Forget About 5G! 4G Is Not At Its Peak

Jan 03, 2020

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5G SA guarantees faster speed and lower latency, and makes new functions such as network slicing possible. Therefore, running independent 5g network has always been the ultimate goal of American operators. Unlike 5g NSA, the 5A SA network does not rely on the operator's 4G LTE network. In fact, 5g SA network is faster and more efficient because it uses 5g core network, a simpler architecture with independent user plane and control plane as well as high bit rate configuration.


But does the move to 5g SA mark the end of 4G?

Predictably, operators will focus most of their network capital expenditure on 5g technology rather than 4G. But that doesn't mean 4G is coming to an end.


4G Pinnacle

LTE is still growing globally, according to the mobility report released in November 2019. As of the third quarter of 2019, there are 4.2 billion LTE users worldwide. By 2022, when LTE reaches its peak, it is estimated that there will be 5.4 billion LTE users in the world. Since then, with more and more wireless users migrating to 5g network, LTE users will drop to about 4.8 billion by the end of 2025.


In the U.S. market, 4G may decline faster than the rest of the world because 5g penetration will be higher than other regions.


The speed at which customers switch from LTE devices to 5g devices will be critical. Historically, the conversion rate of people buying new devices has been stable, with about 20% of people updating their mobile phones every year. Moreover, the initial 5g equipment is more expensive. But by the end of 2020, there will be more 5g devices at different prices.


Therefore, 5g may be the focus of us operators (where the capital expenditure flows), but 4G network will continue to be the mainstream of us in many years to come


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