According tomedia reports, a recent report by PricewaterhouseCoopers shows that the new crown outbreak will delay the launch of the 5G network in Europe by 12-18 months. According to the report, European telecommunications companies will spend between 6 and 9 billion euros less on investment over the next two years. “Telecom companies need to take immediate action to address the pressures on their 5G investments,” PwC wrote in its report. Specifically, they must re-examine their 5G business case and deployment schedule, given the significant growth and change in network capacity requirements due to the new Crown outbreak blockade. “
“We expect (telecoms companies) to re-prioritize capital expenditure plans across all business areas to ensure that sufficient funds are available to continue to invest in 5G and to mitigate the risk of delayed deployment to some extent while responding to the growing demand from users for their fixed infrastructure.” This will involve difficult choices: a comprehensive review of capital expenditure plans, further increases in capital expenditure efficiency, and delays in selected transformation projects in other areas. “
PwC points out that delaying the deployment of 5G poses serious risks and costs for operators, as many operators have limited 5G spectrum licence slots and the longer they delay rolling out services, the more difficult it is for operators to meet their return on investment targets.
“The operator’s initial business case relied not only on providing faster versions of the services currently available, but also on providing new applications, such as support for the Internet of Things and self-driving cars.” Unless these services can be delivered, the future of 5G’s business case will be affected. Delays in 5G investments also pose serious risks to equipment makers, whose sales could be threatened over the next two years. Finally, regulators face challenges because their plans to develop a digital economy rely heavily on the ability of telcos to provide a national 5G network connection. “
The report also highlights that investmentin in innovative platforms and service development may be suspended indefinitely, delaying many advanced applications of 5G technologies, such as many IoT use cases, into the future.
“The crisis in the new crown is likely to lead to a significant slowdown in investment by European telecommunications companies over the next two years, particularly in mobile networks. This will have a significant impact on the roll-out of 5G services. There is no doubt that 5G will remain a technical focus for telecommunications companies in the near term, but we believe that the business case previously adopted by telecommunications companies must be revised. Advanced applications that rely more on 5G may be shelved, such as dense microcell networks that provide ubiquitous connectivity for self-driving cars. “
The company also noted that operators may be reluctant to make significant investments in new spectrum under current conditions in European countries that have not yet sold 5G licences. PwC expects the pace of 5G rollouts in these countries to slow significantly in this scenario.
“To retain sufficient space to invest in 5G deployments, operators need to rethink capital expenditure allocation across all of their business areas and further improve their capital expenditure management to achieve efficiency gains.” At the same time, suppliers need to rethink their production and investment plans in response to the slowdown in 5G investment. The report reads.