Mobile operators could benefit from the mobile gaming market
While their main focus is directed at the world of smartphones and mobile networks, it seems telecommunications companies can also benefit from the mobile gaming market as well. Worth US$75bn a recent study conducted by Analysys Mason has shown that entering the sector could provide mobile operators with the chance to make B2C and B2B revenues.
The mobile gaming market is the largest subsection of the mobile industry with 73% of 73% of all adults worldwide playing mobile games. In 2020, the market generated its US$75bn revenue, which equates to 51% of the worldwide revenue for digital gaming. As such telecommunications operators are looking for ways to enter the arena and impact the industry’s growth potential.
The role of 5G in the mobile gaming market
According to researchers, the development of 5G plays an important part in the mobile gaming market and in the revenue opportunities it offers to the telecoms industry. Martin Scott, a Principal Analyst at Analysys Mason, explained, “5G will drive spending on mobile gaming from US$$75bn in 2020 to US$138bn in 2025 when 30% of the smartphones worldwide will be 5G-enabled. 5G will strengthen the growth of mobile gaming services, giving gamers access to higher-value content”.
5G also plans to enable the next generation of cloud-based gaming services due to its availability to new customers, facilitating new gaming experiences such as mixed reality. Analysys Mason predicts that, due to its vital role in the success of these games, the network will create up to US$12.5bn in revenue in 2025.
“Operators should use the growth of 5G-enabled gaming to target the B2B opportunity and to build a mobile edge computing (MEC) proposition, which they can do in partnership with other operators and/or public cloud providers”, said Scott.
“As next-generation gaming ecosystems mature, operators should use their MEC, end-to-end network management capabilities to monetise the gaming service providers’ demand for QoS assurance, strengthening the go-to-market partner role”.
Operators could also partner with gaming service providers to create new devices, XR content, and new infrastructure. The possibilities and opportunities presented by the mobile gaming industry are definitely something telecommunications operators should consider.
T-Mobile at a "pivotal" phase
T-Mobile US is in the middle of a pivotal phase in the company’s operations, announcing that it would either need to sell or decommission some of its smell cells, while, at the same time, announcing that it was looking into controlling the 5G market.
T-Mobile plans to dominate the global 5G market
The company announced that it was planning to take over the global 5G market, with Mike Sievert, Chief Executive Officer of T-Mobile, believing the mobile telecom could be the leader in 5G for the next decade. He said: “We’re making the rules for the 5G era because we’re way ahead — and I mean miles ahead — and those rules are going to be customer friendly and we’re going to be able to monetize ... this lead over the decade,” We’re going to hold on to this 5G lead for the entirety of the 5G decade”.
Following its investments in the new network infrastructure, T-Mobile saw its stock rise and now claims that it has “5G coverage for 295mn people across 1.6mn square miles”. Calling the future “5G internet pure-play”, he said that the organisation plans to increase the reach of its Ultra Capacity 5G network by as much as 40% this year.
He said: “We’re covering 140 million people with that today, compared to like 4 or 5 million with the other guys, and we’re going to be at 200 million by the end of this year. “It puts us years ahead of the other guys”. While T-Mobile’s shares have recently dropped by 0.69%, the stock price has increased by more than 6% this year, beating AT&T’s 1.11% rise and Verizon’s 2.64% decline.
Decommissioning small cells
The news of T-Mobile’s 5G takeover comes at the same time as its announcement to decommission some of the operator’s small cells after it found that it has too many. Neville Ray, President of Technology at T-Mobile US, reiterated a goal of operating nearly 50,000 small cells, but that number rose to 70,000 following an estimation from the UBS equity research analyst, Batya Levi.
In a statement, Neville said: “I have more small cells than I need. Is there some decommissioning in that space? Potentially, yes. We are looking to collapse and combine and do that most efficiently to build that density, capacity, and performance”.
He added that T-Mobile also has “more macro sites than I really know what to do with”, reducing the need for small cells. Ray explained that small cells would be “strategically deployed” in areas requiring additional coverage and capacity.
It seems, then that T-Mobile has ambitious plans for the future as it looks to control the 5G network for the next ten years. Whether this is plausible or not remains to be seen.