5G will enable more than $140 billion through 2024 in revenue opportunities across immersive display advertising, enhanced video, advanced mobile gaming, fixed wireless broadband and a diverse range of cellular IoT applications (e.g. autonomous vehicles, industrial automation, robotic-aided surgery and many others), according to this new Omdia whitepaper 5G’s Economic Impact on Service Providers.
5G is happening now: over 60 operators have launched 3GPP-compliant 5G networks and hundreds more are investing in 5G. Over the next few years, enhancements to 5G standards will deliver greater technical performance (e.g. very high bandwidth and availability, ultra-low latency and long battery life) for enhanced mobile broadband (eMBB), Massive IoT and Mission Critical Services (MCS). This will open up the opportunity for new applications and use cases.
Operators face both significant capex and opex costs and complexity in deploying and managing 5G networks and meeting the stringent performance requirements of industry verticals in a real-world environment. Adjacent technologies such as Artificial Intelligence (AI) and Machine Learning (ML), network automation, cloud and edge, in collaboration with 5G, will play a critical role in managing costs and enabling new revenue generating services. Addressing these challenges and developing new commercial opportunities will require constant innovation and close collaboration between the 5G ecosystem of service providers, component, network and device vendors, software, datacentre and cloud vendors and customers and systems integrators across a wide range of verticals. It will also require operators to embrace business agility, develop a deep understanding of customer pain points and processes and develop new flexible business models.