Omdia's research indicates the global business broadband services market is on the rise. Moreover, 5G communication demand has seen a dramatic uptick in the days following this year's Mobile World Congress (MWC).
Omdia's global enterprise fixed broadband services forecast (opens in new tab) from 2020 to 2027 and global enterprise 5G mobile subscriptions & revenue forecast report (opens in new tab) (2022-2027), evaluated the potential of broadband service in 67 markets around the world and predicted market changes through 2027.
This research found that various factors are driving enterprise fixed comms markets. These include improved service quality and changes to how buyers of network services use them. Omdia noted that legacy dedicated circuits are being replaced by cheaper and faster broadband alternatives, while wireless broadband's strength continues to grow - with 5G being the strongest complement to traditional wireline service.
Global peak in four years
Omdia predicted a compound annual growth rate (CAGR) for fixed broadband revenue growth of 2.8% over the next five years, with new connections accounting for most of this expansion. Furthermore, they estimated that fixed subscription average monthly revenues per mobile customer would not increase over these five years. South Asia was identified as having the greatest potential in terms of broadband growth due to its potential for fixed wireless access.
Omdia forecasted that 5G's global peak would be reached in 2027 for mobile subscriptions. Once it reaches 500 million subscribers, 5G will account for more than 50% of all mobile broadband markets worldwide.
> 5G: everything you need to know (opens in new tab)
> Best 5G phones 2022: the top phones with next-gen speed (opens in new tab)
> There are now 200 5G networks in 87 countries across the world (opens in new tab)
According to Omdia, there will likely be global disparities in enterprise 5G usage due to many countries still investing in expanding their 4G networks. Africa and eastern/south Asia have the greatest potential for mobile business broadband revenue generation, specifically citing South Asia, Africa (east/south) Asia, and Latin America as potential markets. If operators capitalize on 5G's potential over the next five years, they stand to experience tremendous growth.
Adeline Phua, Principal Analyst for Omdia's Network transformation services intelligence service, states: "Enterprise migration to broadband services is an opportunity for providers to capture market share and grow revenue. The migration is still ongoing, and providers need to have strong infrastructure coverage to capture these opportunities."
"Providers have huge growth prospects in broadband services," according to Brian Washburn, Omdia's research director for wholesalers and service provider enterprises. “To ensure this opportunity is not missed by providers without a solid foundation, we analyzed more than 200 operators per country as well as hundreds of business plans around the world."
- Check out the best mobile hotspots (opens in new tab) right now