So, I believe the assumptions I have used that underpin this model around consumer spending are basically no longer valid.
The uptake for consumer devices such as a 5G iPhone, estimated to cost between $1500- $2000 cannot be assumed under the current economic climate. I also believe the assumed release schedule of September 2020 will now also be impacted.
Some further research and modelling I have found classifies a $15 per month 'opt-in' model for 5G access as a 'premium service' and I don't believe the same appetite for consumer spending exists with forecast consumer spending and widespread job losses.
I believe 'good enough' service levels currently provided by 4G coverage for most consumer use cases will be regarded as sufficient and the premium service won't be taken up by as many people if current economic outlook persists
(A counter argument is that more digital services and entertainment will be required if people stay home and work from home, but I believe the capacity to pay will temper/mitigate this increase in demand. Current network and service levels appear to meet the demand and there are not enough use cases that demand lower latency and other purported benefits 5G is expected to provide above current service levels.)
TLS Price at posting:
$3.16 Sentiment: None Disclosure: Held
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