In one sense, it really does not matter how big 5G service revenues will be. The reason is that many of the gains will come as consumers and service providers shift from sales of 2G, 3G and 4G to the latest platform.
In other words, revenue gained by 5G accounts will largely replace lost revenues from older network subscriptions.
That is a problem also faced by many tier-one telcos who find each customer they switch from an all-copper line to a fiber line results in adding one account and losing one account, for zero net gain.
To the extent that a typical 5G account represents higher average revenue per account, the switch to 5G will matter quite a lot.
Also the speed and magnitude of 5G adoption matters substantially for infrastructure suppliers and individual mobile operators who may be better placed, or worse prepared, for the shift, allowing market shares to shift and revenue profiles to change.
On a global basis, mobile operators will earn 5G revenues of $247 billion in 2025, with North America, Asia-Pacific, and Western Europe being the top markets.
“5G will be a fast growing cellular technology, most probably faster than preceding generations including 4G,” says Joe Hoffman, Managing Director and Vice President at ABI Research.
But use of other platforms also will decline as 5G grows.
No comments:
Post a Comment