5G for Connected Cities Predicted to Generate US$17 Trillion by 2035, Reveals ABI Research
June 07 2019 - 3:00AM
5G will generate trillions of dollars in direct, indirect
contributions and productivity gains, according to a new study
conducted by ABI Research and commissioned by InterDigital, Inc.
(NASDAQ: IDCC), a mobile technology research and development
company. The study, which examined the growth opportunities for
next-generation wireless technologies in urban environments, also
revealed how 5G would underpin future vertical services and spur
the proliferation of connected cities.
In the new study entitled, ‘5G urban deployment: debunking the
capex myth and unlocking new growth’, ABI Research highlighted
increased revenue opportunities through 2028 in three separate
areas as a result of 5G:
- US$2.4 trillion in direct contributions: mostly driven by
end-user subscriptions for connectivity services. This compares
with US$1.1 trillion with 4G.
- US$866 billion in indirect contributions: these include
increases in the supply chain from devices, infrastructure,
applications, advertising and other products or services. This
compares with US$500 billion in 2018 on 4G.
- US$3.2 trillion in productivity gains: these refer to better
workforce efficiency due to the availability of connectivity
throughout cities.
The survey particularly highlights the role of connected cities
in the US$17 trillion in economic growth 5G is expected to generate
by 2035. According to the findings, mobile operators should take
bold steps to deploy 5G mobile broadband connectivity more
aggressively in cities over the coming years. The study also
highlights how the introduction of 5G in urban areas can create a
new wave of enterprise vertical use cases that will redefine
consumer lifestyles and enterprise operations in cities. The dense
population of urban areas will allow mobile operators to better
monetize new 5G services without massive investment or a long ROI
cycle.
Early commercial 5G deployments have already been announced,
with examples across the globe in the United States, China, Japan,
South Korea, and the United Kingdom, supported by infrastructure
vendors that have started to ship 5G-capable network equipment. The
first 5G-related use cases will be fueled by enhanced Mobile
Broadband (eMBB), but advanced and use-case enabling 5G features,
such as Ultra-Reliable Low-Latency Communications (URLLC) and
Massive Machine Type Communications (MMTC) will start to appear as
early as 2020. A number of technologies are contributing to this
development, including private cellular, millimeter wave (mmWave),
small cells, fixed wireless access, and telco cloud/edge.
“We expect 5G deployment to begin to place huge pressures on
mobile operators over the next couple of years as they look to
compete to capitalize on its revenue potential,” said Henry Tirri,
CTO, at InterDigital. “Many are trying to understand how they will
monetize this next generation of wireless technology, and most
importantly, how they’ll deliver ROI from it. But while there may
still be several questions and doubts surrounding 5G monetization,
these findings clearly demonstrate the growth opportunities that 5G
is set to bring about. While CAPEX and OPEX investments will be
high, it is evident that 5G technology will radically change our
ability to deliver new and innovative consumer and enterprise
services, and help dictate the trajectory of our future global
economy.”
Commenting on the findings, analyst Dimitris Mavrakis from ABI
Research said: “We have reached a critical point today where our
global economy is heavily reliant on our ability to deliver new
technological services. 5G has the potential to completely change
our every day lives, but only if mobile service providers can roll
out 5G in a way that makes economical and logical sense – that is,
to start with mobile broadband connectivity deployments in urban
areas to create the right use cases that will justify investments
in CAPEX and OPEX.”
The full whitepaper is available to download here:
https://idcc.me/2wvWST7
About InterDigital®
InterDigital develops mobile technologies that are at the core
of devices, networks, and services worldwide. We solve many of the
industry's most critical and complex technical challenges,
inventing solutions for more efficient broadband networks and a
richer multimedia experience years ahead of market deployment.
InterDigital has licenses and strategic relationships with many of
the world's leading wireless companies. Founded in 1972,
InterDigital is listed on NASDAQ and is included in the S&P
MidCap 400® index.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit: www.interdigital.com.
InterDigital
Contact:Patrick Van de WilleEmail:
patrick.vandewille@interdigital.com +1 (858) 210-4814 |
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