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Gamers tipped as $150B 5G opportunity

Gamers tipped as $150B 5G opportunity

Ribbon Communications predicted the cloud gaming sector could open the door to revenue of $150 billion a year for 5G network operators, with users willing to pay more for the enhanced experience the technology offers.

In a study of more than 5,000 gamers in five countries, the company found 79 per cent would consider replacing their current broadband and mobile connectivity with 5G to get a better service when playing.

More than half (58 per cent) claimed they would switch their connectivity provider if a rival offered “a high-quality gaming service” with a 5G subscription.

Patrick Joggerst, Ribbon Communications’ CMO and EVP business development, noted key elements of 5G networks including network slicing could deliver “deterministic performance, high speed and strict service guarantees”, which will “help usher in new business and use cases”.

Almost all (95 per cent) respondents were ready to spend more to get “the best gaming experience possible”, with 60 per cent willing to double the sum they currently pay for gaming services.

Additional revenue for operators could come from selling subscriptions to cloud services and bundled packages, Ribbon Communications stated.

Joggerst said operators which invest in standalone (SA) 5G networks will be well-positioned to form partnerships with providers of game content and “dominate the 5G cloud gaming sector accordingly”.

Originally published by
Yanitsa Boyadzhieva | September 14, 2020
Mobile World Live

 

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