There seems to be a dramatic difference between 5G business case expectations in the U.S. market, compared to virtually every other market globally. Where a McKinsey survey found more than 67 percent of service provider executives saying the business case was the biggest 5G challenge, only about 11 percent of U.S. respondents thought the business case was the biggest issue.
So something quite different is shaping U.S. mobile executive views on 5G business cases.
Two main reasons could explain that radical divergence of views. At a very-practical level, U.S. mobile customers use more data, nearly twice that of “Europe and Latin America, nearly 66 percent more than in Asia as a whole. By 2024 the disparities are predicted to be even greater.
So 5G makes practical sense simply as a capacity tool for the next decade to two decades, and especially if capital investment will mostly occur within existing capex budgets, and where 4G improvements can be relied upon to bridge the gap between full 5G and hybrid usage.
The other difference could be optimism about new use cases and revenue from internet of things, virtual reality, augmented reality, gaming and other revenue-generating and demand-generating use cases.
Also, U.S. revenue per account is high, compared to most other markets. All other things being equal, higher revenue means an easier path to monetization, based strictly on the ability to sell 5G connections instead of 4G.
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