue owing to rapid migration of 4G mobile subscribers to 5G networks and new business use cases enabled by 5G technology.

Looking at the drivers for the growth, Juniper identified 5G networks roll-outs as highly resilient to the Covid-19 pandemic. It found that supply chain disruptions caused by the initial periods of the pandemic have been mitigated through modified physical roll-out procedures, in order to maintain the momentum of hardware deployments. Indeed, the report recognises that 5G uptake has surpassed initial expectations, predicting that total 5G connections will surpass 1.5 billion by 2025.

It also forecast that the average 5G connection will generate 250% more revenue than an average cellular connection by 2025 as applications such as high-quality TV broadcasts and online video services are increasingly accessed over the ultra-high bandwidth mobile networks. Yet to secure the potential return on investment, the research says that operators will apply premium pricing for 5G connections. It adds that the high-bandwidth capabilities of 5G will create data-intensive use cases, including mobile video, will lead to a 270% growth in data traffic generated by all cellular connections over the next five years.

“Operators will compete on 5G capabilities, in terms of bandwidth and latency,” noted Operator Revenue Strategies: Challenges, Opportunities & Forecasts 2020-2025 author Sam Barker. “A lesser 5G offering will lead to user churn to competing networks and missed opportunities in operators’ fastest-growing revenue stream.”

Juniper also advised operators to use future launches of standalone 5G network as an opportunity to further increase virtualisation in core networks. It warned that failure to develop 5G network architectures that handle increasing traffic will lead to reduced network functionality, will inevitably lead to a diminished value proposition of its 5G network amongst end users.