Page 83 - SAMENA Trends - August 2019

TECHNOLOGY UPDATES SAMENA TRENDS

TECHNOLOGY NEWS

5G Network Revenue to Surpass $4B in 2020

Global 5G network infrastructure revenue reach 12 per cent in 2020. With 5G service use cases of the technology, with more
is tipped to almost double between 2019 already underway in the US, South Korea CSPs targeting the enterprise, covering
and 2020, hitting $4.2 billion as 5G rollouts and major European countries including a range of industries. There will also be
begin to accelerate over the next 12 the UK and Switzerland, Gartner said 2020 the emergence of private network use, for
months. Analyst company Gartner expects will see a number of other major markets industrial users, which is seen as a huge
there to be an 89 per cent increase in 5G join the party. CSPs in Canada, France, potential market by equipment vendors.
infrastructure revenue for communications Germany, Hong Kong, Spain, Sweden, Fabre said: “It’s still early days for the 5G
service providers (CSPs), from 2019 Qatar and the UAE have all announced private-network opportunity, but vendors,
figures of $2.2 billion. The upward trend plans to accelerate 5G through next year. regulators and standards bodies have
is expected to continue, with revenue from Gartner said 2020 will also see enhanced preparations in place.”
5G forecast to hit $6.8 billion in 2021.
Sylvain Fabre, senior research director
at Gartner, noted that at present CSPs
are using non-standalone technology,
which “enables them to introduce 5G
services more quickly”, with 5G New Radio
equipment running alongside existing
4G core network infrastructure. This will
change in 2020, as CSPs roll out stand-
alone 5G technology, requiring 5G NR
equipment and a 5G core network, “which
will lower costs and improve performance
for users.” As a result, Gartner also forecast
that investments in 5G NR network
infrastructure will account for 6 per cent
of the total wireless infrastructure revenue
of CSPs in 2019, and that this figure will

Fiber Set to Become Europe’s Leading Fixed Broadband Technology by 2023

xDSL is the leading fixed broadband fiber broadband,” GlobalData Technology December 2018 to stimulate the migration
technology in Europe, accounting for said. The research notes that European from copper lines to fiber broadband. The
49.9% of all fixed broadband lines, but fixed telecom providers are increasingly Italian government is planning to provide
fiber is forecast to overtake it by 2023. joining forces through co-investments subsidies – via a voucher scheme – of up
According to new analysis from GlobalData projects and network sharing agreements, to $3,423 (€3,082) for small and medium
Technology, fiber will grow at a compound to accelerate coverage and reduce the enterprises (SMEs) and up to $5,705
annual growth rate of 12.4% to 2024. At costs of fiber deployment. For instance, (€5,137) for schools when migrating fixed
present, Russia has the highest share of in April this year, Vodafone and Orange broadband to the fiber-optic network.
fiber lines in Europe as a percentage of agreed to grant shared access of their The Italian government also incentivizes
total broadband lines (75%), but Spain future fiber networks to both operators fiber deployment in less profitable areas
expected to take the lead in 2023, with in Spain. European telecom regulators such as rural areas or areas with a low
an 86.5% share. “To meet ever-growing and governments are also encouraging population density. A debate continues in
consumer data demands and offer new and incentivizing fiber deployment. For Italy about the consolidation of the fiber
digital products and services, European instance, the French regulator, ARCEP, network operators, TIM and Open Fiber.
telcos are strongly investing in high-speed announced a ‘fiber zone’ initiative in

83 AUGUST 2019