The value of 5G network infrastructure market will be $28 billion, registering a CAGR of 70 percent during 2016-2023, according to a report on 5G network available in Research and Markets.
Ericsson, a telecom equipment maker, said 5G technology can add up to approximately 34 percent in the telecommunications sector by 2026.
North America is the leading 5G network infrastructure market. American telecom operators such as AT&T, Verizon, T-Mobile and Sprint are pursuing 5G network roll outs. Research and development work is progressing in the US. Verizon Communication and AT&T have done 5G trials to ensure the deployment of 5G technology by 2023.
According to 5G Americas Whitepaper: 5G Regulatory Policy Considerations and Spectrum Sharing, MNOs would likely first deploy 5G services using exclusive licensed spectrum and then aggregate unlicensed shared spectrum. For example, MNOs could use 5G NR-based LAA to improve network capacity and/or the user experience.
The U.S, South Korea, Japan and China are some of the main countries currently working towards the advancement of 5G technology. Indian telecom operators are not yet ready to tap 5G opportunities.
China Telecom yesterday said it will conduct 5G trials in 2017-18 and is aiming for commercial launch in 2019. China Mobile, the largest telecom operator in 4G space, will be investing heavily in 5G networks.
Any progress in 5G network roll outs will support the growth of Samsung, Ericsson, Nokia, Intel and Qualcomm.
Meanwhile, 5G-based FWA subscriptions are expected to account for $1 billion in service revenue by 2019 alone, according to SNS Research.
The 5G-based FWA market is expected to grow at a CAGR of approximately 84 percent between 2019 and 2025, accounting for more than $40 billion.
5G-based FWA can reduce the initial cost of establishing last-mile connectivity by as much as 40 percent – in comparison to FTTP (Fiber-to-the-Premises). 5G can also accelerate rollout times by eliminating the need to lay cables as required for FTTP rollouts.
The 28 GHz frequency band is widely preferred for early 5G-based FWA deployments, as many vendors have already developed 28 GHz-capable equipment – driven by demands for early field trials in multiple markets including the United States and South Korea.
Industry analysts believe 5G-based FWA is mainly suitable for densely populated urban areas. Some rural carriers — including C Spire and U.S. Cellular — are beginning to consider investment in 5G to deliver last-mile broadband connectivity in rural areas.
