- There will be 3.9 billion 5G mobile subscriptions globally by the end of 2026, representing a whole 35.1% of total subscriptions.
- Worldwide 5G service revenues in 2026 will total $609b,
- GlobalData says 5G is yet to make a significant mark in terms of the faster data speeds, latency and other hallmarks.
Despite 5G, the new frontier in telecommunications technology is being adopted faster than its predecessor, 4G, the world hasn’t seen the full potential of this technology.
According to Counterpoint Technology Market Research, 5G devices captured more than two-thirds (69 per cent) of global smartphone revenue in the first quarter of this year, with their shipments reaching 39 per cent of the global total for the quarter.
However, Lynnette Luna, Principal Analyst with GlobalData, said that 5G is yet to make a significant mark in terms of the faster data speeds, latency and other hallmarks that will enable advanced features such as self-driving cars and immerse gaming.
More advanced telecom bundles are appearing, she said and expects 5G subscriptions to increase as more powerful applications come through.
“Although we have not yet seen all that 5G is capable of in early deployments, the technology has a multitude of future opportunities for telecom operators. Not only will capacity bring down the per-bit cost for carriers, but the basic cost efficiencies that 5G brings will also enable operators and developers alike to create new applications for the technology as it becomes mature and develop.
Growing innovation
GlobalData predicts there will be 3.9 billion such subscriptions by the end of 2026, representing a whole 35.1 per cent of total subscriptions while global 5G service revenues will total $609 billion.
Luna said that the growing innovation will contribute to an expected rise in 5G mobile subscriptions worldwide.
Some revenue-generating strategies have been seen in the US and Europe on 4G networks also resonates on 5G networks.
“5G ARPU (average revenue per user) in 2026 is expected to greatly outpace that of earlier technology generations, with 5G bringing in monthly ARPU of $14.15 per month versus 4G’s monthly ARPU of $5.48,” she said.
In some markets, she said that they are beginning to see more advanced bundles marketed with 5G.
Vodafone is in the process of rolling out Nreal smart glasses in its 5G markets across Europe, offering an interest-free hardware bundle and an app called Vodafone 5G Reality AR.
In addition, many 5G operators are beginning to sell cloud gaming services. Telia in Sweden and EE in the UK are selling Microsoft’s Xbox Game Pass Ultimate memberships that include cloud gaming.
Telia customers can also buy a dedicated cloud gaming promotion featuring an Android phone, Telia plan and a free Razer Kishi universal Android controller and the Xbox Game Pass in one bundle.
“Operators will continually improve their bundles with new 5G features. Eventually, they will take advantage of ultra-low latency and consistent gigabit data speeds,” Luna said.