Telecoms Expect 5G To Boost Mobile Content Revenue

5G investments will drive consumer and advertising expenditure on mobile phone based media content, a Strategy Analytics report said.

The report said deployment of 5G networks, particularly in advanced mobile data markets, will meet user demand for internet services. Investment in 5G network will also be driving premium and ad-supported content consumption on mobile devices.

Mobile operators will make revenue from 5G data traffic – powered by mobile content — as consumption increases.

Strategy Analytics expects mobile handset-based advertising will account for over half of digital advertising expenditure. Consumer and advertising expenditure on mobile phone based media content will be worth $720 billion by 2023.

Telecom industry association GSMA earlier said mobile phone companies are planning to launch their 5G smartphones in 2019 and beyond. But boost in 5G revenue will depend on mobile operators’ focus on enterprises than consumers. GSMA says connectivity focus will not be alone for enhancing revenue from 5G.

Europe’s mobile operators are looking beyond their core telco business in order to explore and unlock new revenue streams in both consumer and enterprise markets across a range of verticals, a GSMA report said.

“5G networks in Europe are expected to provide coverage to almost three-quarters of the region’s population by 2025 and Europe is set to become the world’s third-largest 5G market behind Asia Pacific and North America by this point,” says Mats Granryd, director general of the GSMA.

European mobile operators will launch their 5G by the end of the decade. It is forecast that 5G will account for around 200 million connections, corresponding to 29 percent share of total connections in Europe, by 2025.

5G consumers

Consumer demand for accessing internet services and apps on mobile phones, including Facebook, YouTube, Spotify, and mobile games, among others, will increase, supported by the improvement in data connectivity via LTE and emerging 5G networks.

“The increased capacity, bandwidth and lower latency benefits of 5G will enable digital media companies to deliver rich media experiences, like 360 video, HD video, VR, and AR at scale over mobile networks to smartphones,” Brice Longnos, analyst, Wireless Media Strategies, Strategy Analytics, said.

The report noted that the introduction of GDPR guidelines in European Union and the negative publicity related to social advertising channels like Facebook and YouTube did not impact the growth in mobile advertising.

“The growth in media on mobile will be driven by a combination of its effectiveness, rising consumer dependence on their mobile phones for accessing internet apps, and greater participation by brands and business in engaging users on their primary personal screen,” said Nitesh Patel, director, Strategy Analytics. – Telecom Lead