5G service revenues in the Asia-Pacific are expected to reach $4.5 billion by 2022 from estimated subscriptions of 280.4 million, according to research by market consultancy firm Frost & Sullivan.
“The push for faster internet speeds through 5G will come from governments and industry regulators that realize its potential contribution toward a country’s economic growth and digital economy transformation,” Quah Mei Lee, Frost & Sullivan Digital Transformation Industry principal, said in a statement on Tuesday.
Factors motivating the market to engage in 5G include the booming technologies of artificial intelligence, augmented reality and virtual reality, as well as connected vehicles that can usher in a new era of digital services and fresh revenue sources for mobile network operators (MNOs).
MNOs are focused on operating 4G networks and advancing to 4.5G to be ready for the 5G technology. New business models will emerge out of the trials by MNOs at the upcoming Winter and Summer Olympic Games in South Korea and Japan, influencing the realization of 5G networks.
“Trials by MNOs will lead to understanding of local demand, which is a crucial first step to business model formulation and a necessary step towards 5G monetization,” it said.
Frost & Sullivan acknowledged that it would take time for the technology to fully come about, adding that it will play a vital role in modernizing and transforming digital businesses as well as industries operating a cloud environment, and software and network equipment manufacturers.
Technology, media and telecom provider NOW Corp. announced last week plans to expand its Internet network in Metro Manila, allotting P500 million to pre-5G technologies.
In a disclosure to the Philippine Stock Exchange, NOW said its All Wireless Network Plan would targeting enterprises in the fields of hotels, schools, hospitals, business process outsourcing, as well as commercial and resident areas, with a projected subscriber base of a quarter of a million at the end of five years.