User-linked 5G Subscriptions Will Reach 924 Million in 2024
BOSTON–(BUSINESS WIRE)–5G networks will generate 26% of wireless service revenue in 2024,
though that impressive share will not boost the overall performance of a
stagnating global wireless market. This is the conclusion of the latest
forecast report from Strategy Analytics’ Service Provider Strategies
service, “Global Cellular Market: Strong 5G Outlook but Total Revenue
and Profits Flat.” The report predicts that the 5G market will begin to
build real momentum in 2021 as network coverage improves, phone prices
fall, and use cases mature.
While some markets have grown revenue with 4G services, the long term
picture globally has been one where the majority of countries have found
that 4G, at best, acts as a modest brake on consumer expectations,
fueled by competitive pressure between operators, to spend less each
month on more and more data. Between 2012 and 2018, when 4G grew from 4%
of all mobile subscriptions to 61% globally, service revenue increased
by less than 1%. 5G’s impact will be equally disappointing.
Phil Kendall, Director of Strategy Analytics’ Service Provider Group,
comments, “There is little to suggest from early 5G launch plans that
any willingness to pay a 5G premium can be attached to the service
element, rather than device element, of the proposition. Once 5G device
prices begin to fall in 2021, the challenge for operators will then be
how to monetize the significant additional capacity that the more widely
deployed 5G networks will bring. Success here will come if operators can
successfully execute on a needs-based segmentation of their customers’
5G motivations, rather than compete on who has the fastest network and
biggest data plans.”
David Kerr, Senior VP Global Wireless Practice, adds, “4G LTE networks
will host over 6 billion subscriptions by the end of 2024, over two
thirds of all wireless subscriptions. Prior to and even alongside
initial launches of 5G services, there is considerable time for 4G LTE
platforms to evolve though LTE-Advanced and LTE-Advanced Pro
technologies. LTE continues to have a bright future with much of Africa
and Middle East still clinging to older generations.”
About Strategy Analytics
Strategy Analytics, Inc. provides the competitive edge with advisory
services, consulting and actionable market intelligence for emerging
technology, mobile and wireless, digital consumer and automotive
electronics companies. With offices in North America, Europe and Asia,
Strategy Analytics delivers insights for enterprise success. www.StrategyAnalytics.com
Contacts
European Contact: Phil Kendall, +44 1908 423620, [email protected]
US
Contact: David Kerr, +1 617 614 0720, [email protected]
