Ericsson Mobility Report Business Review edition: 5G drives revenue growth

Rhea-AI Summary

New research from Ericsson indicates that 5G uptake is positively correlating with revenue growth for communications service providers (CSPs) globally. In the 'Business Review' edition of the Ericsson Mobility Report, released on February 7, 2023, it was highlighted that the top 20 5G markets, representing 85% of global 5G subscriptions, have seen a significant increase in wireless service revenue since 2020. Early use cases for 5G, such as Enhanced Mobile Broadband and Fixed Wireless Access, are gaining traction, suggesting a promising outlook for CSPs.

Positive

• 5G subscription growth correlates with revenue growth for CSPs.
• Wireless service revenue is on the rise in the top 20 5G markets.
• Enhanced Mobile Broadband and Fixed Wireless Access show strong market demand.

Negative

• None.

• Communications Service Providers in Top 20 5G markets enjoying revenue growth
• Enhanced Mobile broadband and Fixed Wireless Access proving popular early use cases
• Cloud gaming, enterprise and industrial deployments gaining momentum

STOCKHOLM, Feb. 7, 2023 /PRNewswire/ -- New research from the Ericsson (NASDAQ: ERIC) Mobility Report team provides encouraging evidence for communication service providers (CSPs) worldwide by identifying a correlation between 5G uptake and revenue growth.

Flattening revenues have been a challenge for service providers in all parts of the world, often impacting network investment decisions as part of their business growth strategies, known as `monetization' in the industry.

A special Ericsson Mobility Report edition - called the Business Review edition - addresses these monetization opportunities as they relate to 5G. 

The report highlights a positive revenue growth trend since the beginning of 2020 in the top 20* 5G markets - accounting for about 85 percent of all 5G subscriptions globally - that correlates with increasing 5G subscription penetration in these markets.

The report finds:

• Tiered pricing models are key for service providers, both for effectively addressing the individual needs of each customer and for continuing to drive long-term revenue growth.
• The top 20 5G markets have seen a significant network performance boost following the introduction of 5G services.
• After a period of slow or no growth, wireless service revenue curves are again pointing upwards in these leading markets. This correlate with 5G subscription penetration growth.

Fredrik Jejdling, Executive Vice President and Head of Networks, Ericsson, says: "Meeting our customers' challenges is at the heart of our R&D efforts and every resulting product we develop. The link between 5G uptake and revenue growth in the top 20 5G markets underlines that not only is 5G a game changer, but that early adopters benefit. What is particularly encouraging about this is that while 5G is still at a relatively early phase, it is growing fast with proven early use cases and a clear path to medium and long-term use cases."

As expected, Enhanced Mobile Broadband (eMBB) is the main early use case for 5G, driven by increasing geographical coverage and differentiated offerings. More than one billion 5G subscriptions are currently active across some 230 live commercial networks globally. 5G eMBB offers the fastest revenue opportunities for 5G, as it is an extension of service providers' existing business, relying on the same business models and processes. Even in the top 20 5G markets, about 80 percent of consumers have yet to move to 5G subscriptions - one pointer to the potential for revenue growth.

As highlighted in the November 2022 Ericsson Mobility Report, Fixed Wireless Access (FWA) is the second biggest early 5G use case, particularly in regions with unserved or underserved broadband markets. FWA offers attractive revenue growth potential for CSPs as it largely utilizes mobile broadband assets. FWA connections are forecast to top 300 million within six years.

Beyond consumer subscribers, there are growing opportunities in enterprise and public sector applications across the world.

5G enables significant value for enterprises, with private 5G networks and wireless wide area networks being deployed for enterprise and industrial use.

Upgrading existing 4G sites to 5G has the potential to realize increases of 10 times in capacity and reduce energy consumption by more than 30 percent, offering the possibility of growing revenue and lowering costs, while addressing sustainability.

Jejdling adds: "Revenue growth and sustainability are recurring themes in my discussions with customers. In this special Ericsson Mobility Report edition, we have explored how service providers are tapping 5G opportunities. We see initial signs of revenue growth in advanced 5G markets with extensive coverage build-out and differentiated service offerings. An equally crucial aspect of 5G is that it brings cost advantages and helps service providers handle the data growth needed to drive future revenue. This can make 5G the growth catalyst that the market has been waiting for."

Read the full Ericsson Mobility Report Business Review Edition report here.

*Note: The markets categorized as the Top 20 5G markets in the report are: Australia, Bahrain, China, Denmark, Finland, Hong Kong, Ireland, Japan, Kuwait, Monaco, Norway, Qatar, Saudi Arabia, Singapore, South Korea, Switzerland, Taiwan, the UAE, the UK and the US.
They were selected on the basis of 5G subscription penetration. These markets represent 85 percent of all 5G subscriptions globally - with each market having 5G penetration above 15 percent.

Related links:
Ericsson Mobility Report site
Ericsson 5G
Ericsson 4G and 5G Fixed Wireless Access
Breaking the energy curve
5G the next wave - what does consumers want

NOTES TO EDITORS:

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ABOUT ERICSSON:
Ericsson enables communications service providers to capture the full value of connectivity. The company's portfolio spans the business areas Networks, Cloud Software and Services, Enterprise Wireless Solutions, and Technologies and New Businesses. It is designed to help our customers go digital, increase efficiency and find new revenue streams. Ericsson's innovation investments have delivered the benefits of mobility and mobile broadband to billions of people globally. Ericsson stock is listed on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com

The following files are available for download:

https://mb.cision.com/Main/15448/3709447/1830604.pdf	PDF Ericsson Mobility Report Business Review edition: 5G drives revenue growth
https://news.cision.com/ericsson/i/ericsson-mobility-report-business-edition-february-2023---5g-mobile-gaming,c3140819	Ericsson Mobility Report Business Edition February 2023 - 5G mobile gaming

View original content:https://www.prnewswire.com/news-releases/ericsson-mobility-report-business-review-edition-5g-drives-revenue-growth-301740425.html

SOURCE Ericsson

FAQ

What does the February 2023 Ericsson Mobility Report indicate about 5G revenue growth?

The report indicates a positive correlation between 5G uptake and revenue growth for communications service providers in the top 20 5G markets.

Which markets are identified as the top 20 5G markets in the Ericsson report?

The top 20 5G markets include Australia, China, Japan, the US, and several others, accounting for 85% of all global 5G subscriptions.

How is Fixed Wireless Access contributing to revenue growth according to Ericsson?

Fixed Wireless Access utilizes mobile broadband assets and is especially beneficial in underserved regions, with connections expected to exceed 300 million in six years.

What key early use cases for 5G are mentioned in the report?

Enhanced Mobile Broadband and Fixed Wireless Access are highlighted as the main early use cases driving demand and revenue in 5G.

What is the potential market for 5G subscriptions based on the report?

Around 80% of consumers in the top 20 5G markets have yet to adopt 5G subscriptions, indicating significant potential for future revenue growth.