Wednesday, July 28, 2021

5G Still Not a Priority for Western Europe Organizations: No Surprise

68 percent of Western European organizations do not yet have 5G as a part of their cellular or mobile network services infrastructure, a study by IDC finds. Some 25 percent of respondents say they “are not currently interested and do not have plans to move to 5G.” 

 

The study also suggests 47 percent of organizations had given 5G consideration and decided against adoption at this time.

 

When asked why they had no interest or plans to move to 5G, 58 percent reported they were happy with their current network infrastructure. Some 61 percent reported that budget concerns were among the reasons for their inaction. 

 

Some 44 percent of respondents said they would wait for 5G to develop as a technology before considering using it.

 

User skepticism--at the moment--might not be too surprising. If 5G adoption remains in the one percent to two percent range, that means 5G is in the “innovator” stage. Even the early adopters have barely started to buy. 

source: Ericsson 

 

Innovators might be 2.5 percent of total eventual buyers of a consumer product. The early adopters represent between 2.5 percent and 13.5 percent of total eventual customers. 

source: Wikipedia 

 

In other words, Western Europe 5G remains in the “bleeding edge” category for most mobile customers.

The next phase of development will see early adopters buying, with an inflection point at about 10 percent of eventual users. At that point the adoption curve steepens.  

 

Historically, it has taken about seven to eight years before the latest mobile next-generation network serves 40 percent or so of total customers, on a global basis. Some countries will achieve 50-percent adoption much more quickly, however. 

 

Customers buying 4G in the U.S. and Japan markets reached 50 percent in four to five years, for example. If 4G provides the model for 5G in Western Europe, the adoption rate will be slower than in the United States and Japan, reaching 50 percent in some markets in seven to 10 years. 

 

If so, some Western European 5G markets will hit 50-percent adoption just as6G might be rolling out in early markets.


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