More than 1 billion people will have access to 5G coverage by the end of 2020 globally

Ericsson (NASDAQ: ERIC) projects that four out of every ten mobile subscriptions in 2026 will be 5G. This forecast is included in the latest edition of the Ericsson Mobility Report. Current 5G uptake in subscriptions and population coverage confirms the technology as deploying the fastest of any generation of mobile connectivity. The report estimates that by the end of 2020, more than 1 billion people – 15 percent of the world’s population – will live in an area that has 5G coverage rolled out. 220 million global 5G subscriptions are also expected by the end of this year.

In 2026, 60 percent of the world’s population will have access to 5G coverage, with 5G subscriptions forecast to reach 3.5 billion, estimated to account for more than 50 percent of mobile data traffic at that time. In South East Asia and Oceania, 5G is predicted to be the second most popular technology in 2026, only behind LTE, surpassing 380 million subscriptions and accounting for 32 percent of all mobile subscriptions.

Jerry Soper, Head of Ericsson Indonesia, says: “In South East Asia and Oceania, total mobile data traffic continues to grow steadily with a compound annual growth rate (CAGR) of 33 percent for the forecast period. It is expected to reach 32EB per month in 2026, equivalent to 33GB per month per smartphone. Growth in mobile data consumption has translated into more diversified and generous data plans from mobile operators across different geographies.  For Indonesia, 5G will be critical for service providers to be able to efficiently manage this huge growth in data traffic as well as enable them to enhance existing digital services and use cases like video streaming, sports streaming, mobile gaming and smart home services.”

The Ericsson Mobility report highlights why 5G success will not be limited to coverage or subscription numbers alone. Its value will also be determined by new use cases and applications, the first of which have already started to emerge.

According to the new Harnessing the 5G Consumer Potential report from Ericsson ConsumerLab, the 5G consumer market could be worth USD 31 trillion by 2030 globally, with communications service providers (CSPs) earning USD 3.7 trillion of that total – a figure that could increase further as new adjacent digital services opportunities arise.

In South East Asia, India and Oceania, the report estimates that CSPs could earn USD 297 bn in 5G-enabled consumer revenues by 2030. 79% of the total service provider 5G digital services revenue, estimated at 7.5B USD by 2030, will be driven by enhanced video and HiFi music. 5G digital services include video, music, gaming, augmented/virtual reality and consumer IoT services.

Meanwhile the 5G Business potential study for Indonesia illustrates the revenue potential of a large-scale ICT-driven transformation across industry verticals that can enable digitalization revenues of 44.2 bn by 2030, of which 39% will be 5G-enabled value. Of the total 5G enabled value, up to 47% or about 8.2 bn is addressable by operators.

 “5G deployment in Indonesia will play an important role in creating consumer and enterprise revenues for service providers, as well as support the government’s digital transformation agenda. At Ericsson, we are committed to developing Indonesia’s mobile technology ecosystem through our world-leading 5G solutions. However, the implementation and full benefits of 5G can only be realized for Indonesia with spectrum availability and establishment of a solid ecosystem, in which technology, regulatory, and industry partners all have a part to play,” Jerry stated.

The second half of this year has seen a number of commercial 5G launches in South East Asia and Oceania with live networks now in Australia, New Zealand and Thailand. Upcoming spectrum auctions planned for 2021 in countries like Malaysia will bring additional 5G deployments next year.

Download the November 2020 edition of the Ericsson Mobility Report.

Find out more about Ericsson’s 4G and 5G Fixed Wireless Access

Download the Harnessing the 5G Consumer Potential report.

Webinar: register and join us for the related November 18 Harnessing the 5G Consumer

Potential webinar.

Related links:
Ericsson ConsumerLab: The Voice of the Consumer
Ericsson: 5G for Consumers
Ericsson Mobility Report: June 2020
Ericsson ConsumerLab: 10 Hot Consumer Trends 2030
Ericsson ConsumerLab: 5G Consumer Potential 2019

Connectivity in a COVID-19 world (Ericsson ConsumerLab study)
Ericsson’s publicly announced 5G contracts
Ericsson 5G

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FOR MORE INFORMATION, PLEASE CONTACT:

Ignes Messyta,

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Ericsson enables communications service providers to capture the full value of connectivity. The company’s portfolio spans Networks, Digital Services, Managed Services, and Emerging Business. 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