Telcos pursuing 5G growth in eMBB, FWA, differentiated connectivity and innovation: Ericsson study, ET Telecom

NEW DELHI: With economic conditions under pressure, global carriers are increasing their focus on 5G in areas such as enhanced mobile broadband (eMBB), fixed wireless access (FWA), differentiated connectivity solutions and ecosystem innovation. announced that it is pursuing business growth through generation or 5G networks. The results of Ericsson’s study were published Thursday.

“We are seeing positive momentum in the deployment and uptake of 5G around the world, including the exploration of new services and business opportunities,” Ericsson said, adding that the industry is facing intense competition and rising mobile subscription rates to 100% amid tightening financials. % or more is a characteristic. situation, a sharp increase in inflation, and an increase in the cost of operating and maintaining the network.

“Economic conditions are putting pressure on profit margins, forcing service providers to find new ways to drive profitable growth,” Ericsson said in the Mobility Report Business Review 2024 study. Stated.

Despite these challenges, global mobile services revenue grew by about 15% from 2020 to 2023, or about 4.6% annually, Ericsson said. “This is a significant trajectory change following years of declining service revenue.”

Additionally, the study found that the global upward trend in average revenue per user (ARPU) indicates “robust demand” for communications services. We found that global ARPU has grown at a CAGR of 1.7% annually since 2020. It notes that this is because the mix of prepaid and postpaid subscribers is likely to change, with the proportion of high-end postpaid subscribers increasing from 33% to 36%. . % During the period.

Another growth driver for the industry is expansion into FWA, which has accounted for an estimated 20-25% of recent revenue growth, Ericsson said. “Additionally, 5G brings cost efficiencies by reducing energy consumption and helping service providers manage increasing amounts of data traffic, which is essential for profitable growth.”

According to the survey results, 290 5G networks have been launched around the world, of which more than 40 carriers are offering services based on 5G Standalone (SA) technology.

At the same time, Ericsson said the number of 5G subscribers worldwide has reached 1.6 billion, representing 18% of all mobile subscribers.

“While the first steps on the 5G value journey have been taken, we are still in the early stages. Looking back, we can see how the introduction of 4G, along with the global device ecosystem, laid the foundation for the app economy and what we see today. Find out how mobile broadband businesses have become possible. Leveraging the evolving capabilities of 5G networks to create new value pools will help service providers achieve profitable growth. is essential,” said Fredrik Jedling, Executive Vice President and Head of Networks at Ericsson.