5G deployments to reach 2.6bn subscriptions in 2026

A report by ABI Research forecasts that the deployments of 5G will accelerate to 2.6bn subscriptions in 2026, reaching a total revenue of US$942bn

Despite a slight decline in the worldwide mobile subscriber base resulting from the COVID-19 pandemic, mobile network operators across different markets continue to expand 5G network deployments. By the end of 2020, 264 million subscriptions were achieved.  

Global technology intelligence firm ABI Research forecasts that the 5G market will continue to accelerate and reach 2.6bn subscriptions, a significant contribution to mobile operator revenue of US$942bn in 2026.

Driven by heavy investment of Chinese operators, China is the key contributor of 5G market, holding more than two-thirds of the worldwide 5G subscriptions at present.  The United States is second in 5G adoption with more than 50 million subscribers, followed by leading markets Japan and South Korea. "Operators' effort to expand 5G networks, combined with quickly increasing 5G smartphone penetration, will drive 5G subscriptions to reach 507 million at the end of 2021, almost double from 2020," comments Khin Sandi Lynn, Industry Analyst of ABI Research.

Mobile operators’ strategies implemented to advertise 5G adoption

 

Alongside 5G network rollouts, mobile operators implement strategies to promote 5G adoption. and boost revenue. Verizon launched its "5G upgrade campaign", a promotional program to encourage its customers to upgrade to 5G devices. China Mobile, launched a new set of applications such as 4K live streaming and cloud-based 5G games to drive the 5G user base and revenue. 

As the 5G user base continues to increase, some operators have witnessed improvement in the mobile average revenue per user (ARPU) in recent quarters. Similarly, 5G network deployments for industry verticals such as healthcare, automotive and smart transportation, industrial applications, etc., are expected to drive mobile operator revenue in the years to come.

As operators speed up 5G network infrastructure upgrades, it is important for operators to capture revenue-generating opportunities by forming new services. "While video is among the major drivers of higher-speed connectivity, the ability to bundle 5G mobile packages with AR/VR based services for education, healthcare, and social networking can boost 5G business potential in the consumer market. Leveraging 5G capability and end-to-end network slicing can also enable operators to capture enterprise opportunities to deliver performance-guaranteed services and maximise the ROI," Lynn concludes.

 

 

Share

Featured Articles

World Youth Skills Day: Vodafone Bridges Digital Divide

This World Youth Skills Day, the Vodafone Foundation is providing support to educators & students through the Skills Upload Europe programme

GSMA: Handset Affordability Coalition & Smartphones

Global institutions including GSMA, the World Bank Group, ITU and more, have united to call for improved handset affordability for lower-income populations

Keysight Technologies Joins AI-RAN Alliance

Keysight Technologies joins AI-RAN alliance to revolutionise mobile network performance and advance wireless technology innovation

Heights Telecom & ENet Strengthen Telecoms in Americas

Telecommunications

Germany to Phase Out Huawei from 5G Networks

5G & IOT

Telefónica & DIGI Sign Mobile Network Agreement for 16 Years

Mobile Operators