Ericsson Mobility Report: 5G driving change in service providers' FWA strategies
The June 2024 Ericsson Mobility Report highlights significant growth in 5G Fixed Wireless Access (FWA) adoption among communication service providers (CSPs). A sharp increase in CSPs offering 5G FWA services was observed, with 128 out of 241 CSPs sampled now providing 5G FWA, marking a 29% growth from the previous year.
5G subscriptions are expected to reach 5.6 billion by the end of 2029, with mobile data traffic projected to grow 20% annually through the same period. Notably, 5G is anticipated to account for 60% of all mobile subscriptions by 2029, with North America and India leading in penetration rates.
Approximately 300 CSPs globally offer 5G services, and around 50 have launched 5G Standalone (5G SA). User experience metrics indicate high performance in 5G mid-band coverage areas. The report underscores the importance of 5G Standalone technology and includes case studies showcasing 5G's impact on various sectors.
- 5G subscriptions forecasted to reach 5.6 billion by end of 2029.
- Mobile data traffic expected to grow by 20% annually through 2029.
- Significant increase in CSPs offering 5G FWA services, with a 29% growth over the past year.
- 40% of all FWA CSPs now offer speed-based tariffs.
- North America forecast to achieve 90% 5G penetration by 2029.
- India's 5G subscriptions projected to grow to 840 million by 2029.
- Year-on-year mobile network data traffic growth adjusted downwards due to lower numbers reported by regulators and service providers.
Insights
The substantial increase in 5G Fixed Wireless Access (FWA) offerings by service providers highlights a significant trend that could reshape the telecom landscape. The report reveals a 50 percent growth in providers offering 5G FWA speed-based tariff plans, signifying a broader adoption of 5G technology. This is a clear indication that 5G is evolving from just enhanced mobile broadband (eMBB) use cases to more diverse applications. Such a shift suggests that service providers are looking to leverage 5G's capabilities for more than just traditional mobile services.
For retail investors, this trend presents both opportunities and challenges. The growing adoption of 5G FWA could lead to increased revenue streams for telecom companies as they tap into the home internet market, traditionally dominated by cable and fiber providers. Additionally, the low latency and high-speed offerings associated with 5G FWA make it a compelling alternative to fixed broadband solutions, potentially attracting a broader customer base.
However, investors should also consider potential risks. The rapid deployment of 5G infrastructure requires significant capital expenditure and there's always the risk that adoption rates might not meet expectations. Furthermore, competition from existing broadband providers could limit market penetration for 5G FWA services.
Overall, the data points to a promising future for 5G FWA, but investors should remain cautious and monitor how these trends evolve over time.
The projections indicating
From a market perspective, the regional data is particularly enlightening. For instance, North America's expected 5G penetration rate of 90 percent by 2029 outpaces other regions, suggesting a mature and competitive market. In contrast, India's rapid growth from 119 million to 840 million 5G subscriptions during the same period highlights an emerging market with explosive potential. Investors should consider these regional dynamics when evaluating opportunities within the 5G ecosystem.
Another important aspect is the forecasted
Ultimately, these projections depict an industry poised for significant growth, yet they also imply a need for continuous investment and innovation to meet rising demands.
The financial implications of the Ericsson Mobility Report can't be understated. The anticipated surge in 5G subscriptions and the accompanying increase in mobile data traffic are likely to drive strong revenue growth for telecom companies. The report’s finding that 75 percent of all mobile data traffic will be handled by 5G by 2029 is particularly noteworthy as it underscores the importance of continued investment in 5G infrastructure for sustained profitability.
For stakeholders, these developments highlight the potential for robust long-term returns. Telecom providers that can efficiently scale their 5G infrastructure and services stand to benefit the most. However, the report’s note on the need for increased deployment of 5G Standalone technology also suggests that significant investment is still required to fully realize 5G's potential. This could impact short-term profitability as companies allocate more capital towards network enhancements.
Moreover, the regional insights shed light on where investment opportunities might be most lucrative. With North America leading in 5G penetration and India showing rapid growth, investors might find attractive opportunities in markets that are either technologically advanced or showing strong growth trajectories.
While the outlook is positive, it’s also important for investors to consider the competitive landscape and regulatory environments in different regions, which could influence the pace and success of 5G deployment.
- 5G enabling growing numbers of FWA service providers to offer speed-based tariff plans
- 5G subscriptions forecast close to 5.6 billion by the end of 2029
- Mobile data traffic expected to grow by 20 percent annually through the end of 2029
Of the CSPs sampled for the Ericsson study (310 globally), 241 offered FWA services as of April 2024. Of these, 128 - about 53 percent - included a 5G FWA offering. This is a twelve-point increase on the corresponding period in 2023 - a growth of 29 percent.
The speed, data handling and low latency capabilities of 5G FWA also increase the attractiveness of speed-based FWA tariff plans to CSPs - with downlink and uplink data parameters - similar to cable or fiber offerings.
This has helped to drive an almost 50 percent growth in the number of service providers offering 5G FWA speed-based tariffs in the past year - with 40 percent of all FWA CSPs now doing so. FWA is currently second only to enhanced Mobile Broadband (eMBB) as a 5G use case.
Fredrik Jejdling, Executive Vice President and Head of Networks, Ericsson, says: "The June 2024 Ericsson Mobility Report shows continued strong uptake of 5G subscriptions. Enhanced Mobile Broadband and Fixed Wireless Access are the leading use cases, with signs that 5G capabilities are influencing service providers' Fixed Wireless Access offerings. The report also highlights the need for increased deployment of 5G Standalone technology to fully realize the potential of 5G."
About 300 CSPs globally now offer 5G services, of which about 50 have launched 5G Standalone (5G SA).
On subscriptions, 5G continues to grow in all regions. About 160 million 5G subscriptions were added globally in the first three months of 2024 - bringing the total to more than 1.7 billion. Almost 600 million new subscriptions are expected in 2024 as a whole.
Researchers estimate that 5G subscriptions will be close to 5.6 billion by the end of 2029 - with global 5G population coverage beyond mainland
5G is expected to account for about 60 percent of all mobile subscriptions by the end of 2029.
Regionally,
In
On user experience, statistics from a leading service provider reveal 97 percent of all user activities on 5G mid-band achieved a time-to-content of less than 1.5 seconds, compared to 67 percent on 5G low-band and 38 percent on 4G (all bands).
5G mid-band population coverage outside of mainland
Year-on-year mobile network data traffic has been adjusted downwards by Ericsson Mobility Report researchers compared to the November 2023 report. This is due to changes in the underlying data, such as lower numbers reported by regulators and service providers in populous markets for the second half of 2023.
Mobile network data traffic grew 25 percent year-on-year between the end of March 2023 and the end of March 2024, driven primarily by subscriber migration to later generations and data-intense services, such as video.
Mobile data traffic is forecast to grow with a compound annual growth rate of about 20 percent through the end of 2029. About a quarter of all mobile network data was handled by 5G by the end of 2023. This is forecast to grow to about 75 percent by the end of 2029.
The 40-page June 2024 Ericsson Mobility report includes four case study articles:
- How the NorthStar 5G network inspires innovation (with Telia and AstaZero,
Sweden . About autonomous vehicle connectivity.) - Taking 5G connectivity underground (with Rogers,
Canada . About 5G subway connectivity inToronto .) - Enhancing customer experiences with 5G (with Bharti Airtel,
India . About Airtel's 5G strategic priorities and actions.) - Building a high-performing programmable network (With AT&T,
USA . About AT&T's programmable network ambitions)
Ericsson will host an Ericsson Mobility Report webinar at 9.00 (CEST) and at 18.00 (CEST) on Wednesday, June 26. To join please register via this link.
Read the full June 2024 Ericsson Mobility Report via this link.
Based on unique Ericsson and partner network insights, the Ericsson Mobility Report has been the key industry reference for network data, performance, statistics, and forecasts since its launch in 2011.
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