Analysts Predict $1B Revenue From Fixed 5G in 2019

Dan Jones
8/30/2017
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Analysts from SNS are expecting to see operators make $1 billion from fixed wireless 5G services worldwide in 2019, the first year the next-gen technology is expected to go live.

AT&T Inc. (NYSE: T) and Verizon Communications Inc. (NYSE: VZ) are likely to grab the lion's share of that money, as both US operators are expected to be among the first service providers to offer up a fixed 5G service. "The market is further expected to grow at a CAGR of approximately 84% between 2019 and 2025, eventually accounting for more than $40 billion," the SNS Telecom analysts say in a synopsis.

The possibility of using 5G as a gigabit-plus alternative to cable has captured the attention of the big two mobile operators in the US, which believe the mobile technology will be much cheaper to deploy. Giving subscribers a blazing-fast wireless connection should provide another revenue stream for providers in the ever-competitive mobile market.

Using 5G for fixed wireless access (FWA) appears to be largely an US-centered idea for now.

Nonetheless, we are starting to see how analysts expect the 5G market to evolve. Juniper Research Ltd. analysts recently said that they expect 1 million 5G connections to go live in 2019. If the SNS predictions are right, then many of those connections may be for FWA services in the US. (See 1.4B 5G Connections by 2025? Analysts Say Yes.)

— Dan Jones, Mobile Editor, Light Reading

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Duh!
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Duh!,
User Rank: Light Sabre
9/5/2017 | 1:06:52 PM
Re: Analysts Tend to Be Giddy About New Technology
Field experience in the mm wave bands is still pretty limited. At some point, they'll develop engineerng guidelines for deciding where to use 5G fixed wireless and where to use FTTH. Both VZ and AT&T have been pretty clear that they don't have those answers yet, and don't want to comment on that question until they do. A lot depends on what they learn in field trials.
mendyk
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mendyk,
User Rank: Light Sabre
9/4/2017 | 9:35:54 AM
Re: Analysts Tend to Be Giddy About New Technology
This prediction is about on a par with, the sun will rise in the eastern sky in 2019. Mobile is a trillion-dollar business. To predict that one-tenth of one percent of that business will come from fixed 5G is hardly going out on a limb.
Phil_Britt
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Phil_Britt,
User Rank: Light Sabre
9/3/2017 | 9:34:44 PM
Analysts Tend to Be Giddy About New Technology
Not sure why, but anytime a new technology is coming, most analysts tend to be high on it. One only has to look at dotcom boom and bust for a prime example.
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