"Instead of 5G Effects, Direct Hit from COVID-19... Global Wireless Market Revenue Declines This Year"

[Asia Economy Reporter Seulgina Jo] This year, global wireless market revenue is expected to decline by 2.6% due to the impact of the novel coronavirus disease (COVID-19). Despite the commercialization of 5G in major countries, sluggish performance is expected to continue, with recovery anticipated only after 2023.

According to the report "Wireless Market Outlook: Impact of COVID-19 and 5G" released on the 21st (local time) by market research firm Strategy Analytics (SA), global wireless carrier revenue is projected to decrease by 2.6% compared to the same period last year.

The report pointed out that the COVID-19 impact caused significant unemployment and furloughs, negatively affecting disposable income. While mobile phones, which have become essential items, have been relatively less affected by the consumption downturn, prolonged effects are inevitable.

In particular, roaming revenue, which accounts for 2-4% of carriers' service income, was hit hard by the COVID-19 pandemic. Since the pandemic was declared last March, the decline in roaming revenue is expected to become more pronounced. The report stated, "As travel trends find it difficult to return to 'normal,' roaming revenue will remain sluggish in many regions through 2021." However, it added that traffic surged and mobile phone dependence increased due to social distancing measures.

The report expects this decline in wireless revenue to gradually improve alongside the expansion of 5G services. As of early this month, a total of 75 carriers worldwide have launched 5G services. The number of 5G subscribers is expected to surpass 200 million this year and reach 2.8 billion by 2025. Considering that the average revenue per user (ARPU) for 5G subscribers in the first quarter was 80% higher than LTE, the increase in 5G subscribers is expected to directly lead to improved wireless market performance.

SA Director Susan Wales de Grimaldo said, "From 2021, the 5G momentum began to build, and by 2024, 5G revenue will surpass LTE revenue," adding, "By 2025, 5G will account for 53% of service revenue."

This content was produced with the assistance of AI translation services.