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Telcos are staring at a potential $150 billion revenue opportunity if they can tap into growing demand for cloud gaming over 5G.
This is according to a study commissioned by network software vendor Ribbon that was carried out by SapioResearch. It found that 79 percent of hardcore gamers would consider switching their home broadband and mobile service to 5G if it meant they would get a better gaming experience. Of that proportion, the majority would pay extra for the privilege, with around 60 percent prepared to pay more than a 50 percent premium over their current tariff.
The study quizzed more than 5,000 consumers across five countries who admitted to spending at least three hours per day playing videogames before coronavirus lockdowns gave them even more spare time to devote to it. 58 percent of them said they would churn as soon as possible to an operator that bundled a cloud gaming service with a 5G package.
“The research clearly shows that these avid gamers present a highly addressable audience for carriers. They are aware of the Internet speeds they receive, understand the detrimental impact of latency on their gaming experience, and are prepared to spend what it takes to negate these issues,” said Patrick Joggerst, …
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