Daily Management Review

Sweden's Ericsson Forecasts Rise In 5G Subscriptions By Year End To 220 Million


Based on its expectations of a faster than expected demand a d sale in the Chinese market, Swedish telecom company Ericsson increased its forecast for the current year for 5G mobile subscriptions to reach at least 220 million.
The company expects that the demand and sale form consumers in the Chinese market will account for almost 90 per cent of its newly forecast total, said the telecoms equipment making giant on Monday after having previously forecast subscriptions of up to 190 million by the end of the current year.
"What has fuelled the growth is China, and that is driven in itself by a strong strategic national focus on 5G in China," Head of Networks Fredrik Jejdling told the media.
With the novel coronavirus pandemic playing the role of a catalyst for rapid change, 2020 had seen society take a "big leap towards digitalization", noted Ericsson in its biannual Mobility Report while also highlighting the impact that high end connectivity has had on the daily lives of people across the world.
Jejdling said that by the end of the current year, it is expected that about 15 per cent of the total global population, equivalent to 1 billion people would be present in an area that would be covered by 5G networks.
By the end of 2026, the number of 5G subscriptions will be at 3.5 billion, the company forecast which would be equivalent to more than 50 per cent of mobile data traffic. The company also forecast 5G subscriptions will be found in four out of every 10 mobile subscriptions, the company also noted.
In 2026, about 60 per cent of the global population will have access to 5G coverage, added Ericsson which is the closest competitor for telecom giants such as China's Huawei and Finland's Nokia.
Contracts for supplying of radio equipment for 5G networks have been won by Ericsson has from all three major operators in the Chinese market.
While a fall in demand for 4G and older network equipment has hit the global mobile network industry, the segment has witnessed a return to growth fuelled by higher increased spending for 5G network constructions in North America.
Faster data speeds, in addition to lending support to a large range of connected devices will be provided by this new generation of mobile phone technology.