5G networks have the potential to change the way we use mobile devices, according to Ericsson.
The demand for data is ever-increasing and digital demands are rapidly evolving. 5G uptake is occurring faster than that of 4G and by the end of 2027, as covered in the Ericsson Mobility Report from November 2021, there are expected to be 4.4 billion 5G subscriptions, accounting for almost half of all mobile subscriptions in the world.
By the end of the year, Ericsson believes there will be more than 660 million 5G subscriptions. Beyond the expansion of their 5G networks, service provides must drive value in order to motivate users to upgrade.
Capacity, performance and efficiency
5G offers capacity, performance, and efficiency, driving growth and demanding lower overheads. Providers are reporting 50 percent yearly traffic growth in their mobile networks and having an efficient and high-performing delivery system is essential to meet growing demands. 5G networks are delivering up to 20x higher speeds than 4G, ensuring a superior user experience.
Around 70 percent of users express a degree of dissatisfaction with the levels of innovation provided with current 5G plans. Users want more apps and services that bring extra value into their lives. The only way to remain relevant is to act, starting to explore the new possibilities and services associated with 5G networks.
5G for business
Ericsson forecast a potential 30 percent revenue growth for 5G network service providers to capture between 2020 and 2030. However, this will require a proactive approach, focusing not only on network rollout, but also on service innovation and value creation. True digital transformation means involving creative partners in the process, embracing new business models and ways of working and collaborating with the wider ecosystem to create appealing services for consumers in areas like gaming, sports, immersive media, education, and communications.
5G services are starting to materialise, leveraging the increased performance and capacity of the technology. Mobile gaming and Fixed Wireless Access (FWA) are two early 5G use cases that leverage improved network capabilities.
Gaming makes up 26 percent of all mobile media consumption hours – proving the near-term business opportunity for service providers. In the longer term, new use cases including augmented, virtual, and extended reality will result in additional audiences. Some 35 percent of non-gamers surveyed by Ericsson expressed an interest in AR gaming. In the 5G era, gaming offers service providers opportunities for service bundling, and value creation.
Fixed Wireless Access (FWA) allows consumers to install a broadband connection in their home, as an alternative to fiber. Almost 90 percent of service providers that have launched 5G also have an FWA offering. According to the November report, over 800 million people will get broadband access by 2027, through around 230 million FWA connections.
More explorative services will take more time and effort to develop. The combination of strengthened 5G network capabilities and new mobile devices will enable new experiences for consumers. Through engagements like Startup 5G and Ericsson D-15, Ericsson is inviting industry players to help bring new ideas to life.
A summary of the Ericsson Mobility Report from November 2021 can be found here.
