GlobalData says it will take time to realize the full potential of 5G networks, but believes there will be 3.9 billion connections by 2026, as operators expand their infrastructure and service offerings.
While the faster speeds of 5G will improve mobile broadband services, higher capacity and lower latency will enable entirely new breakthrough applications. These include virtual reality (VR), AI robotics, and real-time analytics.
For the first time, companies will be able to connect critical applications to a mobile network.
Global 5G connections
Other studies have shown that consumers are willing to pay extra for 5G services that provide additional value, while 5G will also allow operators to enter entirely new markets, especially when serving businesses.
To drive adoption, carriers are bundling additional services with 5G tariffs, while upgrading their core infrastructure to support new use cases. Once that happens, operators will be free to seek out new revenue opportunities and benefit from the profitability that 5G offers.
Overall, analysts estimate 5G will generate $ 690 billion in service revenue by 2026, with average revenue per user (ARPU) reaching $ 14.15, double that of 4G.
“While we have yet to see all that 5G is capable of in early deployments, the technology offers a wealth of future opportunities for carriers,” said Lynnette Luna, senior analyst at GlobalData.
“Not only will the capacity reduce the cost per bit for operators, but the core savings provided by 5G will allow operators and developers to create new applications for the technology as it matures and develops. “