Global 5G service revenue is expected to reach $315 billion in 2023, rising from $195 billion this year, a new report showed on Monday. According to Juniper Research, this represents a growth of more than 60 percent in a year for 5G service revenue billed by the operator.
“Despite the growth of the Internet of Things, revenue from consumer connections will continue to be a cornerstone of 5G operator revenue growth,” said research co-author Olivia Williams. In 2027 more than 95 percent of global 5G connections will be connected to personal devices such as smartphones, tablets and mobile broadband routers,” Williams said.
Revenue growth will be driven by accelerated migration of cellular subscriptions to 5G networks; Due to operator strategies that reduce or remove any premium over existing 4G subscription offerings.
It estimates that more than 600 million new 5G subscriptions will be created next year, despite an economic slowdown projected in 2023. The report predicts 5G network growth to continue, and more than 80 percent of global operator-bill revenue will be attributable to 5G connections. 2027.
In addition, the ability of standalone 5G networks to offer ‘network slicing’ will act as an ideal platform for the growth of 5G private network revenues.
Standalone 5G networks use next-generation core networks supporting slicing technology, which can be used to ‘slice’ public 5G infrastructure and provide it to private network users.
In turn, this helps reduce the cost of private 5G network hardware and increase its overall value proposition, the report said.
5G service revenue to reach $315 billion globally in 2023 first appeared on BGR India.