5G operator-billed service revenue will reach $269 billion by 2025, rising from $851 million in 2019.
This is according to a new report from Juniper Research, which anticipates revenue will gain 161% CAGR (compound annual growth rate) over the first seven years of 5G services globally.
The 5G Market Strategies: Consumer & Enterprise Opportunities & Forecasts 2017-2025 report takes into account the enhanced status of current operator and vendor developments, along with network launches expected to occur during 2019, a year earlier than originally anticipated.
The industry, most recently, has seen a rush of investments in what is known as the fifth-generation mobile network. Multinational company ZTE earlier this year announced it will increase investment to $295.5 million in 5G research and development every year, starting this year, leading up to 2020, as well as make strategic partnerships with leading telcos and telecommunication vendors.
"5G will provide the technology platform for the Internet of everything, and ZTE is pouring money and effort into ensuring it has the technological leadership and intellectual capital needed to partner with those companies that are leading this revolution," said Fu Zhen, CTO at ZTE South Africa. The company plans to have its 5G rollout complete in the country by 2020.
Local player Cell C previously stated it plans to spend $600 million on 5G wireless research and development up to 2018, with a commercial launch expected for around 2020.
MTN has highlighted that improving its data network in SA is a key priority. The telco said it plans to spend R11.5 billion locally this year and this investment strategy will continue for the next few years, towards the lead into 5G.
According to the report, Juniper's top five ranking of the "most promising" 5G network operators are SK Telekom, NTT DOCOMO, KT, China Mobile and AT&T Mobility.
Other findings include that 5G spectrum auctions and infrastructure build-out costs would necessitate a diverse range of strategies to maximise operator return on investment. This need, the research claimed, is compounded by the ongoing fall of average revenue per connection. As such, Juniper predicted adoption of software-based network solutions will lower investment costs, enabling operators to begin realising a return on investment as early as 2024.
Furthermore, the research underlined the importance of these technological solutions in addressing varying 5G use cases: "Network virtualisation will become increasingly prominent as operators aim to lower expenditures," noted research author Sam Barker.
"Adoption of the technology is critical to the wide-ranging demands of future 5G networks."
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