There is money on the mast.
In fact, it’s a nice cumulative $31 trillion between now and 2030.
A new study by Ericsson ConsumerLab and technology research firm Omdia shows how much the global 5G consumer market could be worth in revenue from now to 10 years later.
Of these consumer revenues, $3.7 trillion could be spent on telecom service providers over the next nine years.
This is good news for suppliers who have caused long-term revenue stagnation or declining trends due to regulatory and competitive pressures.
Taking a “preemptive” approach to the possibilities of 5G implies an average provider revenue of $9.61 per mobile phone user in 2030. This is what’s currently around $7 for a non-5G subscription. It’s also 34% higher than operators taking a “passive” approach based solely on “providing commercialized voice and data risk”.
The authors urge you to explore and bundle “core and adjacent” digital services “running behind mobile data connections”. Like augmented reality (AR), it will account for half of consumer spending on immersive media in 2030.
Augmented reality games are the highest ranked AR applications among consumers, ConsumerLab says. 67% of gamers say they will increase their AR usage within the next 5 years.
The report suggests it’s like AT&T’s acquiring Time Warner in time to create a massive business that does both content and distribution.
Streaming will account for 30% of the $131 billion service providers that can be obtained through direct digital services between 2019 and 2030.
Sports are also big. But for good, don’t do it, just watch.
In the UK, EE is ahead of sports streaming apps like BT Sports, which provide fans with a personalized and immersive match day experience.
According to a report examining 17 markets around the world, the adoption of 5G is “much faster than the previous generation,” and it is expected that 5G will exceed 20% of mobile subscriptions two years before 4G.
As of June 30th, it has 80 million subscribers worldwide. And there are 100 commercial 5G networks worldwide to choose from in September, reports the Global Mobile Providers Association.
This is an increase from the total for Korea in April 2019.
Now, a year later, Korea has found that 13.2% of mobile subscribers using 5G is quite high. Ministry of Science and Technology Information and Communication says.
Meanwhile, COVID-19 is making customers control their finances.
As expected, the extra amount average consumers are willing to spend to use 5G has fallen from 20% in early 2019 to 10%. Say Jasmet Sethi, Head of Market Insights at Ericsson ConsumerLab.
In some markets?? USA, Korea, Australia, Finland ?? People are still willing to pay a bigger premium for 5G. All told, a quarter of mobile phone users are likely to upgrade to 5G devices.
Consumers are more likely to upgrade if they have an Apple iPhone. About half of consumers looking to buy 5G smartphones in the US, Australia, Sweden and Switzerland are traditional iPhone owners.
The report author surveyed 7,500 users from 17 countries.
Even in modest 2019, consumer services accounted for 56% of service provider sales worldwide, with the rest comprised of business and corporate customers. This is a 2% increase from consumers in just two years.
5G will accelerate this trend, says Ericsson and Omdia. So, suppliers will want to prioritize these annoying consumers.
?? Padraig Belton, Contributing Editor, Light Reading Feature