Wednesday, August 19, 2020

5G Revenue Volume Might Come from Phones, Incremental Use Cases, Subscriptions From IoT

Of roughly 12.6 million new mobile network connections between now and 2025, two million will come from new smartphone accounts. Virtually all the rest--about 10.6 million--are expected to come from enterprise non-phone connections or consumer non-phone connections, according to GSMA Intelligence. 

source: GSMA


There are two important takeaways. First, a disproportionate share of gross revenue will come from the estimated 14 million phone accounts, in large part because the average revenue per account for a smartphone connection is so much higher than for an IoT or sensor connection. In many cases, phone revenue will be two orders of magnitude greater than for a sensor connection. 


On the other hand, nearly all the incremental revenue will come from “non-phone” use cases, and a disproportionate share of that revenue will come from enterprise use cases, not consumer accounts. 


In other words, phones will generate a majority of total revenue, but new use cases, especially driven by new enterprise use cases, will drive the bulk of incremental new connections, if not necessarily a proportionate share of gross revenue. 


No comments:

Post a Comment

Is Sora an "iPhone Moment?"

Sora is OpenAI’s new cutting-edge and possibly disruptive AI model that can generate realistic videos based on textual descriptions.  Perhap...