Operators focusing on providing 5G to the home services can expect to break even four years after launch, but only if they keep monthly ARPU above €40, according to research from Nokia.
The Finland-headquartered vendor said 5G to the home is one of a number of business models identified by its study, which looked into the potential benefits to operators of being among the first to launch services on the next-generation technology.
Details regarding the potential offered by 5G to the home could be welcome for operators including AT&T and Verizon, which included elements of the business model in their latest round of pre-commercial trials.
AT&T is focusing on offering enhanced broadband services to residential and small- to medium-sized business customers in its latest 5G tests, while Verizon is gearing up to trial fixed wireless 5G services in 11 metropolitan US areas by end-June.
Other services tipped by Nokia as offering the best possible return on investment include provision of 5G coverage at events and arenas, and in-vehicle infotainment.
In a statement, it said stadium hotspots would pay back operators’ investment in a year provided they hold at least five events a month, while infotainment offers “tangible early mover advantages” in terms of revenue and market share.
Nokia released its research on the eve of the Brooklyn 5G Summit, which runs from 19 to 21 April and was jointly organised by the vendor and the NYU Tandon School of Engineering.