- 190 million 5G subscriptions forecast by end of 2020; 2.8
billion by the end of 2025
- Digital infrastructure critical to meeting communication needs
in times of crisis
- Fixed wireless access (FWA) connections forecast to reach
close to 160 million, and account for 25 percent of global mobile
network data traffic by end of 2025
KISTA, Sweden, June 16, 2020 /PRNewswire/ -- Ericsson (NASDAQ:
ERIC) expects the global number of 5G subscriptions to top 190
million by the end of 2020 and 2.8 billion by the end of 2025.
These forecasts are included in the June
2020 edition of the Ericsson Mobility Report, along with
projections for data traffic growth and regional subscriptions.
The report also takes an incisive look at the role of networks
and digital infrastructure in keeping societies running and
families connected during the COVID-19 pandemic.
Fredrik Jejdling, Executive Vice President and Head of Networks,
Ericsson, says: "The spread of COVID-19 has prompted people all
over the world to change their daily lives and, in many cases, work
or study from home. This has led to a rapid shift of network
traffic from business to residential areas. The latest Ericsson
Mobility Report shows that mobile and fixed networks are
increasingly playing a bigger part of critical national
infrastructure."
While 5G subscription growth in some markets has slowed as a
result of the pandemic, this is outweighed by other markets where
it is accelerating, prompting Ericsson to raise its year-end 2020
forecast for global 5G subscriptions.
"Beyond measuring the success of 5G in subscriptions, its impact
ultimately will be judged by the benefits it brings to people and
enterprises," Jejdling adds. "5G was made for innovation and this
crisis has highlighted the true value of connectivity and the role
it can play in restarting economies."
Value of digital infrastructure
Changes in behavior due to lockdown restrictions have caused
measurable changes in the usage of both fixed and mobile networks.
The largest share of the traffic increase has been absorbed by
fixed residential networks, which has experienced a 20-100 percent
growth. But many service providers also noticed a spike in demand
on their mobile network.
In a recent study conducted by Ericsson Consumer Lab, 83 percent
of the respondents from 11 countries claim that ICT helped them a
lot to cope with the lockdown. The results show an increased
adoption and usage of ICT services, such as e-learning and wellness
apps, that have helped consumers adapt to new realities,
underpinned by connectivity.
Looking ahead, while 57 percent say they will save money for
financial security, one-third plan to invest in 5G and an improved
broadband at home to be better prepared for a potential second wave
of COVID-19.
FWA takes an expanded role
FWA connections are forecast to reach nearly 160 million by end
of 2025 - totaling about 25 percent of global mobile network data
traffic. At the end of 2019, global FWA data traffic was estimated
to have been around 15 percent of the global total. It is now
projected to grow nearly 8 fold to reach 53 exabytes in 2025,
representing 25 percent of the global total mobile network data
traffic.
FWA delivered over 4G or 5G is an increasingly cost-efficient
alternative for providing broadband and several factors are driving
the FWA market: demand from consumers and businesses for digital
services along with government-sponsored programs and
subsidies.
Download the June 2020 edition of
the Ericsson Mobility Report
The report also includes forecasts on data traffic growth,
regional subscriptions plus insights into cloud-based gaming as
well as in-depth articles on private dedicated networks and
Verizon's millimeter wave strategy for targeted metropolitan
areas.
Ericsson now has more than 93 commercial 5G agreements or
contracts with unique communication service providers, of which 40
are live networks.
NOTES TO EDITORS:
Connectivity in a COVID-19 world (Ericsson ConsumerLab
study)
How networks are adapting to the new normal (Ericsson Blog
post)
Find out more about Ericsson's other publicly announced 5G
contracts.
Find out more about Ericsson 5G.
Find out more about Ericsson's 4G and 5G Fixed Wireless
Access.
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About Ericsson
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 and is
designed to help our customers go digital, increase efficiency and
find new revenue streams. Ericsson's investments in innovation have
delivered the benefits of telephony and mobile broadband to
billions of people around the world. The Ericsson stock is listed
on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com
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