5G service revenues are set to cross $65 billion – representing 7 percent of telecom operator-billed service revenues — by 2025 against $100 million during its first year of commercial services in 2020, said Juniper Research.
Active 4G LTE connections will exceed 3 billion globally by 2020. Juniper does not share the number of expected 5G connections during this period.
Juniper notes 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.
5G will enable faster connections and act as a catalyst for a range of new consumer and enterprise experiences, including both data intensive and energy efficient applications, high definition 4K-8K video, self-driving cars, advanced Virtual Reality, etc.
Telecom operators will need to consider multiple service deployment scenarios to achieve an adequate ROI (Return on Investment) from their network and license investments.
“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,” said research author Nitin Bhas.
The investment in 5G research, trials and development over the next 5 years will be at least $25 billion.