Ericsson: 5G Boosts Cellular Telecommunication Operators’ Revenues

Ericsson a few days ago shared a number of highlights fromEricsson Mobility Report newest. Ericsson Mobility Reportitself contains various projections and analyzes of the latest trends in the cellular industry. The study uses data from various sources, both from other parties and fromEricsson. According toEricsson, based on Ericsson Mobility Report latest, 5G globally developing rapidly. Development 5G it was faster than 4G in the beginning. Apart from that, ability 5G higher than 4G, allows 5G presents a variety of new usage models, as InfoKomputer conveyed at here. As a result,Ericsson believes 5G can help cellular telecommunication operators to increase their revenue.

“This year we are starting to see that 5G actually starting to be built in different parts of the world. And you know, we estimate that by the end of this year, 1 billion people will have access to 5G, in one way or another, ”said Jerry Soper (Head of EricssonIndonesia). “When we look at 5G, so today about 15% of the world’s population has access 5G and in 2026 it will increase to 60%, “he added.

Not only the growth in coverage alias coverage 5G fast, Ericsson also predicts customer growth 5G fast. Based onEricsson Mobility Report November 2020, Ericsson believes that by the end of 2020 there will be as many as 220 million subscribed accounts 5G. EricssonIt also predicts that this number will increase to 3.5 billion in 2026. The growth of subscribed accounts is faster than 4G in the beginning. For comparison, based on estimatesEricsson, 5G You will get 500 million subscribed accounts in about half of 4G.

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Likewise with the amount of data passing by. According toEricsson Mobility Report newly released, in 2020, 5G accounts for 3.8% of total global mobile data. However, by 2026, the share is believed to increase to around 54%. In other words, by 2026, 5G will deliver more data than 4G and come first. The global data total is 51 EB in 2020 and is believed to increase to 226 EB in 2026. Video itself remains the largest share with 66% in 2020 and is predicted to be 77% in 2026.

Meanwhile, for the potential revenue of cellular telecommunications operators, Ericsson estimate there is a market 5G with respect to consumers globally with a cumulative value, from 2021 to 2030, of US $ 3.7 trillion for mobile telecommunications operators. According to the GSMA, the amount of revenue from cellular globally for the telecommunications industry in 2019 is US $ 1.03 trillion. However, this value is an overall value, not just consumers , and its annual growth is only around 1% until 2025, aka it can be said to be stagnant. It’s different from the market 5G amounting to only US $ 14 billion in 2020, is predicted to be US $ 324 billion in 2025, and is estimated to be US $ 712 billion in 2030.

In terms of ARPU ( average revenue per user ) obtained by cellular telecommunication operators,Ericsson also believe 5G may increase ARPU over 4G even later 5G is plural – the subscription price is reasonable 5G has gone down, unlike now which is still premium. Ericsson also trust the increase in ARPU on offer 5G will be higher if cellular telecommunication operators adopt a proactive strategy. With a proactive strategy that offers a variety of new services, 5G could offer an ARPU of US $ 9.61 by 2030, 34% higher than a passive strategy that offers commodity-only voice and data. ApproxEricsson will ARPU have to offer 5G with a proactive strategy it is higher than the ARPU offered by 4G at this time which is around US $ 7 and is believed to continue to fall.

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Other than that, Ericsson found that about 50% of first-time mobile telecom operators offered 5G in an area succeeded in increasing its market share. This first mover advantage also applies to the previous 3G and 4G, but the portion is smaller, aka less than 50%. This emphasizes the importance of cellular telecommunication operators to offer as soon as possible 5G, especially over time cellular subscribers will of course switch to 5G.

As for the potential revenue for cellular telecommunications operators from non-consumer alias businesses ,Ericssonspecifically shares its estimates for Indonesia. According to studiesEricsson, there’s a market 5G in relation to business of US $ 8.2 billion for mobile telecommunication operators in Indonesia by 2030. The manufacturing industry is believed to be the largest contributor with US $ 1.77 billion, followed by industry related to energy and utilities with US $ 1.43 billion. In order for this potential to be realized, the first step is of course the frequency spectrum allocation 5G by the Government of Indonesia. Something that is still being prepared.