5G connections to break billion barrier in 2022 | Mobile | News | Rapid TV News
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A study from research firm Omdia is forecasting that global 5G subscriptions will soar from 540 million connections at the end of 2021 to 1.3 billion by the end of 2022.
VISTA report 31March2022 Rap
In a presentation at the 5G Forum in Seville, Omdia senior director Maria Rua Aguete, said even though 5G was still in its infancy, representing just 5% of all mobile connections, 5G mobile service revenues are set for rapid growth over the coming few years. The study calculated that 5G will account for almost three-fifths of global mobile service revenues in 2026, accounting for 40% of subscriptions by volume.

Growth was being driven by rapid adoption of 5G devices and higher spending by 5G customers as they increase their usage of data and digital services. “We are expecting that by 2026 40 % of all mobile subscriptions will be 5G, totalling 4.8 billion,” she said. “Furthermore, annual 5G mobile service revenues are expected to reach $540.01bn worldwide by 2026, representing 60% of global mobile revenues. The growth in 5G mobile service revenues will drive overall mobile service revenues to $911.61 billion globally in 2026, up from $798.57 billion in 2019.”

China was the leading territory for 5G in 2021 with 357 million subscribers, followed by the US, Japan, South Korea and the UK. In terms of percentage of population with 5G connections, then this would make South Korea leader with more than 40% of the population having a 5G connection. South Korea was followed by Hong Kong at 39% and China at 30 %. In the UK only 8% of the population had a 5G connection.

Even though direct evidence of the impact of 5G on ARPU was still fragmented, Omdia observed that as 5G SIM penetration remains low in many markets and Covid restrictions are lifted/re-introduced. To respond to this, the analysis suggested that telcos should provide a strategy that makes 5G attractive to its users and that it is extremely likely that 5G will have an overall positive effect. 5G-based streaming video was pinpointed as one of the key drivers for consumers to take 5G plans.

Aguete concluded by recommending that telcos look to bundle-rich 5G apps and services to drive demand and satisfy consumer user-needs for more advanced connectivity. She noted that telcos that had previously not engaged with 5G were those which had most frequently added a new pricing model as “data tiers,” simply by adding extra data allowances to cater for a new or wider audience. While “speed tiers” also gained momentum in 2021, only 10 % of operators offering 5G have added 5G-rich services to their bundle during 2021.