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Introduction

While 5G will significantly enhance the practical delivery of new consumer services, such as mobile virtual and augmented reality, the major benefit it provides to consumers is enhanced mobile broadband and greater mobile network capacity – that is, more customers, using more services, while experiencing a better quality across the board. Vendors and operators need to focus on delivering this core value and not get too distracted by the hype.

Highlights

  • 5G's primary source of consumer value is enhanced mobile broadband through lower latency and higher bandwidth. However, in the majority of markets that will not translate to a 5G premium.
  • 5G also enables the practical delivery of new services at scale, including broadcasting live-streamed video, virtual and augmented reality, and remote drone control. These new services can each contribute incremental revenue.
  • Local market structure and spectrum availability (both timing and high versus low bands) will be factors influencing operators' 5G deployment decisions. The majority of operators are likely to initially focus their deployment in areas of high customer demand to provide greater speed and capacity.

Features and Benefits

  • Explains why enhanced mobile broadband will be the primary source of consumer value for 5G, and how 5G will enable the practical delivery of new services.
  • Explores why 5G will be more complementary to fixed broadband services, and where it creates an increased potential for substitution.
  • Looks at the likely initial deployments of 5G and why most operators are likely to initially focus on areas of high customer demand to provide greater speed and capacity, and how spectrum availability ties in with those decisions.

Key questions answered

  • Why is enhanced mobile broadband the primary source of consumer value for 5G, and what are the new services that are enabled by 5G?
  • What are the initial deployments of 5G likely to focus on, and how does spectrum availability influence this?
  • What will the competitive relationship between 5G and fixed broadband services be, and how will this impact bundles?
  • Why will 5G also be used for fixed wireless access?

Table of contents

Summary

  • In brief
  • Ovum view
  • Recommendations

Old and new consumer services

  • Using 5G to enhance mobile broadband
  • 5G will enable practical delivery of new consumer services
  • 5G is also about cost efficiencies

Interaction with fixed broadband

  • 5G is mostly complementary with fixed
  • 5G will also be used for fixed wireless access

Appendix

  • Methodology
  • Further reading
  • Author

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