Thursday 21 March 2019
 
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SPECIAL REPORT

Ibrahim: Uptake in 5G subscriptions is expected to be faster
than for previous generations

5G to reach 30m subscriptions in MEA by 2024: study

DUBAI, 20 days ago

5G is expected to reach 30 million subscriptions for enhanced mobile broadband in the Middle East and Africa (MEA) by the end of 2024, representing 2 per cent of total mobile subscriptions, said Ericsson in a new report.

This will make 5G the fastest generation of cellular technology to be rolled out on a global scale, according to the new MEA edition of the Ericsson Mobility Report.

Key drivers for 5G deployment include increased network capacity, lower cost per gigabyte and new use case requirements. The majority of the 5G subscriptions in the MEA are expected to come from advanced ICT markets like the GCC countries Saudi Arabia, UAE and Qatar while in Africa, considerable momentum is building up in South Africa.

From a mobile data traffic point of view, the region is globally the highest with nine times growth forecast (1.8 to 15.4EB/month from 2018 to 2024) and mobile broadband subscriptions to double (860 million to 1.63 billion from 2018 to 2024).

The MEA region’s telecom market is characterized by increasing uptake of LTE and there is a high usage of apps. Therefore, significant growth is expected in data consumption together with large mobile broadband subscription addition.

Economic recovery to drive investment in ICT

Economies in the Mena region have shown signs of recovery in 2018 and are expected to grow by 3.9 per cent in 2019 as oil exporters benefit from the improved outlook for oil prices.

In Sub-Saharan Africa, gross domestic product (GDP) growth is expected to show a similar upward trend, supported by rising commodity prices and improvement of the investment environment in large economies such as Nigeria and South Africa.

Continued economic growth in the region, coupled with a young population, favourable policies and lower cost devices will drive investment in the telecoms sector, increasing uptake of ICT services.

Demand for high-speed networks

LTE subscriptions will have the highest growth at 23 per cent Compound Annual Growth Rate (CAGR) between 2018 and 2022, driven by increased mobile communications service provider investment in 4G networks as well as rising usage of data-intensive mobile services in the region.

The combination of increasing usage of mobile video applications on higher resolution screens and better network throughputs will lead to a rise in the data traffic per active smartphone from 2.9GB per month in 2018 to 15GB per month in 2024, a CAGR of around 30 per cent.

5G business opportunity:

5G promises numerous opportunities besides enhanced mobile broadband, such as:

– Fixed Wireless Access (FWA)
– VR, AR and advanced media services
– Safety and security
– Industrial automation

The first wave of 5G introduction in the Middle East and Africa targets the FWA segment where operators utilize it as an alternative to fiber, with quick time to market, as well as being an additional revenue stream. However, for the full 5Gpotential, large-scale rollout and to achieve long-term success, two main areas need to be addressed, namely spectrum availability and use case development.

Mobile service providers need considerable support from regulators to carve out enough spectrum in existing mid and low bands. On the other hand, high band and mmWave spectrum is needed for addressing ultra-low latency cases like automation, AR and remote monitoring.

Rafiah Ibrahim, head of Ericsson Middle East and Africa, said: “With connectivity at the heart of industry transformation, cellular technologies have a significant role to play – not just in the evolution of communication but in the transformation of businesses and societies.

“As 5G now hits the market, its coverage build-out and uptake in subscriptions is expected to be faster than for previous generations. At the same time, cellular IoT continues to grow strongly. As networks mature and ecosystems evolve, service providers need to become increasingly agile to achieve the goal of profitable growth.”

The Mobility report also features articles on migration to new technology, cellular IoT connectivity, the road to 5G and challenges ahead. – TradeArabia News Service




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