How Will Operators Monetise 6G?

May 2024

Telecoms & Connectivity

Alex Webb

Senior Research Analyst

6G will grow rapidly in the first four years of its commercial launch in 2029, with the number of 6G mobile subscribers growing from 35 million in 2029 to 892 million in 2032. This represents an increase of more than 2,500%. This rapid adoption will be driven by the improved latency and throughput for user devices.

Key to 6G’s increased latency and throughput will be the technology’s expanded use of the electromagnetic spectrum by 6G networks. The core range of spectrum used by 6G networks will be 7-24Ghz; covering the entire centimetric range. In contrast, 5G networks typically rely on the 1-6Ghz range. This increase in spectrum frequency is critical to enabling greater data transmission rates, as higher frequencies can carry greater volumes of data. 

6G networks will also make use of the sub-THz range. This range of spectrum will be used to provide extremely data-intensive and low-latency services, such as joint radar communications applications, and long-distance backhaul.

6G networks will also be one of the first AI-native, enabling intelligent optimisation and management of network functions and infrastructure. Notably, 6G will see AI integrated into the air interface, enabling operators to dynamically manage radio resources, with optimised signalling via the media access control layer and real-time learning radios creating customised waveforms.

More generally, the integration of AI into the network will grant operators unprecedented control over their network resources; expanding the opportunities for differentiated and enhanced quality of service. This will enable operators to provide dedicated connectivity for specific use cases, and mitigate issues with networks, such as network congestion.

Potential Monetisation Strategies

The launch of 5G has enabled operators to leverage network slices to provide optimised quality of service. Key services provided by operators include:

• mMTC (Massive Machine Type Communication) – This connectivity services are designed to support large volumes of small data packets transmitted by IoT (Internet of Things) devices. mMTC is used for use cases such as smart agriculture.
• URLLC (Ultra-reliable Low-latency Communications) – URLLC is used for mission-critical use cases, such as medical IoT sensors, as it ensures constant low-latency connectivity for devices. 
• RedCap (Reduced Capability) – Specified by 3GPP (Third Generation Partnership Project) Release 17 RedCap acts as a mix of mMTC, URLLC, and eMBB (Enhanced Mobile Broadband), balancing variables such as battery life, throughput, and latency. RedCap is used for use cases, such as connecting wireless industrial sensors, smart grids, and video surveillance.
• eMBB – This service focuses on simultaneously maximising latency and throughput for devices. As a result, it is most commonly used for data-intensive mobile applications, such as mobile gaming and hotspots.

6G will further expand operators’ ability to differentiate the connectivity services, as greater throughput and latency will enable greater differentiation in connectivity. Furthermore, the development of new use cases, such as extended reality, will require new optimised connectivity offerings. 

At present, differentiated quality of services is undermonetised by operators, with many operators focusing on the improvement to network resource distribution rather than revenue. However, to maximise the return on investment of 6G networks, operators must develop dedicated charging models for different connectivity services. For example, operators must develop models which can charge a premium for URLLC connectivity, where connectivity is mission critical. By adopting these new monetisation models, operators will be able to maximise revenue from different levels of connectivity.

There is a signficant opportunity for monetisation in 6G networks through mobile broadband. Mobile broadband is Internet access delivered via portable modems; enabling non-cellular devices to access connectivity provided by cellular networks. By introducing differentiated quality of service for their mobile broadband services, operators will be able to take a new approach to monetisation. Users will be able to be billed based on cellular data usage, and quality of service, creating more flexible monetisation models. This flexibility will enable operators to ensure that their mobile broadband services are not undermonetised, thus maximising return on investment from 6G networks.

Alex is a Research Analyst within Juniper Research’s Telecoms & Connectivity team, focusing on the latest developments in operator and telecommunications markets. His recent reports include Telecommunications Cloud Strategies, Cellular IoT, and 6G Development.