TelecomTV TelecomTV
  • News
  • Videos
  • Channels
  • Events
  • Network Partners
  • Industry Insights
  • Directory
  • Newsletters
  • Open RAN
  • Digital Platforms and Services
  • 5G
  • Access Evolution
  • Private Networks
  • Cloud Native
  • Edge
  • Open Networking
  • Sustainability
  • AI, Analytics and Automation
  • 6G Research and Innovation
  • Security
  • More Topics
  • Network Partners
  • Industry Insights
  • Directory
  • Newsletters
  • |
  • About
  • Contact
  • |
  • Connect with us
  • 5G
  • 6G Research and Innovation
  • Access Evolution
  • AI, Analytics and Automation
  • Cloud Native
  • Digital Platforms and Services
  • Edge
  • Open Networking
  • Open RAN
  • Private Networks
  • Security
  • Sustainability
  • Connect with TelecomTV
  • About
  • Privacy
  • Help
  • Contact
  • Sign In Register Subscribe
    • Subscribe
    • Sign In
    • Register
  • Search

5G

5G

The 5G adoption pause may nearly be over

Ian Scales
By Ian Scales

Oct 21, 2021

Image by ADMC (https://pixabay.com/users/admc-467593/?) from Pixabay

Image by ADMC (https://pixabay.com/users/admc-467593/?) from Pixabay

  • Research indicates that the apparent telco dither over 5G strategy could be ending
  • China and Korea are both showing really positive signs of 5G take-up, despite (or perhaps because of) the pandemic 
  • Is a 10% penetration rate the magic moment?
 

Two research reports taken together make interesting reading for the European 5G industry. One study finds that only one third of European telcos have a clear strategy for 5G. Hardly surprisingly, the study, based on interviews of senior European business leaders, found that around two thirds of  enterprises didn’t have  a 5G plan in place either. 

After all, if telcos don’t have a clear services strategy, it’s hardly surprising to find that many potential enterprise customers don’t have a cut and dried adoption strategy.

The telco position of unpreparedness is all the more perplexing, say the researchers - in this case from NTT DATA UK and research firm teknowlogy Group - since the telcos apparently recognise the “transformative potential” of 5G, but still haven’t nailed down an approach to take advantage of it. 

It’s always possible that this entire “we can’t work out what we’re doing yet” situation may simply be a reasonable position at this point, since the data against which to base that ‘clear strategy’ is probably incomplete in some important respects. Omdia Research may hold the key here.

It reports that only 14 per cent of the world’s 5G networks have reached 10 per cent subscriber penetration so far,  a proportion Omnia’s researchers say almost certainly represents a positive tipping point. After the 10 percent penetration point is passed adoption accelerates and some of the missing telco and enterprise experience data might hove into view making decisions around the adoption easier for both sides. Certainly an accelerating adoption rate by peers in any industry must be a spur to setting out an action plan. 

Omdia says that while 147 operators had launched 5G by the end of June 2021, the data shows that only 14% (21 operators) had now reached 10% subscriber penetration on their networks. However the early signs of what happens after the magic 10% mark are encouraging.

Telcos can take heart from the experience of the leading 5G market in South Korea which showed a clear revenue uplift once the 10% market penetration mark had been passed about a year ago. 

In China, Omdia claims, 5G subscriptions nearly doubled in the first half of 2021 to reach 318 million by June. That’s equivalent to 11% of total mobile connections. Meanwhile, mobile services revenues grew 4.7% and 3.7% year on year in Q1 and Q2 – a level that hasn’t been seen since early 2018.

“We can only speculate about the impact of 5G on service providers until the technology reaches a certain critical mass beyond early adopters. Only South Korea has reached this point and the story there is a positive one,” said Ronan De Renesse, senior research director at Omdia. “Another 24 markets are due to reach 10% 5G population penetration by the end of 2021, 37 in 2022 and over 100 in 2026.

“5G is still in its infancy and we have yet to see its full potential from a technology and commercial perspective,” continued De Renesse. “Similar to 4G when it launched, 5G adoption is mostly supply-led which means that demand for 5G needs to be created by the industry. Operators in China and South Korea have shown that if you put 5G in the hands of consumers then revenues are likely to follow.”

Related Topics
  • 4G LTE,
  • 5G,
  • Analysis & Opinion,
  • Asia-Pacific,
  • Europe,
  • News,
  • Telco & CSP

More Like This

Digital Platforms & Services

What’s up with… BT, Amazon, T-Mobile US

Jul 1, 2022

Open RAN

NEC acquires Open RAN integrator Aspire

Jul 1, 2022

5G

Nokia supports DISH Wireless launch of world’s first telco network using 5G Standalone Core on AWS public cloud

Jul 1, 2022

Open RAN

NEC Expands Global Solutions Delivery Capacity with Acquisition of Aspire Technology

Jul 1, 2022

5G

GSMA Reveals 5G Spectrum Needs for 2030 Across Low, Mid, and High Bands

Jun 30, 2022

Email Newsletters

Stay up to date with the latest industry developments: sign up to receive TelecomTV's top news and videos plus exclusive subscriber-only content direct to your inbox – including our daily news briefing and weekly wrap.

Subscribe

Top Picks

Highlights of our content from across TelecomTV today

10:14

Executive Interview: Vodafone’s Lucia De Miguel Albertos on the ultimate RAN Intelligent Controller

39:34

Figuring out the TCO of Open RAN

6:47

Dell's Role in Open RAN

4:24

Executive Interview: Neil McRae on BT's Open RAN Plans

TelecomTV
Company
  • About Us
  • Media Kit
  • Contact Us
Our Brands
  • DSP Leaders World Forum
  • Great Telco Debate
  • TelecomTV Events
Get In Touch
[email protected]
+44 (0) 207 448 1070
Connect With Us
  • Privacy
  • Cookies
  • Terms of Use
  • Legal Notices
  • Help

TelecomTV is produced by the team at Decisive Media.

© Decisive Media Limited 2022. All rights reserved. All brands and products are the trademarks of their respective holder(s).