Ericsson Forecasts Over 2.6 Billion Global 5G Subscriptions by 2025

Ericsson Forecasts Over 2.6 Billion Global 5G Subscriptions by 2025

Every few months, Ericsson publishes a Mobility Report which highlights trends, forecasts and the status of technologies like 5G and IoT. According to the latest Mobility Report published in November 2019, the global number of 5G subscriptions will cross the 2.6 billion within the next six years. This will be driven by sustained momentum and a rapidly developing 5G ecosystem.

According to the report, average monthly data-traffic-per-smartphone is forecast to increase from the current figure of 7.2 GB to 24 GB by the end of 2025, in part driven by new consumer behavior, such as Virtual Reality (VR) streaming. With 7.2 GB per month, one can stream 21 minutes of HD video (1280 x 720) daily, while 24 GB would allow streaming 30 minutes of HD video with an additional six minutes of VR each day. The report also projects that 5G will cover up to 65 percent of the global population by the end of 2025 and handle 45 percent of global mobile data traffic.

2019 is the year leading communications service providers in Asia, Australia, Europe, the Middle East, and North America switched on their 5G networks. South Korea has already seen a big 5G uptake since its April 2019 launch. More than three million subscriptions were collectively recorded by the country’s service providers by the end of September 2019. China’s launch of 5G in late October has also led to an update of the estimated 5G subscriptions for the end of 2019, from 10 million to 13 million. Ericsson currently has more than 75 commercial 5G agreements or contracts with unique communication service providers, of which 23 are live networks.

According to Fredrik Jejdling, Executive Vice President and Head of Networks, Ericsson, it is encouraging to see that 5G now has broad support from almost all device makers. In 2020, 5G-compatible devices will enter the volume market, which will scale up 5G adoption. The question is no longer if, but how quickly one can convert use cases into relevant applications for consumers and enterprises. With 4G remaining a strong connectivity enabler in many parts of the world, modernizing networks is also a key to this technological change.

Given its current momentum, the 5G subscription uptake is expected to be significantly faster than that of LTE. The most rapid uptake is expected in North America with 74 percent of mobile subscriptions in the region forecast to be 5G by the end of 2025. North East Asia is expected to follow at 56 percent, with Europe at 55 percent.

Other forecasts from the report include the total number of cellular IoT connections, which is expected to cross five billion by the end of 2025 from 1.3 billion by the end of 2019 – this is a compound annual growth rate of 25 percent. NB-IoT and Cat-M technologies are estimated to account for 52 percent of these cellular IoT connections in 2025.

Year-on-year traffic growth for the third quarter of 2019 remained high at 68 percent, driven by the growing number of smartphone subscriptions in India, the increased monthly data traffic per smartphone in China, better device capabilities, an increase in data-intensive content, and more affordable data plans.

Customer Insights

In a collaborative article written with SK Telecom, the report has taken a detailed look at how the South Korean service provider is applying a 5G cluster deployment strategy centered around providing a premium 5G network experience and innovative services to customers in selected geographical locations. Another article, co-authored with the MTN Group, examines how the South African-based service provider’s focus on user experience and customer loyalty has resulted in measurable network improvements and commercial gains in Rwanda and Ghana.

The report has also taken an in-depth look at service providers’ tariff plans, revealing that most service providers who have launched 5G have priced 5G packages about 20 percent higher than their nearest available 4G offering. Lastly, there is an article describing how automotive IoT meets different use case requirements of automotive and transport applications.

Click here to download the full Ericsson Mobility Report for November 2019.

Publisher: everything RF
Tags:-   5G