5G

Europe 5G Revenues, 2019-2027: 5G euros and where they come from

5G is rapidly approaching with some European mobile operators planning to launch networks using the 5G New Radio standard in late 2019 and 2020. A significant amount of investment will be necessary in order for 5G to deliver the expected performance levels and functionality. As such, mobile operators need to identify sources of revenue to pay for this investment. Simply relying on subscription revenue from end users will not be sufficient.

In this market study, iGR presents a model for potential 5G revenues in Europe from 2019 until 2027. Included in the model are five major sources of revenue that mobile operators can depend upon in the 5G era. These include:

  • 5G Mobile Service
  • 5G IoT
  • 5G Fixed Wireless Access
  • Advertising
  • Entertainment Services
  • .

The business model for the sixth potential source of revenue, network slicing, is still too undefined to be included in the model.

This market study provides a 10-year forecast for potential 5G revenue. The potential revenues provided by mobile broadband, IoT, fixed wireless access, advertising, and entertainment services are presented separately. This market study also provides information on the requirements of 5G, the timeline of its deployment, the potential use cases of 5G, as well as recent 5G initiatives of several major European mobile operators.


Key Questions Answered

  • What is 5G? How is it defined right now?
  • What are the requirements of 5G and when will it be deployed?
  • What are the expected use cases for 5G?
  • How many 5G connections can be expected in Europe from 2019 to 2027?
  • What are potential sources of revenue for 5G networks?
  • What will the 5G mobile broadband subscription service model look like and how much revenue will be generated?
  • What is the business model for 5G IoT and how much revenue will be generated?
  • What is 5G fixed wireless access and how much revenue can be generated by the service?
  • How will 5G advertising generate revenue and how much can be expected?
  • What is the model for 5G-based entertainment services? How much revenue will it provide?
  • How does each source of 5G revenue compare? Which is the most significant?
  • What are the total revenues expected from 5G in Europe from 2019 to 2027?

Who Should Read

  • Mobile operators
  • Mobile device OEMs
  • Mobile service and application developers
  • IoT vendors and solutions providers
  • Infrastructure OEMs
  • Financial analysts and investors.

Table of Contents

  • Abstract
  • Executive Summary
    • 5G Defined
    • 5G Revenue Sources
    • Europe 5G Revenue Model
  • Methodology
    • Terminology
    • Connections and Subscribers
  • What is 5G?
    • 5G Defined
    • 5G Timeline
    • Requirements of 5G
      • High Bandwidth
      • Low Latency
      • Massive IoT
      • Five 9s
  • 5G Services and Use Cases
  • European Mobile Operator 5G Initiatives
    • Spectrum
    • Deutsche Telekom
    • EE (BT)
    • MTS
    • Orange
    • Telefonica
    • TIM
    • Vodafone
    • Summary of Use Cases
  • 5G Revenue Sources
    • 5G Mobile Broadband Service
    • 5G IoT
    • 5G Fixed Wireless Access
    • Advertising
    • Entertainment
    • Network slicing
  • 5G Revenue Model Assumptions
    • Overriding Assumption
    • Additional Overall Assumptions
    • Mobile Service Revenue Assumptions
    • IoT Revenue Assumptions
    • Fixed Wireless Revenue Assumptions
    • Advertising Revenue Assumptions
    • Entertainment Revenue Assumptions
  • Europe 5G Revenue Model
    • 5G Connections and Subscribers
    • Revenue from 5G Mobile Broadband Services
    • Revenue from 5G IoT
    • Revenue from 5G Fixed Wireless Access
    • Revenue from Advertising
    • Revenue from Mobile Operator Entertainment Services
    • Total 5G Revenue
  • Definitions
  • About iGR
    • Disclaimer

List of Tables

  • Table 1: 5G Use Cases per Mobile Operators
  • Table 2: Example Household and Communication Costs, Phase I
  • Table 3: Example Household and Communication Costs, Phase II
  • Table 4: Example Household and Communication Costs, Phase III
  • Table 5a: Europe 5G Connections and Subscribers, 2019-2023
  • Table 5b: Europe 5G Connections and Subscribers, 2024-2027
  • Table 6a: ARPU and Revenue($M) from 5G Mobile Services, 2019-2023
  • Table 6b: ARPU and Revenue($M) from 5G Mobile Services, 2024-2027
  • Table 7a: 5G IoT Connections, 2019-2023
  • Table 7b: 5G IoT Connections, 2024-2027
  • Table 8a: ARPU and Revenue($M) from 5G IoT, 2019-2023
  • Table 8b: ARPU and Revenue($M) from 5G IoT, 2024-2027
  • Table 9a: 5G Fixed Wireless Access Connections, 2019-2023
  • Table 9b: 5G Fixed Wireless Access Connections, 2024-2027
  • Table 10a: ARPU and Revenue($M) from Fixed Wireless Access, 2019-2023
  • Table 10b: ARPU and Revenue($M) from Fixed Wireless Access, 2024-2027
  • Table 11a: Monthly Unique Visitor Amount and Annual Revenue ($M) from 5G Web Advertising, 2019-2023
  • Table 11b: Monthly Unique Visitor Amount and Annual Revenue ($M) from 5G Web Advertising, 2024-2027
  • Table 12a: CPM Amount and Annual Revenue from 5G Video Advertising, 2019-2023
  • Table 12b: CPM Amount and Annual Revenue from 5G Video Advertising, 2024-2027
  • Table 13a: Total Annual Revenue from 5G Advertising, 2019-2023
  • Table 13b: Total Annual Revenue from 5G Advertising, 2024-2027
  • Table 14a: ARPU, Penetration and Annual Revenue from 5G Entertainment Services, 2019-2023
  • Table 14b: ARPU, Penetration and Annual Revenue from 5G Entertainment Services, 2024-2027
  • Table 15a: Total Annual 5G Revenue ($M) by Service, 2019-2023
  • Table 15b: Total Annual 5G Revenue ($M) by Service, 2024-2027
  • Table 16a: Total Annual 5G Revenue by Service (Percent), 2019-2023
  • Table 16b: Total Annual 5G Revenue by Service (Percent), 2024-2027
  • Table 17a: Blended ARPU for all 5G Services, 2019-2023
  • Table 17b: Blended ARPU for all 5G Services, 2024-2027
  • Definitions Table

List of Charts and Figures

  • Figure A: Total Annual 5G Revenue ($M), 2019-2027
  • Figure B: Total Annual 5G Revenue ($M) by Service, 2019-2027
  • Figure C: Total Annual 5G Revenue by Service (Percent), 2019-2027
  • Figure 1: Timeline for IMT-2020 (5G)
  • Figure 2: Three Major Functionalities of 5G
  • Figure 3: Example Household Entertainment and Communication Costs – Phase I
  • Figure 4: Example Household Entertainment and Communication Costs – Phase II
  • Figure 5: Example Household Entertainment and Communication Costs – Phase III
  • Figure 6: Europe 5G Connections and Subscribers, 2019-2027
  • Figure 7: Revenue ($M) from 5G Mobile Services, 2019-2027
  • Figure 8: 5G IoT Connections, 2019-2027
  • Figure 9: Revenue($M) from 5G IoT, 2019-2027
  • Figure 10: 5G Fixed Wireless Access Connections, 2019-2027
  • Figure 11: Annual Revenue ($M) from 5G Fixed Wireless Access Services, 2019-2027
  • Figure 12: Annual Revenue ($M) from 5G Web Advertising, 2019-2027
  • Figure 13: Annual Revenue ($M) from 5G Video Advertising, 2019-2027
  • Figure 14: Total Annual Revenue from 5G Advertising, 2019-2027
  • Figure 15: Annual Revenue from 5G Entertainment Services, 2019-2027
  • Figure 16: Total Annual 5G Revenue ($M) by Service, 2019-2027
  • Figure 17: Total Annual 5G Revenue ($M), 2019-2027
  • Figure 18: Total Annual 5G Revenue by Service (Percent), 2019-2027
  • Figure 19: Blended ARPU for all 5G Services, 2019-2027

For additional information on the Europe 5G Revenues, 2017-2027: 5G euros and where they come from market study, please contact Iain Gillott, at (512) 263-5682 or by email.