Connect with us

Technology

Ericsson Mobility Report Business Review Edition: 5G Drives Revenue Growth

  • Communications Service Providers in Top 20 5G markets enjoying revenue growth
  • Enhanced Mobile broadband and Fixed Wireless Access proving popular early use cases
  • Cloud gaming, enterprise and industrial deployments gaining momentum

New research from the Ericsson (NASDAQ: ERIC) Mobility Report team provides encouraging evidence for communication service providers (CSPs) worldwide by identifying a correlation between 5G uptake and revenue growth.

Flattening revenues have been a challenge for service providers in all parts of the world, often impacting network investment decisions as part of their business growth strategies, known as ‘monetization’ in the industry.

A special Ericsson Mobility Report edition – called the Business Review edition – addresses these monetization opportunities as they relate to 5G.

The report highlights a positive revenue growth trend since the beginning of 2020 in the top 20* 5G markets – accounting for about 85 percent of all 5G subscriptions globally – that correlates with increasing 5G subscription penetration in these markets.

The report finds:

  • Tiered pricing models are key for service providers, both for effectively addressing the individual needs of each customer and for continuing to drive long-term revenue growth.
  • The top 20 5G markets have seen a significant network performance boost following the introduction of 5G services.
  • After a period of slow or no growth, wireless service revenue curves are again pointing upwards in these leading markets. This correlate with 5G subscription penetration growth.

Fredrik Jejdling, Executive Vice President and Head of Networks, Ericsson, says: “Meeting our customers’ challenges is at the heart of our R&D efforts and every resulting product we develop. The link between 5G uptake and revenue growth in the top 20 5G markets underlines that not only is 5G a game changer, but that early adopters benefit. What is particularly encouraging about this is that while 5G is still at a relatively early phase, it is growing fast with proven early use cases and a clear path to medium and long-term use cases.”

As expected, Enhanced Mobile Broadband (eMBB) is the main early use case for 5G, driven by increasing geographical coverage and differentiated offerings. More than one billion 5G subscriptions are currently active across some 230 live commercial networks globally. 5G eMBB offers the fastest revenue opportunities for 5G, as it is an extension of service providers’ existing business, relying on the same business models and processes. Even in the top 20 5G markets, about 80 percent of consumers have yet to move to 5G subscriptions – one pointer to the potential for revenue growth.

As highlighted in the November 2022 Ericsson Mobility Report, Fixed Wireless Access (FWA) is the second biggest early 5G use case, particularly in regions with unserved or underserved broadband markets. FWA offers attractive revenue growth potential for CSPs as it largely utilizes mobile broadband assets. FWA connections are forecast to top 300 million within six years.

Beyond consumer subscribers, there are growing opportunities in enterprise and public sector applications across the world.

5G enables significant value for enterprises, with private 5G networks and wireless wide area networks being deployed for enterprise and industrial use.

Upgrading existing 4G sites to 5G has the potential to realize increases of 10 times in capacity and reduce energy consumption by more than 30 percent, offering the possibility of growing revenue and lowering costs, while addressing sustainability.

Jejdling adds: “Revenue growth and sustainability are recurring themes in my discussions with customers. In this special Ericsson Mobility Report edition, we have explored how service providers are tapping 5G opportunities. We see initial signs of revenue growth in advanced 5G markets with extensive coverage build-out and differentiated service offerings. An equally crucial aspect of 5G is that it brings cost advantages and helps service providers handle the data growth needed to drive future revenue. This can make 5G the growth catalyst that the market has been waiting for.”

Read the full Ericsson Mobility Report Business Review Edition report here.

*Note: The markets categorized as the Top 20 5G markets in the report are: Australia, Bahrain, China, Denmark, Finland, Hong Kong, Ireland, Japan, Kuwait, Monaco, Norway, Qatar, Saudi Arabia, Singapore, South Korea, Switzerland, Taiwan, the UAE, the UK and the US.
They were selected on the basis of 5G subscription penetration. These markets represent 85 percent of all 5G subscriptions globally – with each market having 5G penetration above 15 percent.

ABOUT ERICSSON:
Ericsson enables communications service providers to capture the full value of connectivity. The company’s portfolio spans the business areas Networks, Cloud Software and Services, Enterprise Wireless Solutions, and Technologies and New Businesses. It is designed to help our customers go digital, increase efficiency and find new revenue streams. Ericsson’s innovation investments have delivered the benefits of mobility and mobile broadband to billions of people globally. Ericsson stock is listed on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com

Source – Ericsson

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending

Travel1 year ago

Brewing Excellence’ – Emirates offers a world class range of coffee to connoisseurs

Celebrating International Coffee Day on 1 October, Emirates highlights the wide array of artisan coffee served in Emirates lounges and...

Travel1 year ago

Emirates’ Premium Economy to extend to São

Premium Economy to be introduced on Emirates’ A380 service to São Paulo from 19 November, representing the first in Emirates’...

Finance1 year ago

Metro Bank Women’s Team of The Year Announced

Best domestic XI selected by PCA MVP Rankings, powered by Argentex Georgia Adams captains the 2023 Metro Bank PCA Women’s...

Auto1 year ago

Honda and Acura Electric Vehicles Will Have Access to Largest EV Charging Networks in North America Aided by New Agreements with EVgo and Electrify America

New agreements add single-app access to EVgo and Electrify America charging networks, plus roaming partners, through the HondaLink® and Acura...

Technology1 year ago

Oracle Partners with TELMEX-Triara to Become the Only Hyperscaler with Two Cloud Regions in Mexico

Oracle opens new region in Monterrey in partnership with Teléfonos de México (TELMEX-Triara) and continues expanding its global cloud region...

Education1 year ago

Cosmic Web Lights Up in the Darkness of Space

Like rivers feeding oceans, streams of gas nourish galaxies throughout the cosmos. But these streams, which make up a part...

Technology1 year ago

75% of Companies Struggling with IT Operational Challenges in a Hybrid World

HP Inc. (NYSE: HPQ) announced the findings of a new commissioned study, conducted by Forrester Consulting, highlighting the need for...

Finance1 year ago

Visa Program Combats Friendly Fraud Losses For Small Businesses Globally

Visa Inc. (NYSE:V), a world leader in digital payments, spotlighted the evolution of its dispute program, making it easier for...

Food and Beverage1 year ago

New study measures the coca-cola system’s u.s. Economic contributions at $57.8 billion in 2022

In the United States, The Coca‑Cola Company and 64 independently owned bottlers, collectively the Coca‑Cola system, contributed $57.8 billion in...

Finance1 year ago

Court approves ANZ and ASIC settlement relating to credit card cash advance fees being charged in some circumstances

Further to a release on 30 May 2022,[1] ANZ announced that the Federal Court of Australia has approved its agreement...

Translate »
Exit mobile version