The U.S. and Canada are among the world leaders in 5G deployment, driven by carriers’ ambitious rollout plans and strong consumer demand for new services, but the recent buildout of large-scale 5G networks has led to spending is expected to start a downward trend. GSMA research shows that carriers are turning their attention to generating return on investment.
The research by the global mobile industry trade association, to be released in conjunction with the MWC Las Vegas event, focuses on the trends shaping the mobile ecosystem now and beyond, and predicts the market in the coming years. points out that the main focus is: The next few years will see us working to improve his 5G coverage in sparsely populated areas, while also supporting the growing momentum behind the use cases enabled by 5G Standalone (SA) and 5G-Advanced. We also plan to strengthen our investments.
There are great reasons to do so. The report clearly shows that 5G connectivity is already proving to be a powerful driver of GDP growth, with 5G’s contribution to GDP in North America expected to exceed $200 billion by 2030. This is expected to represent 16% of the total annual economic impact of mobile in the region.
GSMA says that beyond its contribution to GDP, the mobile ecosystem directly and indirectly supports 2.1 million jobs, will raise $130 billion through taxes in 2022, and will contribute significantly to public sector financing. He said he was making a contribution. GSMA says spectrum availability is a key driver of affordable 5G for all and highlights the importance of stakeholders taking appropriate steps to maintain the impact of mobile services on the digital economy did.
And as 5G rolls out, the monetization imperative will grow even more. According to GSMA research, his average mobile revenue per unit in the US and Canada increased in his 12 months after the launch of 5G. Beyond mobile services, this technology is positively impacting North American carrier revenue growth, as evidenced by fixed wireless access (FWA) momentum in the region.
Looking ahead, the GSMA said it expects the enterprise sector to be the main growth driver for carriers. 5G SA brings a number of new features that will be critical to monetizing your 5G investment, including improved support for network slicing. There are also synergies between 5G SA and private wireless networks, opening up new opportunities for mobile operators.
Regarding the specific industries that the report specifically highlighted for growth, the GSMA observed that there are significant opportunities in the fintech sector, where demand is rapidly increasing. Survey data shows that between 2020 and 2022, the percentage of U.S. 4G/5G smartphone users who regularly use their devices for financial services will increase from 2020 to 2022, including mobile banking, online shopping, and billing. Payments, contactless services overall increased by an average of 4 percentage points. payment.
According to the GSMA, this reflects the growing momentum in digital financial services amid increasing competition in the fintech market. As an example, he cited Apple’s launch of the BNPL (Buy Now, Pay Later) service, which is expected to contribute to the promotion of e-commerce. Apple also launched a high-yield savings account through a partnership with Goldman Sachs, which reportedly brought in $990 million in deposits in the first four days. By the end of the first week, around 240,000 accounts were said to have been opened.
In terms of technologies to watch, the report unsurprisingly mentions the rise of generative AI, which it says is pushing the boundaries of AI capabilities and pushing AI technologies into boardroom conversations around the world. . The report states that by using generative AI tools, operators are attempting to automate more complex customer service functions that require a deeper understanding of context, improved ability to track conversations, and greater integration of information. It adds that it can be done.
The report also said the past few years have been pivotal for development and commercialization, with eSIM momentum building, with Apple launching an eSIM-only smartphone in the US and Canada in September 2022.
The report notes that carrier eSIM deployment and commercial launches are accelerating, even though eSIM awareness among consumers remains limited. As the main points of contact with users, carriers and smartphone manufacturers are said to play an important role in accelerating consumer awareness and adoption.
Additionally, eSIM technology has long been considered a key enabler and facilitator of Internet of Things (IoT) deployments across multiple sectors.
