New Delhi: The fifth-generation (5G) cellular technology could drive up to $31 trillion in cumulative consumer revenue in the ICT industry globally by 2030, said a report by Swedish telecom gear maker Ericsson on Tuesday.
The report estimates that communications service providers (CSPs) could earn $3.7 trillion of that total - a figure that could increase further as new adjacent digital services opportunities arise.
CSPs could generate up to $131 billion by 2030 from digital service revenues alone, by proactively bundling and marketing 5G use cases, according to the estimate.
About 40 per cent of these revenue projections are attributed to consumer spending on enhanced video, augmented reality (AR), virtual reality (VR) and cloud gaming over 5G networks.
The report projects that AR is likely to drive more than half of all consumer spending on immersive media by 2030 -- starting with gaming and extending to other areas like shopping, education and remote collaboration.
"It is clear that 5G will drive enormous opportunities for CSPs in consumer business over the decade," Jasmeet Singh Sethi, Head of ConsumerLab, Ericsson Research, said in a statement.
"As this journey is already underway, those CSPs that quickly and proactively evolve their consumer propositions are likely to be bigger winners."
The report also showed how the impact of the Covid-19 pandemic on personal finances and financial priorities may have affected consumers' willingness to pay a premium for 5G subscriptions.
In early 2019, the average consumer was willing to pay a 20 per cent premium for 5G. As 2020 draws to an end, that figure has dropped to 10 per cent.
However, one in three early adopters globally are still willing to pay a 20 per cent premium.
Such high levels of early adopter take-up could help drive economic recovery, according to the report.
The report also projects that by proactively driving 5G consumer adoption, CSPs could gain 34 per cent higher 5G average revenue per user (ARPU) by 2030.
This could boost consumer revenues at a compound annual growth rate (CAGR) of 2.7 per cent compared to flat revenue growth of 0.03 per cent by taking a passive approach across the decade.
The report from Ericsson ConsumerLab also highlights the enabling role technologies such as edge computing and network slicing will play in helping service providers to secure 5G-enabled consumer revenue.
This could come from core digital services like cloud gaming and augmented reality applications, or adjacent digital services, such as in-car connectivity and associated safety features.About 40 per cent of these revenue projections are attributed to consumer spending