Spending on 5G to account for 40% of network expenditures by 2025

Spending on 5G to account for 40% of network expenditures by 2025
Money always seems to flow to the latest technology. According to a report published by SNS Research, by the time we are wrapping up 2025, 40% of network expenditures will be made on 5G networks. With most analysts expecting 5G technology to become commercially available starting in 2020, the new service will account for 5% of spending on networks that year. For 2017, SNS Research sees a slight increase in 5G network expenditures with such spending on older legacy networks declining.

For example, SNS Research says to expect spending in the network infrastructure market to decline by 4% this year as wireless operators spend less on radio equipment used to help handsets connect to a cellular network. But that is expected to start turning around as growth returns at a 2% pace between 2017 and 2020, according to the research firm's analysis. Some of that growth will be due to spending on the early stages of building out 5G pipelines.

If SNS is right, the big spending on 5G won't start until after 2020. Currently, carriers and network equipment manufacturers have been running various tests. For example, earlier this month both Samsung and KDDI were able to achieve peak data speed of 1.7Gbps while testing 5G handovers of downlink and uplink transmissions while on a moving train.

via TechRadar

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