MNOs globally can generate $400bn in service revenue from 5G networks in 2024 – an annual growth of 32% from 2023 – however they must look at offering ‘tweaked’ versions of 5G for more specific business comms needs, a report finds.
The study from Juniper Research anticipates that as 5G penetration rates become saturated amongst consumers, it will be imperative for operators to launch services over 5G networks that provide value to enterprise IoT users.
For those that don’t know, 5G Advanced evolves 5G to its fullest, richest capabilities, creating a foundation for more demanding applications and a wider range of use cases than ever before with a truly immersive user experience based on extended reality (XR) features.
5G RedCap – or reduced capacity – is a new 5G standard that is designed to address the use cases in between the high speed Enhanced mobile broadband (eMBB), the ultra-reliable low latency communications (uRLLC) and the low throughput and battery efficient Massive Machine-Type Communication (mMTC) technologies.
Together, 5G Advanced and 5G RedCap will enable operators to provide services including extended coverage, increased network efficiency and device battery life to enterprise users.
Attracting high-spending enterprise users key to 5G growth
The report predicts the benefits of 5G Advanced and RedCap will be instrumental in the growth of IoT sectors, including automotive and mobile broadband. In turn, it forecasts there will be over 360 million 5G IoT devices using public network by 2028; a substantial growth from 35 million devices in 2024.
It identified FWA (Fixed Wireless Access) as the sector to benefit most from these services, given the large amounts of traffic generated. FWA leverages cellular networks to provide Internet connectivity to other devices, often through Wi-Fi.
Research co-author Sam Barker comments: “FWA has always been positioned as a key service for 5G network monetisation, but the emergence of 5G Advanced and 5G RedCap will enable operators to offer similar network conditions as fixed network service providers. Operators must leverage their existing billing relationships with consumers to promote their FWA solutions.”