By the year 2030, 5G networks are projected to handle approximately 80% of the global mobile traffic.
Bustin' the 5G Scene in the GCC: No Place Like the Future
By the end of the decade, we're in for a wild ride with 5G Standalone (5G SA) and 5G Advanced taking center stage as communications service providers (CSPs) race to unleash a new wave of value-driven offerings. And guess who's at the forefront? Yup, you guessed it: the Gulf Cooperation Council (GCC)! Let's dive into the scoop from the latest Ericsson Mobility Report, dished out in November 2024.
The report, covering the forecast period up to 2030, estimates a 21% year-on-year growth in mobile network traffic data, even though the rate is on a downturn. But fear not, by the end of 2030, we’re still looking at almost a tripling of the present day numbers.
So what's the big deal about the GCC? Well, 5G networks are predicted to gobble up about 80% of the global mobile data traffic by the end of 2030, up from a humble 34% in 2024. The GCC countries are expected to leap from a 34% 5G subscription penetration in 2024 to a jaw-dropping 93% by 2030! Now, that's some impressive adoption, right?
Western Europe isn't far behind, projected to hit 92% 5G penetration, and North America isn't too shabby either, eyeing a 91% rate. So, when it comes to 5G prowess, the GCC is in the driver's seat.
Why is this happening? The GCC region, characterized by high mobile penetration, urbanization, and strong consumer purchasing power, is packing a solid punch. Its economic outlook remains strong, with sectors like tourism, technology, and renewable energy fueling growth.
In the telecom industry, traditional telcos are morphing into tech companies, thanks to the 5G rollout, paving the way for advanced services, such as AI, cloud solutions, factory automation, and content delivery - with network slicing being crucial for those delicious services. A high-performance network, application programming interfaces (APIs), and a vibrant developer community are set to drive growth till 2030.
By 2030, mobile subscriptions in the GCC countries are forecasted to grow at a steady 3%, landing at a whopping 95 million. By the end of the decade, a staggering 93% of all subscriptions are expected to be 5G, amounting to 88 million 5G enthusiasts. Ain't that progress?
Nicolas Blixell, Vice President and Head of GCC Countries at Ericsson Middle East and Africa, shared his two cents, stating, "5G Standalone and 5G Advanced will play a pivotal role in shaping the future of mobile networks, particularly in regions like the GCC, where high mobile penetration and urbanization are pushing the demand for advanced connectivity."
He also emphasized that these technologies will enable programmable networks, AI connectivity-driven use cases, creating new avenues for growth and innovation. But remember, for all that to happen, CSPs must embrace these advancements and unleash the true might of 5G, powering digital transformation and improving consumer-technology interaction.
Currently, out of the 320 CSPs offering commercial 5G services worldwide, only around 20% are 5G Standalone (SA). However, by the end of 2030, approximately 60% of the staggering 6.3 billion global 5G subscriptions are projected to be 5G SA subscriptions.
5G Standalone isn't the only player in the game; Fixed Wireless Access (FWA) is picking up steam as the second most popular use case for 5G, following Enhanced Mobile Broadband (eMBB).
The report showcases how early adopter CSPs are already implementing value delivery models based on differentiated connectivity— think guaranteed top-notch connectivity whenever you need it most—creating lucrative new monetization and growth opportunities.
The report also sheds light on the potential impact of AI, including Generative AI Applications, on uplink and downlink network traffic, potentially driving mobile traffic growth far beyond current projections.
Other notable statistics in the report include the prediction that global 5G subscriptions will hit close to 2.3 billion by the end of 2024, accounting for a quarter of all global mobile subscriptions. By 2027, 5G subscription numbers are expected to surpass the global 4G user base.
The first 6G deployments are slated for 2030, building upon and amplifying the capabilities of 5G Standalone and 5G Advanced. Keep your eyes peeled for the online seminars Ericsson will host on Tuesday, December 3, at 09.00 (CET) and 18.00 (CET). Read the full November 2024 Ericsson Mobility Report over at IoT Now for all the details.
Data-and-cloud-computing technologies are anticipated to significantly contribute to the growth of the telecom industry in the GCC region as advanced services like AI and cloud solutions become more prevalent, driven by the 5G rollout. The high-performance networks enabled by 5G and the vibrant developer community are expected to be key factors in driving growth in the GCC until 2030.
Technology advancements, such as network slicing, programmable networks, and AI connectivity-driven use cases, will be crucial for the delivery of these services in the GCC, shaping the future of mobile networks and enabling new avenues for growth and innovation.
