5G Operator Billed Service Revenues Will Reach $300 Billion by 2025

5G Operator Billed Service Revenues Will Reach $300 Billion by 2025

Foto: Depositphotos

A new study from Juniper Research found that annual operator billed revenues from 5G connections will approach $300 billion by 2025, rising from $894 million in 2019, its anticipated first year of commercial service. This is an average annual growth of 163% in its first 6 years.

The new study argued that these substantial revenues will offer respite to operators experiencing declining revenues and profitability. The report forecast that 5G service revenues would be 38% of total operator billed revenues by 2025, despite the anticipated 1.5 billion 5G connections only accounting for 14% of all cellular connections in the same year.

The research found that operators must optimise pricing strategies and network configuration to secure a return on their 5G investment. Given the variety of IoT devices that will use 5G, pricing strategies must reflect data usage, device type and required network speeds to ensure profitability.

Juniper forecasts that the total data traffic generated by 5G connections will reach 955 Exabytes annually by 2025, the equivalent to 143 billion hours of 4K video streaming. In response, Juniper urged operators to implement technologies that minimise the cost-per-bit of 5G data, including network virtualisation, to provide on-demand network agility for the data intensive demands of 5G connections.

Research author Sam Barker added: “5G for home broadband services will be the biggest driver in growth of cellular traffic after initial launches. By 2025, the average 5G home broadband connection will generate over 430GB of data per month.”

In addition, the research estimated that cumulative 5G research and development spend by operators, hardware vendors and public bodies will approach $60 billion by the end of 2018. In 2018 alone, it is anticipated that network operators will spend nearly $30 billion on trialling networks in preparation for commercial launches in 2019.

More from category

EMEA CIOs More Likely to Scale Digital Initiatives

EMEA CIOs More Likely to Scale Digital Initiatives

12 Dec 2018 comment

Digital business has reached a tipping point in EMEA, with 35 percent of CIOs being in a position to scale their digital initiatives, according to Gartner’s annual global CIO survey.

Smartphones Will Further Decline in 2018 and Return to Growth in 2019

Smartphones Will Further Decline in 2018 and Return to Growth in 2019

12 Dec 2018 comment

According to IDC, worldwide smartphone shipments are expected to decline by 3% in 2018 before returning to low single-digit growth in 2019 and through 2022.

Accounting Will Affect Growth of the Telecom Services and Pay TV Spending

Accounting Will Affect Growth of the Telecom Services and Pay TV Spending

11 Dec 2018 comment

Worldwide spending on Telecom Services and Pay TV Services will increase by 0.6% in 2018 (in constant dollar terms), according to IDC.