Huge growth predicted for 5G in its first six years

©Marina Putilova 123rf.com

A report from Juniper Research warns that to be successful, 5G fixed wireless broadband would need to meet expectations in real-world scenarios to compete with fibre broadband.

Top three countries

The research forecasts that China, the US and Japan will have the highest number of 5G connections by 2025, comrpising 55% of all connections.

Additionally, it found that the US alone will account for over 30% of global 5G IoT connections by 2025, with the highest number of 5G connections for fixed wireless broadband and automotive services.

IoT connection revenues to disappoint

In terms of commercial IOT revenues, the ARPC (average revenue per connection) is predicted to be disappointing, especially related to smart cities and digital health. This was due to low data requirements and nominal duty-cycles. The research urged operators to develop new business models to minimise network operating costs, including software-based solutions to manage the diverse requirements of individual 5G IoT connections.

Furthermore, it advised that maximising connectivity revenues through 5G fixed wireless broadband would prove crucial to offset this disappointment, with ARPC forecast to remain above $50 until 2025.

“Operators and vendors must test their networks in a real-world environment at scale, ensuring speeds can compete with fibre services,” noted research author Sam Barker. “Networks that can deliver the highest speeds and greatest reliability will command the highest ARPCs, hastening an operators’ return on 5G investment.”