In 2020, France launched 5G with high ambitions, but the results are far from expectations. Operators have invested billions for a modest return on investment, leaving both consumers and businesses perplexed about the real benefits of this technology. Find out why 5G has not yet delivered on its promises and what this means for the future of the telecom sector.
3 key facts you need to know
- Telecom operators have spent €11.1 billion over five years to roll out 5G in France.
- Revenues in the mobile sector have increased only slightly, from €13.3 billion to €14.9 billion between 2020 and 2024.
- 5G has not succeeded in transforming usage as expected, with only 22 million active 5G SIM cards compared to 74 million 4G SIM cards.
Huge investments by telecom operators
In 2020, Bouygues Telecom, Free Mobile, Orange, and SFR had to pay €2.8 billion for the allocation of 5G frequencies. Since then, these companies have continued to inject considerable funds into network development, reaching a total of €11.1 billion. This amount will increase further by 2030 to cover the entire French territory.
A disappointing return on investment
Despite these investments, revenue growth in the mobile sector remains weak. Between 2020 and 2024, revenues rose from €13.3 billion to €14.9 billion. Operators have attempted to monetize 5G through premium plans, but rates have remained stable, fluctuating between €15.4 and €15.8 on average over five years. Only Orange has managed to maintain some price differentiation.
Broken promises
Expectations for 5G were high, with promises of autonomous cars, remote surgery, and immersive experiences. However, these uses have not yet materialized, and consumers perceive only limited technical improvements: better network capacity, reduced latency, and less congestion on 4G. Viktor Arvidsson, Director of Strategy at Ericsson France, even acknowledged the absence of a “wow effect” comparable to that of 4G.
An uncertain future for 5G and beyond
As of September 30, 2024, only 22 million active 5G SIM cards had been registered, compared to 74 million for 4G, despite the momentum generated by the Paris Olympics. “Private 5G,” intended for businesses, is also struggling to gain traction. Previous mobile generations transformed usage patterns, but 5G has not yet made that shift. Operators are now waiting for 6G, but remain skeptical about investing significant new sums without solid guarantees of return on investment.
Historically, each new generation of mobile telephony has brought significant changes. 3G introduced mobile Internet browsing, while 4G democratized streaming and videoconferencing. 5G was supposed to mark a new era, but its lukewarm reception reminds operators that technological innovation must be accompanied by genuine consumer adoption to be considered a success. The lesson learned by industry players is the importance of aligning technological investments with real and tangible needs.