Market Potential of 5G in Russia

Market Potential of 5G in Russia

Published on : Nov-2022

Market Potential of 5G in Russia?

5G or fifth-generation, the nexus of a wireless era rich in interlinked automobiles, manufacturing plants, and cities. Whichever nation dominates the new technology over much of this century will gain a competitive advantage. Russia is fixed to be a worldwide "fast follower" 5G nation, with 5G technology forecast to cover more than 80% of the nation's population by 2030. Soon, Russia will lead the CIS region into the 5G era, as operators are investing in rapidly building 5G coverage across the country's population following the launch of the region's first 5G networks by 2022. These new services have the potential to create digital economies and drive industry transition, but will require a helpful regulatory framework focused on empowering investment and innovation, such as guaranteeing the timely availability of the standardized spectrum to 5G operators at an appropriate price.

How Russian telecoms are backing the 5G rollout? How 5G will affect the overall growth of the country?

Russian telecom companies are capable of building the next generation of platforms without jeopardizing their ratings. Problems in allocating spectrum and the Russian government's lack of significant 5 G push gives telecom operators more time to plan for the active rollout phase. Reasonable growth opportunities for service revenues mean businesses are discovering different growth drivers like fintech, content, and other online platforms. However, these proposals do not materially change the competitive market which is generally rational. The cost and effectiveness of the CAPEX persist among the telecom operators' main priorities.

The analysts of Fatpos Global anticipated that the region's first 5G-based use cases concentrate on augmented mobile broadband (eMBB), which will add efficiency and higher speeds for mobile Internet access, usually in metropolitan hotspots where 5 G will be an offload solution for easing congestion issues. However, soon after that follows the 5G-based Internet of Things (IoT) and enterprise solutions. In the CIS region, the amount of IoT connections is projected to triple over the near future, providing the opportunity in areas such as smart cities and smart utilities. Other areas of opportunity in the CIS region for telecom carriers include e-commerce, blockchain, and new ventures ecosystem investments.

The region is ready for all means of demos exploiting 5G's opportunities including immersive VR entertainment, smart buildings, and other consumer and industrial use cases in which high data speed and ultra-low latency are considered critical. In non-Standalone (NSA) mode, the 5 G pilot zone is dispatched in the 28 GHz band, the operating frequency for anchor LTE band is band 7 (2600MHz), and the 28 GHz 5 G pocket routers are used as end-user devices for ultra-high-speed mobile broadband. Installation of a 5 G network is a top priority for Russia.

According to the national program "The Digital Economy of the Russian Federation," establishing comprehensive 5 G communication in all Russia's main cities by 2025 is essential. Moscow is set to become Russia's first city to deploy full-fledged 5G pilot zones this year across all telecom operators with the help of Ericsson and Tele2.

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