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Nokia studies business case for 5G

By Sarah Chen
1 min read
Nokia smartphone
Nokia smartphone
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With the 5G era fast approaching, Nokia has released the findings of a series of studies into the potential benefits and return on investment for the emerging mobile technology.

The vendor said in-depth analysis of how 5G will perform in real networks found the technology can increase capacity by 40 times compared to 4G.

This makes 5G the only commercially viable technology for the delivery of a true immersive VR video experience to large audiences, and deliver the performance required for advanced industrial applications.

In terms of RoI, the analysis indicates that investments in 5G to the home will break even after four years if the monthly average revenue per user remains above €40 ($42.90).

Investments in 5G events and hotspots, in locations such as stadiums meanwhile have a one year RoI period assuming at least five events per month.

“While market news has recently focused on the announcement of 5G technologies that drive increased network performance, it’s important to discuss how these low latency broadband connections will translate into customer value,” Mobile Experts principal analyst Joe Madden said.

“With the publication of the two new studies and its 5G Acceleration Services, Nokia is showing operators and enterprises how they will be able to benefit from early 5G deployment.”

Nokia’s 5G Acceleration Services aim to help operators and enterprises identify how the move to 5G will enable them to deliver transformational new services and create new revenue streams.

Questions & Answers

Q.

What key benefits does Nokia's analysis suggest 5G will offer over 4G?

A.

Nokia's analysis indicates 5G can increase network capacity by 40 times compared to 4G. This enables true immersive VR video for large audiences and provides the performance needed for advanced industrial applications.

Q.

What is the projected return on investment timeframe for 5G home connections?

A.

Investments in 5G to the home are expected to break even after four years. This projection is based on the assumption that the monthly average revenue per user remains above €40 ($42.90).

Q.

What is the purpose of Nokia's 5G Acceleration Services?

A.

Nokia's 5G Acceleration Services are designed to help operators and enterprises identify how transitioning to 5G will enable them to deliver new transformational services and create new revenue streams.

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