By Sudipta Choudhury - August 10, 2020 3 Mins Read
With the increase in 5G network infrastructure spending, the revenues are expected to go down – claims the latest Gartner study.
The recent investments into 5G network infrastructure by the communications service providers (CSPs) are projected to touch 21.3% of the entire wireless infrastructure. These findings came up from Gartner’s latest report – “Forecast Analysis: Communications Service Provider Operational Technology, Worldwide.”
In 2020, the global 5G network infrastructure spending is estimated to nearly double since the revenues are likely to decline by 4.4% – to $38.1 billion. There is going to be an unexceptional investment surge for 5G. The study indicates it is expected to exceed the LTE/4G in 2020.
The upcoming rebound for 2021 can be credited to the service providers’ firm determination to make the most on the shifting behaviors – associated with the subscribers’ increased dependence onto the communication networks. The 5G investment is forecasted to exceed the LTE/4G in 2022.
As mentioned by Kosei Takiishi, Senior Research Director at Gartner, in the company blog post – “Investment in wireless infrastructure continues to gain momentum, as a growing number of CSPs are prioritizing 5G projects by reusing current assets including radio spectrum bandwidths, base stations, core network, and transport network, and transitioning LTE/4G spend to maintenance mode.”
The rapid acceleration of 5G adoption is due to the growing competition among the CSPs. By offering future agile and economic 5G products, the endorsement of 5G implementation and active vendor-lock-in could be disrupted. This is possible with the help of a new O-RAN (open radio access network) as well as vRAN (virtualized RAN) ecosystems.
China, Hong Kong, Taiwan, and the Asia/Pacific, Japan, and North America CSPs will hit 5G coverage around 95% of the national populations by 2023. There have been lower investment growth rates for 5G in 2020 due to the widespread pandemic. However, exclusive of Japan and Greater China, CSPs in other regions are quickly pivoting new and flexible spending to create out 5G network and 5G – as a platform.
As per the study, nearly 15% of the global CSPs will operate with SA 5G networks –without any dependence on the 4G network infrastructure. The wireless investments will be diverted from the LTE/4G, and mark the inclination of the legacy RAN support. After 4G, 5G is the next-gen cellular standard, and this has been defined by different global standards organizations – including ITU, ETSI, and 3GPP.
Kosei Takiishi also mentioned, “Early 5G adopters are driving greater competition among CSPs. In addition, governments and regulators are fostering mobile network development and betting that it will be a catalyst and multiplier for widespread economic growth across many industries.”
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