5G network infrastructure revenue to hit $4.2 bn in 2020
London: By 2020, global 5G wireless network infrastructure revenue would reach $4.2 billion, an 89 per cent increase from 2019 revenue of $2.2 billion, a new report by Gartner Inc. said on Thursday.
Gartner forecasts that investments in 5G NR network infrastructure would account for 6 per cent of the total wireless infrastructure revenue of communications service providers (CSPs) in 2019, and that this figure will reach 12 per cent in 2020.
"5G wireless network infrastructure revenue will nearly double between 2019 and 2020. For 5G deployments in 2019, CSPs are using non-stand-alone technology. This enables them to introduce 5G services that run more quickly, as 5G New Radio (NR) equipment can be rolled out alongside existing 4G core network infrastructure," Sylvain Fabre, Senior Research Director at Gartner, said in a statement.
5G services would launch in many major cities in 2019 and 2020; services have already begun in the US, South Korea and some European countries, including Switzerland, Finland and the UK.
"National 5G coverage will not occur as quickly as with past generations of wireless infrastructure. To maintain average performance standards as 5G is built out, CSPs will need to undertake targeted strategic improvements to their 4G legacy layer, by upgrading 4G infrastructure around 5G areas of coverage.
"A less robust 4G legacy layer adjoining 5G cells could lead to real or perceived performance issues as users move from 5G to 4G/LTE Advanced Pro. This issue will be most pronounced from 2019 through 2021, a period when 5G coverage will be focused on hot spots and areas of high population density," Fabre added.