Maria Rua Aguete
Omdia reveals that 540 million 5G connections were reached at the end of 2021 and it expects more 5G subscriptions to be added in 2022 than in three years since the technology was launched commercially (2019), reaching + 1.3 billion in 2022.
OMDIA Senior Director Maria Rua Aguete speaking at 5G Forum in Seville, Spain commented “Although 5G is still in its infancy, representing just 5% of all mobile connections, 5G mobile service revenues are set for rapid growth over the coming few years, driven by rapid adoption of 5G devices and higher spending by 5G customers as they increase their usage of data and digital services.
We are expecting that by 2026 40 % of all mobile subscriptions will be 5G, totalling 4.8bn. Furthermore, annual 5G mobile service revenues are expected tor each $540.01bn worldwide by 2026, representing 60% of global mobile revenues. The growth in 5G mobile service revenues will drive overall mobile service revenues to $911.61bn globally in 2026, up from $798.57bn in 2019.”
WHO LEADS THE 5G RACE?
China leads in 2021 with 357million subscribers, followed by USA, Japan and South Korea. UK is in the 5th place with more than 9million 5G connections. However, if we look at percentage of population with 5G connections then South Korea is ahead as more than 40% of the population has a 5G connection. South Korea is followed by Hong Kong at 39% and China at 30 %.In the UK only 8%of the population has a 5G connection.
Regarding 5G monetization and increase in ARPU, Aguete said that although that direct evidence of the impact of 5G on ARPU is still fragmented, as 5G SIM penetration remains low in many markets and COVID restrictions are lifted/re-introduced; telcos should provide a strategy that makes 5G attractive to its users and that it is extremely likely that 5G will have an overall positive effect. Omdia understands that gaming, streaming video, AR and VR are some of the key drivers for consumers to take 5G plans.