5G is expected to bring in ARPU of $14.15 per month in 2026 versus 4G’s monthly ARPU of $5.48, according to GlobalData.
There will be 3.9 billion 5G mobile subscriptions, representing 35.1 percent of total subscriptions globally by the end of 2026. Worldwide 5G service revenues in 2026 will total $609 billion.
5G is yet to make a significant mark in terms of the faster data speeds, latency and other hallmarks that will enable advanced features such as self-driving cars and immerse gaming.
Lynnette Luna, Principal Analyst with GlobalData, said: “Though we have not seen all that 5G is capable of in early deployments, the technology has a multitude of future opportunities for telecom operators.”
5G will bring down the per-bit cost for carriers. The basic cost efficiencies that 5G brings will enable operators and developers alike to create new applications for the technology as it becomes to mature and develop.
Some revenue-generating strategies seen in the US and Europe on 4G networks also resonate on 5G networks. Within the US postpaid wireless market in particular, operators have always enticed users to sign up for premium plans through service bundles, such as video streaming and gaming.
In some markets, we are beginning to see more advanced bundles marketed with 5G. Vodafone is in the process of rolling out Nreal smart glasses in its 5G markets across Europe, offering an interest-free hardware bundle and an app called Vodafone 5G Reality AR.
A number of 5G operators are beginning to sell cloud gaming services. Telia in Sweden and EE in the UK are selling Microsoft’s Xbox Game Pass Ultimate memberships that include cloud gaming. Telia customers can also buy a dedicated cloud gaming promotion featuring an Android phone, Telia plan and a free Razer Kishi universal Android controller and the Xbox Game Pass in one bundle.