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The new study, 5G Market Strategies: Consumer & IoT Opportunities & Strategies 2020-2025, forecast that the US and South Korea will be the fastest adopters of 5G, with 75% of all 5G subscribers attributable to these two countries by the end of 2020. It found that aggressive pricing strategies and extensive device support have enticed over 5 million subscribers to 5G networks globally in 2019.
The research found that pricing strategies from operators in the US and South Korea have aimed to rapidly migrate users to 5G networks by offering low cost connectivity. However, it warned that this strategy will prolong operators’ primary goal of securing a return on their substantial 5G investment.
Conversely, the research noted that operators in other regions, such as Europe, have focused on maximising early 5G revenue by applying premium pricing over 4G subscriptions. It urged operators in these regions to expand geographical 5G coverage via basestation rollouts in order to maximise the value proposition of 5G and justify the premium pricing.
Additionally, the research forecast that the significant number of 5G-supporting devices will further increase the immediate adoption of 5G connectivity. It noted that early launches of FWA (Fixed Wireless Access) routers will provide operators with an immediate platform to launch broadband services that leverage 5G networks as a last mile solution.
Research author Andrew Knighton remarked, “We expect 5G to be used for over 5 million broadband connections by the end of 2020. Operators will need to provide 5G whose bandwidth and latency matches or exceeds current Internet services. Otherwise, they risk missing out on this valuable new revenue stream.”
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