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June2020 Ericsson Mobility Report
June2020 Ericsson Mobility Report
com/
mobility-report
June 2020
Articles
Publisher 24 Verizon is transforming fixed
Fredrik Jejdling and mobile broadband with 5G
Executive Vice President and Head of Business Area Networks 28 Dedicated networks for
industrial connectivity
32 Methodology
33 Glossary
34 Global and regional key figures
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, Stephen Carson, and assumptions. Ericsson shall not be
Steven Davis, Greger Blennerud, bound by or liable for any statement,
Per Lindberg, Kati Öhman, Jeff Travers, representation, undertaking or omission
Finn Pedersen, Peter Linder, made in this document. Furthermore,
Jasmeet Singh Sethi, Peter Rinderud, Ericsson may, at any time, change the
Jose Alonso-Rubio, Jorge Luque Garcia contents of this document at its sole
Co-authors: Heidi Hemmer, Chris Ashraf, discretion and shall not be liable for the
Amelia Powell: Verizon (US) consequences of such changes.
33 Introduction Ericsson Mobility Report | June 2020
190m
5G subscriptions are expected
14%
to reach 190 million by the
end of 2020
Page 10
83%
by 14 percent between
Q4 2019 and Q1 2020
Page 20
25%
During lockdown,
83 percent of smartphone
users claim that ICT
helped them a lot to cope
By the end of 2025,
Page 06
25 percent of the world’s With Verizon, we
mobile network data explore deploying
traffic is forecast to be 5G using mmWave
fixed wireless access spectrum in the US
A -10 to 20 percent change
Page 14 Page 24
in data traffic has been
experienced by service
providers during the initial
COVID-19 lockdown
restriction phase
Page 04
Communication needs in
times of crisis
The first months of 2020 saw the spread of a novel coronavirus around the globe.
Subsequent behavioral changes, due to lockdown restrictions in many countries,
caused measurable changes in the usage of both fixed and mobile networks.
Coronavirus disease 2019 (COVID-19) generated as people worked from home Networks rising to the challenge
forced an unprecedented number of people also created additional peak hours of A substantial increase in the volume
all over the world to change their usage during daytime. It was primarily and duration of mobile voice calls across
workplace from office to home and these peak hours of data usage that networks – ranging from 20 to 70 percent –
become accustomed to new routines in needed to be supported with a sufficient was observed in the most impacted
their daily lives. As new digital behaviors level of network performance to avoid regions during the initial lockdown phase.
are forming, the critical role of service quality degradation, e.g. by Mobile data traffic growth was typically
communications service providers to measures like capacity upgrades, load moderate, or even negative, ranging from
support a functioning society with flawless balancing and traffic optimization. -10 to 20 percent in different networks.
digital communication capabilities in times There are different minimum network However, the traffic increase was unevenly
of crisis has become apparent. throughput requirements for various apps distributed, with some cells experiencing a
that need to be maintained to provide a large increase despite overall moderate or
Network traffic and service impact service at a specific quality level, such as fast even decreasing traffic growth throughout
As people spent more time online at home, web download times, short video start times the network. In markets with limited
network traffic loads shifted geographically and good picture quality. Conversational penetration of fixed residential networks,
from city centers and office areas to and bidirectional apps, such as video calling, the mobile data demand increase was
suburban residential areas. The largest require at least 1Mbps downlink/uplink especially high. In general, service providers
share of the traffic increase as lockdowns throughput, while media consumption could managed to provide sufficient network
went into place was absorbed by the fixed require up to 20Mbps downlink throughput performance despite changing traffic
residential network, but many service for a good service quality. patterns and increased traffic demand.
providers also experienced an increased The increased data consumption was In some markets, a contributing factor
demand on the mobile network. mainly driven by a rising usage of to mobile data traffic growth was that
Networks are dimensioned to support bidirectional remote work-related apps, service providers made temporary changes
traffic demand during peak hours of usage, such as audio, web and video conferencing, to data plans and either increased the
which for data traffic normally occurs in entertainment apps (streaming video and “bucket size” or allowed unlimited data for
the evening. However, the data traffic audio), social media and messaging. a certain period of time.
Figure 1: The lockdown restriction effect on mobility and mobile traffic levels Highest traffic Traffic levels Highest traffic
level increase similar level decrease
Change in density of mobile network users Change in mobile data traffic levels in the Paris area
throughout central Paris two weeks before and after two weeks before and after lockdown in mid-March,
lockdown in mid-March showing a geographical shift in demand from central
to adjacent and suburban areas
Source: Ericsson Analytics based on crowdsourced data
5 Introduction Ericsson Mobility Report | June 2020
Figure 2: The fixed and mobile network impact following lockdown restrictions
Up to 90 percent increase in
Voice over Wi-Fi (VoWiFi) calls
for some service providers.
Traffic increased by
20–100 percent as
a consequence of Fixed wireless A large data increase for FWA service
COVID-19 lockdowns. access (FWA) providers, similar to what was observed
in fixed (wired) residential networks.**
On rare occasions, minor degradation in Keeping connected during the crisis family is the most important experience
mobile network performance was observed, Consumers’ communication behavior has when consumers were asked to judge
typically on individual cell level where partly changed, where video calling and their mobile network performance
capacity upgrades were needed. In many video conferencing services appear to during the crisis.
cases, overall network performance even stand out, especially among white-collar Among seniors, 74 percent claim
improved due to reduced population workers and seniors (60+). they now use video calls and 4 out of 10
movement and less mobile traffic. It is often Previously, consumers have not fully have increased their video usage due to
difficult for consumers to distinguish network embraced video calling as one could have social distancing. Among white-collar
performance issues from application server expected, as is evidenced by a relatively workers, 88 percent now use video calls,
congestion, or under-dimensioned low uptake in most countries. Now, as and as many as 60 percent say they have
corporate VPN capacity. In many cases, many as half of respondents in a recently increased their usage of video calls.
perceived performance problems are conducted consumer study claim they have This behavior among seniors is likely to
related to specific services and increased increased their usage of video calls.1 It also continue and remain established after the
load on their related servers (e.g. during appears that video calling is the service crisis ends. For white-collar workers, the
video conferencing). that most have started to use during the habit of using video conferencing seems
As consumers and enterprises try crisis. As many as 85 percent of consumers likely to continue into the future as 7 in 10
out new digital behaviors imposed by now use video calling, making it the believe they will be working more from home
COVID-19, an increased importance second most important way of contacting after the crisis than they did before. They also
may emerge for e-health, wellness apps, family and friends during the crisis, after agree that the traditional way of conducting
e-learning, public sector data access and voice calls. The study also shows that voice-based conference calls will
similar digital utility services. the quality of video calls with friends and change to video-based conference calls.
1
Ericsson Consumer & IndustryLab, Keeping consumers connected in a COVID-19 context (April 2020)
Base: Smartphone users aged 15–69 within Brazil, China, France, Germany, India, Italy, South Korea, Spain, Sweden, the UK and the US
6 Introduction Ericsson Mobility Report | June 2020
The pandemic has prompted authorities Three in four of the highly impacted
83%
around the world to implement a variety parents state that ICT has helped their
of social distancing measures to slow children a lot in accessing education and
transmission of the virus. A recently keeping them entertained. Two in three
conducted consumer study1 documents among those who say that the crisis has
the extent smartphone users in had a high impact on their personal life Of the survey respondents,
11 countries state they have been agree that reliable connectivity has 83 percent claim that ICT helped
impacted. The perceived impact on daily helped them work remotely. them a lot, in one way or another,
life ranges across the markets based on to cope with the lockdown.
the level of restrictions imposed,
from 82 percent in India stating their
personal life is highly impacted to only
45 percent in Sweden.
ICT vital for consumers to cope Figure 3: Share of smartphone users who consider ICT has helped them a lot with
with everyday life different tasks in their daily lives during the COVID-19 pandemic
Across all the surveyed markets,
83 percent of respondents claim that
information and communications My children’s access to
76%
education (parents)
technology (ICT) has helped them a lot in
coping with the impact of the pandemic Staying in touch with
74%
family and friends
in various ways. There is a higher than
average degree of feeling supported by Doing my job
67%
ICT among career millennials,2 parents with (white-collar workers)
children at home and those living in centers Keeping children entertained
65%
of larger cities. Among the seniors (60+), and engaged
3 in 4 also state that ICT has helped them
a lot during the crisis, especially in being Going shopping 45%
able to stay in touch with family and friends.
Getting groceries
The most important communication from food stores
44%
services among all respondents for this
Improving my mental health
purpose have been voice calls and instant 43%
and wellbeing
messaging. Among seniors, 4 in 10 ranked
video calls as 1 of the 3 most important The possibility of accessing
41%
healthcare or seeing a doctor
communication services.
Keeping fit and exercising 40%
Improving my income
29%
and finances
Base: Smartphone users aged 15–69 who claim their daily life is highly
impacted by the lockdown restrictions, in Brazil, China, France,
Germany, India, Italy, South Korea, Spain, Sweden, the UK and the US
1
ricsson Consumer & IndustryLab, Keeping consumers connected in a COVID-19 context (April 2020):
E
www.ericsson.com/en/reports-and-papers/consumerlab/reports/keeping-consumers-connected-during-the-covid-19-crisis
2
Age 23–39 years
7 Introduction Ericsson Mobility Report | June 2020
Figure 4: Smartphone apps – user growth and net change in usage during COVID-19 lockdown restrictions
30%
Fast growth zone
User growth (percentage growth in number of users within app category)
COVID-19 apps
25%
20%
Remote working apps
15%
Net change in app usage (the difference between the increase and decrease in app usage)
The importance of networks is Networks cope well with user growth of at least 8 percent or more.
reflected in increased usage the increased usage In addition, the need to socialize while in
The daily time consumers spent connected Compared with before the lockdown isolation and avoiding physical visits to
to fixed broadband increased by two and restrictions, 74 percent experience their doctors during the crisis drove users to
a half hours during the crisis, while the mobile broadband network as the same start using remote health consultations
time spent connected to mobile broadband or better than before the crisis, while and social shared experience apps.
increased by an average of one hour 21 percent say it is worse. About half of However, apps related to travel and
per day. As many as 46 percent have all consumers say they are very satisfied booking, sports and navigation decreased
spent significantly more time on fixed with their fixed broadband’s overall the most in usage.
broadband, while 16 percent have done performance. This shows that both mobile
the same on mobile broadband. and fixed broadband have coped well with
In markets with limited penetration of the increased internet usage. Methodology
fixed residential networks, the mobile This article is based on data from an
broadband network was especially valued. Changes in service usage behavior Ericsson Consumer & IndustryLab
For example, in India, 33 percent claim Although the pandemic created new survey among smartphone users
mobile broadband is more important than concerns for consumers, they are still aged 15–69 years across
fixed broadband, as 37 percent only or buying new devices and expanding their 11 countries: Brazil, China, France,
most often rely on mobile broadband usage of ICT services. About 1 in 10 Germany, India, Italy, South Korea,
to connect at home. In South Korea, the US, have bought new devices, and 2 in 10 have Spain, Sweden, the UK and the US.
China, Italy and Brazil, almost half of started to use new services. However, far The data has been collected through
respondents claim that the networks are more consumers have increased their online questionnaires between
equally important to them. usage of the online services they already April 8–24, 2020. The sample of
While most online activities on use. Across the 11 markets, 87 percent 1,000 respondents in each country
smartphones were mainly done connected have increased their usage of existing – a total of 11,000 respondents –
to Wi-Fi at home, some activities were online services. A majority has increased statistically represents at least
an exception. Thirty-eight percent of all usage of (in descending order): 700 million smartphone users across
respondents in the survey claim that web browsing, instant messaging, these markets.
they spend half of their overall time streaming of videos, social media,
using social media apps connected to a video calls and voice calls.
mobile broadband network rather than Analysis of the net changes in app
a fixed network. usage and new user growth reveals that The average time spent on Wi-Fi
apps for COVID-19 information and increased by two and a half hours
symptom tracking, e-learning, remote per day, while mobile broadband
working and wellness all experienced an usage increased by one hour per day.
increase in usage, as well as a net new
8 Introduction Ericsson Mobility Report | June 2020
64% 59% 52% 48% 48% 48% 39% 38% 38% 29%
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Service providers expected to used 5G to control medical equipment
64%
deliver resilient networks and via remote centers or 5G-enabled robots
innovative offers could have carried out tests, reducing
Many smartphone users expect service the time medical staff need to spend in
providers to be creative in meeting infectious spaces.
the new demands and needs of their On average, 16 percent of smartphone Of the consumers asked, 64 percent
customers and communities. In the study, users across 5 EU markets (Sweden, think it is very important that service
several statements were tested to see the France, Germany, Italy and Spain) and providers maintain the resilience and
relative importance of different actions 41 percent in India and China indicate quality of the networks.
service providers could take with the that they plan to upgrade to 5G as soon
network and service packaging. Six in 10 as the crisis subsides.
consumers think it is very important that The survey also reveals that current
service providers maintain the resilience 5G users carry out more activities online New digital behaviors may remain
and quality of the networks. A majority than 4G users, such as grocery shopping, Based on their behavioral changes
expect that their service provider assists streaming videos and playing games. during the lockdown restrictions,
frontline workers, such as doctors, nurses 5G users are also more optimistic consumers predict that their
and first responders, by rewarding about 5G’s potential. Although 4 in 10 new digital behaviors will remain
them with free usage of data and voice respondents strongly agree that after the crisis. Some of the predicted
calls. They are also expected to refrain 5G coverage should be rolled out much trends are:
from charging additional fees for late faster, so they can have a faster network 1. Networks redefined: Resilient
payments and remove any existing than their fixed broadband at home, networks will be valued. Seven in
data caps. as many as 6 in 10 5G users strongly 10 say being connected during the
It is worth noting that certain agree with this. crisis is not only important now,
segments are over-represented in specific Current 5G users agree to a larger but will be in the future as well.
requirements, for example 61 percent of extent than 4G users that mobile 2. Autonomous commerce: Six in 10
parents expecting educational content broadband is more important to them than predict that deliveries will be carried
packages for children, and 48 percent fixed broadband. In fact, 23 percent of out by automated drones or
of white-collar workers expecting new current 5G users think mobile broadband is driverless cars, due to rising demand
services like meetings in virtual reality (VR). more important in a comparison with fixed, for contact-free interactions.
while another 48 percent say the networks 3. Borderless workspaces: After
Consumer expectations of are equally important. working well away from their
5G networks The pandemic has driven adoption offices, 7 in 10 white-collar
In times of crisis, when connectivity is and increased usage of many ICT services professionals now predict that remote
important for consumers to carry out that have enabled consumers to build a working will be the new normal.
work- and leisure-related activities, new normal underpinned by connectivity. 4. Synchronous care: Six in 10
expectations for better network This has also built an exciting foundation respondents in the US and UK
experiences become higher. Six in 10 for the potential role that 5G could play predict that online healthcare
smartphone users have a clear positive in enriching services and making the consultations will become more
attitude towards the role 5G could have management of such a crisis much easier, popular than physical visits to
played during the crisis, and about half of helping to keep us all connected when the doctor.
them strongly agree that 5G could have we have to stay apart. While 57 percent 5. Virtual experience economy:
offered both better network capacity and will save money for financial security, Augmented and virtual reality
higher speeds compared to 4G. They also one-third plan to invest in 5G and better (AR/VR) applications could evolve
believe that society overall could have broadband at home to be prepared for a into attractive new travel, social or
benefited hugely from 5G. There was a potential next wave. educational service offerings.
similar level of agreement related to 5G’s Six in 10 respondents say VR will
role from a medical perspective. For allow us to have the experiences
example, medical specialists could have we want, even in isolation.
9 Introduction Ericsson Mobility Report | June 2020
Over March–April 2020, Ericsson updated providers in Western/Central Europe 10 service providers also offered FWA,
its study of retail packages offered by and the Middle East and Africa. bringing this number up to 185 out of 309.
service providers worldwide. This is the A variation of the bucket model, referred Additionally, there are 26 service providers
third iteration, complementing those to as off-peak, includes a discount provision offering broadband using a mobile
completed in December 2018 and for data volume consumed during night-time battery‑powered pocket router.
August 2019.1 The study classifies tariff and weekends when the network is less The number of service providers
plans on offer to consumers, based on loaded. Today, 54 service providers offer this with commercial 5G offerings grew from
data from service providers‘ websites. model, up from 40 in the previous study. Half 26 in the previous study to 55 in the latest.
In 2018/19, 264 service providers of the increase was due to organic growth, Of these, 49 offered 5G for smartphones
were analyzed. Since then, 1 service and the other half due to the enlarged base. and 6 offered solely FWA over 5G.
provider has withdrawn from the market Service-based packages targeting Around two-thirds of the service
and another 46 have been added to specific services – such as social media, providers with 5G offerings charged
the analysis. However, to maintain the music and video – are being used by a premium over their 4G pricing.
possibility of comparison with previous 123 service providers. Packages targeting The premium varied tremendously,
iterations, analysis of the additional 46 will high-demand services like video and from 6.8 percent up to 96 percent,
be referenced separately when applicable. music streaming, which are particularly but on average was 32 percent.
interesting as 5G arrives, are becoming
Changes in service packaging even more popular; they are offered by A varied offering
The “bucket model”, typically expressed 85 out of the 123 service providers, up Service providers continue to provide more
in gigabytes (GB) per month, continues to from 75 out of 112 in the previous study. choice for consumers as they explore new
be the core offering for an overwhelming forms of segmentation and differentiation.
majority of service providers. As in the Commercial 5G on the rise Additionally, most of the newly introduced
previous iterations, all but four service Two package types related to 5G elements are provided as add-ons, with
providers use the bucket model as their consumer use cases (consumer IoT buckets remaining the basis of the offers.
base offering. These four service providers and home broadband) show exceptional Unlimited packages have been overtaken
offer unlimited data as their only main growth. These are represented in the by service-based offerings as a top-tier
alternative. A small increase was seen in the device-based and fixed wireless access option. Offerings related to 5G represent
number of service providers which offered (FWA) offerings, which increased to 66 and the strongest growth, as service providers
an option that included unlimited data as 175 respectively. Within the group of try new ways of packaging their services
a premium package, mainly among service 46 service providers that was added in 2020, in search of new revenues.
Dec 18 Aug 19 Feb 20 (amount reflecting organic growth) Feb 20 (amount attributable to the enlarged base)
300 305
260 260
250
Number of service providers
200
185
150 141
123
112 114
99 103
100
81 84 87 95
71 66 69
54 54 55
50 40 44 40
31 26
9 2
0
Buckets Unlimited Service-based Off-peak Device-based Fixed wireless Family and Triple/ 5G
access share plans quad-play
1
Ericsson Mobility Report, “Mobile service packaging trends” (November 2019)
10 Forecasts Ericsson Mobility Report | June 2020
The spread of COVID-19 during the first We have slightly decreased our 5G LTE will remain the dominant mobile
part of 2020 impacted all parts of society subscriptions forecast for 2020 and access technology by subscription during
globally, including the telecommunications 2021 in North America, compared to the forecast period. It is projected to peak
sector. Despite the uncertainty caused previous estimates. Both Europe and in 2022 at 5.1 billion subscriptions and
by the pandemic, service providers North America are expected to reach decline to around 4.4 billion subscriptions
continued to switch on 5G, and more the same 5G subscription figures by by the end of 2025 as more subscribers
than 75 of them have now announced 2025 as previously forecast.3 migrate to 5G.
commercial 5G service launches.1 Over the forecast period, 5G subscription
We have increased our estimate for uptake is expected to be significantly faster
the number of 5G subscriptions,2 and now than that of LTE, following its launch back
forecast about 190 million by the end of in 2009. Key factors are China’s earlier
2020. This is mainly due to a faster uptake engagement with 5G compared to 4G (LTE),
in China than previously expected. as well as the earlier availability of devices
For other parts of the world, slight from several vendors. By the end of 2025,
downward adjustments have been made we forecast 2.8 billion 5G subscriptions
due to the effects of the pandemic. For globally, accounting for around 30 percent
example, several spectrum auctions in of all mobile subscriptions at that time.
Europe have been delayed, with a slower
uptake of 5G subscriptions in the near
term expected as a result.
10
8.9
2.8bn
billion
9
7.9
billion
8
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 connections are included
1
Ericsson and GSA (May 2020)
2
5G subscription is counted as such when associated with a device that supports New Radio (NR),
A
as specified in 3GPP Release 15, and is connected to a 5G-enabled network
3
Ericsson Mobility Report (November 2019)
11 Forecasts Ericsson Mobility Report | June 2020
Figure 8: Comparison of 5G and 4G subscriptions uptake in the first years of deployment (billion)
3
5G (2018–2025)
2
4G (2009–2016)
1.5
0.5
0
0 1 2 3 4 5 6 7
Years since deployment
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
4
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
12 Forecasts Ericsson Mobility Report | June 2020
2019 2025 2019 2025 2019 2025 2019 2025 2019 2025 2019 2025 2019 2025 2019 2025 2019 2025
11% 3% 23% 9% 51% 13% 49% 18% 34% 21% 43% 27% 68% 55% 88% 60% 92% 74% 5G
29%
LTE (4G)
52%
68% WCDMA/HSPA (3G)
64%
63% GSM/EDGE-only (2G)
66% TD-SCDMA (3G)
46% 43%
40%
37%
26%
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 Western North East North
Africa and North Africa Asia and Eastern Europe Asia America
Oceania Europe
72%
for around 11 percent of subscriptions providers have taken place here during
in 2019. Over the forecast period mobile 2019 and 5G subscriptions have
broadband1 subscriptions are predicted to already passed 500,000, mainly in the
increase, reaching over 70 percent of mobile Gulf countries. Significant volumes are
subscriptions. LTE share will reach around expected in 2021 and the region is likely Mobile broadband subscriptions
30 percent by the end of the forecast period, to reach around 80 million 5G subscriptions are set to account for 72 percent
but HSPA will remain the dominant by 2025, representing around 10 percent of all mobile subscriptions in
technology with a share of around of total mobile subscriptions. Sub-Saharan Africa in 2025.
40 percent, which is similar to 2019. In Latin America, LTE remains the
Driving factors behind the growth of mobile dominant radio access technology
broadband subscriptions include a young, during the forecast period, accounting In the India region, LTE subscriptions are
growing population with increasing digital for 51 percent of subscriptions at the end forecast to increase from 550 million in
skills, and more affordable smartphones. of 2019 and a predicted 68 percent in 2019 to 820 million in 2025, increasing at
Over the forecast period, discernible 2025. A steady decline in WCDMA/HSPA a compound annual growth rate (CAGR)
volumes of 5G subscriptions are expected is forecast as users migrate to LTE and 5G, of 7 percent. LTE remains the dominant
from 2022, reaching 3 percent by 2025. falling from 36 to 13 percent. The first 5G technology, accounting for 49 percent
In the Middle East and North Africa network deployments are expected during of mobile subscriptions in 2019. LTE will
region, around 23 percent of mobile 2020 in the region, with Argentina, Brazil, continue to be dominant, representing
subscriptions were for LTE at the end of Chile, Colombia and Mexico anticipated 64 percent of mobile subscriptions in 2025.
2019. The region is anticipated to evolve to be the first countries. The subscription 5G will represent around 18 percent
over the forecast period, and by 2025, uptake is forecast to commence in 2020 of mobile subscriptions in India at
77 percent of subscriptions are expected and, by the end of 2025, 5G is set to make the end of 2025. Mobile broadband
to be for mobile broadband. Commercial up 13 percent of mobile subscriptions. technologies accounted for 58 percent
1
Mobile broadband includes radio access technologies HSPA (3G), LTE (4G), 5G, CDMA2000 EV-DO, TD-SCDMA and Mobile WiMAX
13 Forecasts Ericsson Mobility Report | June 2020
of mobile subscriptions in 2019, and this Further spectrum auctions in the key
74%
figure is predicted to reach 82 percent frequency bands like 700MHz, 3.4–3.8GHz
by 2025. The total number of mobile and 4.7GHz were planned for the end of
broadband subscriptions is set to exceed 2020 and the beginning of 2021, some
1 billion by 2025. The number of of which have now been delayed. This
smartphone subscriptions has increased will have a short-term impact on 5G 5G will account for 74 percent
to 620 million in 2019 and is expected deployment in affected countries. of North American mobile
to grow at a CAGR of 9 percent, In Western Europe, LTE is the subscriptions in 2025.
reaching 1 billion by 2025. dominant access technology, accounting
The second half of 2020 is gearing up for 68 percent of all subscriptions.
to be dynamic for 5G in South East Asia LTE is predicted to decline to 43 percent In North America, 5G commercialization is
and Oceania. Deployments continue in and WCDMA/HSPA to only 2 percent of moving at a rapid pace. Service providers
Australia, with all service providers rolling subscriptions by 2025. Around 20 service have already launched commercial 5G
out 5G networks after having deployed some providers launched 5G services across services, focused on mobile broadband.
of the first commercial networks in 2019. the region in 2019, delivering services North America’s LTE penetration is
Other countries in the region are expected to around 230,000 subscribers. Further currently 92 percent, which is the highest
to follow. In Singapore, three nationwide spectrum auctions in the 700MHz and share globally. By the end of 2025,
5G licenses have been awarded, and more 3.4–3.8GHz bands were planned during we anticipate close to 325 million 5G
than half of the country is expected to have 2020, but some have now been delayed, subscriptions in the region, accounting
5G mobile network coverage by the end of which will have a short-term impact on the for 74 percent of mobile subscriptions.
2022. In Thailand, several service providers deployment and coverage of 5G in the North America, North East Asia
are deploying 5G, making the country one region. The 5G subscription penetration and Western Europe have high shares
of the first in South East Asia to enable this is projected to reach 55 percent by of mobile broadband subscriptions.
technology. Still in its early stages, there the end of 2025. Countries within these regions have
were more than 220,000 5G subscriptions In North East Asia, the share of developed economies, enabling a
in the region at the end of 2019, mostly LTE subscriptions is high, reaching high adoption rate of information
concentrated in Australia. By 2025, 5G is 88 percent at the end of 2019, with China and communications technology.
predicted to be the second most popular alone having 1.4 billion LTE subscriptions.
cellular technology in the region, only During 2020, 5G development has been
behind LTE, surpassing 270 million accelerating in the region. In South Korea,
subscriptions and accounting for around 5G network coverage continues to improve,
20 percent of all mobile subscriptions. with the goal of nationwide coverage
In Central and Eastern Europe, by 2021. In China, the top three service
LTE became the dominant technology providers have started to build out
in 2019, and now accounts for 43 percent large-scale 5G coverage. The leading
of all subscriptions. To date more than service providers in Japan have now
five 5G networks have been commercially launched commercial 5G services.
launched across the region. In 2025, LTE In addition, more service providers in the
will remain the dominant technology region plan to start the 5G network roll-out,
and is expected to account for 66 aiming at providing 5G services in 2020.
percent of mobile subscriptions, while 5G By the end of 2020 the region is anticipated
subscriptions are forecast to make up 27 to have nearly 170 million 5G subscriptions,
percent. During the forecast period, there and at the close of the forecast period, the
will continue to be a significant decline 5G subscription penetration is projected
in WCDMA/HSPA, from 38 percent to to reach 60 percent.
3 percent of all subscriptions, as users
migrate to LTE and 5G.
14 Forecasts Ericsson Mobility Report | June 2020
Figure 11: FWA connections Figure 12: Mobile data and FWA traffic
160 250
140
200
120
Connections (million)
Traffic (EB/m)
100 150
80
60 100
40
50
20
0 0
2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025
1
The 309 service providers included in the study represent 98 percent of global mobile service revenues
2
Omdia, based on Country Statistics offices and the United Nations
15 Forecasts Ericsson Mobility Report | June 2020
5G device outlook
Despite the uncertainty caused by the vendors launching flagship models in the and customer premises equipment
COVID-19 crisis, the 5G device ecosystem first quarter of 2020. Third-generation (CPE)/FWT form factors for use in
is continuing to expand, as both chipsets will reach the interoperability labs markets across North America,
standalone (SA) and non‑standalone (NSA) this year, enabling performance-optimized South East Asia and South Korea.
networks are rolled out and new frequency 5G devices in 2021. New manufacturing
bands are utilized: processes will improve power consumption Low-band also gaining momentum
• over 100 commercial 5G device models and allow new features that focus on The first networks using low-band spectrum
• increasing support for mmWave end‑user performance in the 5G SA domain. for 5G are live and the number of compatible
frequency bands Based on the third-generation chipsets, devices is increasing. This also includes
• fixed wireless terminals (FWT), modules devices will reach lower mid‑tier or even support for spectrum sharing, starting with
and connected PCs gaining traction low‑cost segments. a few band combinations fitting the initial
• an additional chipset player in the launches, and more expected over time.
commercial 5G ecosystem Taking advantage of mmWave 5G SA is gaining momentum in China,
• retail prices of 5G devices as low as frequency support with devices configured to support SA
USD 300–400 expected in the second half Spectrum is available in the 24, 28 and on service provider activation. In Europe,
of 2020, reaching mid- to low‑tier segments 39GHz mmWave frequency bands. the demand for 5G SA devices for
Currently, this spectrum enables devices dedicated network applications is growing,
While COVID-19 will impact device volumes capable of end-user bitrates of over driving requirements for form factors
in the short to medium term, at this point 4Gbps. The US has led investments in beyond smartphones.
the pace of new developments appears mmWave spectrum and technology, and In the US, the initial target is to introduce
to be intact. consequently other markets are expected SA using low-bands for mobile broadband.
to take advantage of developments in During 2020, devices will be released with
From volume to performance optimization the high‑band device ecosystem. There the capability to go between SA and NSA
Second-generation chipsets started the are a growing number of device models modes where both network architectures
volume deployment of 5G devices, with supporting mmWave both in smartphone are deployed.
26GHz (n258)
4.7GHz (n79)
3.7GHz (n77)
2.6GHz (n41), SA
Reliable, high-quality voice services are Figure 14: VoLTE subscriptions by region (billion)
more crucial than ever. Service providers
continue to evolve their networks to Latin America North America Europe Middle East and Africa Asia Pacific
support VoLTE-based services. These 6.4
7 billion
have now been launched in more than
210 networks in 100 countries.1 VoLTE 6
services are being deployed using cloud
technologies to enable cost-efficient 5
3
network operations, easier capacity scaling billion
4
and faster service deployment.
VoLTE subscriptions are estimated 3
to reach 3 billion at the end of 2020 and
6.4 billion by the end of 2025. This will 2
account for almost 90 percent of all
1
combined LTE and 5G subscriptions.
The shutdown of 2G and 3G networks will 0
accelerate VoLTE adoption and VoLTE 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
roaming agreements. VoLTE will support
subscribers and roamers with voice functionalities, such as the latest voice content sharing, for example, joint web
services, as the current most used 4G voice codecs and native video calling. There browsing on 5G smartphones, or business
solution, Circuit-Switched Fallback (CSFB), are more than 165 models supporting and enterprise media sharing between
will not work without 2G or 3G. HD Voice+ (Evolved Voice System, or EVS), different devices and endpoints – could
VoLTE (using IP Multimedia Subsystem, and more than 400 devices capable of become a radically improved, mainstream
or IMS) is also the foundation for enabling video calling over LTE (ViLTE).4 5G voice service in the future.
5G voice calls, SMS, rich communications The latest service provider market
services (RCS), and new communication offering is smart speakers with voice calling
services on 5G devices. IMS is the only capabilities, using the same mobile phone VoLTE usage and performance
standardized voice solution for 5G, and number as that of a smartphone. This builds in times of crisis
there is no CSFB of voice from 5G. 5G voice on VoLTE multi-device network capabilities Analysis of VoLTE usage across
will be deployed stepwise in 4G and 5G which tie several devices, such as phones, Europe during the weeks before and
networks, using LTE-NR dual connectivity, smartwatches and smart speakers, to after the recent global lockdowns
Evolved Packet System fallback and voice the same phone number. Over 90 service began revealed a significant
over New Radio (VoNR). Successful provider networks support cellular increase in traffic, mainly due to
end-to-end testing of 5G voice (VoNR) smartwatches enabled with voice services. longer call times. Due to reduced
and 5G video calling with network Other VoLTE-based services include mobility of users across networks,
infrastructure and the device ecosystem additional phone lines on the same phone, the retainability of voice calls was
has been conducted. shared phone lines, video calling, enterprise improved. The VoLTE traffic increase
collaboration services in combination varied by 20–50 percent across
Device availability and use case uptake with mobile HD voice, and voice for IoT different markets in Europe.5 In some
There are over 2,650 VoLTE-enabled devices. 5G-related service innovations for other markets, service providers
4G devices, of which around 85 percent consumers, enterprises and industries are experienced up to a 90 percent
are phones.2 More than 40 5G phones being explored, including combinations increase in Voice over Wi-Fi calls as
include VoLTE support.3 VoLTE-enabled with AR and VR. 5G interactive calling – people spent more time at home.
smartphones also have enhanced combining a 5G voice call with real-time
1
GSA (May 2020)
2
GSA (May 2020) modules, smartphones and other types of devices, supporting different regions and frequencies
3
GSA (May 2020)
4
GSA (May 2020)
5 Based on data from a selection of representative countries in Europe
17 Forecasts Ericsson Mobility Report | June 2020
Following the extraordinary peak to a degree, from city centers to suburban Over the long-term, traffic1 growth is
in traffic growth seen in 2018 and the residential areas due to home-working driven by both the rising number of
first part of 2019, the growth rate has guidance. This effect was most pronounced smartphone subscriptions and an
returned to a more normal level. The in areas with limited penetration of fixed increasing average data volume per
quarter-on-quarter growth for Q1 2020 residential broadband connections. subscription, fueled primarily by more
was 14 percent. A change in consumer Generally, the traffic volumes were only viewing of video content. Figure 15 shows
behavior caused by COVID-19 lockdown modestly affected in mobile networks total global monthly network data and
restrictions impacted mobile networks in markets where fixed network voice traffic from Q1 2014 to Q1 2020,
by geographically shifting traffic loads; connections are common. along with the year-on-year percentage
for example, daytime loads moved, change for mobile network data traffic.
Figure 15: Global mobile network data traffic and year-on-year growth (EB per month)
50 100
40 80
Total (uplink + downlink) traffic (EB per month)
30 60
20 40
10 20
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
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
18 Forecasts Ericsson Mobility Report | June 2020
Mobile traffic by
application category
Video Social networking Web browsing Audio Software download and update P2P file sharing Other segments
1
Traffic from embedded video in web browsing and social media is included in the application category “Video”
19 Forecasts Ericsson Mobility Report | June 2020
Driven by both new users with more time to the same time, as this may amount to a few game’s speed and complexity. Streaming
explore and increasing usage among those tens of gigabytes. A full download can even games consumes several times more
already using the services, rising use of video be 100–150GB. Many such simultaneous data than a video stream of equivalent
services and game downloads resulted in downloads could cause short-term capacity quality. This is due to the need for faster
a traffic increase in networks. Given this, challenges for any fixed or mobile network. video encoding, which helps maintain the
some providers of video streaming services required low latency during gameplay,
took a cautious approach and reduced the Streaming video games but with a higher data rate. Current
video quality to ensure they could maintain Streaming games from remote datacenters cloud-based gaming platforms require
delivery over strained networks. is now a reality for smartphone users. This sub-60–100ms network latency as a
The popularity of many online games trend is gaining momentum, as it enables minimum for the services to run.1 As games
has increased, with millions around the games to run on a wide range of devices become more complex, even lower network
world playing every week. Online games are due to reduced hardware requirements. latency will be required. Today‘s deployed
designed to minimize the exchange of data A number of services have already 5G networks already have an average
traffic over the network in order to reduce launched and more are under development. latency of 20–30ms, and are developing
latency. Traffic generated while playing a Streaming video game services, unlike towards sub-10ms latencies.
traditional online game consists primarily traditional PC or console games, stream Network performance becomes
of small packets of information about the whole game live over the network. increasingly important when games are
each player’s position and activity on the Presently, some service providers with developed for a streaming architecture
game map. Hence, even a large increase a 5G mobile broadband offering are executed in the cloud. Network capabilities
in players will not have a substantial partnering with cloud-based gaming provided by 5G and edge compute
impact on the amount of online traffic. For providers to offer service-based packages technologies will better equip service
multiplayer games that are executed in on top of or within their 5G price plans. providers with an optimized architecture
the device, the demands on the network Streaming different types of games for these services. Once deployed, more
are for low latency. The biggest traffic can have varying impacts on the network, gaming packages are expected to launch
impact on networks occurs when millions as illustrated in Figure 17. The required that can both differentiate offerings and
of players download or update a game at downlink throughput depends on the deliver the required user experience.
Figure 17: Variation in downlink throughput requirements of one cloud-based mobile gaming platform
30
20
1
Network latency depends on factors such as network speed, available bandwidth and size of transmitted data Minimum
20 Forecasts Ericsson Mobility Report | June 2020
45%
around 33EB per month by the end of growth across regions
2019, and is projected to grow by a factor Traffic growth can be very volatile
close to 5 to reach 164EB per month in between years, and can also vary
2025. This figure represents the mobile significantly between countries, depending
data that will be consumed by over 6 billion on local market dynamics. In the US, the By 2025, 5G will account
people using smartphones, laptops and traffic growth rate declined slightly during for an estimated 45 percent
a multitude of new devices at that time. 2018 but recovered to previously expected of total mobile data.
Smartphones continue to be at rates during 2019. In China, 2018 was a
the epicenter of this development as year of record traffic growth. India’s traffic
they generate most of the mobile data growth continued its upward trajectory Around 410 million additional smartphone
traffic – about 95 percent – today, and it remains the region with the highest users are expected in India by 2025
a share that is projected to increase usage per smartphone and per month. In the India region, the average monthly
throughout the forecast period. Globally, the growth in mobile data mobile data usage per smartphone
Populous markets that launch 5G traffic per smartphone can be attributed continues to show robust growth, boosted
early are likely to lead traffic growth over to three main drivers: improved device by the rapid adoption of 4G. Low prices for
the forecast period. By 2025, we expect capabilities, an increase in data-intensive mobile broadband services,1 affordable
that 45 percent of total mobile data content and more affordable data plans. smartphones and people’s changing
traffic will be carried by 5G networks. video viewing habits have continued to
drive monthly usage growth in the region.
Only 4 percent of households have fixed
Figure 18: Global mobile data traffic (EB per month) broadband, making smartphones the only
way to access the internet in many cases.2
180
Total traffic is projected to triple,
reaching 21EB per month in 2025.
160 This comes from two factors: high growth
in the number of smartphone users,
140 including growth in rural areas, and an
increase in average usage per smartphone.
120
A total of around 410 million additional
smartphone users are expected in India
5G by 2025. Even if the traffic per existing
100
smartphone user continues to grow
significantly over time, the increase in
80 average traffic per smartphone is expected
to moderate as more consumers in India
60 acquire smartphones. The average traffic
per smartphone is expected to increase
2G/3G/4G to around 25GB per month in 2025.
40
20
0
2015 2017 2019 2021 2023 2025
Note: This graph does not include traffic generated by fixed wireless access (FWA) services
1
www.cable.co.uk/mobiles/worldwide-data-pricing
2
GlobalData, India Telecom Operators Country Intelligence Report (2019)
21 Forecasts Ericsson Mobility Report | June 2020
CAGR
Figure 19: Mobile data traffic per smartphone (GB per month) 2019–
Regions 2019 2025 2025
50
45
40
35
India 12 25 13%
30
20
10
0
2017 2018 2019 2020 2021 2022 2023 2024 2025
In North America, future monthly GB High growth in monthly mobile data Average traffic per smartphone is expected
growth depends on 5G service adoption usage continues in North East Asia to reach 7.1GB over the forecast period.
The monthly average usage of mobile Attractive data plans, as well as innovative South East Asia and Latin America
data in North America is expected to reach mobile apps and content, have pushed are expected to follow similar trends over
45GB per month per smartphone by 2025. up monthly mobile data usage across the forecast period on a regional level,
A smartphone-savvy consumer base and North East Asia, particularly in China. The while the individual countries can show
video-rich applications in combination rapid growth in smartphone subscriptions very different growth rates for traffic
with large data plans will drive traffic is expected to continue, with China alone per smartphone, especially in markets
growth. While there may be strong growth set to add around 170 million smartphone deploying 5G. Traffic growth is driven by
in traffic per smartphone in the near term, subscriptions between 2019 and 2025, coverage build-out and continued adoption
the adoption of immersive consumer further driving data traffic growth. With of 4G, linked to a rise in smartphone
services using VR and AR is expected 5G set to capture a great number of early subscriptions and increases in average
to lead to an even higher growth rate in adopters, we continue to expect high data usage per smartphone. The data
the long term. By 2025, 5G subscription growth numbers in the region. The data traffic per smartphone is expected to reach
penetration is set to be the highest of traffic per smartphone is expected to reach 25GB and 22GB per month respectively
all regions at 74 percent. 27GB and 25GB per month respectively in South East Asia and Latin America.
The Western Europe traffic growth in North East Asia and China. In Central and Eastern Europe,
rate follows a similar pattern to that The Middle East and North Africa growth is also fueled by 4G adoption,
expected in North America. However, region is expected to have one of the but the region has a somewhat higher
the more fragmented market situation highest growth rates during the forecast traffic per subscriber starting point.
is expected to lead to later mass-market period, increasing total mobile data Over the forecast period, the monthly
adoption of 5G, and therefore somewhat traffic by a factor of almost 9 between traffic per smartphone is expected to
lower traffic per smartphone in 2025 than 2019 and 2025. The average data per increase from 5.8GB to 24GB per month.
North America, at 36GB per month. smartphone is expected to reach 23GB It is important to bear in mind that there
per month in 2025. Sub-Saharan Africa are significant variations in monthly
also has a very high growth rate, but data consumption within regions, with
from a relatively small base, with total individual countries and service providers
traffic increasing from 0.33EB per month having considerably higher monthly
to 4EB by 2025. consumption than any regional averages.
22 Forecasts Ericsson Mobility Report | June 2020
Network coverage
Momentum continues in the build-out of Looking at the first two categories Figure 20: World population
4G (LTE) networks. Global 4G population combined, 5G population coverage is coverage by technology1
coverage was around 80 percent at the forecast to reach 55 percent in 2025.
end of 2019 and is forecast to reach over For the third category, a significant 3GPP
90 percent in 2025. 4G networks are also proportion of 4G networks are already
evolving to deliver increased network prepared for 5G and can be upgraded 2019 ~95%
capacity and faster data speeds. There are to support 5G services in existing LTE
currently 797 commercial 4G networks bands by utilizing spectrum sharing.
2025 >95%
deployed. Of these, 315 have been Given this option, an estimated additional
upgraded to LTE-Advanced, and 10 percentage points of 5G population
37 Gigabit LTE networks have been coverage is achievable, creating a potential
commercially launched. of up to 65 percent coverage in 2025. LTE
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
23 Forecasts Ericsson Mobility Report | June 2020
The Massive IoT technologies NB-IoT is introduced. Commercial devices for cases include cloud-based AR/VR, cloud
and Cat-M1 continue to be rolled out Massive IoT include various types of robotics, autonomous vehicles, advanced
around the world, but at a slightly slower meters, sensors, trackers and wearables. cloud gaming, and real-time coordination
pace in 2020 than previously forecast due Broadband IoT mainly includes and control of machines and processes.
to the impact of COVID-19. 2G and 3G wide-area use cases that require higher North East Asia is leading in terms of
connectivity still enable the majority of IoT throughput, lower latency and larger data the number of cellular IoT connections. At
applications, but during 2019, the number volumes than Massive IoT technologies the end of 2019, the region accounted for
of Massive IoT connections increased by can support. LTE is already supporting 54 percent of all cellular IoT connections, a
a factor of 3, reaching close to 100 million many use cases in this segment. By the figure set to increase to 67 percent by 2025.
connections at the end of the year. end of 2025, 34 percent of cellular IoT
Massive IoT primarily consists of connections will be broadband IoT, with IoT devices
wide-area use cases, connecting large 4G connecting the majority. With the The first 5G NR-capable IoT platforms
numbers of low-complexity, low-cost introduction of 5G New Radio (NR) in old have recently been released. Modules
devices that have long battery life and and new spectrum, throughput data rates from several vendors are available, as
relatively low throughput. NB-IoT and will increase substantially for this segment. well as tailored platforms for PCs and
Cat-M technologies complement each Critical IoT is used for time-critical advanced wearables. In the second half
other; out of the 123 service providers2 communications in both wide- and of 2020 and during 2021, this is expected
identified as having launched at least one local-area use cases that require to expand to include use cases involving
of these, 25 percent have launched both. guaranteed data delivery with specified personal and commercial vehicles, cameras,
At the end of 2025, NB-IoT and Cat-M are latency targets. Critical IoT will be industry routers and gaming. Such devices
projected to account for 52 percent of all introduced in 5G networks with the will initially support mobile broadband
cellular IoT connections. Cat-M and NB-IoT advanced time-critical communication capabilities, but performance is expected to
follow a smooth evolution path into 5G capabilities of 5G NR. Deployment of the evolve towards time-critical communication
networks, and can continue to be deployed first modules supporting Critical IoT use capabilities where needed, via software
in the same bands as today, even when 5G cases is expected in 2021. Typical use upgrades on devices and networks.
Figure 22: Cellular IoT connections by segment and technology (billion) Figure 23: IoT connections (billion)
Broadband IoT and Critical IoT (4G/5G) Massive IoT (NB-IoT/Cat-M) Legacy (2G/3G)
IoT 2019 2025 CAGR
6.0
1.0
0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
1
Cat-M includes both Cat-M1 and Cat-M2. Only Cat-M1 is being supported today
2
GSA (April 2020)
3
These figures are also included in the figures for wide-area IoT
24 Articles Ericsson Mobility Report | June 2020
5G in millimeter-wave spectrum
redefines user experiences.
Verizon is in the second year of delivering The 5G user experience will not be
5G services in the US using millimeter-wave limited to the millimeter-wave band and This article was written in cooperation
spectrum. A journey starting with the launch coverage. The service has been designed with Verizon, a market-leading
of 5G Home for fixed wireless access (FWA) to use both 4G and 5G and will leverage communications service provider
in 2018 was followed by 5G mobility capabilities such as dual connectivity, in the US delivering innovative
services in 2019 with both running on carrier aggregation and dynamic spectrum communications and technology
Verizon’s 5G Ultra Wideband network. sharing (DSS). This approach has the solutions to a wide range of customers.
advantage of minimizing the experience of
The 5G millimeter-wave opportunity coverage white spots as millimeter-wave
The use of the millimeter-wave spectrum 5G is built out in steps.
for wireless services represents a new
opportunity for service providers. Principles for building 5G with
The enhancement that 5G connectivity millimeter-wave spectrum
provides changes the game for The build-out of networks using 5G in the
applications leveraging artificial millimeter-wave spectrum required the
intelligence, robotics, augmented/virtual reinvention of both network design and
reality and/or IoT.1 This represents a leap operational models. To develop these
in performance compared to what new opportunities, a strategy built on five
was possible for the first four mobile principles was adopted:
network generations. 1. Focus on differentiated user
In October 2018, 5G Home was experiences, deploying 5G with
released in select neighborhoods of four millimeter-wave spectrum.
cities to provide an alternative to wired 2. Learn about building with
broadband. The initial deployments used millimeter-wave characteristics
the TF specification of 5G to enable early by experiencing real-life network
field evaluations of performance. conditions as early as possible.
These insights provided the foundation 3. Develop use cases together with
for network planning of further enterprises in different industries while
5G millimeter-wave based services. building out 5G networks.
Verizon’s 5G network was launched 4. Combine New Radio capabilities with
for mobile services to both consumers and edge computing.
business customers in the spring of 2019. 5. Deploy fiber infrastructure to 5G sites.
Initial deployments focused on enhancing
5G mobility at outdoor locations primarily
in dense urban areas such as commercial
zones, parks and landmarks. Sports and
concert venues have been a special focus.
To date, the build-out includes parts of
17 stadiums and 7 indoor arenas.
As of June 2020, Verizon’s 5G network
mobility services are available in parts
of 35 markets/cities across the US.
1
erizon, “When we say ‘5G’, we mean 5G” (January 7, 2019):
V
www.verizon.com/about/news/when-we-say-5g-we-mean-5g
25 Articles Ericsson Mobility Report | June 2020
Learn millimeter-wave
early in the field
Deploy fiber to
radio sites
Use case innovation in parallel Verizon is further collaborating with Performance measurements
with network deployment various enterprises to explore how 5G in commercial networks
Verizon’s 5G Ultra Wideband network Ultra Wideband could transform industries The first performance measurements,
was built to support innovative use cases ranging from manufacturing to healthcare. comparing downstream data rates for
beyond enhanced mobile broadband. For example: 5G and 4G, have emerged. Figure 25
Verizon has established six 5G labs in the • Corning Inc.: Verizon partnered with describes the differences between
US and one in London where the company Corning to help create the 5G factory maximum and median downstream
partners with startups, universities and of the future. Initial use cases focus on measures for two Verizon markets where
established companies to develop 5G use factory automation, zero touch quality 5G Ultra Wideband service is available.
cases.2 Each lab has a core focus in areas assurance and supply chain tracking
such as financial services, robotics, public in near real-time. Efficient use of Increasing 5G coverage and
safety, entertainment and information automated guided vehicles (AGV) and focusing on the network edge
technology. The goal of the labs is to inventory tracking with 5G-connected The 5G Ultra Wideband network roll-out
support and foster the next great cameras will also be explored. continues. The plan includes increasing the
5G innovation for the marketplace. • Emory Healthcare: Verizon provided market footprint from 35 to over 60 cities
Today, with social distancing due to Emory’s Innovation Hub with 5G Ultra during 2020. The number of small cells
COVID-19, the public debate concerns Wideband service to explore ways to is slated to grow by a factor of five times,
how to stepwise reopen economies and accelerate the development of both through expansion in the initial cities
when it will be possible to attend large 5G healthcare applications. Use cases and through the addition of new cities.
events. The various alternatives offered will focus on AR/VR-based medical The 5G Home service (FWA for the
by 5G, streaming video and augmented training, remote physical therapy, consumer market) is planned to be
reality could play a part in experiencing patient monitoring and emergency expanded from 5 to 10 markets. In
sports and music events on the way to room readiness. The pandemic has addition, there are plans to launch 20 new
the new normal. put the value of “remote anything” 5G devices in 2020 with smartphones as
in the spotlight. the biggest device category.
• The Walt Disney Company: At the As Verizon continues to expand the
premiere of “Star Wars: The Rise of footprint of its 5G network, it is also
Skywalker”, the companies explored how working to locate edge computing
5G and motion capture technology could capabilities at the selected edge sites.
enable fans to interact with virtual Sith jet These mobile edge computing (MEC) sites
troopers at the movie afterparty. Further, will allow Verizon to substantially reduce
the red carpet action was captured and the end-to-end latency for enterprise
streamed over 5G and key moments were applications that are currently being
incorporated into the live broadcast. rendered from a centralized cloud from
approximately 100ms to 20ms or less.
The development of use cases in parallel In addition, enterprises that are
with network roll-outs reduces the time leveraging the Verizon deployed MEC sites
to market for both activities. Network will benefit from being able to offload
builds can focus on addressing roll-out compute-intensive applications from their
related challenges without distracting end devices to the local MEC compute
innovation activities. Use case innovations element. This will enable locally cached
take place in an environment enabling data associated with the application,
rapid prototyping where projects can substantially reducing not only the physical
evolve stepwise into applications ready size and power consumption of the end
for commercial launch. These parallel devices, but also reducing the backhaul
processes are vital for a timely expansion bandwidth required to transport data to a
of use cases beyond mobile broadband. centralized public cloud.
2
erizon 5G labs (2020):
V
www.verizon5glabs.com
27 Articles Ericsson Mobility Report | June 2020
100
0
4G 5G 4G 5G
Chicago Los Angeles
247
250
200
150
106.7
100
50 45.2 36.6
0
4G 5G 4G 5G
Chicago Los Angeles
New choices for industrial connectivity Industry digitalization is setting Spectrum considerations
The process of integrating the networks requirements and driving demand for Choosing the frequency bands with which
of one or more manufacturing sites can dedicated networks to build their connectivity platform presents
be triggered by a need to replace legacy Enterprises provided key input to 3GPP a set of strategic issues for manufacturing
networks or the increasing mobility in the development of the IMT-2020 (5G) enterprises: low-band (e.g. 700–900MHz)
requirements of their operations. standards, resulting in cellular networks provides great coverage while high-band
Focus has been on improving network designed for their needs. Industry bodies (e.g. 25GHz and above) trades off coverage
performance in lighthouse sites for a few now combine membership from both for greater capacity over much shorter
notable use cases. Many sites currently manufacturing and ICT companies, distances. Mid-band offers a compromise
run multiple connectivity platforms for example with 5GAA in automotive, between the two. Beyond the significantly
(LMR, cables, Wi-Fi etc.) for specific and 5G-ACIA in industry. The Critical different performance characteristics, a
functions. This has been a challenge for Communications Association (TCCA) pulls specific band that is globally or regionally
enterprise digitalization efforts, which together stakeholders in the public safety harmonized is attractive, while those which
essentially need to pull together and arena. These three organizations are are country-specific may not be.
structure diverse data sets. A unified Market Representation Partners to 3GPP, Multinationals will want to know which
platform is required which integrates providing input on their industry needs. bands will work for their specific sites, and
voice, data, video and IoT. In the newly emerging field of air traffic which will work for them globally for future
Attention is now broadening management for beyond line-of-sight expansions and integration with suppliers
from lighthouse cases to operational (BVLOS) drones, bodies such as NASA and and customers.
mainstream, and the next steps include FAA in the US, EASA in the EU, and the One new parameter at play is the
standardized connectivity across company Global Unmanned Aircraft Systems Traffic release of locally licensed spectrum by
sites globally, and improved visibility Management Association (GUTMA) work national regulators for industry use.
across end-to-end supply chains. on standards, and 3GPP follows with work Regulatory authorities in the US, Europe,
Manufacturers that see 5G as a new items to align. Japan and other markets are making
platform for their operational technology (OT) For live broadcast production (e.g. news available new spectrum dedicated for
often state that they need dedicated gathering, sports coverage) the European local use, on top of the spectrum already
resources to ensure critical manufacturing Broadcasting Union (EBU) has a working provided to service providers for national
processes are guaranteed the connectivity group for 5G in Content Production (5GCP), networks. Countries differ, but most of
resources they require. There are various while 3GPP studies the requirements of the focus is on releasing additional
ways to implement this, but the early audio and video production. 5G spectrum (mid-band and mmWave
adopters have concluded that they require These are examples of industries now high-band) because 5G is seen as a key
dedicated networks. taking steps to incorporate connectivity enabler of industrial competitiveness.
and cellular into their standards, as many Germany was an early mover, announcing
industrial enterprises are defining 5G as spectrum reserved for use in dedicated
their primary connectivity platform for networks with fees based on bandwidth,
both IT and OT systems to reach new geographical area covered and duration
levels of productivity, security and safety. of the license.
29 Articles Ericsson Mobility Report | June 2020
Figure 26: Countries which have, or are considering to make, spectrum available for industry (as of April 2020)
Example 1: Dual-slice campus on a dual-slice approach. This solution It also ensures that private and public
networks for Osram, provided by combines and integrates public and radio is built in coordination on FDD
Deutsche Telekom private LTE connectivity on spectrum to avoid interference.
A private LTE network has been Deutsche Telekom spectrum, where it Deutsche Telekom is able to
deployed on the Osram factory campus can be enhanced with a local IT edge provide Osram with the dedicated
by Deutsche Telekom, leveraging the cloud deployment. on-site connectivity it needs, while
existing publicly available LTE mobile The network is achieving latencies coordinating public and private radio
network infrastructure. of <20ms and sufficient capacity for the resources effectively.
Osram and Deutsche Telekom factory use cases. Going forward, 5G
are prototyping and testing a mobile will bring even lower latency and more
robotics solution at the Osram factory in capacity in both uplink and downlink
Schwabmünchen. A flexible production when needed. Applications such as
environment is being developed where AGVs are assured priority with the use of
automated guided vehicles (AGV) will quality-of-service class identifier (QCI)
be used to transport goods throughout priority classes.
the factory. The AGV scans its The use of network features such
environment in the factory and sends as MOCN and RRP, where the radio
the data through the campus network splits traffic resources between private
to an application in the cloud edge, and public, provides Osram with
enabling autonomous control of the dedicated network resources and
transport system. capacity while benefiting from the
Deutsche Telekom is deploying the existing mobile infrastructure footprint
campus network solution based and coverage.
Example 2: Dedicated network on ground service engineering teams and Quality and security are prerequisite
industry spectrum for Groupe ADP and for retrieving aircraft telematics data. factors in aircraft operations, which
Air France-KLM A dedicated network with both micro influenced the decision to implement
In January 2020, the French regulatory cells on gates and macro cells for wide a 3GPP cellular network based on
body granted a 10-year 4G/5G license area coverage is currently being LTE and 5G.
to Hub One, a subsidiary of installed. Initial use case testing has
Groupe ADP (Aéroports de Paris), included ramp and ground staff activities
to launch a high-speed private mobile including tablet/mobile telephony,
network covering the Paris airports of LTE broadcast push-to-talk (PTT) and
Charles de Gaulle, Orly and Le Bourget. luggage tracing. The private mobile
The license grants 40MHz of time radio (PMR) systems currently in place
division duplex (TDD) spectrum on the have low data rates, and Hub One and
2570–2620MHz band (2.6GHz, B38A). Air France-KLM chose an LTE-based
The 3 airports collectively host system for high data capacity allowing
approximately 120,000 employees from applications such as AR video sharing to
around 1,000 companies daily. Hub One enhance site worker productivity.
is a telecommunications service Future uses include telematics
provider delivering network services to data transfer during taxiing for
many of the companies operating predictive and preventive maintenance,
on-site. One of the largest is as well as improved efficiency of
Air France-KLM, which requires software and content updates for
high-performance networking for onboard data servers.
32 Methodology and glossary Ericsson Mobility Report | June 2020
Methodology
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 Report mobile network enabled customer
is six years and is moved forward one year premises equipment (CPE). This includes Mobile network traffic
in the November report each year. The both indoor (desktop and window) and Ericsson regularly performs traffic
subscription and traffic forecast baseline in outdoor (rooftop and wall-mounted) CPE. measurements in over 100 live
this report is established using historical data It does not include portable battery-based networks covering all major regions of
from various sources, validated with Ericsson Wi-Fi routers or dongles. the world. These measurements form
internal data, including measurements in a representative base for calculating
customer networks. Future developments Rounding of figures worldwide total mobile traffic. More
are estimated based on macroeconomic As figures are rounded, summing up data detailed measurements are made in a
trends, user trends, market maturity and may result in slight differences from the selected number of commercial networks
technological advances. Other sources actual totals. In tables with key figures, with the purpose of understanding how
include industry analyst reports, together subscriptions have been rounded to mobile data traffic evolves. No subscriber
with internal assumptions and analyses. the nearest 10th of a million. However, data is included in these measurements.
Historical data may be revised if the when used in highlights in the articles,
underlying data changes – for example, subscriptions are usually expressed in full Population coverage
if service providers report updated billions or to one decimal place. Compound Population coverage is estimated using
subscription figures. annual growth rate (CAGR) is calculated a database of regional population and
on the underlying, unrounded numbers territory distribution, based on population
Mobile subscriptions and is then rounded to the nearest full density. This is then combined with
Mobile subscriptions include all mobile percentage figure. Traffic volumes are proprietary data on the installed base of
technologies. Subscriptions are defined by expressed in two or three significant figures. radio base stations (RBS), together with
the most advanced technology that the estimated coverage per RBS for each of
mobile phone and network are capable of. Subscribers six population density categories (from
Our mobile subscriptions by technology There is a large difference between the metro to wilderness). Based on this, the
findings divide subscriptions according numbers of subscriptions and subscribers. portion of each area that is covered by a
to the highest-enabled technology they This is because many subscribers have certain technology can be estimated, as
can be used for. LTE subscriptions, in most several subscriptions. Reasons for this well as the percentage of the population
cases, also include the possibility for the could include users lowering traffic costs by it represents. By aggregating these areas,
subscription to access 3G (WCDMA/HSPA) using optimized subscriptions for different world population coverage per technology
and 2G (GSM or CDMA in some markets) types of calls, maximizing coverage and can be calculated.
networks. A 5G subscription is counted as having different subscriptions for mobile
such when associated with a device that PCs/tablets and mobile phones. In addition,
supports New Radio as specified in 3GPP it takes time before inactive subscriptions
Release 15, and connected to a 5G-enabled are removed from service provider
network. Mobile broadband includes radio databases. Consequently, subscription
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 | June 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
5G TF: A pre-3GPP NR technical MB: Megabyte, 106 bytes radio technologies, with a typical range of
forum open specification up to 100 meters, such as Wi-Fi, Bluetooth
Mbps: Megabits per second and Zigbee
App: A software application that
can be downloaded and run on MHz: Megahertz, 106 hertz SLA: Service level agreement
a smartphone or tablet (unit of frequency)
Smartphone: Mobile phone with OS
AR: Augmented reality. An interactive MIMO: Multiple Input Multiple Output capable of downloading and running
experience of a real-world environment is the use of multiple transmitters and ”apps“, e.g. iPhones, Android OS phones,
whereby the objects that reside in the receivers (multiple antennas) on wireless Windows phones and also Symbian and
real world are “augmented” by devices for improved performance Blackberry OS
computer-generated information
mmWave: Millimeter waves are radio TD-SCDMA: Time division-synchronous
CAGR: Compound annual growth rate frequency waves in the extremely high code-division multiple access
frequency range (30–300GHz) with
Cat-M1: A 3GPP standardized low-power wavelengths between 10mm and 1mm. TDD: Time division duplex
wide-area (LPWA) cellular technology In a 5G context, millimeter waves refer
for IoT connectivity to frequencies between 24 and 71GHz VoIP: Voice over IP (Internet Protocol)
(the two frequency ranges 26GHz and
CDMA: Code-division multiple access 28GHz are included in millimeter range VoLTE: Voice over LTE as defined by
by convention) GSMA IR.92 specification
dB: In radio transmission, a decibel is a
logarithmic unit that can be used to sum Mobile broadband: Mobile data service WCDMA: Wideband code-division
up total signal gains or losses from a using radio access technologies including multiple access
transmitter to a receiver 5G, LTE, HSPA, CDMA2000 EV-DO,
Mobile WiMAX and TD-SCDMA Wide-area IoT: Segment made up
EB: Exabyte, 1018 bytes of devices using cellular connections
Mobile PC: Defined as laptop or desktop or unlicensed low-power technologies
EDGE: Enhanced Data Rates PC devices with built-in cellular modem like Sigfox and LoRa
for Global Evolution or external USB dongle
34 Global and regional key figures Ericsson Mobility Report | June 2020
LTE subscriptions
North America 330 350 110 -17% million
Latin America 280 340 490 6% million
Western Europe 300 350 230 -7% million
Central and Eastern Europe 190 240 390 8% million
North East Asia 1,580 1,800 820 -12% million
China1 1,230 1,410 560 -14% million
South East Asia and Oceania 280 390 810 13% million
India, Nepal and Bhutan 410 550 820 7% million
Middle East and North Africa 120 170 450 18% million
Sub-Saharan Africa 50 90 270 21% million
5G subscriptions
North America 0 1 320 - million
Latin America 0 0 90 - million
Western Europe 0 0 290 - million
Central and Eastern Europe 0 0 160 - million
North East Asia 0 10 1,320 - million
China1 0 5 1,080 - million
South East Asia and Oceania 0 0 270 - million
India, Nepal and Bhutan 0 0 230 - million
Middle East and North Africa 0 1 80 - million
Sub-Saharan Africa 0 0 30 - million