As hopeful as optimists are about revenue generation from 5G network slicing, edge computing, private networks and fixed wireless, none of those sources is likely to make much of a contribution to Asia-Pacific region mobile operators by 2026 or 2027.
IDC’s latest estimate of 5G enterprise services revenue in Asia Pacific, for example assumes 5G network slicing revenue growth at a 269 percent compound annual growth rate, with a CAGR of 125 percent for multi-access edge computing.
Also fixed wireless growth rates of about 73 percent; 5G private wireless takeup of about 64 percent will contribute.
By 2026, 5G enterprise revenue might hit $8 billion, IDC projects. Not all of that revenue might accrue to service providers, though. Edge computing will probably involve quite a bit of revenue sharing, while private 5G revenue might often be earned by infrastructure providers and system integrators, rather than mobile service providers.
Also, even if all $8 billion were to be earned by service providers, each discrete revenue component is relatively small, with none generating more than $3 billion in annual revenue, across the region, by 2026.
By about 2027, according to Frost and Sullivan, region revenue should be about $489 billion. So even network slicing, the projected largest revenue generator IDC identifies, would account for less than one percent of region revenues in 2026 or 2027.
While it always is possible that revenue generation is more robust in other regions, it seems unlikely to vary all that much from Asia Pacific, which is one of the bigger connectivity global markets, and also one of the fastest-growing.
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