Azanis Shahila Aman
KUALA LUMPUR: Ericsson expects global 5G mobile subscriptions to surpass one billion in 2022, helped by higher adoption in China and North America.
The Swedish telecom equipment maker said 5G subscriptions grew by 70 million during the first quarter to around 620 million, and that number is expected to surpass one billion by the end of this year.
It said a weaker global economy and the uncertainties caused by Russia's invasion of Ukraine lowered its estimate for 2022 by around 100 million.
"Currently, North America and North-East Asia have the highest 5G subscription penetration, followed by the Gulf Cooperation Council countries and Western Europe.
"In 2027, it is projected that North America will have the highest 5G penetration at 90 per cent.
"By the end of 2027, we forecast 4.4 billion 5G subscriptions globally, accounting for 48 per cent of all mobile subscriptions," the company said in its biannual Mobility Report.
Ericsson head of Malaysia, Sri Lanka and Bangladesh David Hagerbro said there are about 15 commercial 5G mobile networks in the region, which indicates the strong 5G momentum in the region.
Hagerbro said that with the 5G network now rolling out in the country and the service available for consumers, it would be interesting to see how Malaysia contributes to the growth in the region and leverages the new possibilities it offers.
"5G is a platform for open innovation, and it will play a strategic role in building up Malaysia's competitiveness in the region, which cannot be delayed," he said in a LinkedIn post on Tuesday.
Following its launch in 2009, 5G subscription uptake is faster than 4G, reaching one billion subscriptions two years sooner than 4G did.
According to the report, in Southeast Asia and Oceania, 5G subscriptions were around 15 million at the end of 2021 and are expected to more than double during 2022.
"5G offerings are also picking up speed with nearly 40 per cent of all service providers surveyed offering unlimited data under their premium packages, while in Southeast Asia, service providers have made add-on packs an integral part of the subscription selection process," it said.
Meanwhile, the report also highlighted that 5G subscription uptake is faster than that of 4G following its launch in 2009, reaching one billion subscriptions two years sooner than 4G did.
It said key factors include the timely availability of devices from several vendors, with prices falling faster than for 4G and China's large, early 5G deployments.
"Subscriptions for 4G continue to increase, growing by 70 million during the quarter to around 4.9 billion.
"The technology is now projected to peak at 5 billion this year, then decline to around 3.5 billion by the end of 2027 as subscribers migrate to 5G," it added.
