Widespread 5G networks have failed to deliver significant revenue growth for most mobile operators, despite higher data traffic and better device affordability. According to a new GSMA Intelligence report, annual revenue increases in most markets have remained below five percent since the technology's launch. The report, which focuses on the need for growth in 5G adoption, notes that simply building 5G infrastructure does not automatically lead to increased income. Instead, operators are being urged to focus on selling advanced services to businesses and preparing networks for artificial intelligence.
The report highlights South Korea as a leader in developed markets, with 10.5 percent of revenues generated from 5G services. Saudi Arabia and the United States follow closely, with 10.4 percent and 9.8 percent respectively. Countries with high enterprise digital adoption, including Qatar, South Korea, the US, the UAE, and China, also perform well in terms of 5G performance.
On the consumer side, the report notes significant progress in affordability, with the cheapest 5G devices now costing less than five percent of monthly income in 48 percent of the markets studied. Consumers in competitive markets are willing to pay more for better quality, such as guaranteed high speeds in Finland, the US, Saudi Arabia, and the UAE.
The GSMA report's findings raise questions about the effectiveness of the 5G rollout in Nigeria. With most mobile operators failing to see significant revenue growth, it's clear that the technology alone is not enough to drive financial sustainability. The report's emphasis on the need for smart tariffs, enterprise services, and timely upgrades to 5G-Advanced is particularly relevant in a market like Nigeria, where operators are struggling to make the most of their 5G investments. The government and regulators must take a more proactive role in supporting the growth of 5G adoption, including providing predictable spectrum policies and reducing handset taxes. Ultimately, the success of 5G in Nigeria will depend on the ability of operators to offer practical solutions for businesses and consumers alike.
