5G-Monetization – Ericsson Mobility Report
In many of my recent interactions with communications service providers, sustainability and revenue growth have been the common themes. In this report we have analyzed a number of current trends within our industry and explored ways in which service providers are turning 5G opportunities into revenues.
Around 230 5G networks are in commercial service today. And – with a growing 5G subscription base that has surpassed 1 billion – business fundamentals of the industry remain solid, despite macroeconomic and geopolitical challenges, as consumers prioritize mobile services. We can see early indications of revenue growth in advanced 5G markets with extensive coverage build-out and differentiated service offerings. Enhanced mobile broadband offers the fastest revenue opportunities for 5G, as it is an extension of service providers’ existing business, relying on the same business models and processes. Many service providers are updating their charging models and shifting customers to new, 5G-adapted subscriptions. The mobile broadband business will continue to comprise a significant part of service providers’ revenue in the foreseeable future, but it is not expected to drive long-term growth on its own.
Fixed Wireless Access (FWA) is one of the major early 5G use cases, particularly in regions with unserved or underserved broadband markets. The growth potential provided by FWA is especially attractive as it leverages mobile broadband assets to a large degree. Beyond the consumer business, there are growing 5G opportunities in enterprise and public sector applications across the world. 5G enables significant value for enterprises as private networks and wireless wide-area networks are now being deployed.
A very important aspect of 5G is that it also brings cost advantages and helps service providers to handle the data growth needed to drive future revenue. Upgrading existing 4G sites to 5G has the potential to realize increases of up to 10 times in capacity and to reduce energy consumption by more than 30 percent, offering the possibility to grow revenue and reduce costs while addressing sustainability.
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5G-Monetization – Ericsson Mobility Report
