The 5G revolution is coming, but it isn’t here yet. That much is evident from the current condition of 5G rollout in the United States, but it is also true abroad.
On Thursday morning, the British technology research firm Omdia presented the findings of its most recent 5G study at a webinar hosted by the European network operator Orange. Its findings show that, while 5G is fast expanding from quarter to quarter, it has yet to hit the general “sweet spot” that would signify universal acceptance.
According to the survey, the sweet spot is commonly regarded as the time at which 5G begins to generate money. According to Omdia’s results, only 14 percent of currently existing 5G networks have hit that sweet spot, which is defined as a total of 10% subscriber penetration. By June 30, around 150 operators had introduced some level of 5G coverage, but just 21 had reached the point where at least 10% of their subscribers had regular 5G access.
The sweet spot was picked based on how the 5G market in South Korea, the current leader in 5G penetration, is performing. China’s 5G subscriptions are also slowly increasing, with a 4.7 percent increase in the first quarter of 2021 and a 3.7 percent increase in the second quarter, for a total of 318 million. Omdia expects that another 24 markets will attain 10% 5G penetration by the end of 2021 if the figures continue to trend in this direction.
According to the report, the sweet spot is defined as the time at which 5G begins to generate money.
5G penetration is now highest in China, South Korea, Japan, and the United States, with Asia accounting for 82 percent of available subscriptions. 87 percent of those 82 percent are in China. Outside of those markets, Finland and Ireland, both of which have exceeded 5% overall, have minor but growing 5G penetration.
“5G is still in its infancy, and we have yet to see its full technological and economic potential,” said Ronan De Renesse, senior research director at Omdia. “Like 4G when it first started, 5G adoption is primarily supply led, which implies that industry must build demand for 5G.”
Operators in China and South Korea have demonstrated that putting 5G in the hands of consumers leads to increased revenue.”
According to Omdia, 37 more markets will reach 10% 5G penetration in 2022, with over 100 following suit by 2026.
According to Omdia, 37 more markets will reach 10% 5G penetration in 2022, with over 100 following suit by 2026. However, there are regions where the cost of 5G will hinder its deployment, as a first-time mobile client in several African countries could face a 100% rise in their monthly mobile bill by adopting 5G. 5G, like any new technology, is likely to be a costly toy for nerds for a few years until compatible devices become more affordable.