“5G is an innovation platform for driving digital transformations of businesses and society,” said Fredrik Jejdling, Executive Vice President and Head of Business Area Networks, Ericsson. With this in mind, the deployment of 5G is still ongoing, and is far from complete.
Based on the latest Ericsson’s Mobility Report (June 2024), there is a robust uptake of 5G subscriptions worldwide, anticipating the addition of nearly 600 million new 5G subscriptions in 2024.
During the first quarter alone, 160 million 5G subscriptions were added, exceeding a total of 1.7 billion. This meets the previous projection, which indicated a 1.5 billion 5G subscription total by 2024.
Expected to become the dominant mobile access technology by subscription in 2028, 5G mobile subscriptions are set to reach nearly 5.6 billion in 2029.
There has been a slight adjustment in regional 5G penetration compared to last year. It is projected that North America will maintain the highest 5G penetration in 2029 at 90%, followed closely by the Gulf Cooperation Council (GCC) at 89%.
By the end of 2023, 5G subscription penetration peaked at 59% in North America, with GCC countries recording a rate of 34%.
Telecom Review Exclusive: 5G Turns 5: A Global Impact on Connectivity
Also Read: 5G Standalone: New Ways to Operate and Automate Networks
MEA Region and GCC Countries
According to the latest Ericsson Mobility Report, the MEA region’s telecom industry continues to demonstrate stability and growth despite economic challenges in several countries. Overall, subscriptions are projected to rise 2% annually between 2023 and 2029.
Smartphone subscriptions are forecasted to display similar growth, reaching 750 million in 2029. 5G will experience the highest subscription growth—rising 51% annually during the period with increasing network coverage and availability of affordable 5G-capable smartphones.
GCC countries have displayed high mobile penetration and urbanization as well as strong consumer purchasing power, making it a highly developed market. In fact, Kuwait, Saudi Arabia, and Bahrain are among the top ten countries with the most mobile data usage.
A major trend emerging in the region is the transformation of service providers from “telcos” to “techcos” which is predicted to result in a double-digit increase in revenues as entities explore novel avenues to expand their operations and diversify their revenue streams.
Focusing on de-layering network elements and offering digital services, prominent players such as etisalat by e& and du are offering factory network automation, AI, IoT, fintech, and content services, among others.
Service providers remain steadfast in diversifying their offerings, opting to curb the influence of increased mobile penetration with services such as mobile financial services.
Additionally, fixed wireless access (FWA) connections are forecast to exhibit strong growth in the MEA region, as service providers seek to monetize their 5G networks and connect areas with limited fiber access.
This is evident in the region’s solid growth. The proportion of mobile service providers offering FWA over 5G has increased from 30% to 43%, while the percentage of mobile service providers offering speed-based plans has grown from 14% to 33%.
Exclusive Interview: Ericsson MEA’s Strategy: Creating Sustainable Advanced Networks, Investing in People
Telecom Review Insights: How International Expansion Drives Growth for GCC Telcos
Read More: Ericsson Mobility Report: Growing Revenue for CSPs in Leading 5G Markets
