By Steve Costello
5G bill set to top $2.7T
The cost of rolling out and implementing 5G across all sectors of the economy globally is expected to reach at least $2.7 trillion by the end of 2020, according to research from finance house Greensill.
While the telecoms sector needs an estimated $1 trillion of investment for infrastructure upgrades, the implementation across the global economy will cost more – $1.7 trillion – as companies integrate the technology into products, processes and infrastructure to drive IoT.
Tony Wonfor, Greensill MD, said spending on the 5G rollout is “the thin end of the wedge”. The additional cash will be spent in areas such as hardware, services, connectivity and software.
The Financing the Future of 5G report also notes that for operators returns from 5G will be spread out over a longer period – 10-12 years, as opposed to 6-8 years for 4G, reflecting higher levels of expenditure and the fact that 5G requires more physical infrastructure to be installed.