Global 5G Connections to Reach 3.2 Billion by 2026; Growing
940% as Network Orchestration Tools Maximise Monetisation
A new study from Juniper Research has
found that the total number of 5G connections will reach 3.2 billion by 2026;
rising from 310 million in 2021. To maximise the monetisation of this
significant growth in connections, it predicts that operators will accelerate
investment into standalone 5G networks to best position their services to
manage future capacity. Standalone 5G networks leverage next-generation
technologies, such as network orchestration tools, to enable operators to
monetise data-intensive use cases, like remote healthcare and mobile gaming.
Operators Must Monetise Value-added 5G Services
The new study, 5G Monetisation: Business Models,
Strategic Recommendations & Market Forecasts 2021-2026,
identified automating network orchestration tools as a key priority for
operators in monetising their 5G services. These tools allow operators to adapt
network conditions based on AI analysis of traffic; providing more bandwidth to
connections that need it, and maintaining service performance.
By 2026, the report predicts that the average revenue per 5G smartphone
connection will fall to $17 globally, from $29 in 2021; significantly impacting
operator revenue. To alleviate this decline, it recommends that operators
leverage orchestration tools to retain a network’s highest throughput and
lowest latency for connections that require it. By utilising this approach,
operators can justify charging a premium to these prioritised connections over
other 5G connections, and slow this declining average revenue.
Asia Pacific to Account for 2 Billion
Connections by 2026
The report found that over 60% of global 5G connections will be located in the
Asia Pacific region by 2026. Network orchestration technologies, alongside
mmWave frequencies that enable data-intensive 5G services, will be a key driver
in creating an ecosystem in this region that allows mobile subscribers to
leverage 5G networks for emerging mobile services, whilst maintaining network
performance.
Report co-author Dave Bowie remarked: ‘Operators in China, Japan and South
Korea have all implemented lower subscription costs, which have accelerated 5G
adoption, thus enabling these subscribers to explore novel services that require
5G connectivity.’
Source: Juniper Research media announcement
