It often is overlooked that 5G has value for mobile service providers simply because it represents a “significantly more cost-effective solution” for expanding data capacity, compared to 4G. In other words, though new revenue sources from additional use cases might eventually be discovered, mobile operators need to keep boosting network capacity in any case.
So long as they are prudent and phased with their 5G capex, it can be viewed as simply a better way to add new capacity.
“Though a viable business case for operators to grow revenue from 5G has yet to materialize (with the exception of fixed wireless broadband), the main driver for operators to deploy 5G is realizing the efficiency gains the technology provides over LTE,” say researchers at TBR.
Also, keep in mind that most of the global 5G capex over the next four to five years will occur in the United States and East Asia.
TBR estimates over 80 percent of 5G capex spend through 2020 will be driven by operators in four countries: the U.S., China, Japan and South Korea, with the remaining 20 percent of spend through 2020 predominantly stemming from Europe and developed countries in the Middle East and APAC that have relatively small populations.
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