Operators accelerate 5G deployments for the efficiency gains: report

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The efficiency gains offered by 5G are spurring operators to accelerate their deployment timeframes, says analyst firm TBR.

According to TBR’s 3Q18 5G Telecom Market Landscape, 5G promises up to ten times more efficiency on a cost-per-gigabyte basis compared to LTE. This is the driving force behind most operator commitments to deploy the technology thus far, said TBR telecom senior analyst Chris Antlitz.

“With data traffic continuing to scale globally, operators will need to invest in new technologies, such as 5G, that can help them more cost-effectively support that traffic while providing an overall better quality of experience for their customers,” he said.

5G capex efficiency gains

TBR estimates over 85% of 5G capex spend through 2020 will be driven by operators in four countries: the US, China, Japan and South Korea. Most Tier 1 operators in these countries have aggressive 5G rollout timetables and intend to leverage the technology for fixed wireless broadband and/or to support their mobile broadband densification initiatives.

The seamless software upgradability of new RAN platforms to 5G will facilitate deployment at incremental cost, keeping overall spend scaling quickly but at a relatively low level compared to prior RAN generation upgrades, TBR says.

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