The pace of 5G deployment has really picked up in the year 2020. This news comes as a sigh of relief amidst the ongoing pandemic that has disrupted global economies.
As per leading research firm Gartner, spending on 5G infrastructure is expected to nearly double during the year 2020.
The spending estimates on 5G infrastructure during 2020 stand at $8.1 BN, as compared to $4.1 BN during the year 2019.
Spending on development of 5G network is expected to reach 21% of the total spending on wireless infrastructure.
Tough competition among cellular companies and a favorable regulatory regime are the main catalysts behind this rapid growth.
Communications Service Providers are diverting their financial resources earmarked for developing 4G / LTE infrastructure towards 5G.
Every cellular service provider is trying to become an early adopter of 5G and try to attain a competitive edge in this highly competitive industry.
Within the overall spend on 5G, China is emerging as a clear frontrunner. One key factor behind this trend is China’s indigenous capacity to manufacture low cost equipment.
Another important contributor towards this trend is the Chinese state’s support for such initiatives across China.
The greater China region, that includes China, Hong Kong and Taiwan alone will account for nearly 50% of the total spend on 5G during the year 2020.
Communications Service Providers are shifting their spending priorities on 4G / LTE from a development phase to just maintenance phase, freeing more resources for 5G.
The other developed regions of the globe are also catching up with China quickly in terms of developing a widely available 5G network.
Addition of 5G will be a welcome development for billions of end users across the globe, as it will unlock a whole new world of connectivity and high speed communications.