Omdia's research indicates that the global commercial broadband market is on the rise. In addition, the demand for 5G communication has experienced a spectacular increase in the days after the Mobile World Congress (MWC) this year.
Omdia's Global Forecast for Enterprise Fixed Broadband Services (Opens in a new tab) 2020-2027 and Global Enterprise 5G Mobile Subscription and Revenue Forecast Report (Opens in a new tab) (2022-2027), assessed the potential for broadband service in 67 markets around the world and projected market changes through 2027.
This research revealed that several factors are driving the markets for fixed business communications. These include better quality of service and changes in the way buyers of network services use them. Omdia noted that legacy dedicated circuits are being replaced by cheaper and faster broadband alternatives, while the strength of wireless broadband continues to grow, with 5G being the strongest complement to traditional wired service.
World peak in four years
Omdia has forecast a compound annual growth rate (CAGR) for fixed broadband revenue growth of 2,8% over the next five years, with new connections accounting for the majority of this expansion. In addition, they estimated that the average monthly income from fixed subscriptions per mobile customer would not increase during these five years. South Asia has been identified as having the greatest potential for broadband growth due to its fixed wireless access potential.
Omdia predicted that the global 5G peak would be reached in 2027 for mobile subscriptions. When it reaches 500 million subscribers, 5G will account for more than 50% of all mobile broadband markets globally.
According to Omdia, there are likely to be global disparities in business use of 5G as many countries are still investing in expanding their 4G networks. Africa and East/South Asia have the greatest potential for mobile broadband revenue generation for businesses, specifically citing South Asia, Africa (East/South Asia) and Latin America as potential markets. If carriers capitalize on the potential of 5G over the next five years, they should experience phenomenal growth.
Adeline Phua, Principal Analyst at Omdia Network Transformation Services Intelligence Service, said: "The migration of enterprises to broadband services is an opportunity for providers to capture market share and increase revenue. The migration is still ongoing and providers need to have strong infrastructure coverage to take advantage of these opportunities."
"Providers have tremendous growth prospects in broadband," said Brian Washburn, Omdia's director of research for wholesale and service provider businesses. “To ensure that providers without a solid foundation do not miss out on this opportunity, we analyzed more than 200 operators per country, as well as hundreds of business plans around the world.”