As a rule, times of industry recession reduce capital investment, which almost always is tied to revenue. So if the global oil industry is in difficult times, it seems logical that some predict that capital investment will be reduced.
So it is that Fitch Solutions believes oil and gas industry adoption of 5G solutions will be reduced for perhaps as much as five years.
Even if low oil prices simply have reduced the capital expenditure appetite, that might not be true for every segment of the business. It appears some U.S. oil and gas exploration firms have secured spectrum licenses allowing them to operate 5G networks, for example. It also appears that the licenses were valuable enough for winning firms to pay more than other bidders did in major urban markets, on a capacity per person basis.
Loving, Texas, in the U.S. oil patch, recorded the highest per price on a capacity per potential user basis in the Federal Communications Commission's recent Citizens Broadband Radio Service spectrum auction, at $141 per MHz/POP.
The CBRS auction averaged a per MHz/POP price on a nationwide basis of just $0.215. So while it might generally be true that many firms in the oil and gas industry will be slower to adopt 5G (public or private), it certainly seems as though some firms are pushing ahead, demonstrating intent by purchasing their own spectrum licenses.
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