Report: Global Revenue for 4G, 5G Infrastructure to Reach $6bn by 2027
.4G penetration in Nigeria deepens
Emma Okonji
SNS Telecom & IT, a global research and consulting company has predicted that global revenue for 4G and 5G private network infrastructure would reach $6 billion by 2027, double the sum recorded in 2023.
The SNS Telecom’s report stated that global spending on 4G and 5G private network infrastructure would grow at a CAGR of around 20 per cent between 2024 and 2027.
Close to 60 per cent of related investments, or $3.5 billion, are expected to come from the build out of standalone (SA) 5G private networks. The SA 5G private networks, according to the report, will become the predominant wireless communications medium to support the ongoing Industry 4.0 projects.
The Industry 4.0 initiatives include digitisation efforts by businesses and the automation of manufacturing processes, according to SNS Telecom.
The report further stated that private network revenue growth would be one of the few bright spots in an otherwise gloomy wireless telecommunications industry, which includes a slowdown in public mobile network infrastructure spending and operators struggling to monetise 5G investments.
“This unprecedented level of growth is likely to transform private Long Term Evolution (LTE) technology and 5G networks into an almost parallel equipment ecosystem to public mobile operator infrastructure in terms of market size by the late 2020s,” the report said.
SNS Telecom estimates that by 2030 private networks could account for as much as a fifth of all mobile operator network infrastructure spending.
Meanwhile, in Nigeria, more subscribers are moving towards 4G and 5G networks as telecom operators like MTN and Airtel increase their infrastructure investment nationwide.
Giving insight into the growth of 4G in Nigeria, the Chief Executive Officer of MTN Nigeria, Karl Toriola, said during a recent forum that the number of 4G sites deployed by MTN Nigeria grew 2.7 per cent, a development that increased 4G usage among its customers from 79.1 per cent to 81.5 per cent.
The number of MTN’s 5G sites also saw the most growth rising from 588 to 2,106 sites and pushing 5G penetration to 11.3 per cent from 3.1 per cent.
During the commercial launch of MTN’s 5G network in Lagos in 2022, Toriola promised that the advanced 5G technology would extend the reach and capacity of MTN Nigeria’s data network in Nigeria and enable much faster speeds and lower latency, giving customers near-instant access to the things they care about and downloads that take seconds, instead of minutes.
Airtel, another major telecoms operator, in 2023, deployed its 5G networks in four states in Nigeria, which include Lagos, Ogun, Rivers and Abuja.
Speaking at the 5G launch, the Chief Executive Officer of Airtel Nigeria, Carl Cruz, said: “The 5G revolution opens a new vista of opportunities and it is a quantum leap from the existing 4G network.”
He said with 5G, there would be more collaboration among stakeholders in the telecoms space to do new things with Artificial Intelligence, Machine Learning, Internet of Things, Smart Cities, among others.
Giving details about 4G and 5G penetration level in Nigeria, Chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbnega Adebayo, however said 4G has gained deeper penetration than 5G in Nigeria, owing to the high cost of deploying 5G infrastructure.
