With the increasing migration to 5G connections, the operator 5G market revenue is expected to jump high in the next five years.
The operator-billed 5G market globally is going to take a giant leap in the next few years. According to a recent research study by Juniper Research, the 5G connections revenue will go up to $357 billion by 2025 – rising from $5 billion this year.
2020 marks the first full year of its commercial service, while many rollouts, as well as auctions, have encountered delays due to the pandemic. By 2025, the 5G revenue is estimated to represent nearly 44% of worldwide operator‑billed revenue.
This is primarily due to the rapid and increasing migration of the 4G mobile subscribers into 5G networks and innovative business use cases facilitated by 5G technology. However, overall, the 5G networks roll-outs have been highly resilient amid the economic crisis.
Certain supply chain disruptions mitigated all risks through the modified physical roll-out processes in the initial pandemic period. This was done in order to maintain the momentum of hardware deployments.
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5G connections will generate massive revenue
The sudden 5G uptake had exceeded the initial expectations – there was a forecast that a total of 5G network connections will go beyond 1.5 billion by 2025. It was also found that the average 5G connection will be accountable for 250% more revenue than any average cellular connection for the said period.
The mobile operators will need to apply for premium pricing for 5G connections to secure a reasonable return on investment into new services. This is valid for uRLLC (Ultra-Reliable Low-Latency Communication) plus network slicing – enabled by the 5G network.
Nonetheless, such telecom services, along with the high-bandwidth capabilities of 5G, will help create data-intensive use cases. This would lead to almost 270% growth in the data traffic – generated by the complete cellular connections in the next five years’ duration.
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Networks need to increase virtualization
Network operators must utilize standalone 5G networks’ potential launches as an opening to increase virtualization within the core networks. Any failure while developing 5G network architectures that manage increasing traffic can lead to reduced network functionality – heading to a diminished value proposition of 5G network amongst the end-users.
As Sam Barker, author of the report, mentioned – “Operators will compete on 5G capabilities, in terms of bandwidth and latency. A lesser 5G offering will lead to user churn to competing networks and missed opportunities in operators’ fastest-growing revenue stream.”