5G consumer revenues for service providers
In this joint report between Ericsson ConsumerLab and Omdia, we uncover the importance of the consumer market and the revenue opportunity for communication service providers enabled by 5G until 2030.
5G consumer potential webinar
Key findings
01. High share of wireless service revenues
The consumer market already generates a higher share of wireless service revenues for service providers and will continue to grow in importance with 5G.
02. The 5G technology platform
Service providers will provide the 5G technology platform that underpins nearly USD31 trillion in cumulative consumer revenues for the ICT industry by 2030. Service providers could clinch a cumulative USD 3.7 trillion of these 5G-enabled consumer revenues by 2030.
03. The impact of the pandemic
The pandemic has impacted consumer willingness to pay a 20 percent 5G premium, reducing it by half; however, 1 in 3 early adopters globally are still willing to pay a 20 percent premium.
04. Opportunities with 5G use cases
Service providers can directly generate USD 131 billion by 2030 from digital service revenues by proactively developing and marketing 5G use cases. Key opportunities lie with enhanced video, advertising, in-car connectivity and extended reality.
05. The proactive approach
By being proactive in driving 5G differentiation, service providers could gain a 34 percent higher 5G ARPU by 2030, growing their consumer revenues at a CAGR of 2.7 percent up to 2030 as opposed to a flat revenue with a passive approach.
Key recommendations
01. Service providers should establish high-quality 5G coverage early. Half of early mover 5G carriers have increased market share already.
02. The consumer market is an attractive 5G revenue opportunity for proactive service providers. Leverage ecosystem partnerships to capture an even higher share of USD 31 trillion addressable consumer revenues that will flow over 5G networks.
03. Communications service providers should see use cases/digital services as a way of differentiating their 5G offering.
04. 5G connectivity still remains the biggest revenue driver. The greatest revenue boost will come from bundling use cases with 5G tariffs to be able to convince consumers of the value of 5G network platforms.
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