Carrier NFV Infrastructure NEWS

5G Service Revenues Pegged at $65 Billion by 2025

By Paula Bernier August 07, 2015

5G has yet to arrive in commercial networks—much less have been defined by industry bodies—but pundits are already forecasting its massive growth.

A new report from Juniper Research puts the global market for 5G service revenues at $100 million in 2020—its expected first year of service—and more than $65 billion by 2025. The firm goes on to say that at least $25 billion will be invested in 5G development, research, and trials in the next five years.

The vision for 5G, according to Juniper, is that it will serve up 10gbps or faster connections. Other expected benefits include better battery life, higher device density, improved spectral efficiency, latency of 1ms or less, and low energy consumption. These capabilities, the research firm notes, will make it an ideal match—in fact, “a catalyst”—for new end-user experiences including advanced virtual reality, high-definition 4K-8K video, self-driving cars, and a sensory/tactile Internet.

Chris Pearson, president of 4G Americas, in a recent article talked about the above-noted expected 5G benefits, and added a few more, saying that 5G will also benefit operators and their customers by:

Image via Shutterstock
  • supporting the 212 billion IoT/M2M IDC predicts will be in use by 2020;
  • letting devices communicate directly with one another, because 5G is expected to support a wider range of D2D use cases;
  • enabling context-aware service delivery by identifying each service’s mobility requirements;
  • offering quality and reliability that will help justify replacement of the PSTN for primary voice services;
  • allowing for expedited and simplified deployment of additional access technologies because 5G eliminates the traditional interdependency between radio access networks and packet core infrastructure;
  • automating network configuration and management; and, related to that,
  • facilitating the expansion of network functions virtualization and software-defined networking.

However, Pearson also said that 5G has not even been defined by the International Telecommunication Union or any standards body, and that when 5G does make its way into commercial networks—which he agrees will happen starting in 2020—5G will coexist with 4G for many years.

Edited by Dominick Sorrentino

Executive Editor, TMC

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