Bigger telecom service providers are set to spend over $250 million on the 5G deployment launches by the end of 2017, says the latest report published by SNS Research.
The news comes right on the heels of Third Generation Partnership Project’s (3GPP) recent agreement on a plan to accelerate the deployment of 5G NR standard.
Although there’s still a lack of adequate LTE coverage in different parts of the world, telecom operators in advanced mobile markets are already setting the stage for the next generation 5G services.
5G while not only providing mobile broadband and IoT services to its users, is also expected to provide a single network environment to innovations such as self-driving cars, cloud robotics, 3D holographic telepresence and remote surgery with haptic feedback.
Larger telecom operators in the US and South Korea are reportedly “spearheading early investments in pre-standards 5G trial networks,” in order to be among the first operators to offer support for the 5G network when it goes mainstream. Speaking of which, SNS Research predicts that “early adopters across the globe will simultaneously begin commercializing 5G services in 2019,” post 3GPP’s 3GPP’s first phase of 5G specifications in March 2018.
According to SNS’s predictions, 5G R&D investments although targeted the radio access segment earlier will now target more advanced measures like network slicing.
Further, it forecasts the 5G network infrastructure market to grow aggressively in between 2019 and 2025 during which, the spending is expected to surge at nearly 70% compound annual growth rate eventually reaching $28 Billion by the end of 2025.
“These infrastructure investments will be complemented by annual shipments of up to 520 Million 5G-capable devices,” it added.