Deployment of 5G in Urban Areas to Create New Wave of Enterprise Vertical Use Cases, says ABI Research

Deployment of 5G in Urban Areas to Create New Wave of Enterprise Vertical Use Cases, says ABI Research Image Credit: Sikov/Bigstockphoto.com

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, 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. 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, said ABI Research. 

Henry Tirri, CTO, 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.

Dimitris Mavrakis, Analyst, ABI Research
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.

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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