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Ericsson Mobility Report

November 2020

Subscriptions Critical IoT Co-written article with AT&T


In 2026, 3.5 billion 5G Time-critical services for The challenges of 2020 have put
subscriptions are forecast, consumers, as well as enterprises, FirstNet, the US’s dedicated first
accounting for 40 percent will be enabled when Critical IoT responder network built and
of all mobile subscriptions is introduced with 5G networks managed by AT&T, to the test
2 Introduction

Letter from the publisher

5G is here and happening Contents


This year will go down in history as one which saw widespread
global disruption, caused by a pandemic that has shaken every Forecasts
economy and significantly impacted everyday life. It has been a 04 Mobile subscriptions outlook
big strain on everyone, no matter where in the world you live. 06 Regional subscriptions outlook
While countries may have differed in their approaches to 08 Fixed wireless access outlook
containing the virus, all face a future with irreversible changes 10 5G device outlook
in the ways that we live and work. In retrospect, 2020 will 11 Voice and communication
probably also be known as the year when society as a whole services trends and outlook
took a giant leap forward in our digitalization journey. 12 Mobile network traffic Q3 2020
The fundamental need for good connectivity is a 13 Mobile data traffic outlook
cornerstone for this change, clearly visible in this edition of 15 IoT connections outlook
the Ericsson Mobility Report as the demand for capacity and 16 Time-critical communications
coverage of cellular networks continues to grow. 5G is no longer with 5G
just a novelty. Instead it is entering the next phase, when many 17 Network coverage
new devices and end-user applications make the most out of
the technological benefits it provides, while communications
service providers worldwide continue the build-out of 5G. Articles
By the end of this year over 1 billion people, or 15 percent of the 18 2020: the ultimate
world’s population, will live in 5G coverage areas. stress-test for FirstNet
2020 has also proven to be an exceptional year for cellular 22 The networked
networks used for public safety applications. Together with AT&T, industrial enterprise
we have looked into how FirstNet – the nationwide network 25 Mobile cloud gaming –
deployed to serve first responders in the US – stood up to the test an evolving business opportunity
of this year’s emergencies related to the pandemic, one of the 29 Service providers face three
most active hurricane seasons on record, and severe wildfires. alternative paths to success
As society rapidly changes, it is clear that cellular networks
are a critical infrastructure that will continue to support many
aspects of our everyday life. 32 Methodology
33 Glossary
We hope you find the report engaging and useful! 34 Global and regional key figures

Publisher
Fredrik Jejdling
Executive Vice President and Head of Business Area Networks

Key contributors
Executive Editor: Patrik Cerwall
Project Manager: Anette Lundvall
Editors: Peter Jonsson, Stephen Carson The content of this document is based
Forecasts: Richard Möller on a number of theoretical dependencies
Articles: Peter Jonsson, Steven Davis, Peter Linder, and assumptions. Ericsson shall not be
Amir Gomroki, Ali Zaidi, Anders Carlsson P, bound by or liable for any statement,
Miljenko Opsenica, Ida Sorlie, representation, undertaking or omission
Sebastian Elmgren, Greger Blennerud, made in this document. Furthermore,
Harald Baur, Ritva Svenningsson, Ericsson may, at any time, change the
Brian Heath contents of this document at its sole
Co-authors: Jim Bugel, Suja John, Stacy Schwartz, discretion and shall not be liable for the
AT&T (US) consequences of such changes.
3 Introduction Ericsson Mobility Report  |  November 2020

3.5bn 200 The speed of introducing

1bn
Fixed wireless access (FWA) new functionality in 5G
is on the rise – 200 service devices is accelerating.
5G subscriptions are forecast providers have now
Page 10
to reach 3.5 billion in 2026. launched FWA services.
By the end of 2020,
Page 8
5G population coverage Page 4
is estimated to reach
15 percent, equivalent
to over 1 billion people.
Page 17

69%
20ms
Fast, multiplayer interaction
Today, 69 percent of
quality-led service
providers have launched
5G for smartphones
commercially.
games require 20–30ms
end-to-end network latency, Page 29
with very high reliability in both

1.7m
uplink and downlink.
Industry 4.0 can
bring forth smarter Page 25
enterprises and
a more inclusive,
As of Q3 2020, 1.7 million interconnected world.
connections are served Page 22
across the US by FirstNet –
built and managed by AT&T.
Page 18
4 Forecasts Ericsson Mobility Report  |  November 2020

Mobile subscriptions outlook

A total of 220 million 5G subscriptions


are expected by the end of 2020.

The spread of COVID-19 continues to We have increased our estimate for the compared to LTE, as well as the earlier
impact all parts of society. Despite the number of 5G subscriptions2 at the end of availability of devices from several
uncertainty caused by the pandemic, 2020, and now forecast 220 million. This is vendors. By the end of 2026, we forecast
service providers continued to switch mainly due to a faster uptake in China than 3.5 billion 5G subscriptions globally,
on 5G and more than 100 have now previously expected, driven by a national accounting for around 40 percent of all
announced commercial 5G service strategic focus, intense competition between mobile subscriptions at that time.
launches.1 The first 5G standalone (SA) service providers and more affordable 5G LTE will remain the dominant mobile
networks have also been launched. smartphones from several vendors. For access technology by subscription over
The net addition of mobile subscriptions North America, our forecast remains the forecast period. During Q3 2020, LTE
was low during Q3 2020 – 11 million. unchanged. Currently, North East Asia is subscriptions increased by approximately
This is likely due to the pandemic and the region with the highest 5G subscription 70 million to reach a total of around
associated lockdown restrictions. For the penetration. However, in 2026 it is 4.5 billion, equaling 57 percent of all
long term, the mobile subscriptions outlook estimated that North America will be mobile subscriptions. It is projected to
has been slightly adjusted downwards, the region with the highest share of peak in 2021 at 4.8 billion subscriptions
as multiple and inactive subscriptions are 5G subscriptions at 80 percent. and decline to around 3.9 billion
being removed. We now forecast 8.8 billion Over the forecast period, 5G subscription subscriptions by the end of 2026
mobile subscriptions by the end of 2026. uptake is expected to be significantly as more subscribers migrate to 5G.
5G subscriptions with a 5G-capable faster than that of 4G (LTE), following
device grew by around 50 million during its launch back in 2009. Key factors are
the quarter to reach around 150 million. China’s earlier engagement with 5G

Figure 1: Mobile subscriptions by technology (billion)


10

3.5bn
8.8
billion
9
7.9
billion
8

In 2026, 3.5 billion 5G subscriptions


7
are forecast.
6
5G
5
LTE (4G)
WCDMA/HSPA (3G)
4
GSM/EDGE-only (2G)
3 TD-SCDMA (3G)
CDMA-only (2G/3G)
2

1
Note: IoT connections are
not included in this graph.
0 Fixed wireless access (FWA)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 connections are included.

1
Ericsson and GSA (October 2020).
2
A 5G subscription is counted as such when associated with a device that supports New Radio (NR),
as specified in 3GPP Release 15, and is connected to a 5G-enabled network.
5 Forecasts Ericsson Mobility Report  |  November 2020

Figure 2: Comparison of 5G and 4G subscriptions uptake in the first years of deployment (billion)
3.5

5G subscription uptake is expected


3 to be significantly faster than for 4G.

2.5 5G (2018–2026)
4G (2009–2017)

1.5

0.5

0
0 1 2 3 4 5 6 7 8
Years since deployment

Subscriptions for mobile broadband This number is forecast to reach 7.5 billion
projected at 91 percent in 2026 in 2026, which will account for around
Today, there are around 7.9 billion mobile 85 percent of all mobile subscriptions
subscriptions. We estimate that this figure at that time. Subscriptions for fixed
will increase to 8.8 billion by the end of broadband are expected to show limited
2026, out of which 91 percent will be growth of around 4 percent per year
for mobile broadband. The number of through 2026.3 Subscriptions for mobile
unique mobile subscribers is projected to be PCs and tablets are expected to show
6.4 billion by the end of the forecast period. moderate growth, reaching around
Smartphone penetration continues to 450 million in 2026.
rise, and subscriptions associated with
smartphones account for about 75 percent
of all mobile phone subscriptions. At the
end of 2020, it is estimated there will be
6.1 billion smartphone subscriptions.

Figure 3: Subscriptions and subscribers (billion)


9
Mobile subscriptions
Mobile broadband subscriptions
8
Mobile subscribers
Smartphone subscriptions
7
Fixed broadband subscriptions
Mobile PC and tablet subscriptions
6

0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

3
 he number of fixed broadband users is at least three times the number of fixed broadband connections due to shared
T
subscriptions in households, enterprises and public access spots. It is the opposite for mobile phones, where subscription
numbers exceed user numbers. FWA subscriptions are not part of the fixed broadband subscription estimate.
6 Forecasts Ericsson Mobility Report  |  November 2020

Regional subscriptions outlook

Mobile broadband subscriptions currently make


up 81 percent of all mobile subscriptions.

Figure 4: Mobile subscriptions by region and technology (percent)

2020 2026 2020 2026 2020 2026 2020 2026 2020 2026 2020 2026 2020 2026 2020 2026 2020 2026
15% 5% 30% 15% 59% 26% 63% 27% 42% 32% 51% 35% 9% 66% 4% 80% 5G
81% 68%
30% 89% LTE (4G)
83%
WCDMA/HSPA (3G)
51%
GSM/EDGE-only (2G)
56% 63% TD-SCDMA (3G)
59%
63% CDMA-only (2G/3G)
41%

41% 37%
32% 29%

20% Note: Technologies with


less than 1 percent of
subscriptions are not
shown in the graph.
Sub-Saharan Middle East Latin America India South East Central and North East Western North
Africa and North Africa Asia and Eastern Asia Europe America
Oceania Europe

Sub-Saharan Africa Middle East and North Africa Latin America


In Sub-Saharan Africa, mobile In the Middle East and North Africa region, In Latin America, LTE remains the dominant
subscriptions will continue to grow over around 30 percent of mobile subscriptions radio access technology during the
the forecast period as mobile penetration, are estimated to be for LTE at the end of forecast period, accounting for 59 percent
at 84 percent, is less than the global 2020. The region is anticipated to evolve of subscriptions at the end of 2020 and
average. LTE is estimated to account for over the forecast period, and by 2026, a predicted 56 percent in 2026. A steady
around 15 percent of subscriptions by almost 80 percent of subscriptions are decline in WCDMA/HSPA is forecast as
the end of 2020. Over the forecast period expected to be for mobile broadband, users migrate to LTE and 5G, falling from
mobile broadband1 subscriptions are with LTE as the dominant technology with 30 to 11 percent. To date, Brazil and
predicted to increase, reaching 76 percent more than 50 percent of the subscriptions. Colombia have launched commercial
of mobile subscriptions. While 5G and Commercial 5G deployments with 5G services, and other countries such as
LTE subscriptions will continue to grow leading service providers have taken Argentina, Chile and Mexico are investing
over the next 6 years, HSPA will remain place here during 2019 and 2020 and in and deploying 5G. By the end of 2026,
the dominant technology with a share of 5G subscriptions will reach close to 5G is set to make up 26 percent of
over 40 percent in 2026. Driving factors 1.4 million by the end of 2020, with most in mobile subscriptions.
behind the growth of mobile broadband the Gulf countries. Significant 5G volumes
subscriptions include a young, growing are expected in 2021 and the region is India
population with increasing digital skills likely to reach around 130 million 5G In the India region, LTE subscriptions are
and more affordable smartphones. Over subscriptions in 2026, representing around forecast to increase from 710 million in
the forecast period, discernible volumes 15 percent of total mobile subscriptions. 2020 to 820 million in 2026, increasing at
of 5G subscriptions are expected from a compound annual growth rate (CAGR)
2022, reaching 5 percent in 2026. of 2 percent. LTE remains the dominant
technology in 2020, accounting for
63 percent of mobile subscriptions.

1
Mobile broadband includes radio access technologies HSPA (3G), LTE (4G), 5G, CDMA2000 EV-DO, TD-SCDMA and Mobile WiMAX.
7 Forecasts Ericsson Mobility Report  |  November 2020

The technology will continue to be Central and Eastern Europe

80%
dominant, representing 63 percent of mobile In Central and Eastern Europe, LTE is the
subscriptions also in 2026, with 3G being dominant technology and now accounts
phased out by that time. 5G will represent for 51 percent of all subscriptions.
around 27 percent of mobile subscriptions in To date, more than 10 5G networks have
India at the end of 2026, estimated at about been commercially launched across the 5G will account for 80 percent
350 million subscriptions. Mobile broadband region. In 2026, LTE will remain the of North American mobile
technologies accounted for 67 percent of dominant technology and is expected to subscriptions in 2026.
mobile subscriptions in 2020, and this figure account for 63 percent of mobile
is predicted to reach 91 percent by 2026, subscriptions, while 5G subscriptions are
when the total number of mobile broadband forecast to make up 35 percent. During the 5G subscriptions, and at the close of the
subscriptions is set to reach close to 1.2 billion. forecast period, there will continue to be a forecast period, the 5G subscription
The number of smartphone subscriptions significant decline in WCDMA/HSPA, penetration is projected to reach 66 percent.
has increased to 760 million in 2020 and is from 36 percent to virtually zero, as users
expected to grow at a CAGR of 7 percent, migrate to LTE and 5G. Western Europe
reaching close to 1.2 billion by 2026. Further spectrum auctions in the key In Western Europe, LTE is the dominant
frequency bands like 700MHz, 3.4–3.8GHz access technology, accounting for 81 percent
South East Asia and Oceania and 4.7GHz were planned for the end of of all subscriptions. LTE is predicted to
The second half of the year has seen a 2020 and the beginning of 2021, some decline to 29 percent and WCDMA/HSPA
number of commercial 5G launches in of which have now been delayed. This to only 2 percent of subscriptions in 2026
South East Asia and Oceania with live will have a short-term impact on 5G as subscribers migrate to 5G. Around
networks now in Australia, New Zealand, deployment in affected countries. 35 service providers have launched 5G
Thailand, Singapore and the Philippines. services across the region, delivering
Upcoming spectrum auctions planned for North East Asia services to around 6.5 million subscribers
2021 in countries like Vietnam and Malaysia In North East Asia, 5G deployment has by the end of 2020. Further spectrum
will bring additional 5G deployments been accelerating during 2020 and all auctions in the 700MHz and 3.4–3.8GHz
next year. Though current commercial 5G major service providers in the region have bands were planned during 2020, but some
networks in the region have mostly been now launched 5G commercial services. have now been delayed, which will have
deployed on mid-bands, market interest for In South Korea, 5G network coverage a short-term impact on the deployment
high-band spectrum has driven successful continues to improve, with the goal of and coverage of 5G in the region. The 5G
trials for mmWave in Australia showcasing nationwide coverage in 2021. In China, subscription penetration is projected to
groundbreaking speeds. the top 3 service providers are building reach 68 percent by the end of 2026.
Dynamic spectrum sharing has also out large-scale 5G coverage, and the
been deployed in several countries in the country is estimated to reach 175 million North America
region, enabling mobile operators to quickly 5G subscriptions by the end of 2020. In North America, 5G commercialization is
increase their 5G footprint as rollouts The leading service providers in Japan moving at a rapid pace. Service providers
continue. In addition to mobile broadband have launched commercial 5G services, have already launched commercial 5G
deployments, fixed wireless access (FWA) but expected 5G subscription uptake services, focused on mobile broadband.
adoption is growing strong with live 5G has remained low, impacted by the The introduction of 5G smartphones
networks already launched in Australia postponement of the Tokyo summer sport supporting all three spectrum bands will
and the Philippines. event, as well as COVID-19. However, make 2021 an eventful year for early
In 2026, 5G is predicted to be the second service providers in Japan are now 5G adopters. FWA will play a key role
most popular technology in the region, accelerating 5G deployments, as well as in closing the digital divide where the
only behind LTE, surpassing 380 million dynamic spectrum sharing, and the number pandemic has exposed large gaps for
subscriptions and accounting for more than of subscriptions is expected to grow education, remote working and small
30 percent of all mobile subscriptions. significantly with the increased availability businesses. By 2026, more than 340 million
of 5G-capable devices. 5G subscriptions are anticipated in the
By the end of 2020 the region is region, accounting for 80 percent of
anticipated to have more than 190 million mobile subscriptions.
8 Forecasts Ericsson Mobility Report  |  November 2020

Fixed wireless access outlook

Fixed wireless access (FWA) connections are forecast to grow more


than threefold and reach over 180 million by the end of 2026, accounting
for around 25 percent of total mobile network data traffic globally.

Service providers offering FWA on the rise of 64 percent globally. Service providers’
It is well accepted by now that the adoption of FWA offerings has doubled Definition of FWA
COVID-19 pandemic is accelerating since the first measurements in A connection that provides primary
digitalization, as well as increasing the December 2018 compared to October 2020. broadband access through wireless
importance of, and need for, fast and reliable Looking at the regional breakdowns, wide area mobile network enabled
home broadband connectivity. FWA is, in there is growth across all regions since customer premises equipment (CPE).
many cases, the quickest alternative for February 2020, except Asia-Pacific. This includes various form factors
service providers to meet this demand. Western Europe has the highest FWA of CPEs, such as indoor (desktop
In October 2020, Ericsson updated its adoption at 93 percent, with North America and window) and outdoor (rooftop
study of FWA retail packages offered by second at 80 percent. Central Europe, and wall mounted). It does not
service providers worldwide. Out of the Latin America and North America all grew include portable battery-based
311 service providers studied, 200 had an around 10 percentage points during the Wi-Fi routers or dongles.
FWA offering, which represents an average period of February to October 2020.

Figure 5: Global number of service Figure 6: Regional percentage of


providers offering FWA service providers offering FWA

Feb 20 growth attributable to an enlarged base Dec 18 Aug 19 Feb 20 Oct 20

200
200 58%
Middle 56%
185 East and
39%
Africa
33%

93%
West 89%
150 Europe 67%
141 49%

Central 72%
and 62%
Eastern 52%
Europe 29%
103
100
48%
Asia- 48%
Pacific 36%
30%

47%
50 Latin 38%
America 29%
18%

80%
North 70%
America 70%
50%
0
Dec 18 Aug 19 Feb 20 Oct 20
FWA offerings 0 10 20 30 40 50 60 70 80 90 100
9 Forecasts Ericsson Mobility Report  |  November 2020

Figure 7: FWA connections

200 5G FWA connections


4G and other technology FWA connections

150
Connections (million)

100

50

0
2019 2020 2021 2022 2023 2024 2025 2026

Figure 8: Mobile data and FWA traffic

300 FWA traffic


Mobile data traffic

200
Traffic (EB/m)

100

0
2019 2020 2021 2022 2023 2024 2025 2026

FWA global connections uptake FWA data traffic is estimated to represent 5G FWA connections, representing
In addition to the need driven by the around 15 percent of global mobile 12 percent of their fixed broadband
pandemic, there are three main factors network data traffic by the end of 2020. connections as of Q2 2020.
that drive FWA growth. First, demand This is projected to grow 7 times to reach FWA is projected to grow more than
from consumers and businesses for digital 67EB in 2026, accounting for around threefold, reaching around 35 million
services continues, driving the need for 25 percent of total mobile network data connections by 2026 and representing
broadband connectivity. Second, FWA traffic globally. around 35 percent of all broadband
delivered over 4G or 5G is an increasingly connections in the region.
cost-efficient broadband alternative in FWA Middle East and Africa
areas with limited availability of fixed connection uptake FWA in the broadband context
services, such as DSL, cable and fiber. Middle East and Africa is a region with There are approximately 2 billion
Increasing capacity, allowed by greater limited broadband connectivity. We households in the world. By the end
spectrum allocations and technology estimate that there will be around 65 million of 2019, approximately 1.2 billion
advancements for 4G and 5G networks, broadband connections by the end of 2020, (60 percent) had a fixed broadband
is driving higher network efficiency in representing a total household penetration connection, and by the end of 2026 this
terms of the cost per delivered gigabyte. of around 18 percent. Out of these will reach approximately 1.5 billion
Third, governments are fueling broadband broadband connections, FWA is estimated (around 70 percent). FWA will then
connectivity through programs and to represent around 20 percent. represent 12 percent of all fixed broadband
subsidies, as it is considered vital for There are several examples of connections. However, it is worth
digitalization efforts and economic growth. service providers in this region that are mentioning that FWA is also seen as a
The limited reporting from service successful in meeting the large demand replacement option for around 300 million
providers and regulators of FWA for broadband connectivity. To give one existing DSL connections.
connections, combined with varying example, a leading service provider in The FWA impact in society is larger
FWA definitions, results in differences Turkey experienced 3.5 times growth from than the number of FWA connections, as it
in the reported number of connections Q2 2019 to Q2 2020, with the FWA user brings connectivity to three to five people
globally. However, we estimate there will base reaching 0.5 million connections in a household depending on regional
be more than 60 million FWA connections in July 2020. demographics. The forecast of over
by the end of 2020. This number is forecast Most of the FWA offerings in this 180 million FWA connections by the end
to grow more than threefold through 2026, region are 4G based. However, in the of 2026 represents approximately
reaching over 180 million. Out of these, Middle East, there is a growing number 650 million individuals having access
5G FWA connections are expected to of 5G FWA offerings, complementing the to a wireless broadband connection.
grow to more than 70 million by 2026, 4G FWA offerings. For instance, a leading
representing around 40 percent of service provider in Oman showed a
total FWA connections. 171 percent annual growth in 4G and
10 Forecasts Ericsson Mobility Report  |  November 2020

5G device outlook

The introduction of New Radio (NR)


functionality is accelerating.

5G adoption is growing in momentum mmWave CA on NR


in both the network and device domains: Increased competition in the mmWave In NSA, the first level of aggregation is
• over 150 5G device models space has led to the first devices with a provided by combining an LTE with an
launched commercially, retail price around USD 400. With more NR bearer. The next step is combining
including iOS-capable devices competition in the chipset arena there two or more NR carriers. This feature
• many devices supporting 5G frequency will also be new entry models for devices will provide a significant increase in time
division duplex (FDD), most capable supporting these frequency bands. More division duplex (TDD) coverage. Mobile
of dynamic spectrum sharing (DSS) than five top-tier smartphone vendors broadband data rates can thereby be
• first standalone (SA) network launches now have mmWave-capable phones. further boosted where additional TDD
in Asia and North America Additionally, the fixed wireless access (FWA) spectrum is available. This functionality
• first chipsets and devices with NR use case has been strengthened by has been matched by a fast introduction
carrier aggregation (CA) capability coverage enhancements in mmWave, of new chipsets which will be utilized
• first 5G-capable devices with retail both on devices and on the network. by device vendors.
prices at USD 300 for sub 6GHz
outside China and USD 400 for a device Non-standalone (NSA) The 5G device ecosystem is broadening
with mmWave support in the US is no longer standing alone Availability of different device price tiers and
• new device chipsets for mmWave 5G SA networks have now been launched operating systems is crucial for 5G adoption
spectrum bands will lower the in North America and China. Devices have and now iOS users can also enjoy 5G. Chipset
price points for these devices been upgraded via software updates vendors are competing for the volume
to enable SA capabilities in applicable market with more and more attractive
2020 is the year of new NR functionality markets. Since networks can serve both chipset models for mass device deployments.
During 2020 the pace of 5G introductions NSA and SA users in the same cell, devices The first 5G smartphone outside of China
has accelerated, with many network can choose between NSA and SA access. to reach the USD 300 price point has
developments including: It is expected that deployed NSA and SA emerged and it is expected that in 2021
• the introduction of FDD bands will coexist for several years. some devices will even undercut that level.
for improved 5G coverage
• commercialization of SA Figure 9: 5G technology market readiness
• deployment of DSS both for
NSA and SA to share LTE and
First half 2019 Second half 2019 First half 2020 Second half 2020 2021
5G on the same carrier
• deployment of CA, combining
Sub 6GHz FDD
two NR carriers in the downlink
– both for SA and NSA
Spectrum Sub 6GHz TDD

mmWave

NSA
DSS
SA

CA Sub 6GHz CA

NSA
Architecture
SA

Note: The graph illustrates availability of network functionality, as well as support in devices.
11 Forecasts Ericsson Mobility Report  |  November 2020

Voice and communication


services trends and outlook

VoLTE is the foundation for enabling globally interoperable


voice and communication services on 4G and 5G devices.

Service providers continue to evolve their Figure 10: VoLTE subscriptions by region (billion)
networks to support VoLTE-based services.
These have now been launched in over Latin America North America Europe Middle East and Africa Asia-Pacific 6.9
220 networks in more than 100 countries. billion
7
VoLTE services are being deployed using
cloud technologies to enable cost-efficient
network implementation and operations. 6
The number of subscriptions with
VoLTE-enabled services is estimated
5
to exceed 3 billion at the end of 2020 and
reach 6.9 billion by the end of 2026 and 3.1
account for more than 90 percent of all billion
4
combined LTE and 5G subscriptions.
When 2G and 3G networks are
decommissioned, this will accelerate 3
VoLTE adoption and VoLTE roaming
agreements as the current most used 4G
2
voice solution, Circuit-Switched Fallback
(CSFB), will not work without 2G or 3G.
VoLTE (using IP Multimedia Subsystem, 1
or IMS) is also the foundation for enabling
5G voice calls as well as SMS, rich
communications services (RCS), and new 0
2015 2016 2017 2018 2019 2020 2021 2023 2022 2024 2025 2026
communication services on 5G devices.
IMS is the only standardized voice solution
for 5G, and there is no circuit-switched functionalities, such as improved voice Other VoLTE-based services include
voice fallback. Voice services will be codecs and native video calling. More than additional phone lines on the same
deployed using several solutions in 5G 165 device models support HD Voice+ phone, shared phone lines, enterprise
networks: LTE-NR dual connectivity, (Evolved Voice System, or EVS), collaboration services in combination with
Evolved Packet System fallback and 410 devices support video calling mobile HD voice, and voice for IoT devices.
(EPS fallback) and Voice over New Radio over LTE (ViLTE). All 5G smartphones 5G-related service innovations are being
(VoNR). The first EPS fallback support VoLTE. considered, including combinations with
voice-enabled network went live during A recent service provider market AR and VR. A new 3GPP standardized
the second half of 2020 in North America. offering is smart speakers with voice functionality will enable 5G interactive
End-to-end testing of 5G voice (VoNR) calling capabilities, using the same mobile calling, which combines a 5G voice call with
and 5G video calling with network phone number as that of a smartphone. real-time content sharing, for example joint
infrastructure and the device ecosystem This builds on VoLTE multi-device network web browsing on 5G smartphones, or
has been successfully completed. capabilities which tie several devices, business and enterprise media sharing
such as phones, smartwatches and smart between different devices and endpoints.
Device availability and use case uptake speakers, to the same phone number. Over This could become a mainstream 5G voice
There are 2,880 VoLTE-enabled 4G device 100 service provider networks support service in the future.
models, of which around 85 percent are cellular smartwatches enabled with
phones. Other devices include indoor CPE, voice services. Cellular wearables with
fixed wireless phones, tablet PCs and standalone subscriptions, including voice
smart watches. VoLTE-enabled calling, are being launched for new user
smartphones also have enhanced groups such as kids and seniors.

Note: Source for network and device statistics: Global mobile Suppliers Association (GSA).
12 Forecasts Ericsson Mobility Report  |  November 2020

Mobile network traffic Q3 2020

Mobile network data traffic grew


50 percent between Q3 2019 and Q3 2020.

As in Q2 2020, the year-on-year traffic to normal levels. In many countries, Over the long term, traffic1 growth is
growth rate remained at a more normal mobile traffic is, to a certain extent, still driven by both the rising number of
level, around 50 percent, compared to geographically shifted from public and smartphone subscriptions and an
the extraordinary peak in 2018 and the office locations to homes and remote work increasing average data volume per
first part of 2019. The quarter-on-quarter locations. Some countries have seen an subscription, fueled primarily by more
growth for Q3 2020 was 10 percent. increase in mobile broadband data traffic, viewing of video content. Figure 11 shows
COVID-19 related restrictions, such as while others have experienced a decline total global monthly network data and
lockdowns and constraints on movement, supported by Wi-Fi offload in homes voice traffic from Q1 2014 to Q3 2020,
continue to be reflected in people’s with good fixed broadband connections. along with the year-on-year percentage
communication patterns. However, mobile These traffic patterns could change again change for mobile network data traffic.
traffic and mobility are gradually returning if new waves of COVID-19 occur.

Figure 11: Global mobile network data traffic and year-on-year growth (EB per month)

Circuit-switched voice Data Year-on-year growth

60 100

45 75
Total (uplink + downlink) traffic (EB per month)

Year-on-year growth (percent)

30 50

15 25

0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2014 2015 2016 2017 2018 2019 2020

Note: Mobile network data traffic also includes traffic generated by fixed wireless access (FWA) services.

1
Traffic does not include DVB-H, Wi-Fi or Mobile WiMAX. VoIP is included.
13 Forecasts Ericsson Mobility Report  |  November 2020

Mobile data traffic outlook

In 2026, 5G networks will carry more


than half of the world’s mobile data traffic.

Figure 12: Global mobile data traffic (EB per month)

250

200

150
54%
In 2026, 5G will account
5G for an estimated 54 percent
of total mobile data.
100

50
2G/3G/4G

0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Note: This graph does not include traffic generated by fixed wireless access (FWA) services.

Global total mobile data traffic is estimated Large variations in traffic Close to 1.2 billion smartphone
to reach around 51EB per month by growth across regions subscriptions in India in 2026
the end of 2020 and is projected to Traffic growth can be very volatile between In the India region, the average monthly
grow by a factor of around 4.5 to reach years and can also vary significantly mobile data usage per smartphone
226EB per month in 2026. This figure between countries, depending on local continues to show robust growth, boosted
represents the mobile data that will be market dynamics. We have significantly by the rapid adoption of 4G and people
consumed by more than 6 billion people increased our forecasts for North East Asia working from home during COVID-19.
using smartphones, laptops and a and South East Asia and Oceania, as we The reliance of people on their mobile
multitude of new devices at that time. have seen that the data consumption is networks to stay connected as well as work
Video traffic currently accounts higher than earlier anticipated in from home has contributed to the average
for 66 percent of all mobile data markets with low average revenue per traffic per smartphone user increasing
traffic, a share that is forecast to user (ARPU). In India for example, traffic from 13.5GB per month in 2019 to 15.7GB
increase to 77 percent in 2026. growth continues an upward trajectory per month in 2020. The average traffic per
Smartphones continue to be at and remains the region with the highest smartphone is expected to further increase
the epicenter of this development as monthly usage per smartphone at 15.7GB. to around 37GB per month in 2026.
they generate most of the mobile data Globally, the growth in mobile Low prices for mobile broadband services,
traffic – about 95 percent – today, data traffic per smartphone can be affordable smartphones and increased
a share that is projected to increase attributed to three main drivers: time spent by people online all contribute
throughout the forecast period. improved device capabilities, an increase to monthly usage growth in the region.
Populous markets that launch 5G in data-intensive content and more Total traffic is projected to quadruple,
early are likely to lead traffic growth over data throughput from subsequent reaching 35EB per month in 2026. This
the forecast period. By 2026, we expect generations of network technology. comes from two factors: high growth
that 54 percent of total mobile data in the number of smartphone users,
traffic will be carried by 5G networks. including growth in rural areas, and an
increase in average usage per smartphone.
An additional 390 million smartphone
subscriptions are expected in India
during the forecast period, taking the
total number close to 1.2 billion in 2026.
14 Forecasts Ericsson Mobility Report  |  November 2020

CAGR
Figure 13: Mobile data traffic per smartphone (GB per month) 2020–
Regions 2020 2026 2026
50

North America 11.8 49 27%

45

Western Europe 11.3 46 26%

40

North East Asia 11.1 41 24%

35

India 15.7 37 15%

30

Global average 9.4 34 24%

25

South East Asia 7.6 33 28%


and Oceania
20

Middle East and 6.0 30 30%


North Africa
15

Central and 7.3 29 26%


Eastern Europe
10

Latin America 5.8 29 30%

Sub-Saharan Africa 2.2 8.9 26%

0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

In North America, future monthly GB High growth in monthly mobile data growth rate (CAGR) of 33 percent for the
growth depends on 5G service adoption usage continues in North East Asia forecast period. It is expected to reach
The monthly average usage of mobile Overall, mobile data usage keeps growing 32EB per month in 2026, equivalent
data in North America is expected to reach in North East Asia. Remote working due to 33GB per month per smartphone.
49GB per month and smartphone in 2026. to COVID-19 has been one of the traffic Growth in mobile data consumption
A smartphone-savvy consumer base and drivers during 2020. The monthly usage per has translated into more diversified
video-rich applications in combination smartphone is estimated to reach 11.1GB and generous data plans from mobile
with large data plans will drive traffic by the end of the year, increasing from operators across different geographies.
growth. While there may be strong growth 7.8GB at the end of 2019. With 5G set to Latin America is expected to follow a
in traffic per smartphone in the near term, capture a great number of early adopters, similar trend as South East Asia over the
the adoption of immersive consumer we continue to expect high growth numbers forecast period on a regional level, while
services using VR and AR is expected in the region. In South Korea, a leading individual countries can show very different
to lead to an even higher growth rate in 5G market, average monthly data usage growth rates for traffic per smartphone.
the long term. In 2026, 5G subscription per 5G subscriber is over 25GB. Traffic growth is driven by coverage
penetration is set to be the highest of all The data traffic per smartphone is expected build-out and continued adoption of 4G
regions at 80 percent. to reach 41GB per month in 2026. (and eventually 5G), linked to a rise in
The Western Europe traffic growth The Middle East and North Africa smartphone subscriptions and increases in
rate follows a similar pattern to that region is expected to have the highest average data usage per smartphone. The
expected in North America. The more growth rate during the forecast period, data traffic per smartphone is expected
fragmented market situation is anticipated increasing total mobile data traffic by to reach 29GB per month in 2026.
to lead to later mass-market adoption a factor of almost 7 between 2020 and In Central and Eastern Europe,
of 5G, but in 2026 the traffic usage per 2026. The average data per smartphone is growth is also fueled by 4G and 5G
smartphone is expected to be 46GB expected to reach 30GB per month in 2026. adoption, but the region has a somewhat
per month, which will be close to the Sub-Saharan Africa also has a very higher traffic per smartphone starting
usage in North America at that time. high growth rate, but from a relatively point. Over the forecast period, the monthly
small base, with total mobile data traffic traffic per smartphone is expected to
increasing from 0.87EB per month increase from 7.3GB to 29GB per month.
to 5.6EB in 2026. Average traffic per It is important to bear in mind that
smartphone is expected to reach 8.9GB there are significant variations in monthly
per month over the forecast period. data consumption within regions, with
In South East Asia and Oceania, individual countries and service providers
total mobile data traffic continues to having considerably higher monthly
grow steadily with a compound annual consumption than any regional averages.
15 Forecasts Ericsson Mobility Report  |  November 2020

IoT connections outlook

In 2026, NB-IoT and Cat-M technologies are expected


to make up 45 percent of all cellular IoT connections.

The Massive IoT technologies NB-IoT and for Massive IoT include various types of advanced cloud gaming, and real-time
Cat-M1 continue to be rolled out around meters, sensors, trackers and wearables. coordination and control of machines
the world, but at a slightly slower pace in Broadband IoT mainly includes and processes. Deployment of the first
2020 than previously forecast due to the wide-area use cases that require higher modules supporting Critical IoT use
impact of COVID-19. 2G and 3G connectivity throughput, lower latency and larger data cases is expected in 2021.
still enable the majority of IoT applications, volumes than Massive IoT technologies North East Asia is leading in terms of
but during 2020, the numbers of Massive IoT can support. LTE is already supporting the number of cellular IoT connections.
connections are expected to have doubled, many use cases in this segment. By the At the end of 2020, the region is expected
reaching close to 200 million connections. end of 2026, 44 percent of cellular IoT to account for 64 percent of all cellular
Massive IoT primarily consists of connections will be broadband IoT, with IoT connections, a figure set to increase
wide-area use cases, connecting large 4G connecting the majority. With the to 69 percent by 2026.
numbers of low-complexity, low-cost introduction of 5G New Radio (NR) in old
devices that have long battery life and and new spectrum, throughput data rates IoT devices
relatively low throughput. About 110 service will increase substantially for this segment. The first 5G NR-capable IoT platforms
providers have been identified as having Critical IoT is intended for time-critical have recently been released. Modules
launched NB-IoT and close to 50 as communications in both wide- and from several vendors are available, as
having launched Cat-M. NB-IoT and local-area use cases that require well as tailored platforms for PCs and
Cat-M technologies complement each guaranteed data delivery with specified advanced wearables. In the second half
other, and several service providers have latency targets. Critical IoT will be of 2020 and during 2021, this is expected
launched both technologies. At the end introduced in 5G networks with the to expand to include use cases involving
of 2026, NB-IoT and Cat-M are projected advanced time-critical communication personal and commercial vehicles, cameras,
to account for 45 percent of all cellular capabilities of 5G NR. It will enable industry routers and gaming. Such devices
IoT connections. Cat-M and NB-IoT a wide range of time-critical services will initially support mobile broadband
follow a smooth evolution path into 5G for consumers, enterprises and public capabilities, but performance is expected to
networks, and can continue to be deployed institutions across various sectors. Typical evolve towards time-critical communication
in the same bands as today, even when use cases include cloud-based AR/VR, capabilities where needed, via software
5G is introduced. Commercial devices cloud robotics, autonomous vehicles, upgrades on devices and networks.

Figure 14: Cellular IoT connections by segment and technology (billion) Figure 15: IoT connections (billion)

Broadband IoT and Critical IoT (4G/5G) Massive IoT (NB-IoT/Cat-M) Legacy (2G/3G)
IoT 2020 2026 CAGR
6.0
Wide-area IoT 1.9 6.3 22%
5.0

Cellular IoT2 1.7 5.9 23%


4.0

Short-range IoT 10.7 20.6 12%


3.0

Total 12.6 26.9 13%


2.0

1.0

0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
1
Cat-M includes both Cat-M1 and Cat-M2. Only Cat-M1 is being supported today.
2
These figures are also included in the figures for wide-area IoT.
16 Forecasts Ericsson Mobility Report  |  November 2020

Time-critical
communications with 5G

Critical IoT will be introduced with 5G networks. It will enable a wide range
of time-critical services for consumers, enterprises and public institutions
across various sectors, with 5G public and dedicated networks.

Critical IoT is intended for time-critical Remote control refers to control of indoor and outdoor coverage for a small
applications that demand data delivery machines, equipment, and aerial and geographical area such as a factory, port
within a specified time duration with ground vehicles from a distance. Remote or mine. Confined wide-area deployment is
a certain guarantee; for example data control can improve work environments for a predefined geographical area such as
delivery within 50ms with 99.9 percent by moving humans out of hazardous a highway or within a city center. General
certainty (reliability). This is fundamentally locations and giving access to a broader wide-area deployment is about serving
different from enhanced mobile broadband workforce. It is an important functionality devices almost anywhere.
connectivity, which maximizes data rates for autonomous vehicles, in order to Service providers can start to address
without any guarantee on latency. Early reliably take temporary control in case time-critical use cases (such as the
adoption of time-critical communication the autonomous function fails. entertainment, healthcare, public safety
is expected for remote control and Industrial control includes real-time and education sectors) in the wide
real-time media applications via process monitoring and control, area by adding support for Critical IoT
public and dedicated networks. controller-to-controller communication, connectivity to the NR carriers through
smart grid control, machine vision for upgrades. More stringent requirements
Time-critical communication robotics and motion control. demand network densification, edge
enables new applications Mobility automation refers to the computing, and further distribution and
There are four fundamental time-critical automation of control loops for vehicles duplication of core network functions. In
use case categories that are common and mobile robots. This can include the confined wide area, relatively stringent
across various verticals. automated guided vehicles (AGVs), requirements can be addressed with
Real-time media – time-critical cooperative maneuvering of vehicles investments in infrastructure (for example,
communication enables offloading of and advanced intersection safety. for automotive, railways, and utilities
processing and rendering to the cloud, sectors). In local-area scenarios, extreme
improving the user experience and Network deployment strategy requirements can be supported once the
enabling the use of lightweight devices in depends on coverage needs end-to-end ecosystem is established.
interactive cloud gaming and cloud There are three main network deployment
AR/VR for enterprises and consumers. scenarios. Local-area deployment includes

Figure 16: Time-critical use cases common across various sectors


Deployment scenarios
Local-area
Real-time media Premium experience Cloud rendered AR Confined wide-area
Cloud-assisted cloud-assisted AR Interactive VR General wide-area
Real, virtual
basic AR cloud gaming Media
and combined Cloud gaming production
environments
Industries
Remote control Entertainment
Remote control Remote control Remote control with Automotive
Human control of with video/audio with AR overlay haptic feedback Transportation
machine and vehicles
Healthcare
Industrial control Education
Control to control Machine vision
in production line for robotics Media production
Open- or closed-loop Closed-loop
process control Forestry
control of industrial Process PLC to robot controller Public safety
automation systems monitoring Motion control
Utilities
Smart grid control
Oil and gas
Railways
Mobility automation Cooperative Cloud motion Agriculture
Automated Cooperative maneuvering of vehicles control of AGVs Manufacturing
Automated control container transport AGVs in a
loops for mobile in port production line Machine vision for Collaborative Warehousing
vehicles and robots intersection safety mobile robots
Mining
Ports
10s of ms latency Time-criticality 1ms latency Construction
99% reliability 99.999% reliability
17 Forecasts Ericsson Mobility Report  |  November 2020

Network coverage

5G is estimated to cover 60 percent


of the world’s population in 2026.

Momentum continues in the build-out of There are big differences between Figure 17: World population
4G (LTE) networks. Global 4G population countries in how service providers coverage by technology1
coverage will be over 80 percent at the end have deployed 5G. In the US, all three
of 2020 and is forecast to reach around of these categories have been used, 3GPP
95 percent in 2026. 4G networks are also resulting in 5G coverage for a large part
evolving to deliver increased network of the population. In Europe, countries 2020 ~95%
capacity and faster data speeds. There are such as Germany and Spain have used
currently 795 commercial 4G networks deployments in existing bands to create
2026 >95%
deployed. Of these, 324 have been substantial coverage. China has mainly
upgraded to LTE-Advanced, and deployed new bands to achieve a large
41 Gigabit LTE networks have been population coverage.
commercially launched. LTE
5G estimated to cover around
5G launch and deployment 60 percent of the population in 2026 2020 >80%
as per the end of 2019 There are several global factors impacting
Global 5G population coverage was around the forecast; the most evident short-term
2026 ~95%
5 percent at the end of 2019, with the ones are COVID-19 and the geopolitical
main deployments made in larger cities. situation. The exact impact of these factors
The most extensive coverage build-outs on 5G population coverage remains to
have been in the US, China, South Korea be seen. 5G is still expected to be the 5G
and Switzerland. In South Korea, service fastest deployed mobile communication
providers rapidly built 5G networks that technology in history and is forecast to 2020 ~15%
covered a large part of the population. cover about 60 percent of the world’s
In Switzerland, 5G population coverage population in 2026.
2026 ~60%
reached over 90 percent at the end of 2019.

5G estimated to cover over 1 billion


people by the end of 2020
To date, there have been more than Figure 18: Percentage and number of LTE-Advanced
100 5G commercial launches across the networks supporting various categories of devices
world. The estimated population coverage
by the end of 2020 is approximately 324
15 percent, equivalent to over 1 billion people. 100%
5G coverage build-out can be divided
into three broad deployments: 226
1. New bands in the sub-6GHz range 70%
2. mmWave frequency bands
3. Existing LTE bands
107
33% 76
23% 54
41
17% 12 (4%)
13% 6 (2%)

Cat 4 Cat 6 Cat 9 Cat 11 Cat 15 Cat 16 Cat 18 Cat 19


150Mbps 300Mbps 450Mbps 600Mbps 800Mbps 1Gbps >1.05Gbps >1.2Gbps

Source: Ericsson and GSA (Nov 2020).

1
The figures refer to coverage of each technology. The ability to utilize the technology is subject to factors such as access to devices and subscriptions.
18 Articles Ericsson Mobility Report  |  November 2020

2020: the ultimate


stress-test for FirstNet

A reliable mission-critical network is vital


for successful public safety operations
– saving lives and protecting property.

2020 has proved to be an exceptional must be sufficient to handle worst-case


test year for a nationwide network scenarios and provide high availability and This article was written in cooperation
deployed to serve first responders in the US. reliability as events unfold. Emergencies with AT&T, a market-leading global
This has been triggered by the growth in are growing in complexity, and a shared service provider delivering a range
emergencies related to the pandemic, connectivity network makes it possible for of innovative mobile and fixed-line
one of the most active hurricane seasons on all first responders to effectively coordinate communications-based services
record, and severe wildfires. This article in the field. Between emergencies, the idle to help people, businesses and first
examines the role of FirstNet, the only capacity can be utilized to enhance mobile responders stay connected.
nationwide network purpose-built to serve broadband services for consumers and
first responders, and the broader trend of businesses on the same network.
using mobile broadband networks for public
safety applications. FirstNet is deployed FirstNet was born out of
and operated by AT&T in the US in a 9/11 and ready to serve
first-of-its-kind, public–private partnership. FirstNet is an initiative driven by US
authorities with a history dating back
Public safety authorities embrace cellular to the 9/11 terrorist attack in 2001. The
Public safety authorities worldwide have 2004 after-action report1 of the attack
expressed a need for improving the network identified two critical communication
services used to link first responders in the shortcomings. First, collaboration between
field. To meet this need, they are police, firefighters and paramedics was
increasingly turning to 3GPP-based hindered by communications relying on The law associated with the
solutions due to the capabilities provided by radio systems that were not optimized formation of the FirstNet Authority
4G and 5G, such as the secure and timely to work together. Second, the demand included allocating 20MHz
sharing of data, images and video. for network resources spiked for both of spectrum nationwide and
A broader opportunity for public safety consumers and first responders at the same USD 7 billion to support the build-out
authorities is to improve and harmonize time, saturating networks and impeding of FirstNet. After consulting with
communication capabilities across communications. states, territories, tribal governments
different first responder types. With a In the years after the report’s and public safety agencies at every
3GPP-based interoperable communication release, public safety organizations and level, the FirstNet Authority sought
system like the nationwide public safety associations came together to press to form a public–private partnership
broadband network, cross-functional the US Congress to pass legislation with a nationwide service provider.
communications can effectively be establishing a reliable, dedicated and
established between first responders, national high-speed network for first
different agencies and agencies closely responders. This led to the First Responder
affiliated to first responders, allowing for Network Authority (FirstNet Authority)
more agile responses in emergencies. being created in 2012. The law that
Service providers can add mission-critical established the FirstNet Authority
capabilities to their networks to support required it to consult with federal,
consumers, businesses and first responders, state, tribal and local public safety
all from one network. Networks for public entities to ensure that FirstNet was
safety applications can have very different designed to meet the needs of public
requirements over time. The dimensioning safety across the country.

1
”The 9/11 Commission report” (July 2004).
19 Articles Ericsson Mobility Report  |  November 2020

Figure 19: FirstNet connects the public safety community

Primary Extended community

Police Firefighters Paramedics

Highly secure and interoperable connectivity


– across all public safety authorities and jurisdictions

A communications ecosystem • always-on, 24/7 priority and User experience represents an essential
for public safety preemption across voice and data, part of the vision for FirstNet. Once fully
FirstNet is exclusively for first responders with multiple priority levels that first implemented, the value of the network will
and those who support their vital efforts. responder users can allocate as needed be measured by how much easier it has
This includes law enforcement, emergency to protect communications against become for first responders to focus on
medical services and fire protection commercial traffic congestion their prime task. FirstNet already covers
services, and important supporting services • a nationwide, dedicated fleet of over 99 percent of the US population,
such as emergency (9-1-1) call dispatching, land-based and airborne portable and by mid-2020, the initial FirstNet
government Public Safety Answering Points cell sites to help provide coverage build surpassed 80 percent completion,
and emergency planning and management in remote locations or immediately serving over 1.7 million connections in
offices. Other essential personnel who following a disaster more than 14,000 agencies across the US.
support first responders before, during • mission-centric ruggedized mobile Fortunately, the initial FirstNet build had
and after an emergency can also subscribe devices, applications and features, reached a sufficient level of completion
to FirstNet. These organizations provide including Mission-Critical Push-to-talk, to support the emergencies hitting the
medical care, mitigation, remediation, to complement existing legacy radio US this year.
overhaul, clean-up, restoration, or other networks communication services In addition to the initial USD 6.5 billion
such services during or after an incident. investment allocated by the FirstNet
In 2017, the FirstNet Authority The FirstNet Authority has laid out a Authority for the build-out, AT&T is
selected AT&T to build and manage the comprehensive roadmap based on public investing about USD 40 billion to build,
FirstNet network for a period of 25 years. safety input, to ensure mission-critical operate and maintain the network.
FirstNet is an entire communications mobile broadband communications This co-investment and public–private
ecosystem dedicated to public safety capabilities. These are: partnership approach is proving to be a
and characterized by: • a dedicated core network to successful model for a network serving
• a shared radio network utilizing all AT&T enable mission-critical capabilities public safety.
LTE commercial spectrum bands, as • sufficient spectrum capacity
well as 20MHz of nationwide coverage and coverage

1.7m
in the 700MHz bands, dedicated to first • improved situational awareness
responders, and available to commercial (such as three-dimensional
users when not in use by public safety location services)
• a highly secure, dedicated network core • mission-critical voice
designed from the ground up to serve communication services As of Q3 2020, FirstNet has grown
the public safety community • high information security to serve over 1.7 million connections
• a network launched with 4G LTE and and integrity used by first responders and the
currently being upgraded to provide • improved user experience extended public safety community.
5G capabilities for first responders
20 Articles Ericsson Mobility Report  |  November 2020

Figure 20: FirstNet network architecture

AT&T FirstNet
AT&T users prefer AT&T LTE FirstNet users prefer Band 14
commercial bands but will use Band 14 (700MHz), but also use
(700MHz) as a last preference AT&T commercial bands

LTE Radio Access Network • Multiple commercial bands


(RAN) sites B2, B4, B12, etc.
• One FirstNet band (Band 14)

Transport network

Dual core networks


• Serve AT&T users • Serve FirstNet users

Managing changing traffic Flexible coverage solutions Overall, traffic patterns shift from
demand during the pandemic required during emergencies known/predictable to more dynamic
The emergencies hitting the US in 2020 The demand for temporary coverage scenarios during acute emergencies.
caused substantial changes in traffic levels solutions to support first responders The ability to support these types of
and patterns across consumer, business in different emergency situations shifts is a key feature of FirstNet.
and public safety segments. During illustrates the high level of flexibility Even when business and consumer
the first six months of the pandemic, that FirstNet needs to support: traffic is surging, first responder
mid-March to mid-September, the • Hospital ships, with 1,000 beds and communications are protected,
following changes in mobile traffic 12 operating rooms, were deployed to with spectrum dedicated to public
generated by consumers and businesses offload hospitals in metropolitan areas safety when needed, and prioritization
were observed in AT&T’s network: hit hard by the pandemic. There was across all AT&T LTE commercial
• The overall traffic grew by 20 percent, an immediate requirement to support spectrum bands. This gives public safety
compared to pre-pandemic figures. a high concentration of first responders authorities immediate access to network
• Mobile traffic shifted from public/office to as soon as ships reached the ports. connectivity as well as even more
home/remote work locations, as • Hurricane landfall areas. FirstNet One, coverage and capacity. In addition, using
60 percent of Americans worked remotely. a 17m-long blimp flying up to 500m high, shared network infrastructure enabled
• The mobile data traffic was flat to was deployed to elevate the cellular first responders to immediately access
slightly declining, supported by Wi-Fi radios to address larger geographical the early benefits and capabilities of
offload in homes with good fixed areas than a COW can cover. FirstNet while AT&T built the dedicated
broadband connections. • Wildfires where ground forces FirstNet network core – designed with
• Mobile voice traffic increased need a bird’s-eye perspective on the a defense-in-depth approach that
by almost 40 percent. development in real time. Specialized helps maintain security at every level.
aircrafts performed reconnaissance
Regarding FirstNet, public safety flights and fed real-time insights to

20%
authorities made more than 450 requests first responders on the ground serviced
for temporary network coverage solutions, by COWs, that can quickly move with
such as cell on wheels (COW) deployables, changes in the firefighting location.
in-building solutions and macro network
enhancements to support planned and Emergencies directly affect mobile
emergency events. This covered everything traffic; in the first 6 months of
from drive-through COVID-19 testing the COVID-19 pandemic, mobile
sites to natural disasters like hurricanes traffic grew by 20 percent.
and wildfires. Interestingly, throughout
the pandemic, the average first responder
consumed more than double the mobile
data of the average consumer, which
reinforces the importance of having
a network service specifically for public
safety – especially during times of crisis.
21 Articles Ericsson Mobility Report  |  November 2020

An evolutionary path – the first set of investments – for AT&T to FirstNet Authority’s investment is setting
towards 5G capabilities upgrade the FirstNet core network with the stage for reliable, secure 5G for first
FirstNet and the mission to serve first 5G technologies and expand the fleet of responders in the US. It will ensure public
responders during the exceptional deployable network assets. This is the safety services are able to take advantage
challenges they are facing during 2020 beginning of a multi-phase, multi-year of 5G’s potential when it is ready for these
have proven the value of mission-critical journey to deliver full 5G capabilities applications. As it does today, FirstNet is
networks for public safety applications. on FirstNet for public safety. During designed to manage traffic so that public
The need for digital transformation is not the coming years, 5G technologies will safety has the ultimate fit-for-purpose user
limited to businesses, but also stretches provide a range of network improvements, experience – sending the data via the best
into the public safety sector and first including low (predictable) latency and route. That could be done over 5G
responders’ needs. Paramedics can be in capacity enhancements, that could enable or 4G with priority and preemption,
direct contact with the receiving hospital new capabilities for mission-critical but it will be an evolutionary path
from the moment they reach their patients, networks and public safety applications. where 4G LTE and 5G will coexist.
aiding remote diagnosis and treatments. Today, many of the priority and As shown in Figure 21, 5G technology
Fast deployment of temporary network preemption capabilities to efficiently can enable a broad ecosystem of additional
coverage accelerates the recovery and manage LTE radio and network resources applications and use cases beyond what is
reconstruction phase of local communities do not yet exist for 5G, but are works in possible today. 5G will eventually further
and society immediately after a hurricane. progress. LTE is therefore the current improve first responder command, control
Firefighters get a better view of the nature platform for mission-critical mobile and communications capabilities and be
of uncontrolled wildfires, saving their lives broadband and will remain so a catalyst for additional technological
and the lives of others. for years to come. Innovations in innovations to support emergency response
In June 2020, the FirstNet Authority mission-critical features are still being and enhance the odds for positive outcomes
Board approved USD 218 million developed and tested. However, the and saving lives.

Figure 21: Examples of applications and use cases 5G could unlock for first responders

Drones dispatched to crime scenes


could provide police officers with
a heads-up view of the situation.
AR and heat sensors could be used
in drones for underground fire
detection during wildfire fighting.

Connected ambulances could give


emergency medical technicians
near-real-time traffic information
to take the optimal route, seamlessly
share patient statuses virtually
with the hospital, and triage with a
team of medical professionals at the
emergency rooms.

Firefighters could rapidly locate


those in need using a 3D layout of a
building shown in their helmet visors.
Near-real-time video of the situation
could stream back to commanders.
22 Articles Ericsson Mobility Report  |  November 2020

The networked industrial enterprise

Suppliers and manufacturers must design for resilience and flexibility in value chains.
The transition to Industry 4.0 will depend on locally and globally interconnected
operations to support smart production and life cycle management.

Around 70 percent of international trade Interconnectedness is key for adaptability According to the Organization for
today involves global value chains (GVCs). Multinational enterprises (MNEs) lead the Economic Co-operation and Development
These are made up of domestic and fragmentation, shifting their activities (OECD), many SMEs struggle to link
international enterprises that trade and depending on a variety of business criteria up to GVCs, and most fail to deliver
transfer materials, goods and services. and cost conditions. They insource products and services beyond their
To compete in the global economy, products and services both domestically local market. By lowering the barriers to
enterprises become increasingly and internationally, but outsourcing and global marketplaces and strengthening
specialized. This has led to a considerable offshoring are still dominating trends. Small specialization, purely domestic SMEs can
fragmentation of value-adding activities to medium-sized enterprises (SMEs) make enlarge their pool of buyers, increasing
throughout the whole value chain, up most of the economy and act as partners, exports and ultimately improving
ranging from design and engineering suppliers and distributors. They play a major national GDP.
through production to after-sales services. role in inclusive growth in societies.3
Historically designed and driven by cost Regardless of size and reach, the key
concerns, GVCs today have grown so to adaptability is to strengthen the There are three critical capabilities
dispersed and complex that governance interconnectedness of enterprises. This will for successful involvement in GVCs:
has become very challenging, leaving not only optimize supply chains and • unique products and services
enterprises more vulnerable to disruptive material footprint, but ultimately create • strong managerial and
shocks. According to a recent study, the most value for customers in each part operational competencies
60 percent of executives have zero of the value chain. However, networking • flexibility to adapt to
visibility beyond their tier 1 suppliers.1 capabilities to connect products, people changing demands
The automotive industry is an example and processes simultaneously on one
that illustrates the complexity; there is common platform are often lacking. These capabilities mark distinct
an average of 250 publicly disclosed The fragmentation of and competitive advantages that can be
tier 1 suppliers, extending up to interdependencies within GVCs make unlocked with Industry 4.0.
850 for the largest manufacturers. connectivity an even more critical
Yet, their respective and non-visible foundation for growth. Connectivity not only
tier 2+ suppliers number 18,000.2 improves internal and external collaboration However, many SMEs lack the competence
With rising market volatility, and transparency, but upgrades the and investment capacity to implement the
resilience and risk mitigation have enterprises’ own positions in the value chain. Industry 4.0 solutions (for example, IIoT,
increased in importance relative to cost advanced automation, AR and predictive
and efficiency. Investing in improved maintenance) necessary to fully enable
information systems and communications Industry 4.0 these capabilities. On the other hand,
infrastructure is one way to counteract The Fourth Industrial Revolution MNEs have challenges with governance
sub-optimal operations or imbalances (Industry 4.0) changes the way and improvement of their value chains,
in supply and demand. For example, products are manufactured and as these are seldom truly centralized or
faster procurement of components from consumed. It creates unprecedented expertly coordinated.
a reliable supplier supports just-in-time levels of automation, compliance and
manufacturing, avoiding both delays and performance by merging physical and
excessive inventory. virtual worlds through a combination
Although improving transparency and of technologies like Industrial Internet
traceability on the shop floor will improve of Things (IIoT) and augmented reality
many internal metrics, an enterprise is not (AR). This not only caters to smart
an island. It exchanges resources, capital operations at plant level but also
and competence in markets subject to applies through the entire supply chain.
regional and geopolitical power dynamics.

1
www.weforum.org/agenda/2020/09/4-ways-industry-make-supply-chains-sustainable
2
www.mckinsey.com/business-functions/operations/our-insights/why-now-is-the-time-to-stress-test-your-industrial-supply-chain
3
oecdobserver.org/news/fullstory.php/aid/6062/SMEs_are_key_for_more_inclusive_growth.html
23 Articles Ericsson Mobility Report  |  November 2020

Figure 22: The challenging governance of GVCs

Tier 1 suppliers
Tier 2+ suppliers
Visibility often ends here for the MNEs
MNE
SME

SME
manufacturer SME

SME
manufacturer SME

SME
manufacturer
SME

Lowering barriers for interconnectedness Digital integration – a new


Advanced collaboration in the GVC will be industry benchmark The Ericsson Manufacturing and
dependent on high-performing networks The smart manufacturing process Supply footprint numbers four
with ubiquitous coverage. The choice of follows four distinct stages; connecting factories, eight electric manufacturing
connectivity solutions determines the devices on site, connecting lines on the services sites and eight supply hubs
flexibility and quality of the enterprises’ shop floor, connecting and digitalizing a globally. By investing in one common
digital foundation and the possibility to whole factory, and finally establishing a Ericsson Factory Network, sites
improve operations. However, presently “network of factories”. Historically, MNEs can deploy smart manufacturing
there is no standard “plug-and-play” have improved their position in the value faster by collaborating internally
model to cater for all MNEs’ and SMEs’ chain through acquisitions and mergers of and connecting to an ecosystem of
needs. Cellular networks can bridge both other enterprises and suppliers by either equipment suppliers. Shifting from
global and local needs of enterprises, vertical or horizontal integration. Going linear and siloed processes, the digital
but adoption barriers must be lowered, forward, “digital integration” may become supply network can integrate business
whether they are technical, economic or a new competitive benchmark. Instead demands with operational needs,
organizational. One way is to offer simpler of expanding through direct ownership responding faster to change and new
packaged connectivity solutions to SMEs, and risking becoming overextended, the customer requirements. The benefits
or even private–public hybrids to MNEs. interconnected enterprise can network its for Ericsson as an MNE are higher
To speed up enterprises’ Industry 4.0 way to smarter operations. quality, better resource management,
transformations, centers of excellence In many cases, up to 80 percent of supply faster product introduction and
are established to test new infrastructure chain costs are determined by the location delivery precision.
in collaborative environments where of facilities and the flow of materials and
competence in new technologies is products between those facilities. The
available, such as at the 5G-Industry ability to track, trace connected assets
Campus Europe in Aachen.4 and exchange real-time insights and map
The convergence of enterprises’ dynamics of suppliers, distributors and
operational technology and ICT can buyers can considerably mitigate risk. Thus,
be accelerated through more open and a digitalized supply network presents a
tighter partnerships. The same is true for competitive advantage, particularly when
advanced operations. In order to develop navigating an increasingly complex global
true flexibility in the value chain, supply, business environment.
manufacturing and business criteria must
be aligned through system(s) integration.
This is the only way to deliver smart,
advanced operations. Effectively, this shift
in the enterprise operating model also
means departing from a linear, sequential
view of supply and value chains to an
interconnected cyber-physical system for
better governance and decision-making on
all factors related to input and output.

4
www.5g-industry-campus.com
24 Articles Ericsson Mobility Report  |  November 2020

Figure 23: How the Industry 4.0 transformation affects economic models

With Industry 4.0


Value-added

Before Industry 4.0

Figure 23 illustrates how value-added


varies across the stages of the value
chain. The x-axis represents the stages
R&D, Manufacturing Marketing,
design after-sales services
of bringing a product to market, and
the y-axis stands for the value-added.
Stages of the value chain
Traditionally, manufacturing makes a
dip, creating “the smiling curve”.
MNE Upgrades to Industry 4.0 counteract
the dip and lead to an upwards shift
SME A SME B
for the whole value chain.
Location 1 Location 2 Location 3 Location 4

Multi-SIM lowers barriers for roaming For example, when products are assembled The goal of the digital factory is to
To enhance GVCs there is a need for at multiple factory sites, traceability from effectively align business needs and
different connectivity solutions. In order one to the other is valuable, both when it operational processes through advanced
to support both central and local comes to fast fault-finding and to facilitate information systems. These can be well
decision-making for manufacturing and just-in-time manufacturing. To improve supported by cellular solutions interlinking
logistics, there are several network options governance and customer management, the globally dispersed enterprise. The
available for MNEs and SMEs responsible new connected industrial assets can switch integrated information flows limit waste
for different value stages and sites. “roles” from shipping to deployment and with smarter, timelier decisions. Even if
A private (dedicated) network executes even to service mode. Naturally, each stage most use cases today focus on optimizing
critical applications locally so sensitive may have specific connectivity a production line or site, the integration
data does not leave the factory premises, requirements and rules as to when the and potential savings go well beyond the
which is a basic requirement for most device should switch profile. shop floor. Smart manufacturing takes
manufacturers. On the other hand, a public place across locations with feedback
network connects sites and assets that Interconnected enterprises loops, for example with digital twins
need wide-area coverage at customer transform economic models strengthening design and quality of the
premises and during transit for smarter In Figure 23, whether the enterprise product, or faster sourcing of components
logistics. A digital supply network or the controls the entire value chain end-to-end from a supplier that is more resilient to
extended enterprise might need both, (MNE) or is a contributor (SMEs A and B) disruptive events. The ability to change or
connecting dedicated sites, product flows in the chain, smarter integration of tailor even in-process orders, constantly
and services. manufacturing and business can lead to incorporating customer needs through
To support interconnected operations, shifts in traditional economic models. marketing insights, better balances actual
factory assets like OEM machines can be The manufacturing stage, providing demand with supply. Enhancing and
connected throughout their lifecycles with standardized products in high volumes, exploiting these types of interlinkages
multi-SIM card technology. With the has historically been viewed as having the is where efficiencies and value can be
capability to store multiple or dual lowest value-add in both the value and unlocked for the enterprise, regardless of
profiles, the asset can easily shift between supply chains, whereas the highest its place or participation in the value chain.
public and private networks. As profile value-adding stages have been R&D, By lowering barriers to cooperation,
switching typically takes 20–30 seconds, marketing and after-sales services. actual networks can help mitigate some of
this approach does not support seamless With the development of the digital factory the volatility, uncertainty and complexity
roaming, but it does not require any within the context of Industry 4.0, the of industrial governance and trade. In turn,
reboot of the device either. Applications value-add of the manufacturing stage will this encourages digital integration and the
like automated guided vehicles (AGVs) increase alongside the evolution of establishment of networked enterprises.
or autonomous mobile robots (AMRs) advanced industrial automation and New technologies have always driven
that are constantly moving between a reshoring. The R&D stage will also signify waves of globalization. Industry 4.0
private and public network on a campus a higher value-add, as Industry 4.0 implies can bring forth the networked enterprise
are not suited for this solution. investments in advanced industrial for smarter collaboration across
However, there are many applications automation, artificial intelligence (AI), borders, advancing a more inclusive and
where a short break in connectivity is up-skilling labor and co-creation with interconnected world.
acceptable when the identity is saved. customers. Increased interconnectedness
with manufacturing would bring faster
prototyping and deployment of innovations.
25 Articles Ericsson Mobility Report  |  November 2020

Mobile cloud gaming – an evolving


business opportunity

Communications service providers and gaming companies are seizing


the business opportunities created by devoted gamers’ requirements
for a consistent and lag-free mobile gaming experience.

The first game streaming services were Annual volumes of current-generation Mobile cloud gaming services from 5G
launched a few years ago. Initially, they were video game consoles have been communications service providers rising
targeted towards console and PC gamers. 40–50 million units worldwide over the Out of 106 communications service
Today, new opportunities to expand the last 3 years. In comparison, over the same providers that have launched commercial
mobile gaming market and further develop time period incremental 4G subscriptions 5G service offerings,4 22 have announced
the gaming experience are emerging, have averaged 685 million. Furthermore, the availability of mobile cloud gaming
with 5G networks and cloud gaming the number of 5G smartphone users is services on a separate subscription basis,
services becoming increasingly accessible forecast to increase from about 200 million or as a service bundled with a premium
on smartphones and tablets. The combined in 2020 to over 3 billion by the end of 2026. 5G data plan. The majority of offerings,
capabilities provided by 5G networks and The strong growth in smartphone users from 19 communications service providers,
edge compute technologies will enable and the evolving capabilities of 4G and 5G are subscriptions to a gaming service
game streaming services on smartphones networks open a much larger addressable in partnership with a cloud gaming
with a quality of experience (QoE) on a par market for new gaming services. provider. The number of games included
with PC or console, and also open up for typically ranges from 30 to more than 100.
innovative, immersive mobile games Depending on the gaming service provider,
based on mobility. Market drivers for mobile game monthly subscription fees typically
streaming services include: range from USD 6–18. In addition, a few
Smartphones dwarf console sales • continued strong growth of communications service providers include
Although the mobile cloud gaming smartphone users zero-rating for gaming5 on some of their
market is still in its infancy, the wider • imminent deployment of premium data plans. Games included in
mobile games market is already large. 5G networks, with high user present service catalogs, occasionally
There are presently more than 2.4 billion data rates, network capacity marketed as a 5G cloud gaming offer,
mobile gamers globally, where Asia is the and emerging time-critical range from casual games to more complex
biggest market with over USD 41 billion in communications, or ultra-reliable multiplayer games. Many games presently
revenue.1 Mobile games generate about low-latency communication included can be played over a 4G network
50 percent of total global gaming industry (URLLC) and do not require 5G for a good gaming
revenues.2 In 2019, 33 percent of all app • increase of cloud data centers experience. However, immersive games
downloads worldwide were related to with large compute and storage are better experienced over 5G, as these
mobile games, accounting for 74 percent resources (central, edge) demand higher bandwidths and lower
of all consumer expenditure at the • increasing partnerships between (predictable) latency. An important
2 major digital distribution platforms for communications service providers, objective for partnerships between
the Android and iOS operating systems.3 edge cloud providers and cloud communications service providers and
gaming service providers cloud gaming providers is to explore
• new cloud gaming services how both 5G and 4G networks need to
launched by new and incumbent be managed and optimized to
(console) gaming service providers support high QoE.
• communications service providers
launching their own services
• future development of new types
of devices, based on AR, VR and XR

1
www.statista.com
2
www.dotcominfoway.com
3
App Annie, “The state of mobile 2019”.
4
Ericsson analysis, October 2020.
5
Traffic generated by the gaming service does not count against the subscriber’s monthly data plan.
26 Articles Ericsson Mobility Report  |  November 2020

Streaming games popular among including streaming VR (through goggles service provider, it brings predictability in
5G subscribers in South Korea connected to smartphones) and revenues and cash flow. Through digital
An interesting example of an evolving downloadable AR versions, on their own customer interaction and engagement,
gaming market is South Korea. It is ranked developed platforms. These are free of the improved customer understanding lets
the fourth largest mobile gaming market charge for 5G premium plan subscribers. them tailor their offerings per individual
after the US, China and Japan, and has a According to SK Telecom,7 5G subscribers subscriber rather than for customer
strong gaming culture, with professional are using game apps 2.7 times more often segments. Many gaming service providers
gamers dominating in international than 4G subscribers. To play games on are now including a subscription-based
esports competitions. With smartphone SK Telecom’s own developed cloud business model in their gaming portfolios.
penetration among the highest in the gaming platform, 55 percent of Agreements between communications
world, smartphones have become the smartphone gamers use Wi-Fi and service providers and gaming service
most popular gaming device. According to 45 percent cellular connectivity. providers vary by market, depending on
a 2020 Korean game user report,6 over the scope of collaboration. For example,
88 percent of mobile gamers play games The cloud gaming a communications service provider may
at least 2–3 days per week, whereas subscription model rules have an own-branded game offering,
44 percent play every day. The average Today, mobile gaming is dominated by based on a white-label solution from a
time of playing mobile games is casual gamers, but new segments will be cloud gaming service provider, or have
96 minutes per day on weekdays, and addressable as premium games with marketing- and channel-partnership
121 minutes per day on weekends. The high-quality experience become accessible agreements. These agreements may
three main South Korean communications from game publishers and communications include revenue sharing, but other
service providers have teamed up with service providers, without the need for important business drivers are new
major international gaming service dedicated and expensive hardware or customer acquisition and retention, and
providers, offering subscription-based PCs. One market challenge is to convert a differentiating value proposition to
mobile cloud game streaming services. casual players to paying subscriptions entice subscriber migration to 5G. There
For two of these subscriptions, it is not for gaming services. Subscription-based are also different approaches among
necessary to be a mobile subscriber to the business models for digital audio and video communications service providers with
specific communications service provider. streaming services have disrupted those own-branded game services; some offer
All three communications service providers industries, with millions of people willing exclusivity to loyal subscribers,
also provide access to their own portfolio to pay a monthly fee without becoming while others are open to all mobile users
of streaming and downloadable games, owners of DVDs or CDs. For the streaming in the market.

Figure 24: Mobile cloud gaming among 106 5G service providers

22
Of the 106 communications service
3
Premium data plans for 3 of the
providers with commercial 5G, 22 22 communications service providers
have a mobile cloud gaming offering. include zero-rating for gaming.

19
The cloud gaming service subscription
6–18
Cloud gaming monthly subscription
model is used by 19 out of the fees average USD 6–18 among the
22 communications service providers. 22 communications service providers.

6
Cloud gaming is bundled with
5G data plans by 6 out of the
22 communications service providers.

6
KOCCA, Korea Creative Content Agency.
7
February 2020.
27 Articles Ericsson Mobility Report  |  November 2020

Advanced gaming performance However, other cloud gaming platforms Considering the natural variation in radio
requirements open up stream fast-paced games with complex channel quality, game video streaming
new business opportunities graphics that require an average of 15Mbps must be adapted to changes in radio
Advanced gaming use cases with strong throughput with peaks of 25Mbps or network conditions, mobility (handovers),
network performance requirements will drive more. As games become faster and more buffering and more to ensure a good QoE
a need for premium connectivity and edge complex, even lower network latency and for different game categories. In the case
computing capabilities. These capabilities higher bandwidth will be required. More of video streaming, data is buffered in
could be offered by communications service time-critical cloud gaming use cases, the game client to allow for connectivity
providers directly to gaming providers, via such as first-person shooter games and variation. But for game streaming, the
or jointly with partners. However, this will fast multiplayer interactions, will require latency between game input and view is
also require new types of partnerships to 20–30ms end-to-end network latency, with important and does not allow for client
jointly address future mobile gaming use around 99.9 percent likelihood (reliability) buffering. Game streaming services can
case opportunities. Gaming ecosystem in both uplink and downlink, for a quality have adaptable qualities, but without
partnerships require high flexibility to cater experience. For an immersive VR gaming large media buffers, unstable network
for cost-efficient cooperation, in parallel with experience, the latency and reliability connectivity will impact QoE. The latency
a multitude of different gaming partners, all requirements are even more demanding. requirement for a specific gaming service is
having different requirements and interests. dependent on several factors, such as game
QoE can be game-changing genre, personal skills and delay acceptance.
Higher network performance requirements Different game genres have different data
as game complexity increases rates, latency and reliability requirements
Figure 25: Gamers’ reaction to
A large part of total cloud gaming traffic on mobile networks. A fast-moving,
gaming lag (network latency)
is expected to be transported over fixed first-person shooter game requires high
networks, as is the case for streaming reliability, low latency (time-critical)
video. However, 5G mobile and fixed communications, compared to a
wireless access (FWA) networks are also slow-moving strategy game that works
10% 5%
expected to carry a significant amount of well with the best-effort latency typically
future cloud gaming traffic. To stimulate required for mobile broadband services.
uptake of cloud gaming services, games Depending on the game genre, there are 26%
service providers would have to adapt to different expectations for QoE. Higher 24%
the capability of the mobile network and frame rate versus resolution is typically
devices, while maintaining the QoE. This preferred for first- and third-person
implies that a 4K resolution, real-time shooters, while high resolution is
video game, streamed over a fixed network preferred over frame rate for fantasy
connection to a large screen, could be games not requiring fast reaction times.
35%
downsized to a 720p video gaming stream
over a mobile network, without distorting
the QoE for most games played on a
smartphone. Streaming games consumes
5% – I always quit gaming
several times more data than a video
stream of equivalent quality. This is due to 26% – I sometimes quit gaming
the need for faster video encoding, which 35% – It affects, but I continue to play
helps maintain the required low latency 24% – It affects somewhat
during gameplay, but with a higher data 10% – It does not affect
rate. Some cloud-based gaming platform
providers recommend 10Mbps reliable
Source: Ericsson ConsumerLab (2019).
downlink throughput as the minimum for Base: At-least-weekly gamers aged 15–69 in
current games to be played over a mobile Brazil, China, France, Japan, South Korea, the UK
network for a good QoE on a smartphone. and the US (7,000 respondents).
28 Articles Ericsson Mobility Report  |  November 2020

Figure 26: Share of gamers experiencing gaming lag (network latency) by game genre

50%
47%
42% 41%
36%
34% 33%
31%

Shooting Sports Action/ Role-playing Driving Fighting Puzzle Simulation


games games adventure and massive games games games games
games multiplayer
online games

Source: Ericsson ConsumerLab (2019).


Base: At-least-weekly gamers aged 15–69 in Brazil, China, France, Japan, South Korea, the UK and the US (7,000 respondents).

Lag (network latency) is one of the most New games and gaming platform
common issues when playing online games requirements are becoming more Major functionalities for realizing
and has a strong impact on the level of demanding, and solutions that work for time-critical communications/URLLC
satisfaction with the gaming experience. regular video streaming are not enough for in the radio access network include:
In a ConsumerLab study, based on an advanced gaming use cases. As networks • network slicing
online survey with 7,000 consumers, evolve to 5G, time-critical communications • high-reliability link adaptation
90 percent of those who play video games will take cloud gaming to the next level. and scheduling
at least weekly were negatively affected Time-critical communications aims for data • uplink configured grant
by lag when playing, with at least delivery within a specified latency budget • RAN rate recommendation
1 in 3 sometimes quitting as a result. with a required guarantee; for example, • multiple transmission and
Gamers’ perceived experience of lag 50ms network latency with 99.9 percent reception points
depends on the type of game played; those reliability. It is fundamentally different from • redundant transmissions
requiring fast responses experience lag mobile broadband, which maximizes data • robust signal transmission formats
more often in comparison to other genres. rates without any guarantee on latency. • QoS-aware admission and
Communications service providers load control
5G will enable next-level gaming can add support for time-critical • instant preemption and
Just like video streaming, service providers communications to the 5G NR carriers prioritization mechanisms
are developing original content for their through software upgrades. The slicing • conditional handovers
subscribers. Cloud gaming providers could framework in 5G networks can reserve • dual active protocol stack
be expected to develop “5G original” cloud dedicated resources for gaming by • rapid retransmission protocols
streaming games, adapted to the specifics configuring and connecting computing • slot aggregation
of mobile devices (for example, small and networking resources across the radio,
screens and limited input options), but also transport and core networks. As networks
to the surrounding environment where a evolve towards more cloud native design,
mobile gamer is situated when playing with better flexibility in placement and
(new types of VR, AR games). By utilizing deployment of network functions (NFs),
the full range of sensors on a mobile parts of the game workloads can be
device, such as the camera, light sensors, collocated with the NFs to ensure gaming
GPS, accelerometer and sound, it could performance requirements are met.
sense the environment and contextualize it The time-critical communications
to adaptively generate new game content, ecosystem is starting to develop from 2021
enriching the gaming experience. with end-to-end network slicing and edge
computing. Major functionality growth for
time-critical communications is expected
over standalone 5G networks beyond 2021.
Cloud gaming represents the full
potential of 5G for both consumers and
businesses – gamers benefit from enriched
experiences, including lighter and more
affordable gaming devices, a longer
battery life and new immersive gaming
experiences, while communications
service providers get a wide range of new
business opportunities.
29 Articles Ericsson Mobility Report  |  November 2020

Service providers face three


alternative paths to success

Service providers can be categorized into three distinct strategies


depending on whether they lead, challenge or follow the market,
and the chosen strategies directly correlate with market performance.

Having an executable strategy is key to Service providers compete


succeeding in any business. Selecting the with distinct strategies
right strategy based on business assets, The three strategies that service providers
market conditions and competitive landscape were found to adhere to in this study
is critical. An Ericsson study looked at over are labeled quality-led, offering-led and
300 service providers around the world to industry-led.1 Although the strategies have
see what similarities and differences can be different focuses and are distinct, each is
found in their strategies, and identified the built upon several, common key elements,
key characteristics of best-in-class service for which service providers put in varying
providers which successfully execute their degrees of effort based on their strengths
strategy to maximize returns. and selected business goals.

19%
The quality-led strategy is
28%
The offering-led strategy is
38%
The industry-led strategy is
deployed by 19 percent of deployed by 28 percent of deployed by 38 percent of
service providers – who lead in service providers – who challenge service providers – who focus on
network performance. with new services. value-for-money propositions.

Quality-led Offering-led Industry-led


Market leaders typically apply the The offering-led strategy is mostly Most service providers follow general
quality-led strategy, often coming deployed by challengers. The ambition market trends, referred to here as the
from the incumbent position, and is to be first to market with new industry-led strategy. These service
therefore tend to maintain their lead offerings. Prominent in this strategy is providers are seldom, or never, first to
in terms of network coverage and maintaining a high level of market market. This is illustrated by their
quality. The focus and investments innovation to capture market share, approach to network quality, which is
are on network transformation, often with one-for-all offerings, similar to the quality-led strategy, but
sites, spectrum and being first to coupled with targeted distribution. without the ambition or potential to
deploy the latest technology to These challengers use extensive reach a leading position. This also
maintain their number one leading campaigns and promotional programs applies to their go-to-market strategy
position in quality. Their marketing to gain traction and capitalize on their for service offerings, distribution,
typically showcases their leading “first-mover advantage”. Offering-led campaigns and use of sub-brands.
position in network performance. service providers also work with Industry-led service providers find
Often having greater resources multiple partners in the area of success as fast followers, focusing on
than their competition, quality-led products and services. They typically a value-for-money proposition that
service providers are more use modern technology – such as delivers what their customer
selective and choose to have few AI – in their operations, as well as a segment desires, and typically have
strategic partnerships. wide use of omni-channel strategies lower levels of average revenue per
for customer experience management. user (ARPU).

1
 ifteen percent of service providers scored low in the strategy elements analyzed, making
F
it unclear which strategy they were executing. These have been classified as “other”.
30 Articles Ericsson Mobility Report  |  November 2020

Figure 27: Network performance on a global level


Methodology Downlink speed Uplink speed Latency
For this Ericsson study, 308 service
providers, in 121 countries 4 100
worldwide, were researched and
analyzed using publicly available
information. A strategy analysis
framework, originally developed
by C. Campbell-Hunt at MIT, was 3 75

applied and revised to fit the


telecom industry. Analysis of service

Latency (ms)
Speed (Mbps)
providers’ financial performance,
service offerings and network 2 50
performance has been extended by
cross-comparing the findings with
other owned studies or external
sources. Data was collected
during Q1–Q3 2020. 1 25

0 0
Quality-led Offering-led Industry-led Other

50 percent higher than the others.

69% 45%
This indicates a skimming strategy in the
short term, targeting early adopters rather
than driving a quick uptake, whilst waiting
for the market to be ready. Similarly, the
Today, 69 percent of quality-led quality-led are more active in the area of The Middle East region has the
service providers have launched 5G fixed wireless access (FWA), leveraging highest proportion of quality-led
for smartphones commercially. network performance to complement or service providers with 45 percent.
directly compete against fixed networks.
Of these, nearly 80 percent have FWA
Differentiation through sustainable offerings on the market, compared to the Within Africa, offering-led is the most common
leadership in network performance average of 65 percent globally. Quality-led strategy, frequently offering a wide range of
Network performance data2 shows the service providers will look to maintain their services linked to mobile subscriptions such
throughput delivered with a 90 percent lead. Offering-led will have pressure to as gaming, mobile banking and insurance.
probability, meaning 90 percent of the improve in this area to support innovative The quality-led strategy was not found here,
samples have better performance than 5G services, like cloud gaming, that require similar to Central and South America.
shown in Figure 27. This illustrates that lower latency and higher bandwidth than Central and Eastern Europe deviates from
service providers with a quality-led often provided today by this group.3 the global average, with a significantly
approach successfully execute their A look at service offerings4 reveals higher share of industry-led service
strategies to build a network performance that offering-led service providers tend to providers and fewer quality-led service
gap, having significantly better results in couple network performance with specific providers. Previously state-owned
terms of downlink and uplink speeds as use cases and end-user expectations, incumbents in Central and Eastern Europe
well as lower latency. Both offering- and like promoting the best network for video typically held the number one position in the
industry-led service providers aim streaming. Quality-led providers, on the market with aspects of a quality-led
to have “good enough” network other hand, mainly focus on coverage strategy. However, the region shows a low
performance, trailing the quality-led and performance and are more likely to percentage of quality-led service providers
operators but not investing as heavily have promotions that leverage network globally, indicating that incumbents here
in network transformation. performance as well as their existing didn’t focus as much as their peers from
Today, 69 percent of the quality-led premium customer segments. other regions on network transformation,
service providers have launched 5G for and didn’t keep up investment levels to
smartphones commercially, leveraging Strategies follow regional score higher in our analysis. At the same
their position further through a moderate market conditions time, global service providers, primarily from
price premium on 5G. Only 31 percent of At about 45 percent, the Middle East has Western Europe, have often been acquiring
offering-led and 16 percent of industry-led the highest proportion of quality-led service the number two or three player in many of
have launched 5G. Although the offering-led providers, as the execution of this strategy the markets. With the added financial
group chose a price position very close to requires large investments in the network. support, they have then been able to move
the quality-led, the industry-led service Western Europe seems to have the largest their position to match or even take the lead
providers have a premium that is more than variation of strategies per market. in terms of network performance.

2
Source: Ericsson analysis on Speedtest Intelligence® data from Ookla®, (Q3 2020). Data represents the lowest performing 10 percent of samples.
3
Ericsson Mobility Report, ”Mobile cloud gaming – an evolving business opportunity” pp. 25–28 (November 2020).
4
More service offering choices for the consumer: www.ericsson.com/en/mobility-report/articles/service-offering-choices-for-the-consumer.
31 Articles Ericsson Mobility Report  |  November 2020

Figure 28: Spread of strategies within each region (percent)


Industry-led Offering-led Quality-led Other

100

80

60

40

20

0
North South Central Central and Western Central Asia- Middle Africa
America America America Eastern Europe Europe Asia Pacific East

Strategies reward different This is likely a natural consequence of

No. 1
financial KPIs the market leader commonly choosing a
The strategies give different outcomes quality-led strategy, whilst challengers
when cross-analyzed against performance tend to adopt an offering-led strategy.
metrics, illustrating how the strategies
support distinct business goals. Globally, Offering-led service providers often Selection and execution
industry-led is slightly ahead on revenue take the number one spot for the are key to success
growth, with the most service providers five-year revenue growth KPI. Service providers compete using distinct
amongst the top 50 in the world. strategies, which give different returns. By
Quality-led service providers, on the understanding their local market conditions
other hand, take a firm lead for EBITDA, The offering-led strategy takes the and business assets, best-in-class service
market share and ARPU leadership. The top spot most often when looking at providers challenge the market with a
same is true when looking at capex to five-year revenue growth. Quality-led focused competitive advantage, optimizing
sales ratio, which would be expected, service providers have the highest market their returns. Quality-led providers build
as the quality-led strategy is focused share as well as the best cash flow in the and maintain a sustainable gap in network
on network transformation and quality. majority of markets. They also have the performance, offering-led innovate with
highest ARPU closely followed by service offerings and customer experience
Quality-led service providers offering-led service providers. The management, while industry-led act as fast
perform best in local markets for industry-led strategy takes the top spot followers. All these strategies have their
four out of six KPIs for EBITDA, with quality-led just behind. advantages and disadvantages, and the
Studying local markets where we have One KPI that stands out is the market adoption of a certain strategy is carefully
financial data for two or more service share, where quality-led service providers considered by service providers based on
providers, and ranking each strategy based are taking the number one place in their specific situation.
on the performance in each financial KPI, more than half of the markets analyzed.
we can find out which strategy type takes Offering-led, on the other hand, places
which position in each market. third in 50 percent of the markets.

Figure 29: The ranking of service providers which lead in KPIs, in their respective local markets
Industry-led Offering-led Quality-led

O I Q Q Q Q
I Q I I O O
Q O O O I I

2nd 1st 3rd 2nd 1st 3rd 2nd 1st 3rd 2nd 1st 3rd 2nd 1st 3rd 2nd 1st 3rd

5-year growth EBITDA Market share Capex to sales ratio ARPU Cash flow
32 Methodology and glossary Ericsson Mobility Report  |  November 2020

Methodology

Mobile subscriptions Subscribers Population coverage

Forecast
methodology
Rounding of figures Mobile data traffic

Forecast methodology Mobile WiMAX. WCDMA without HSPA However, in some developing regions,
Ericsson makes forecasts on a regular basis and GPRS/EDGE are not included. it is common for several people to share
to support internal decisions and planning, FWA is defined as a connection that one subscription, for example via a
as well as market communications. The provides broadband access through a family- or community-shared phone.
forecast time horizon in the Mobility mobile network enabled customer
Report is six years and is moved forward premises equipment (CPE). This includes Mobile network traffic
one year in the November report each both indoor (desktop and window) and Ericsson regularly performs traffic
year. The subscription and traffic forecast outdoor (rooftop and wall-mounted) CPE. measurements in over 100 live networks
baseline in this report is established using It does not include portable battery-based covering all major regions of the world. These
historical data from various sources, Wi-Fi routers or dongles. measurements form a representative base
validated with Ericsson internal data, for calculating worldwide total mobile traffic.
including measurements in customer Rounding of figures More detailed measurements are made in
networks. Future developments are As figures are rounded, summing up a selected number of commercial networks
estimated based on macroeconomic data may result in slight differences with the purpose of understanding how
trends, user trends, market maturity and from the actual totals. In tables with key mobile data traffic evolves. No subscriber
technological advances. Other sources figures,subscriptions have been rounded data is included in these measurements.
include industry analyst reports, together to the nearest 10th of a million. However, Please note that the Ericsson Mobility
with internal assumptions and analyses. when used in highlights in the articles, Report data traffic forecast, both global and
Historical data may be revised if the subscriptions are usually expressed regional, represents the estimated traffic
underlying data changes – for example, in full billions or to one decimal place. volume in all networks over the duration of
if service providers report updated Compound annual growth rate (CAGR) a month. Traffic (in terms of throughput) in
subscription figures. is calculated on the underlying, high-traffic areas will be much higher than
unrounded numbers and is then rounded the average traffic.
Mobile subscriptions to the nearest full percentage figure.
Mobile subscriptions include all mobile Traffic volumes are expressed in two or Population coverage
technologies. Subscriptions are defined by three significant figures. Population coverage is estimated using
the most advanced technology that the a database of regional population and
mobile phone and network are capable of. Subscribers territory distribution, based on population
Our mobile subscriptions by technology There is a large difference between the density. This is then combined with
findings divide subscriptions according numbers of subscriptions and subscribers. proprietary data on the installed base of
to the highest-enabled technology they This is because many subscribers have radio base stations (RBS), together with
can be used for. LTE subscriptions, in most several subscriptions. Reasons for this estimated coverage per RBS for each of
cases, also include the possibility for the could include users lowering traffic costs by six population density categories (from
subscription to access 3G (WCDMA/HSPA) using optimized subscriptions for different metro to wilderness). Based on this, the
and 2G (GSM or CDMA in some markets) types of calls, maximizing coverage and portion of each area that is covered by a
networks. A 5G subscription is counted as having different subscriptions for mobile certain technology can be estimated, as
such when associated with a device that PCs/tablets and mobile phones. In addition, well as the percentage of the population
supports New Radio as specified in 3GPP it takes time before inactive subscriptions it represents. By aggregating these areas,
Release 15, and connected to a 5G-enabled are removed from service provider world population coverage per technology
network. Mobile broadband includes radio databases. Consequently, subscription can be calculated.
access technologies HSPA (3G), LTE (4G), penetration can be above 100 percent,
5G, CDMA2000 EV-DO, TD-SCDMA and which is the case in many countries today.
33 Methodology and glossary Ericsson Mobility Report  |  November 2020

Glossary

2G: 2nd generation mobile networks FDD: Frequency division duplex Mobile router: A device with a cellular
(GSM, CDMA 1x) network connection to the internet and
GB: Gigabyte, 109 bytes Wi-Fi or Ethernet connection to one or
3G: 3rd generation mobile networks several clients (such as PCs or tablets)
(WCDMA/HSPA, TD-SCDMA, CDMA Gbps: Gigabits per second
EV-DO, Mobile WiMAX) NB-IoT: A 3GPP standardized low-power
GHz: Gigahertz, 109 hertz wide-area (LPWA) cellular technology for
3GPP: 3rd Generation Partnership Project (unit of frequency) IoT connectivity

4G: 4th generation mobile networks GSA: Global mobile Suppliers Association NFV: Network functions virtualization
(LTE, LTE-A)
GSM: Global System for NR: New Radio as defined
4K: In video, a horizontal display Mobile Communications by 3GPP Release 15
resolution of approximately 4,000 pixels.
A resolution of 3840 × 2160 (4K UHD) is GSMA: GSM Association OEM: Original equipment manufacturer
used in television and consumer media.
In the movie projection industry, HSPA: High speed packet access OT: Operational technology
4096 × 2160 (DCI 4K) is dominant
Kbps: Kilobits per second PB: Petabyte, 1015 bytes
5G: 5th generation mobile networks
(IMT-2020) LTE: Long-Term Evolution Short-range IoT: Segment that largely
consists of devices connected by unlicensed
App: A software application that MB: Megabyte, 106 bytes radio technologies, with a typical range of
can be downloaded and run on up to 100 meters, such as Wi-Fi, Bluetooth
a smartphone or tablet Mbps: Megabits per second and Zigbee

AR: Augmented reality. An interactive MHz: Megahertz, 106 hertz SLA: Service level agreement
experience of a real-world environment (unit of frequency)
whereby the objects that reside in the Smartphone: Mobile phone with OS
real world are “augmented” by MIMO: Multiple Input Multiple Output capable of downloading and running
computer-generated information is the use of multiple transmitters and ”apps“, e.g. iPhones, Android OS phones,
receivers (multiple antennas) on wireless Windows phones and also Symbian and
CAGR: Compound annual growth rate devices for improved performance Blackberry OS

Cat-M1: A 3GPP standardized low-power mmWave: Radio waves in the extremely TD-SCDMA: Time division-synchronous
wide-area (LPWA) cellular technology high frequency range. In 5G, mmWave code-division multiple access
for IoT connectivity refers to frequencies between
24 and 71GHz TDD: Time division duplex
CDMA: Code-division multiple access
Mobile broadband: Mobile data service VoIP: Voice over IP (Internet Protocol)
dB: In radio transmission, a decibel is a using radio access technologies including
logarithmic unit that can be used to sum 5G, LTE, HSPA, CDMA2000 EV-DO, VoLTE: Voice over LTE as defined by
up total signal gains or losses from a Mobile WiMAX and TD-SCDMA GSMA IR.92 specification
transmitter to a receiver
Mobile PC: Defined as laptop or desktop WCDMA: Wideband code-division
EB: Exabyte, 1018 bytes PC devices with built-in cellular modem multiple access
or external USB dongle
EBITDA: Earnings before interest, taxes, Wide-area IoT: Segment made up
depreciation, and amortization of devices using cellular connections
or unlicensed low-power technologies
EDGE: Enhanced Data Rates like Sigfox and LoRa
for Global Evolution
34 Global and regional key figures Ericsson Mobility Report  |  November 2020

Global and regional key figures

Ericsson Mobility Visualizer


Explore actual and forecast data from the Mobility Report in our Find out more
new interactive web application. It contains a range of data types, Scan the QR code, or visit
including mobile subscriptions, mobile broadband subscriptions, www.ericsson.com/en/mobility-report/
mobile data traffic, traffic per application type, VoLTE statistics, mobility-visualizer
monthly data usage per device and an IoT connected device forecast.
Data can be exported and charts generated for publication subject
to the inclusion of an Ericsson source attribution.

Global key figures


Forecast CAGR*
Mobile subscriptions 2019 2020 2026 2020–2026 Unit
Worldwide mobile subscriptions 7,900 7,940 8,770 2% million
• Smartphone subscriptions 5,640 6,060 7,520 4% million
• Mobile PC, tablet and mobile
router subscriptions 270 290 450 8% million
• Mobile broadband subscriptions 6,100 6,420 7,950 4% million
• Mobile subscriptions, GSM/EDGE-only 1,650 1,370 650 -12% million
• Mobile subscriptions, WCDMA/HSPA 1,860 1,630 700 -13% million
• Mobile subscriptions, LTE 4,290 4,670 3,940 -3% million
• Mobile subscriptions, 5G - 220 3,470 59% million
• FWA connections 51 62 180 20% million

Fixed broadband connections 1,160 1,200 1,500 4% million

Mobile data traffic


• Data traffic per smartphone 6.7 9.4 34 24% GB/month
• Data traffic per mobile PC 15 17 29 9% GB/month
• Data traffic per tablet 6.9 8.2 18 14% GB/month

Total data traffic**


Mobile data traffic 34 51 226 28% EB/month
• Smartphones 32 49 220 29% EB/month
• Mobile PCs and routers 0.8 1.0 1.6 9% EB/month
•T ablets 0.9 1.1 3.9 23% EB/month
Fixed wireless access 6.2 9.3 67 39% EB/month
Total fixed data traffic 140 170 490 19% EB/month

Regional key figures


Forecast CAGR*
Mobile subscriptions 2019 2020 2026 2020–2026 Unit
North America 380 390 430 2% million
Latin America 660 650 700 1% million
Western Europe 510 510 520 0% million
Central and Eastern Europe 570 550 560 0% million
North East Asia 2,040 2,080 2,230 1% million
China1 1,600 1,620 1,710 1% million
South East Asia and Oceania 1,130 1,110 1,200 1% million
India, Nepal and Bhutan 1,120 1,130 1,290 2% million
Middle East and North Africa 710 710 850 3% million
Sub-Saharan Africa 770 800 990 4% million
1
These figures are also included in the figures for North East Asia.
35 Global and regional key figures Ericsson Mobility Report  |  November 2020

Regional key figures


Forecast CAGR*
Smartphone subscriptions 2019 2020 2026 2020–2026 Unit
North America 310 320 350 2% million
Latin America 500 510 560 2% million
Western Europe 420 420 430 0% million
Central and Eastern Europe 380 390 430 2% million
North East Asia 1,810 1,910 2,110 2% million
China1 1,440 1,510 1,640 1% million
South East Asia and Oceania 770 810 1,050 4% million
India, Nepal and Bhutan 620 760 1,150 7% million
Middle East and North Africa 440 500 710 6% million
Sub-Saharan Africa 390 450 720 8% million

LTE subscriptions
North America 350 350 80 -21% million
Latin America 340 390 390 0% million
Western Europe 380 410 150 -15% million
Central and Eastern Europe 240 280 350 4% million
North East Asia 1,800 1,730 700 -14% million
China1 1,230 1,410 530 -15% million
South East Asia and Oceania 390 470 700 7% million
India, Nepal and Bhutan 550 710 820 2% million
Middle East and North Africa 170 210 440 13% million
Sub-Saharan Africa 90 120 290 15% million

5G subscriptions
North America 1 14 340 - million
Latin America 0 1 180 - million
Western Europe 1 6 350 - million
Central and Eastern Europe 0 0 200 - million
North East Asia 9 193 1,470 - million
China1 5 175 1,220 - million
South East Asia and Oceania 0 2 380 - million
India, Nepal and Bhutan 0 0 350 - million
Middle East and North Africa 1 1 130 - million
Sub-Saharan Africa 0 0 50 - million

Data traffic per smartphone


North America 8.4 11.8 49 27% GB/month
Latin America 3.8 5.8 29 30% GB/month
Western Europe 7.6 11.3 46 26% GB/month
Central and Eastern Europe 5.1 7.3 29 26% GB/month
North East Asia 7.8 11.1 41 24% GB/month
China1 7.8 11.0 39 24% GB/month
South East Asia and Oceania 4.7 7.6 33 28% GB/month
India, Nepal and Bhutan 13.5 15.7 37 15% GB/month
Middle East and North Africa 4.2 6.0 30 30% GB/month
Sub-Saharan Africa 1.6 2.2 8.9 26% GB/month

Mobile data traffic


North America 2.8 3.9 17 28% EB/month
Latin America 1.6 2.5 14 33% EB/month
Western Europe 3.1 4.4 17 25% EB/month
Central and Eastern Europe 1.5 2.2 10 27% EB/month
North East Asia 12.7 19 78 27% EB/month
China1 10.2 15 59 25% EB/month
South East Asia and Oceania 3.3 5.6 32 33% EB/month
India, Nepal and Bhutan 6.7 9.6 35 24% EB/month
Middle East and North Africa 1.6 2.6 18 38% EB/month
Sub-Saharan Africa 0.55 0.87 5.6 36% EB/month
* CAGR is calculated on unrounded figures.
** Figures are rounded (see methodology) and therefore summing up of rounded data may result in slight differences from the actual total.
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