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5G could create new TV opportunities for telcos

TV and video delivery is likely to become a core capability of next generation 5G wireless services and this could create new opportunities for service providers, concludes a new report from Strategy Analytics.

Recent demonstrations have suggested that 5G will support 1Gbps data throughput rates. Strategy Analytics suggests that combining 5G with other networking enhancements and technologies would allow operators to support TV-equivalent services which could eat into the $500 billion global TV and video market currently served by cable, satellite, IPTV and terrestrial broadcast service providers.

“Data rates get the headlines, but other network technologies will also make or break the business case for 5G TV services,” says Sue Rudd, Director, Service Provider Analysis. “The efficiency of the end-to-end network will determine whether 5G TV is possible, but we have seen enough from early demonstrations by operators like Verizon, Deutsche Telekom, SK Telecom, AT&T and BT to suggest that it will arrive sooner or later in many parts of the world.”

The report points out that the number of households and devices supported by a 5G TV service within any cell will make or break the 5G TV business case.

The media value chain

“Television is already being transformed by new digital services like Netflix and Amazon,” notes Michael Goodman, Director, TV and Media Strategies. “The arrival of 5G TV wireless services could herald another wave of TV disruption through the 2020s and beyond.”

David Mercer, VP and Principal Analyst, adds. “The emergence of 5G TV would represent a further stage in the convergence of media and communications, and wireless and fixed services.  It would also raise important questions relating to the roles of different ecosystem players and the future structure of the media value chain.”



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