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5g Industry

Operator 5G Revenue to Reach $625 Billion by 2027

The proportion of mobile subscriptions of 5G more than doubled to 8.1%, from 3.6% in the previous year. 4G remains dominant at 54.1%, an increase from the previous year and hence does not show a sign of slowing down from the rise of 5G. However, this dominance is expected to start dropping off in 2023 onwards. 6G Network Development

SIM card e SIM shop

The new report, Operator Revenue Strategies: Business Models, Emerging Technologies & Market Forecasts 2023-2027, predicts that this growth of 100% over the next four years will be driven by the migration of mobile subscriptions to 5G networks, and the increasing inclusion of eSIMs in devices such as laptops and Wi-Fi hotspots.

5G to Account for 80% of Operator Revenue by 2027

The research forecasts that 80% of global operator-billed service revenue will be attributable to 5G by 2027; allowing operators to secure a return on investment in their 5G networks. However, the increasing implementation of eSIMs into new devices will drive global cellular data traffic to grow by over 180% between 2023 and 2027, as data traffic is offloaded from fixed and Wi-Fi networks to 5G.6G Network Development

Research author Frederick Savage commented: “eSIM-capable devices will drive significant growth in cellular data, as consumers leverage cellular networks for use cases that have historically used fixed networks. Operators must ensure that networks, including 5G and upcoming 6G networks, are future‑proofed by implementing new technologies across the entirety of networks.”

6G Development Necessitates Innovative Technologies

To prepare for this increasing demand in cellular data, the report predicts that 6G standards must adopt innovative technologies that are not currently used in 5G standards. It identified NTNs (Non‑terrestrial Networks) and sub-1THz frequency bands as key technologies that must be at the centre of initial trials and tests of 6G networks, to provide increased data capabilities over existing 5G networks.

However, the research cautions that the increased cost generated by the use of satellites for NTNs and the acquisition costs of high-frequency spectrum will create longer timelines for securing return on 6G investment for operators. As a result, it urges the telecommunications industry to form partnerships with specialists in non-terrestrial connectivity; thus benefitting from lower investment costs into 6G networks.

 

 

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