5G adoption to push telecoms revenue to $65bn by 2025

ISLAMABAD: Although the global telecoms industry is yet to come to terms with the adoption of the 5G technology, a new report has forecast that about $25bn will be invested into research, trials and development over the next five years.

The report, which was published by Juniper Research, United Kingdom, predicted a healthy adoption for 5G, with service revenues set to exceed $65bn by 2025, compared to just $100 million during its first year of commercial services in 2020.

The rave about the 5G technology was finally sealed in June, when the International Telecommunication Union confirmed its plan to commercialise 5G by 2020.

According to the Juniper report, within the first five years of commercial availability, 5G will account for 7 percent of all operator-billed service revenues, the research firm said.

It estimated that at least $25 billion will be invested into 5G technology research, trials and development over the next five years adding that while the first commercial roll-outs are expected in 2020, widespread adoption will only occur from 2025, with national spectrum licensing occurring over a period of years as per 4G, Sunday Mirror reported.

According to Juniper Research, 5G will not only enable faster connections but will act as a catalyst for a wide range of new consumer and enterprise experiences, including high definition 4K to 8K video, as well as self-driving cars, advanced virtual reality, and a sensory or tactile Internet – constantly monitoring and controlling.

Head of Research at Juniper Research, Nitin Bhas said,”These discrete segments or services will require transparent and competitive pricing based on data usage, device type, and speeds; this means that profit margins will vary with regards to the sector enabled.”

Meanwhile, the GSM Association has said that although a shift to 5G would be hugely impactful, the industry will need to overcome a series of challenges if these benefits are to be realised, particularly in terms of spectrum and network.

Director General of the GSM Association, Anne Bouverot, said although 5G has yet to be standardised by the industry, the association is already collaborating with operators, vendors, governments and other stakeholders to ensure it is both technically and economically viable.

Source: APP