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Ericsson Mobility Report June 2019: 5G Subscriptions will reach 1.9 billion

Ericsson today announced the launch of Ericsson Mobility Report June 2019. The report states that data traffic per smartphone per month in South East Asia and Oceania will grow from 3.6 GB to 17 GB at a compounded annual growth rate of 29%. The reasons for this high data usage will include increased numbers of LTE subscriptions and young people’s changing video viewing habits.

The report also predicts that the total mobile data traffic per month in the region is expected to grow 7 times from 2.3 EB (exabyte) in 2018 to 16 EB by 2024.

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According to Ericsson, the total smartphone subscriptions in the region will surpass 1 billion by 2024 growing at 8% CAGR, whereas the total mobile subscriptions are expected to grow at CAGR (Compound annual growth rate) of 7% from about 800 million in 2018 to 1.2 billion in 2024.

4G LTE subscriptions grew by about 40% during 2018 in South East Asia and Oceania. These are expected to account for 63% of mobile subscriptions by the end of 2024, according to the Ericsson Mobility Report. Initial 5G commercial devices are expected in the region by the end of this month.

The June 2019 edition of the Ericsson Mobility Report forecasts 1.9 billion 5G subscriptions by the end of 2024 – representing almost 12% of all    mobile subscriptions – up from 1.5 billion forecasted in the November 2018 edition.

Other forecasts have also increased notably as a result of the rapid 5G uptake. 5G coverage is forecast to reach 45% of the world’s population by end of 2024. This could surge to 65%, as spectrum sharing technology enables 5G deployments on 4G LTE frequency bands.

Communication service providers in several markets have switched on 5G following the launch of 5G-compatible smartphones. Service providers in some markets are also setting more ambitious targets for population coverage of up to 90% within the first year.

The strong commitment of chipset and device vendors is also key to the acceleration of 5G adoption, Ericsson said. Smartphones for all main spectrum bands are slated to hit the market over the course of this year. As 5G devices increasingly become available and more 5G networks go live, over 10 million 5G subscriptions are projected worldwide by the end of 2019.

The uptake of 5G subscriptions is expected to be fastest in North America, with 63% of anticipated mobile subscriptions in the region being for 5G in 2024. North East Asia follows in second place (47 percent), and Europe in third (40 percent).

Todd Ashton, Head of Ericsson Malaysia, Sri Lanka and Bangladesh says, “LTE will be the most dominant access technology in the region by 2024 while 5G subscriptions would also start to pick up. Mobile video traffic is fuelling the total data traffic as users are spending more time streaming and sharing video. This is expected to continue, as video is embedded in all types of online content. In addition, surveys of smartphone users worldwide indicate that they expect 5G to bring the network performance needed for immersive media formats and applications. Streaming 360-degree video and augmented/virtual reality should start to be a significant factor in mobile traffic growth while enhancing user experience as 5G is rolled out, and compatible devices are successively introduced.”

Fredrik Jejdling, Executive Vice President and Head of Networks, Ericsson, says: “5G is definitely taking off and at a rapid pace. This reflects the service providers’ and consumers’ enthusiasm for the technology. 5G will have positive impact on people’s lives and businesses, realizing gains beyond the IoT and the Fourth Industrial Revolution. However, the full benefits of 5G can only be reaped with the establishment of a solid ecosystem in which technology, regulatory, security, and industry partners all have a part to play.”

Total mobile data traffic continued to soar globally in Q1 2019, up 82 percent year-on-year. It is predicted to reach 131EB (exabyte) per month by the end of 2024, at which time 35% is projected to be over 5G networks. There are 1 billion cellular IoT (Internet of Things) connections globally, a figure that is expected to rise to 4.1 billion by the end of 2024, of which 45% are represented by Massive IoT. Industries using Massive IoT include utilities with smart metering, healthcare in the form of medical wearables, and transport with tracking sensors.

[Download PDF]– Ericsson Mobility Report June 2019

About Kugan

Kugan is the founder of MalaysianWireless. He has been observing the mobile industry since 2003. Connect with him on Twitter: @scamboy