5G rollout fails to deliver revenue for mobile operators

5G is everywhere, but the big profits aren’t. We have faster speeds and cheaper phones, yet mobile operators are stuck in the slow lane.

According to a recent GSMA Intelligence report, the build it and they will pay strategy has failed to deliver, with revenue growth falling below five percent. The study, titled “Unlocking 5G’s next wave: priorities for growth,” concludes that simply building 5G infrastructure does not automatically create extra income.

Revenue growth has remained modest and largely flat since the technology launched, the report found.

Operators are instead being urged to focus on two main opportunities: selling advanced services to businesses and preparing networks for artificial intelligence.

A 2025 GSMA survey of enterprises showed strong planned spending on digital transformation between 2025 and 2030.

South Korea leads developed markets at 10.5 percent of revenues, followed closely by Saudi Arabia at 10.4 percent and the United States at 9.8 percent.

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Countries with the highest enterprise digital adoption, including Qatar, South Korea, the US, the UAE and China, also score highest overall on 5G performance.

On the consumer side, the report noted clear progress in affordability. The cheapest 5G devices now cost less than five percent of monthly income in 48 percent of the markets studied, up from 2023.

Consumers in competitive markets are willing to pay more for better quality, such as guaranteed high speeds in Finland, the US, Saudi Arabia and the UAE.

Fixed wireless access (FWA) is also highlighted as a promising area, offering operators a way to compete with traditional home broadband using 5G capacity.

However, the report warns that a widening gap is opening between leading and lagging markets.

Nations such as those in the Gulf, Nordic countries, developed Asia-Pacific, China and the US already offer strong 5G Standalone coverage, fast uplinks and early 5G-Advanced services.

Many other countries have basic 5G coverage but lack these higher-level features.AI is accelerating the need for change.

Operators are already using AI inside their networks to cut costs and improve efficiency. At the same time, AI-powered applications used by businesses, such as real-time video analytics, industrial automation and robotics, require much stronger and more stable uplink speeds than ordinary consumer services. Many of these uses need 10 Mbps to 50 Mbps or even over 100 Mbps of sustained uplink.

5G-Advanced, described as an evolution rather than a new generation, is positioned as the logical next step. It improves uplink performance, consistency, positioning and sensing. Commercial launches remain limited so far, with only a handful of markets including Kuwait, the UAE and Malaysia having started.

The report calls for coordinated action to close the gap.

Technology suppliers should provide clearer ways for operators to make money from advanced features.

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Regulators are asked to keep spectrum policies predictable, reduce handset taxes and support investment.

Industry partners must help turn 5G connections into practical solutions for factories, logistics, healthcare and public services.

“Technology alone does not guarantee financial sustainability,” the report states.

Success will depend on smart tariffs, enterprise services, continued affordability gains and timely upgrades to 5G-Advanced, not on coverage numbers alone.