240 global operators launch new technology
BARRING any unforeseen circumstances, 5G subscriptions are expected to reach about 1.5 billion people across the globe.
According to Swedish kit vendor, Ericsson, 5G mobile subscriptions are growing in every region in the world, but the extent to which this is translating into revenue growth remains unclear.
In its June 2023 edition of the Ericsson Mobility Report, the technology firm claimed that 5G subscriptions are on the up in every region worldwide, as is global mobile network data traffic with the monthly global average usage per smartphone expected to exceed 20 GB by the end of the year.
Indeed, the competition was renewed in Nigeria’s telecoms sector on Monday with Airtel launching its 5G service, six months it purchased 100MHz of spectrum in the 3500MHz band and 2x5MHz of 2600MHz spectrum from the Nigerian Communications Commission (NCC) for $316.7 million. Airtel, which hoped to cover entire Nigeria by the end of its current financial year, started with Lagos, Ogun, Abuja and River states.
Airtel joined MTN Nigeria, which launched its 5G services in August 2022 and has expanded the network to about 13 cities and activated over 700 sites. MTN 5G is in Lagos, Abuja, Port Harcourt, Kano, Owerri, Ibadan, Maiduguri, Abeokuta, Ife, Warri, Enugu, Ife and Ifo.
While Mafab Communications did a media launch in January of its 5G services, the service is yet to be ubiquitous in the country.
Analysts have predicted serious competition in that space in the country. Already, Airtel crashed the price of a 5G router to N30, 000 as against MTN’s entry of N50, 000 for same device.
Already, Ericsson forecasts 5G subscriptions to reach 4.6 billion globally by the end of 2028, which would make up more than 50 per cent of all mobile subscriptions. 4G subs are also increasing, growing by 59 million during Q1 2023 to 5.2 billion, but they are projected to start declining from this year to around 3.8 billion by the end of 2028 as customers jump over to 5G contracts.
According to the Mobility Report, the Indian market is held up as the fastest-growing 5G region globally, where 5G subscriptions have reached around 10 million by the end of 2022 and are estimated to account for 57 per cent of mobile subscriptions in the country by the end of 2028.
5G subscriptions uptake in North America has been stronger than expected in previous forecasts as well, and at the end of 2022 it clocked 41 per cent penetration, which ranks the highest at the moment regionally.
Ericsson said around 240 CSPs (operators) have launched commercial 5G services and about 35 have deployed or launched 5G Standalone. The most common 5G services for consumers are listed as enhanced mobile broadband (eMBB), Fixed Wireless Access (FWA), gaming and AR/VR-based services. Over 100 CSPs are now offering FWA services over 5G, which is estimated to account for almost 80 per cent of all FWA connections by 2028.
Executive Vice President and Head of Networks at Ericsson, Fredrik Jejdling, said: “The global adoption of 5G technology has surpassed one billion subscriptions, bringing positive revenue growth for communications service providers in leading 5G markets.
“We see a strong link between the increase in 5G subscriptions and service revenue. Over the past two years, the introduction of 5G services in the top twenty markets has resulted in a seven percent revenue boost. This trend shows the growing value of 5G, benefiting users and service providers alike.”
Speaking of revenue, the report noted that it’s a bit of a mixed picture despite the claim of a seven per cent 5G bump. The report claimed, “the launch of 5G services has enabled service providers to proactively drive a shift to higher mobile tariffs while adding value for consumers.”
