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Research : 5G Advanced & RedCap key for telcos
Research from Juniper
Research , a specialist in
telecommunications markets ,
forecasts that operators
will generate $ 400 billion
(€ 365.7bn ) in service revenue
from 5G networks in 2024 ; an
annual growth of 32 per cent
from 2023 .
However , the report anticipates
that as 5G penetration rates
become saturated amongst
consumers , it will be imperative
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for operators to launch services over 5G networks that provide value to enterprise IoT users . To accomplish this , the research identified two key emerging 5G technologies that will impact operators ’ ability to attract highspending IoT users :
• 5G Advanced
• 5G RedCap ( Reduced
Capacity ) 5G Advanced and 5G RedCap will enable operators to provide services including extended coverage , increased network efficiency and device battery life to enterprise users .
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Attracting High-spending Enterprise Users Key to 5G Growth The report predicts the benefits of 5G Advanced and RedCap will be instrumental in the growth of IoT sectors , including automotive and mobile broadband . In turn , it forecasts there will be over 360 million 5G IoT devices using public network by 2028 ; a substantial growth from 35 million devices in 2024 . It identified FWA ( Fixed Wireless Access ) as the sector to benefit most from these services , given the large amounts of traffic generated . FWA leverages |
cellular networks to provide Internet connectivity to other devices , often through Wi-Fi .
Research co-author , Sam Barker , commented : “ FWA has always been positioned as a key service for 5G network monetisation , but the emergence of 5G Advanced and 5G RedCap will enable operators to offer similar network conditions as fixed network service providers . Operators must leverage their existing billing relationships with consumers to promote their FWA solutions .”
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Forecast : 5.5bn 5G connections by 2030
New figures from GSMA
Intelligence ( GSMAi ) show
5G connections are expected
to represent over half ( 51 %)
of mobile connections by
2029 , rising to 56 % by the
end of the decade – making
5G the dominant connectivity
technology . 5G has been the
fastest mobile generation rollout
to date , surpassing one billion
connections by the end of 2022 ,
rising to 1.6 billion connections
at the end of 2023 and 5.5
billion by 2030 .
As of January 2024 , 261
operators in 101 countries
had launched commercial 5G
services , and more than 90
operators from 64 markets have
committed to rollouts . Of the
261 commercial 5G services
available , 47 are provided by
5G Standalone ( SA ) networks ,
with a further 89 planned
deployments near-term that
will take advantage of network
slicing , ultra-reliable low-latency
communications support and
the simplified 5G SA network
architecture .
The growth of available 5G
SA networks , and improved
support for private & dedicated
networks , will support a massive
number of connected devices
and help to realise the global IoT
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vision for the enterprise . GSMAi data shows the enterprise segment now counts 10.7 billion IoT connections ( versus 10.5 billion consumer connections ) and this momentum is expected to continue , with enterprise connections more than doubling to 38.5 billion by 2030 and smart buildings and smart manufacturing accounting for 34 % and 16 % of total enterprise connections respectively .
Beyond 5G SA , the availability of 5G-Advanced with 3GPP Release 18 will be another key 5G milestone in IoT delivery , providing the catalyst for new 5G investment throughout 2024 and into 2025 . GSMAi data shows over half of operators expect to begin deploying 5G-Advanced within a year after commercial availability of 5G-Advanced solutions , driven by priority use cases such as 5G multicast services and low-cost IoT support .
GSMAi predicts a fourfold rise in mobile data traffic between now and 2030 with expansions in 5G coverage and capacity playing a prominent role , showcasing the importance of continued infrastructure investments . It is predicted that monthly global mobile data traffic per connection will grow from 12.8 GB in 2023 to 47.9 GB in 2030 .
The increasing use of
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Generative AI ( GenAI ) – 56 % of operators are currently testing applications – will also likely fuel this growth . This will be driven by applications including the use of GenAI-enabled chatbots for customer service efforts or the continued growth of AI-generated video and music content .
Peter Jarich , Head of GSMAi , said : “ The early success of 5G was driven by enhanced mobile broadband ( EMBB ) and EMBB-related network traffic requirements . Yet , while consumer requirements will continue their trajectory , we ’ re now seeing use cases beyond that . Opportunities are now appearing in areas including API monetisation and 5G RedCap for enterprise IoT – all supported by 5G-Advanced and 5G SA networks . 5G SA brings home 5G ’ s early promise , particularly where slicing , low-latency and massive IoT capabilities tied to enterprise service needs can be met . 5G-Advanced will only extend that further .”
Revenue realisation New use cases will deliver new revenue streams for operators – which in turn brings a new focus to billing for 5G services . As more 5G SA networks become available , a new standard for billing was required to support the rollout of advanced network services and the flexible billing
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process that 5G SA cores offer . The GSMA worked with its members , including AT & T , Deutsche Telekom , Swisscom and Vodafone , to develop and launch a new Billing and Charging Evolution ( BCE ) standard to replace Transferred Account Procedures ( TAP ). The BCE Standard represents a simplified charging model and will be a requirement for operators looking to implement 5G SA networks and deliver value from wholesale roaming settlement in 5G , LTE and operational efficiency of IoT .
Commercialising network APIs Network API exposure is offering operators another route to maximise returns on their 5G investments and generate revenue beyond the traditional approach of selling connectivity services . GSMA Open Gateway is now empowering operators to harness the full potential of new capabilities built into 5G networks . In the 12 months since launching , 47 mobile operator groups – representing 239 mobile networks and 65 % of global connections – have now committed to exposing their network APIs via CAMARA .
Working with technology partners including AWS , Infobip , Microsoft , Nokia and Vonage ; 94 APIs are now commercially available to enterprise developers worldwide .
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