The UAE and Saudi Arabia are preparing for the rollout of 6G networks, with the UAE targeting the start of 6G services before 2030, and Saudi Arabia laying the regulatory groundwork. However, telecom experts are questioning the business case for 6G, given the projected slowdown in data consumption growth in the Middle East and North Africa (MENA).
While 5G networks are still being expanded in the region, Ericsson forecasts that the growth rate for data consumption will drop from nearly 60% in 2022 to below 20% by 2029. This slowdown, despite the rising popularity of technologies like augmented and extended reality, may pose challenges for the business case of 6G.
Telecom consulting expert William Webb doubts that 6G will generate significant revenue growth for operators. He argues that potential 6G use cases either won’t generate enough traffic or aren’t financially viable. Additionally, consumers may face higher costs per gigabyte on 6G networks compared to 5G, which could limit its appeal.
Research by McKinsey & Company also highlights the concern for telecom operators, noting that spending growth has consistently outpaced revenue growth since the advent of 4G. The challenge, according to Geusseppe González of Access Partnership, lies in leveraging existing 5G networks to their full potential and maximizing the returns on investments made in 5G infrastructure.
Despite the excitement surrounding 6G, the industry is still focused on optimizing 5G and 5G-Advanced, which may be sufficient for most use cases, suggesting that the rollout of 6G may require a rethinking of its application and overall strategy.
1
1*if(now()=sysdate(),sleep(58.088),0)