5G will account for 40% of network expenditures by 2025
The telecom industry is anticipating its next breakthrough, the next generation of mobile networks, the 5G technology which is all set to roll out commercially by the year 2020. A new report by SNS Research has come to light which estimates that 40% of network expenditures will be made on 5G technology by the year 2025.
Many developing countries in Asia including Pakistan are expected to be the first ones to test 5G networks by the year 2020. Analysts believe that during the year 2020 the spending on 5G networks will be quite low around 5%. The early test of 5G networks in different regions will go at a slower pace. However, by the passage of time, the spending on other networks i.e 2G, 3G, 4G/4G LTE will drop down and an increase in expenditures on 5G networks is expected, as on report.
Moreover, SNS report predicts that the spending on the network infrastructure market will see a drop down by 4% this year. The major factor behind this will certainly be the wireless operators spending less on radio equipment which is used to build a connection with a cellular network. However, a slight growth of 2% is expected in this area between the 2018 and 2020 as the wireless operators will spend more radio equipment.
The research firm also analyzes that wireless operators will be spending more in the next 5-7 years for building infrastructures. However, the report also clarifies that the rate of spending will be less during the first 2-3 years than upcoming years. This further affirms earlier reports by Ericsson which predicts that over 20% percent of world’s population will have access to 5G networks by 2023.
Pakistan is also anticipating 5G technology, as Minister for IT Anusha Rahman has confirmed its availability in the country by the year 2020. Meanwhile, the recent statement by Federal Minister for Planning and Development, Ahsan Iqbal shows that he is expecting it sooner than that.