5G service revenues to hit $65 bn by 2025: Research

NEW DELHI: Service revenues from 5G adoption are likely to exceed $65 billion by 2025, compared to just $100 million during its first year of commercial services in 2020, according to Juniper Research.

However, this figure represents approximately 7% of all operator-billed service revenues.

Juniper estimates that at least $25 billion will be invested into 5G technology research, trials and development over the next five years.

It notes that while the first commercial roll outs are expected in 2020, widespread adoption will only occur from 2025, with national spectrum licensing occurring over a period of years.

The research, 5G Market Strategies: 4G LTE Evolution, Spectrum Analysis & Opportunities 2015-2025, observed that there is a growing consensus around the development of 5G standards in terms of both technology and performance aspects.

Juniper Research found that 5G will not only enable faster connections but will act as a catalyst for a wide range of new consumer and enterprise experiences, including both data intensive and energy efficient applications, high definition 4K-8K video, self-driving cars, advanced Virtual Reality, and a sensory/tactile Internet constantly monitoring and controlling.

It also noted that operators will need to consider multiple service deployment scenarios to achieve an adequate ROI (Return on Investment) from their network and licence investments.

"These discrete segments or services will require transparent and competitive pricing based on data usage, device type, and speeds; this means that profit margins will vary with regards to the sector enabled," noted research author Nitin Bhas.

Active 4G LTE connections will exceed three billion globally by 2020.