Analysts from SNS are expecting to see operators make $1 billion from fixed wireless 5G services worldwide in 2019, the first year the next-gen technology is expected to go live.
AT&T Inc. (NYSE: T) and Verizon Communications Inc. (NYSE: VZ) are likely to grab the lion’s share of that money, as both US operators are expected to be among the first service providers to offer up a fixed 5G service. “The market is further expected to grow at a CAGR of approximately 84% between 2019 and 2025, eventually accounting for more than $40 billion,” the SNS Telecom analysts say in a synopsis.
The possibility of using 5G as a gigabit-plus alternative to cable has captured the attention of the big two mobile operators in the US, which believe the mobile technology will be much cheaper to deploy. Giving subscribers a blazing-fast wireless connection should provide another revenue stream for providers in the ever-competitive mobile market.
Using 5G for fixed wireless access (FWA) appears to be largely an US-centered idea for now.
Nonetheless, we are starting to see how analysts expect the 5G market to evolve. Juniper Research Ltd. analysts recently said that they expect 1 million 5G connections to go live in 2019. If the SNS predictions are right, then many of those connections may be for FWA services in the US. (See 1.4B 5G Connections by 2025? Analysts Say Yes.)
— Dan Jones, Mobile Editor, Light Reading