5G Will Be 26% of Wireless Service Revenue in 5 Years Amid Stagnating Market, Says SA
5G networks will generate 26 percent of wireless service revenue in 2024, but won’t boost overall performance of “a stagnating global wireless market,” reported Strategy Analytics Monday. The 5G market will begin to build “real momentum” in 2021 as network…
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coverage improves, phone prices fall and use cases mature, said the research firm. From 2012 to 2018, 4G grew from 4 percent to 61 percent of all mobile subscriptions worldwide, but service revenue increased by less than 1 percent: “5G’s impact will be equally disappointing,” it said. “There is little to suggest from early 5G launch plans that any willingness to pay a 5G premium can be attached to the service” vs. the device, said analyst Phil Kendall. When 5G device prices begin to fall in 2021, operators will be challenged to monetize the “significant additional capacity that the more widely deployed 5G networks will bring,” he said: Operators can succeed by executing based on customers’ 5G needs vs. “who has the fastest network and biggest data plans.” 4G LTE networks will host more than 6 billion subscriptions by year-end 2024, comprising two-thirds of all wireless subscriptions, said analyst David Kerr. He said that leaves “considerable time” for 4G LTE platforms to evolve through LTE-Advanced and LTE-Advanced Pro technologies, which have a “bright future” in certain Africa and Middle East markets.