Ribbon Research on Cloud Gaming Reveals Revenue-Generating Opportunities for 5G Networks

Rhea-AI Summary

Ribbon Communications Inc. (Nasdaq: RBBN) has released study findings indicating a significant $150 billion opportunity for carriers by leveraging 5G connectivity in cloud gaming. The survey, conducted with over 5,000 gamers, reveals that 95% of respondents are willing to pay more for enhanced gaming services, with 60% prepared to pay up to $126 per month. The independent research underscores the demand for high-performance networks and suggests that carriers adopting 5G can capitalize on this lucrative market.

Positive

• Study indicates a potential $150 billion revenue opportunity for 5G carriers in cloud gaming.
• 95% of surveyed gamers willing to pay more for improved connectivity.
• 79% would consider switching to 5G for better gaming experiences.

Negative

• None.

Extensive survey highlights gamers' willingness to spend more for superior connectivity and lower latency

WESTFORD, Mass., Sept. 14, 2020 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a global provider of real time communications software and network solutions to service providers, enterprises, and critical infrastructure sectors, today announced the findings of a recently commissioned independent research study. Based on the responses of more than 5,000 "ardent gamers," the study outlines a $150 billion incremental opportunity in cloud gaming for carriers offering 5G networks, with their enhanced performance and improved service experience.

"5G-Native networks leverage advanced technologies including network slicing to offer deterministic performance, high speed, and strict service guarantees. These capabilities will help usher in new business and use cases for carriers to capitalize on," said Patrick Joggerst, Chief Marketing Officer and EVP, Business Development, Ribbon. "The findings of this study, which will be reviewed at our upcoming 5G Perspectives event, prove that cloud gaming, combined with 5G, is a gainful area for carriers to address."

The independent study surveyed more than 5,000 gamers who reported playing at least 3 hours per day prior to the Covid-19 pandemic in 5 countries. The results show that these gamers are aware of the arrival of 5G, recognize its capabilities, and are willing to pay more for the upgraded experience it promises to deliver.

Key findings include:

• 58% already pay a premium to their provider to enjoy the best gaming experience possible
• 79% would consider replacing their home broadband and mobile connectivity with 5G for a better gaming experience
• 95% would pay more for this improved experience, with 60% willing to pay 50% more (or $126 per month compared to the current monthly average of $84)
• 58% would switch connectivity provider as soon as they could if a competitor offered a high-quality gaming service with a new 5G subscription
• Based on the extrapolation of this survey data and publicly available gaming market forecasts from Newzoo, the opportunity to provide the high-performance connectivity to enable cloud games could be worth more than $150 billion to carriers deploying 5G

"Cloud gaming presents an important and lucrative opportunity for carriers who embrace 5G and deliver the improved service experience gamers crave," said Lynnette Luna, Principal Analyst, GlobalData. "The rapid shift to mobile and cloud-based game delivery, combined with the higher data speeds and reduced latency 5G offers,  create a better user experience for gamers and a revenue-rich eco-system that carriers shouldn't ignore."

In addition to the $150 billion 5G connectivity opportunity, carriers may derive additional revenue by forming partnerships with gaming content providers to sell subscriptions to cloud services and bundled packages. 

"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," Mr. Joggerst added. "Carriers that invest in and build standalone 5G networks will be the first to offer advanced connectivity and will find themselves well-position to form new partnerships with gaming content providers and dominate the 5G cloud gaming sector accordingly." 

Survey Methodology:

The survey was conducted among 5019 gamers from the US (1013) UK (1003) Japan (1001) South Korea (1000) and Germany (1002) who played for at least three hours per day prior to the COVID pandemic outbreak (the impact of the pandemic was also captured). It was designed to better understand the habits and pain points of ardent gamers aiming to create the optimal gaming experience both indoors and out.

Interviews were conducted online by Sapio Research in April & May 2020 using an email invitation and an online survey. At an overall level results are accurate to ± 1.4% at 95% confidence limits assuming a result of 50%.

Attendees of Ribbon's virtual 5G Perspectives event will receive a white paper detailing the survey findings.

About Ribbon
Ribbon Communications (Nasdaq: RBBN), which recently merged with ECI Telecom Group, delivers global communications software and network solutions to service providers, enterprises and critical infrastructure sectors. We engage deeply with our customers, helping them modernize their networks for improved competitive positioning and business outcomes in today's smart, always-on and data-hungry world. Our innovative, end-to-end solutions portfolio delivers unparalleled scale, performance, and agility, including core to edge IP solutions, UCaaS/ CPaaS cloud offers, leading-edge software security and analytics tools, as well as packet and optical networking leveraging ECI's Elastic Network technology. To learn more about Ribbon visit rbbn.com.  For more information about our Elastic Network technology packet-optical portfolio visit ecitele.com.

Investor Relations	APAC, CALA & EMEA Press
Monica Gould	Catherine Berthier
+1 (212) 871-3927	+1 (646) 741-1974
IR@rbbn.com	cberthier@rbbn.com
North American Press	Analyst Relations
Dennis Watson	Michael Cooper
+1 (214) 695-2224	+1 (708) 212-6922
dwatson@rbbn.com	mcooper@rbbn.com

 

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SOURCE Ribbon Communications Inc.

FAQ

What did the Ribbon Communications survey reveal about gamers' spending habits regarding connectivity?

The survey found that 95% of avid gamers are willing to pay more for improved connectivity, with 60% prepared to pay $126 per month.

How much is the potential revenue opportunity for 5G carriers according to the Ribbon Communications study?

The study suggests that the potential revenue opportunity for 5G carriers in cloud gaming could exceed $150 billion.

What percentage of gamers would switch their connectivity provider for 5G services?

58% of gamers indicated they would switch providers for high-quality gaming services offered via 5G.

What are the key findings of the Ribbon Communications independent research study?

Key findings include that 58% of gamers already pay a premium for connectivity, 79% would consider 5G, and 95% would pay more for enhanced gaming experiences.