5G technology is a critical component of the digital economy, and it will bring new opportunities for operators to provide new services and revenue streams.
The most compelling 5G applications include virtual reality and augmented reality; remote control of robotics; autonomous vehicles; telemedicine; smart factories; smart cities; industrial internet of things (IIoT); high-definition video streaming over mobile networks and many more.
5G Service Revenue to Represent 80% of Global Operator Revenue by 2027
5G will be a game changer with new business models and revenue streams. According to a recent Juniper Research study, operator-billed 5G service revenue will increase from $195 billion in 2022 to $315 billion in 2023. This represents growth of over 60% in a single year.
The study predicts this increase in revenue will be driven by the accelerating migration of cellular subscriptions to 5G networks.
Despite the projected economic slowdown in 2023, it predicts that over 600 million new 5G subscribers will be created the following year.
According to the report, 5G networks will keep expanding, and by 2027, 5G connections would account for more than 80% of all operator-billed revenue worldwide.
The report projects that the growth of 5G will also be resilient against this economic downturn.
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Revenue from customer connections will continue to be the cornerstone of 5G operator revenue increase, despite the growth of the Internet of Things.
Olivia Williams, Co-Author of the report
Network slicing is a critical 5G feature
One of the most important features of 5G is network slicing. Network slicing allows operators to offer different services to different customers. This gives the operators more control over their networks and enables them to create new revenue streams.
You can think of it like a pizza: rather than all having one big pie that everyone gets, operators will be able to cut off a slice for each customer or use case (e.g., high bandwidth users).
This way, the operator can provide whatever network capacity is needed for each slice without having to build out an entire network.
The report asserts that the potential of standalone 5G networks to provide “network slicing” would serve as the perfect foundation for the expansion of 5G private network income.
Using network slicing technology, standalone 5G employs next-generation core networks. This can be used to provide users of private networks with a “slice” of the public 5G infrastructure.
In turn, this helps mitigate the cost of private 5G network hardware and increase its overall value proposition despite deteriorating macro-economic conditions.
Conclusion
In conclusion, 5G will bring enormous potential to the mobile industry. Operators need to focus on preparing for these new services and developing a strategy. Network slicing is a key feature of 5G technology that will help to deliver differentiated services and improve customer experience leading to revenue growth.
