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ANALYSIS

GCC to manage 62m 5G subscriptions by 2026: Ericsson

STOCKHOLM, Sweden, June 17, 2021

GCC markets will manage a combined 62 million 5G subscriptions by 2026, accounting for the second highest 5G market penetration globally, a report said, noting that GCC was among the first in the world to launch commercial 5G services in 2019.

Government-sponsored digital initiatives are accelerating both technological innovation and expected 5G uptake in the region, according to the 20th edition of the Ericsson Mobility Report.

Globally, 5G mobile subscriptions will exceed 580 million by the end of 2021, driven by an estimated one million new 5G mobile subscriptions every day,

The forecast enhances the expectation that 5G will become the fastest adopted mobile generation. About 3.5 billion 5G subscriptions and 60 percent 5G population coverage are forecast by the end of 2026.

However, the pace of adoption varies widely by region. Europe is off to a slower start and has continued to fall far behind China, the US, Korea, Japan and the GCC markets in the pace of 5G deployments.

5G is expected to surpass a billion subscriptions two years ahead of the 4G LTE timeline for the same milestone. Key factors behind that include China’s earlier commitment to 5G and the earlier availability and increasing affordability of commercial 5G devices. More than 300 5G smartphone models have already been announced or launched commercially.

This commercial 5G momentum is expected to continue in coming years, spurred by the enhanced role of connectivity as a key component of post-Covid-19 economic recovery.

North East Asia is expected to account for the largest share of 5G subscriptions by 2026, with an estimated 1.4 billion 5G subscriptions. While North American and GCC markets are expected to account for the highest 5G subscription penetration, with 5G mobile subscriptions comprising 84 percent and 73 percent of all regional mobile subscriptions respectively.

Fredrik Jejdling, Executive Vice President and Head of Networks, Ericsson, said: “This landmark twentieth edition of the Ericsson Mobility Report shows that we are in the next phase of 5G, with accelerating roll-outs and coverage expansion in pioneer markets such as China, the US and South Korea. Now is the time for advanced use cases to start materializing and deliver on the promise of 5G. Businesses and societies are also preparing for a post-pandemic world, with 5G-powered digitalization playing a critical role.”

Smartphones and video driving mobile data traffic

Data traffic continues to grow year on year. One exabyte (EB) comprises 1,000,000,000 (1 billion) gigabytes (GB). Global mobile data traffic - excluding traffic generated by fixed wireless access (FWA) - exceeded 49EB per month at the end of 2020 and is projected to grow by a factor of close to 5 to reach 237EB per month in 2026.Smartphones, which currently carry 95 percent of this traffic, are also consuming more data than ever. Globally, the average usage-per-smartphone now exceeds 10GB/month and is forecast to reach 35GB/month by the end of 2026.

The Covid-19 pandemic is accelerating digitalization and increasing the importance of - and the need for - reliable, high-speed mobile broadband connectivity. According to the latest report, almost nine out of 10 communications service providers (CSPs) that have launched 5G also have a fixed wireless access (FWA) offering (4G and/or 5G), even in markets with high fiber penetration. This is needed to accommodate increasing FWA traffic, which the report forecasts to grow by a factor of seven to reach 64EB in 2026.

Massive IoT on the rise

Massive IoT technology (NB-IoT and Cat-M) connections are forecast to increase by almost 80 percent during 2021, reaching almost 330 million connections. In 2026, these technologies are forecast to comprise 46 percent of all cellular IoT connections. – TradeArabia News Service




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