6G has the potential to revolutionize the mobile industry. However, new technology doesn’t always mean better value for telcos, find senior partners Tomás Lajous and Martin Wrulich and coauthors. Based on previous generations of mobile tech, spending growth has tended to outpace revenue growth for mobile network operators, for example. To realize the economic potential of 6G, players in the telecommunications industry could consider a set of actions, including expanding the roster of network investors and making smart investments in digital infrastructure.
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Two graphs show spend growth and revenue growth of mobile network operators for 3G, 4G, and 5G network technologies, over 2G baselines.
The spend growth graph is split into spectrum expenditures and nonspectrum mobile capital expenditures and shows an overall increase in network technology spend: a 469% increase in 3G, a 797% increase in 4G, and an 846% increase in 5G. The revenue growth graph shows an overall increase in network technology revenue: a 440% increase in 3G, a 619% increase in 4G, and a 683% increase in 5G.
Footnote 1: Nonspectrum Includes capital expenditures for towers, equipment, backhaul, and the core. Footnote 2: Spectrum includes spend from mobile network operators (MNOs) for all spectrum auctions within the period. Auctions that took place prior to the period but auctioned pioneer bands for the successor standard have been reallocated to the latter (eg, 700-megahertz auctions prior to 2010 are accounted for as 4G spectrum spend). Footnote 3: Includes all revenues that MNOs were able to generate from their mobile public networks (eg, voice, SMS, data, and revenues from fixed wireless access). Excludes revenues from adjacent services or connectivity revenues that would require additional capital expenditures (eg, private networks). Footnote 4: 5G includes average across 2020–22 vs average across the 2G era (1990–2000).
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To read the report, see “Shaping the future of 6G,” February 28, 2024.