GlobalData: Covid-19 will not slow down 5G deployment

GlobalData: Covid-19 will not slow down 5G deployment
Data analysis company GlobalData said that despite revenue pressure caused by slowing sales and lower consumer demand for new products, many major operators said they still have cash flow to advance 5G deployment.

Lynnette Luna, Chief Analyst at GlobalData, noted: “No one can be sure what impact the Covid-19 pandemic will have on global 5G development, however, 5G is a significant revenue opportunity over the next decade and any operator with aggressive plans will be reluctant to slow down.”

Most major carriers have the financial wherewithal to continue deploying 5G, but external factors could derail their plans—how severe will depend on how long stay-at-home orders remain in effect. On March 12, Verizon announced a plan to increase its 2020 capital spending level from $17.5 billion to $18.5 billion, with the majority of that going toward 5G infrastructure spending. Following its April 1 announcement of a merger with Sprint, T-Mobile announced it would immediately put Sprint’s 2.5GHz spectrum to 5G use, with service coming soon in the Philadelphia market.

"Social isolation means that the world economy has effectively been on hold for at least three months, if not longer," Luna said. "Labor shortages and restrictions on public gatherings have prevented workers from installing and activating equipment, even though telecom workers are essential during the pandemic."

In the US and Europe, there are reports that local government approvals for 5G installations are slowing due to stay-at-home orders and government attention being focused elsewhere. In Europe, several countries have postponed spectrum auctions, and GlobalData expects that the longer countries are in quarantine due to the pandemic, the longer the auctions will be postponed. Europe is currently likely to delay auctions of additional spectrum, forcing operators to further increase their existing spectrum holdings, which are almost indistinguishable from 4G networks.

“Covid-19 has impacted every aspect of daily life for consumers, businesses, and entire industries around the world,” commented Luna. “While the wireless telecommunications industry is not immune to the economic slowdown, it has been less impacted than most because its services are a vital part of consumers’ lives. This means that online consumption will be one of the last things cash-strapped consumers would consider giving up.”

Source: Advanced Television *This article is compiled by Future Media Network. Please indicate the source when reprinting

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