5G, the latest in mobile networking tech, will reach a gigantic $4.2 billion (£3.44 billion) in revenue in 2020, research from Gartner Inc. predicts. This is up by 89% from the $2.2 billion (£1.8 billion) revenue it made this year.
Currently, investment in the 5G NR (new radio) network accounts for 6% of the total wireless infrastructure profits of communication service provider (CPS). This is presumed to rise to 12% in 2020.
“5G wireless network infrastructure revenue will nearly double between 2019 and 2020,” said Sylvain Fabre, senior research director at Gartner. “For 5G deployments in 2019, CSPs are using non-stand-alone technology. This enables them to introduce 5G services that run more quickly, as 5G New Radio (NR) equipment can be rolled out alongside existing 4G core network infrastructure.”
The stand-alone technology used by the 5th generation cell technology will require 5G NR equipment, meaning that the CPR price for customers will be lowered.
Many countries, including the UK, have already adopted the 5G network, with many more expected to follow suit.
As a consequence, Gartner, who is a research advisory firm, guesses that 7% of CSPs internationally have already installed 5G infrastructure in their systems.
Using 5G world-wide
Although the 5G development is mostly aimed at individual customers, CPS is increasingly aiming its ideals towards businesses too. It’s thought that 5G networks will try and expand to places like smart factories, automation transport, and retail sectors, as well as many other industries that may benefit from its network services.
Some countries, like Germany and Japan, are setting aside bandwidths for private vendors. They hope this will develop faster, more reliable and secure levels of performance and communications.
“It’s still early days for the 5G private-network opportunity, but vendors, regulators and standards bodies have preparations in place,” said Fabre.
Not a quick process
The research director spoke of how it will take longer to implement 5G across countries compared to other types of mobile technology. He says, “National 5G coverage will not occur as quickly as with past generations of wireless infrastructure,”
Continuing, “To maintain average performance standards as 5G is built out, CSPs will need to undertake targeted strategic improvements to their 4G legacy layer, by upgrading 4G infrastructure around 5G areas of coverage.”