Transforming Telecoms: Insights from Ericsson's Latest Mobility Report on 5G and Performance Models
The telecommunications landscape is undergoing a significant transformation as we advance towards the end of the decade, with industry leader Ericsson highlighting the pivotal role of 5G Standalone (5G SA) and 5G Advanced in their latest Mobility Report. Published in November 2024, this report anticipates substantial growth in mobile network data traffic, projecting an increase of almost 200% by 2030. This pivotal growth is underscored by the expectation that by the end of this decade, approximately 6.3 billion global 5G subscriptions will exist, with 60% being attributed to 5G SA.
Ericsson’s report emphasizes the potential for communication service providers (CSPs) to move beyond mere data volume and shift towards performance-based business models. Early movers in the market are already establishing value delivery frameworks that ensure high-quality connectivity. “Service differentiation and performance-based opportunities are crucial as our industry evolves,” stated Fredrik Jejdling, Executive Vice President at Ericsson. This shift constitutes not only a change in strategy but also the adoption of high-performing programmable networks, enhancing the capacity of service providers to monetize their services effectively.
Currently, the growth rate of mobile network data is easing, with an estimated growth of 21% year-on-year expected in 2024. However, the report reveals a projected tripling of this data growth by 2030. The emphasis is now on creating differentiated services that guarantee consistent high-end connectivity during critical times, allowing CSPs to tap into new revenue models and growth opportunities. Case studies from T-Mobile in the U.S., Elisa in Finland, and stc in Saudi Arabia illustrate these innovative approaches.
Significantly, Ericsson’s report notes that approximately 30% of global sites currently implement mid-band 5G, particularly outside of China. While about 320 CSPs offer commercial 5G services, less than one-fifth are utilizing 5G SA. Increasing the number of mid-band and 5G SA sites is identified as a crucial factor for unlocking the full potential of 5G, particularly regarding advanced programmable and intelligent network capabilities.
By 2030, it’s expected that 5G networks will account for 80% of total mobile data traffic, a substantial increase from 34% by the end of 2024. Furthermore, Fixed Wireless Access (FWA) is predicted to be the second-largest use case for 5G, which is validated by rapid growth—in the last year, the number of CSPs offering speed-based tariffs for FWA services increased from 30% to 43%. Europe leads with over 73% of global 5G FWA launches recorded in the past year.
The report also highlights how artificial intelligence—including Generative AI applications—integrated into devices like smartphones and laptops, is expected to influence uplink and downlink network traffic. This integration is poised to drive significant growth in mobile traffic, surpassing current forecasts. Fresh statistics predict that global 5G subscriptions will nearly reach 2.3 billion by the end of 2024, making up about 25% of all mobile subscriptions worldwide. Moreover, by 2027, it is anticipated that the number of 5G subscriptions will exceed that of 4G subscriptions.
As the telecom industry anticipates the first deployments of 6G technologies around 2030, there’s a clear trajectory of evolution spurred by 5G SA and advanced capabilities. Ericsson’s comprehensive 40-page report includes valuable case studies and analytics that deliver deep insights into ongoing industry shifts, which is pivotal for stakeholders aiming to keep pace with these developments. The report and forthcoming online seminars hosted by Ericsson offer critical information for anyone interested in the future of telecommunications and its alignment with emerging technologies like AI and high-performance data networks.
In conclusion, Ericsson's latest Mobility Report reveals not just the trends in mobile data growth and technology adoption, but also strikes at the heart of service differentiation and value delivery, which could redefine revenue models for telecommunications companies globally. With the right strategies and infrastructure in place, CSPs can look forward to a promising future in the 5G landscape and beyond.
Ericsson’s report emphasizes the potential for communication service providers (CSPs) to move beyond mere data volume and shift towards performance-based business models. Early movers in the market are already establishing value delivery frameworks that ensure high-quality connectivity. “Service differentiation and performance-based opportunities are crucial as our industry evolves,” stated Fredrik Jejdling, Executive Vice President at Ericsson. This shift constitutes not only a change in strategy but also the adoption of high-performing programmable networks, enhancing the capacity of service providers to monetize their services effectively.
Currently, the growth rate of mobile network data is easing, with an estimated growth of 21% year-on-year expected in 2024. However, the report reveals a projected tripling of this data growth by 2030. The emphasis is now on creating differentiated services that guarantee consistent high-end connectivity during critical times, allowing CSPs to tap into new revenue models and growth opportunities. Case studies from T-Mobile in the U.S., Elisa in Finland, and stc in Saudi Arabia illustrate these innovative approaches.
Significantly, Ericsson’s report notes that approximately 30% of global sites currently implement mid-band 5G, particularly outside of China. While about 320 CSPs offer commercial 5G services, less than one-fifth are utilizing 5G SA. Increasing the number of mid-band and 5G SA sites is identified as a crucial factor for unlocking the full potential of 5G, particularly regarding advanced programmable and intelligent network capabilities.
By 2030, it’s expected that 5G networks will account for 80% of total mobile data traffic, a substantial increase from 34% by the end of 2024. Furthermore, Fixed Wireless Access (FWA) is predicted to be the second-largest use case for 5G, which is validated by rapid growth—in the last year, the number of CSPs offering speed-based tariffs for FWA services increased from 30% to 43%. Europe leads with over 73% of global 5G FWA launches recorded in the past year.
The report also highlights how artificial intelligence—including Generative AI applications—integrated into devices like smartphones and laptops, is expected to influence uplink and downlink network traffic. This integration is poised to drive significant growth in mobile traffic, surpassing current forecasts. Fresh statistics predict that global 5G subscriptions will nearly reach 2.3 billion by the end of 2024, making up about 25% of all mobile subscriptions worldwide. Moreover, by 2027, it is anticipated that the number of 5G subscriptions will exceed that of 4G subscriptions.
As the telecom industry anticipates the first deployments of 6G technologies around 2030, there’s a clear trajectory of evolution spurred by 5G SA and advanced capabilities. Ericsson’s comprehensive 40-page report includes valuable case studies and analytics that deliver deep insights into ongoing industry shifts, which is pivotal for stakeholders aiming to keep pace with these developments. The report and forthcoming online seminars hosted by Ericsson offer critical information for anyone interested in the future of telecommunications and its alignment with emerging technologies like AI and high-performance data networks.
In conclusion, Ericsson's latest Mobility Report reveals not just the trends in mobile data growth and technology adoption, but also strikes at the heart of service differentiation and value delivery, which could redefine revenue models for telecommunications companies globally. With the right strategies and infrastructure in place, CSPs can look forward to a promising future in the 5G landscape and beyond.
Topics Telecommunications）
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