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Ericsson Mobility Report: Key Insights on 5G Business Transitions

The latest Ericsson Mobility Report, released in November 2024, reveals transformative trends in mobile networks, particularly the growing significance of 5G Standalone (5G SA) and 5G Advanced. Communications Service Providers (CSPs) are increasingly pivoting towards performance-based business models, emphasizing value delivery over mere volume.

Growing Demand for 5G Connectivity

The report projects that by the end of 2030, global mobile network data traffic will rise significantly, averaging an impressive growth rate of nearly 200% from current figures. Interestingly, 5G subscriptions are anticipated to be a driving force with projections estimating 6.3 billion global 5G subscriptions by that time, with more than half expected to be 5G SA. This growth reflects the broader trend where 5G networks will increasingly support 80% of total mobile data traffic by 2030, a significant increase from 34% by 2024.

Despite a projected year-on-year growth decline in mobile data traffic—estimated at 21% for 2024—the overall traffic volume remains set to triple by the end of the decade. CSPs that prioritize creating value through differentiated connectivity are seen as frontrunners in tapping into emerging monetization strategies.

CSP Case Studies from T-Mobile and Elisa

The report includes insightful case studies highlighting the steps taken by early-adopter service providers. For example, T-Mobile in the United States has begun to leverage network slicing, moving from experimental phases to real-world implementations. This approach allows T-Mobile to offer tailored experiences based on customer needs, ensuring uninterrupted, high-end connectivity when required most.

Another case study from Elisa in Finland demonstrates the deployment of premium Fixed Wireless Access (FWA) services integrated with 5G SA technology. This model aligns with the rising demand for speed-based tariff plans, enhancing customer satisfaction and retention.

The Potential of AI in Mobile Networks

Furthermore, the report discusses the potential impact of Artificial Intelligence, particularly with the rise of generative AI applications. These tools, already utilized across a range of devices including smartphones and smartwatches, could significantly contribute to mobile traffic growth, overtaking current growth predictions.

Regional Developments and FWA Growth

Geographically, the momentum for FWA continues to rise. By the report’s conclusion, nearly 80% of the forecasted 350 million global FWA connections by 2030 are expected to run over 5G. Regions like Western Europe have shown rapid growth in FWA services, with 52% of CSPs now offering speed-based plans compared to just 32% a year prior.

Future of 5G and Transition to 6G

The era of 5G is not merely about enhanced capabilities but marks a transition to high-performing, programmable networks. The anticipated first deployments of 6G technology, projected for 2030, will capitalize on upgrades provided by 5G SA and Advanced networks, similarly enhancing service differentiation and performance opportunities.

In conclusion, Ericsson's November 2024 Mobility Report showcases the telecommunications industry's strategic evolution towards service differentiation based on performance rather than just bandwidth. As CSPs embrace these changes, focusing on innovative, value-driven technologies will be key to future growth. The full report offers a wealth of data and case studies, serving as a crucial resource for stakeholders in the telecommunications sector.