5G revenue
Juniper Research: 5G to Account for 80% of Operator Revenue by 2027; 6G Requires Innovative Technologies
5G to Account for 80% of Operator Revenue by 2027:
Juniper Research has forecast that communications operators are likely to generate $625B from 5G services globally by 2027, a substantial rise from the $310bn predicted for the end of 2023. The new report, Operator revenue strategies: Business models, emerging technologies & market forecasts 2023-2027, forecasts that 80% of global operator-billed service revenue will be attributable to 5G by 2027; allowing operators to secure a return on investment into 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.
Juniper Research noted that the increasing implementation of embedded subscriber identity modules (eSIMs) into new devices would 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. Previous Juniper studies have observed that after spending more than a decade offering a potential breakthrough in mobile communications, embedded eSIM technology has enjoyed noticeable growth in the past 12 months, making its way from smartphones to smart devices. The report also calculated that, driven by Apple’s innovation disrupting the smartphone sector, the value of the global eSIM market was expected increase from $4.7bn in 2023 to $16.3bn by 2027.
Juniper 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 center 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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References:
https://www.juniperresearch.com/pressreleases/operator-5g-revenue-to-reach-$625bn-by-2027
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