In the 5G era, lower costs to deliver a gigabyte to any given user will change the addressable revenue market in key ways. For the first time, mobile will become a functional substitute for fixed network internet access across a much-broader set of use cases.
In the U.S. market, for example, between 15 percent and 20 percent of customers use mobile internet access exclusively, according to consultants at Deloitte.
Historically, fixed network retail costs per gigabyte were an order of magnitude (10 times) to two orders of magnitude (100 times) more expensive than mobile data costs. Where fixed networks could deliver a gigabyte for cents, mobile network prices were dollars.
But mobile costs per gigabyte keep falling, and finally will reach levels in the 5G era that make mobile substitution for fixed internet access a reasonable product substitute for a broad array of users.
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