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GSM Association talks on tariffs, extra revenue streams of 5G network operators

ICT Materials 24 December 2020 12:07 (UTC +04:00)
GSM Association talks on tariffs, extra revenue streams of 5G network operators

Baku, Azerbaijan, Dec.22

By Sadraddin Aghjayev – Trend:

Analysis of the current situation in the countries where the first 5G networks were launched has shown that the average price per gigabyte (GB) in 5G is less, but this figure may also differ depending on the operator, Tahir Ismayilov, Strategic Engagement Director of the GSM Association in Russia and the CIS, told Trend on Dec.24.

According to Ismayilov, so, the Swiss operator Sunrise has a higher price per GB in 5G, while unlimited 5G tariffs are more expensive than 4G. The average price of a monthly unlimited plan in 5G is $89, and in 4G - $68.

“Over time, 5G will become a mainstream technology, as it was with previous generations of communications, and will be offered in standard tariff plans,” he said. “However, in the short term, users will pay extra for faster speeds, especially in unlimited plans. The operators can additionally differentiate 5G tariffs in terms of both data volume, and other network indicators such as throughput and latency."

Besides, as he noted, 5G networks are most valuable from viewpoint of the digital transformation of industries, that is, extra revenue should be expected mainly in the B2B segment.

"As for the disconnection of networks, a number of countries have already begun to abandon 2G and 3G networks, and first of all these are the countries of the Asia-Pacific region (APR) and North America,” the director pointed out. “Operators decide to disconnect networks of previous communication generations due to lack of frequencies for more productive and efficient in terms of using the spectrum of 4G and 5G networks, as well as to reduce operating costs.”

However, in his opinion, the process of disconnecting networks will be long, and in many markets, it won’t start soon, as there are countries with areas where 4G networks haven’t been applied yet.

"Moreover, to disable the standards of previous generations, the entire population needs to have devices that support new 4G and 5G standards. There are also a lot of Machine-to-machine (M2M) devices operating in 2G, migration of which entails certain costs ", summed up Ismayilov.

The GSM Association (GSMA) is a trade organization that represents the interests of mobile communication operators worldwide. GSMA was established in 1995 to support and promote mobile communication operators using the GSM standard.

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