You might argue that 5G is going to be bad for other contestants in the communications business, ranging from satellite operators and fixed network telecom providers to subscription TV suppliers.
China Satellite Communications Corp., China's largest civilian satellite operator, believes 5G is going to severely erode its satellite TV business.
"The arrival of 5G is bad news for satellite companies. We have no choice but to diversify our business," said an executive who works for China Satcom.
China Satcom is not alone among satellite firms that earn as much as 60 percent of revenue from television broadcasting.
But the problems include more than 5G, which offers mobile internet speeds fast enough to make serious video consumption possible. As consumption shifts to on-demand modes, point-to-multipoint networks are disadvantaged, compared to point-to-point networks (internet access using symmetrical and cabled facilities).
In some markets, a shift of consumer demand away from broadcast subscription TV and towards on-demand delivery (Netflix, Amazon Prime, Hulu) already is leading to shrinking satellite TV subscriptions. That is why the future of AT&T’s substantial entertainment TV business is on-demand streaming and linear streaming on internet connections.
"Millennials prefer watching TV online, and the only thing that has held them back is a slow internet connection," the executive said. "But that problem will be solved once 5G networks are in place.
Legacy linear TV services (cable, satellite, IPTV) in the U.S. market declined in the fourth quarter of 2018, part of an ongoing trend. Total subscriber losses were about losing 941,000 subscribers (85.03 million accounts remaining).
Satellite services (DirecTV and DISH Network) accounted for 83 percent of the losses.
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