Over the course of the upcoming year, more than 600 million new 5G subscribers are expected to be created globally, according to a Juniper Research report.
Despite the numerous economic challenges at play, the analysis estimates that this increase will provide operators of 5G-related services with a value of $315 billion by the end of 2023, indicating a growth rate of 60%. This is according to the 5G monetisation: business models, strategic recommendations & market forecasts 2022-2027 report.
Because of operator policies that minimize or eliminate any premium over current 4G subscription services, Juniper predicted that the 5G market would be driven by the accelerating migration of cellular subscribers to 5G networks.
According to the report, independent 5G networks’ ability to provide network slicing will serve as the perfect foundation for the expansion of 5G private network revenue. It noted the possibility of taking a piece of the public 5G infrastructure and making it available to users of private networks through the inherent capacity of standalone 5G next-generation core networks to enable network slicing technologies.
As a result, against the backdrop of deteriorating macro-economic conditions, this would reduce the cost of private 5G network gear and improve its entire value proposition, according to Juniper.
Nevertheless, Juniper anticipates that revenue from consumer connections will continue to form the backbone of the development in 5G operator revenue, despite the expansion of use cases like the internet of things (IoT). “Over 95% of global 5G connections in 2027 will be connected personal devices such as smartphones, tablets and mobile broadband routers,” said research co-author Olivia Williams.
Looking ahead, the paper predicted that 5G network expansion will continue over the research period, with 5G connections accounting for more than 80% of global operator-billed revenue by 2027.
The Juniper study was released just a few days after Ericsson ConsumerLab released its 5G: The next wave report, which included a key finding that, despite the accelerated growth of 5G mobile networks over the past two years and consumers’ intentions to upgrade to 5G in the coming year, people are still wondering why 5G coverage isn’t up to par, which could be a growth-limiting factor.
It also noted that consumers’ perceptions of 5G availability were quickly becoming the new standard for customer happiness. Building user impression is more significant than population coverage due to geographic coverage, indoor and outdoor coverage, and congregation hotspot coverage.
Source: Computer Weekly