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Setting up a 5G base station is expensive, with costs ranging from $100,000 to $200,000 per site. This price includes hardware, installation, site rental, and maintenance. Urban areas often have higher costs due to land prices and infrastructure challenges.
5G is primarily being rolled-out by private companies called mobile network operators. These are EE, O2, Vodafone and Three. The first commercial networks went live in major UK cities in 2019. Ofcom, the telecoms regulator, estimated that in September 2023, 85 to 93% of UK premises could get 5G coverage outdoors from at least one operator.
At present, almost all 5G in the UK is delivered using non-standalone (NSA) technology. NSA 5G uses new 5G equipment for the Radio Access Network (RAN, which transmits wireless signals to user devices such as smart phones) but relies on 4G infrastructure for the 'core' network (which enables connectivity to the wider internet).
Oxford Economics (Worthington, 2019) pointed out that restricting a key supplier of 5G infrastructure from helping to build a country's network would increase that UK's 5G investment costs by between 8% and 29% over the next decade. 5G deployment is not only expensive for equipment, but also for spectrum resources.
Major suppliers of 5G radio and core systems included Altiostar, Cisco Systems, Datang Telecom/Fiberhome, Ericsson, Huawei, Nokia, Qualcomm, Samsung, and ZTE. Huawei was estimated to hold about 70 percent of global 5G base stations by 2023.
5G presents many daunting challenges for site evolution. Market insights show that only one pole can be deployed for each sector at 50% of sites. New antennas cannot be installed due to limited antenna space. The remaining capacity in existing battery cabinets is insufficient for 5G devices.
Macro cells represented USD 22.9 billion and 61.3% of the 2024 5G base station market share, providing umbrella coverage and mobility anchor services. Yet small cells are forecast to expand at a 29.4% CAGR, pushing their slice of the 5G base station market size toward USD 50 billion by 2030.
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