GCC to have second-highest 5G subscriptions by 2026

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MANAMA: With 62 million 5G subscriptions by 2026, the GCC will be the second-highest in the world in adoption of the latest mobile network technology, a new report forecasts.

The 20th edition of the Ericsson Mobility Report also projects that nearly three-quarters of all mobile subscriptions in the Gulf region at that time will be 5G, noting that service providers in the GCC were among the first in the world to launch commercial 5G services in 2019.

As of mid-2020, 5G subscriptions in the Gulf countries had already passed 500,000, although 4G remained the dominant technology, accounting for about 80pc of subscriptions at the end of 2020.

In speedtest results from Ookla, 5G networks throughout the region have average download speeds six to 10 times greater than 4G.

GCC service providers are using 5G network performance as a key to differentiation in a highly competitive market, the report says.

According to the Swedish telecommunications giant, the significance of 5G in the region goes beyond the number of subscriptions for consumers, as 5G technology will also bring new capabilities allowing operators to develop innovative applications, services, and revenue streams for the enterprise market. New 5G applications and services are expected to have a profound impact on a range of industry verticals.

The GCC countries’ economies have been highly dependent on petroleum and related services. However, due to price volatility and in anticipation of peak oil, in recent years there has been a growing governmental focus on diversifying economies to reduce oil dependence.

In Bahrain, emerging technologies such as artificial intelligence (AI), biotechnology, material sciences and robotics have been identified as particularly promising areas to drive economic growth, and the focus has been on creating an effective ecosystem to foster innovation through those technologies.

A consequence of this is the prevalence of government-sponsored digital initiatives aimed at promoting technological innovation.

In 2026, 80pc of total mobile data traffic in the GCC countries is forecast to be carried by 5G networks, the report says.

Globally, 5G mobile subscriptions will exceed 580m by the end of 2021, driven by an estimated one million new 5G mobile subscriptions every day.

The forecast enhances the expectation that 5G will become the fastest adopted mobile generation and about 3.5 billion 5G subscriptions and 60pc 5G population coverage are expected by the end of 2026.

The network technology is expected to surpass a billion subscriptions two years ahead of the 4G LTE timeline for the same milestone.

More than 300 5G smartphone models have already been announced or launched commercially.

This commercial 5G momentum is expected to continue in coming years, spurred by the enhanced role of connectivity as a key component of post-Covid-19 economic recovery.

North East Asia is expected to account for the largest share of 5G subscriptions by 2026, with an estimated 1.4bn 5G subscriptions.

While North American and GCC markets are expected to account for the highest 5G subscription penetration, with 5G mobile subscriptions comprising 84pc and 73pc of all regional mobile subscriptions respectively.

Fredrik Jejdling, executive vice president and head of networks at Ericsson, said: “This landmark twentieth edition of the Ericsson Mobility Report shows that we are in the next phase of 5G, with accelerating roll-outs and coverage expansion in pioneer markets. Now is the time for advanced use cases to start materialising and deliver on the promise of 5G. Businesses and societies are also preparing for a post-pandemic world, with 5G-powered digitalisation playing a critical role.”

The Covid-19 pandemic is accelerating digitalisation and increasing the importance of – and the need for – reliable, high-speed mobile broadband connectivity.

More than 90pc of mobile subscriptions in the Gulf region were for mobile broadband at the end of 2020 and this is estimated to reach 95pc in 2026, shows Ericsson analysis.

It has also emerged that smartphone users made up 82pc of total subscribers in GCC at the end of 2020, second only to North East Asia and comparable to North America and that the Gulf led the world in monthly data traffic per smartphone, exceeding 18GB at the end of 2020.

avinash@gdn.com.bh

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