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Ericsson
Mobility Report

June 2023
2 Introduction
Forecasts Ericsson Mobility Report  |  June 2023

Letter from the publisher

Meeting evolving network requirements


Communications service providers capacity and good coverage for superior the need for new models to rate mobile
worldwide are continuing to invest in 5G, user experiences, remains limited to around quality of experience (QoE) to enable
driven by the prospect of superior 25 percent of 4G sites globally, with the design of networks that meet future
connectivity and emerging opportunities. North America ahead and Europe behind. service performance needs. As the use of
This comes despite geopolitical unrest and a As global mobile network data traffic augmented reality (AR) services for mobile
macroeconomic slowdown in some markets. continues to grow, with a CAGR of around devices grows, mobile networks need to
New major 5G markets are emerging. 25 percent projected through 2028, smart be prepared for increased performance
India is experiencing massive network network modernization becomes imperative. requirements, primarily by adding new
deployments, making it the fastest Managing this growth while improving spectrum and functionality on existing
growing 5G market globally. 5G is a critical the mobile user experience requires sites. We also explore how Singtel’s
component in India’s journey to realize continued network evolution. Notably, deployment of 5G network slicing at the
its “Digital India” vision. Meanwhile, in 5G mid-band build-out is proving to be 2022 Singapore Grand Prix demonstrated
North America the addition of mid-band more energy-efficient and cost-effective the commercial opportunities of
spectrum now enables superior multi-band compared to the expansion of 4G networks. differentiated connectivity services.
5G experiences for many users. In this edition, we uncover insights that I trust that you will find this report
With over 1 billion 5G subscriptions highlight key considerations for future engaging and that it provides useful
worldwide, service providers in leading network evolution, based on analysis of insights as we navigate the world of 5G
5G markets have been experiencing data traffic growth and patterns across and network evolution.
positive revenue growth over the past different locations in mobile networks.
2 years. However, the 5G rollout is still As you dive deeper into the report, Fredrik Jejdling
in progress, and the deployment of 5G we address the challenges posed by the Executive Vice President and
mid-band spectrum, which offers high next wave of 5G applications, emphasizing Head of Business Area Networks

Contents
Forecasts Articles

04 5G mobile subscriptions to 23 Exploring how traffic patterns drive Executive Editor: Peter Jonsson
reach 1.5 billion in 2023 network evolution Project Manager: Anette Lundvall
05 Continued revenue growth 26 Exploring differentiated services Forecasts: Richard Möller
in leading 5G markets with 5G networks Writer Editors: Stephen Carson,
06 5G subscriptions rising in every region 30 AR uptake enabled by mobile networks Steven Davis
08 North East Asia: A closer look 33 Mobile quality of experience:
10 Weak smartphone market is not Network readiness for new services Co-writers:
stopping 5G adoption Martin Bäckström, Greger Blennerud,
11 4G/5G IoT connections rising 36 Methodology Fredrik Burstedt, Marko Cejvan,
as 2G/3G declines 37 Glossary Yossi Cohen, Gunnar Heikkilä, Josip Jelic,
12 Over 100 service providers 38 Global and regional key figures Doroteja Kobescak, Fredric Kronestedt,
offering FWA over 5G Per Lindberg, Peter Linder, David Lindero,
14 5G continues to drive innovation Jun Ying Liu, Karl Olsson, Natasa Pipic,
in mobile service packaging Eliane Semaan, Raymond Soh,
16 High-data users driving mobile traffic Tomislav Tolic, Kenneth Wallstedt,
18 Mobile network traffic has almost Li Yang G, Jialong Zhang
doubled in two years
19 5G to account for all mobile data Contributors from Singtel:
growth within 5 years Cheong Hai Thoo, Terrance Lai,
21 5G population coverage Kuan Wai Mun, Lynette Poh,
has reached 35 percent Harish Nambiar, Cara Foong,
Hian Hou Chua
3 Forecasts Ericsson Mobility Report  |  June 2023

5G is growing fast – total 5G subscriptions are projected to


pass the 1.5 billion mark this year, growing by 500 million
in just 1 year. The growth comes in spite of a challenging
macroeconomic climate. Globally, around 240 commercial
5G networks have been launched so far, and service providers
in the top 20 5G markets have enjoyed growing revenue that
correlates with growing subscription penetration.

Forecasts

The monthly global average Revenue is rising for service More than 100 service 5G mobile subscriptions
usage per smartphone is providers in the top 20 5G providers are now offering are set to reach
expected to exceed markets, increasing by Fixed Wireless Access 1.5 billion globally by
20 GB at the end of 2023. 7 percent in the last 2 years. services over 5G. the end of 2023.

20 7 GB % 100 1.5 bn
4 Forecasts Ericsson Mobility Report  |  June 2023

5G mobile subscriptions to
reach 1.5 billion in 2023

During the first quarter of 2023, total 5G subscriptions


reached 1.1 billion, adding 125 million.

Service providers continue to deploy penetration at 41 percent. In North East Asia Subscriptions for 4G continue to increase,
5G despite a weaker global economy the penetration was 30 percent, followed growing by 59 million during Q1 2023 to
and geopolitical uncertainties. Around by the Gulf Cooperation Council countries 5.2 billion. 4G subscriptions are projected
the world, about 240 service providers at 18 percent and Western Europe at to start declining from this year to around
have now launched commercial 5G 13 percent. In 2028, it is projected that 3.8 billion by the end of 2028 as subscribers
services, and around 35 have deployed North America will have the highest migrate to 5G.
or launched 5G standalone (SA).1 5G penetration at 91 percent, followed During the quarter, 3G subscriptions
The most common 5G services launched by Western Europe at 88 percent. declined by 85 million, while GSM/EDGE-only
by service providers for consumers are The global 5G subscription forecast subscriptions dropped by 59 million and
enhanced mobile broadband (eMBB), has been adjusted to take into account other technologies3 decreased by
Fixed Wireless Access (FWA), gaming delayed spectrum auctions in several about 4 million.
and some AR/VR-based services. countries and continued difficult China, Bangladesh and Nigeria
macroeconomic conditions. 5G had the greatest net additions of
Strong 5G subscription growth subscriptions are now forecast to reach subscriptions during the quarter,
in North America 4.6 billion globally by the end of 2028, with 4 million added in each country.
The uptake of 5G subscriptions2 in making up more than 50 percent of all
North America has been stronger than mobile subscriptions. 5G will become the
expected, and at the end of 2022 the dominant mobile access technology by
region had the highest 5G subscription subscriptions in 2028.

Figure 1: Mobile subscriptions by technology (billion)

10 9.1 5G subscriptions are forecast


billion to reach 1.5 billion in 2023.
8.3

1.5
9 billion

bn
7

5G
3
LTE/TD-LTE
2 WCDMA/HSPA
GSM
1
TD-SCDMA
CDMA
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

1
GSA (May 2023).
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
Mainly CDMA2000 EVDO, TD-SCDMA and Mobile WiMAX.
5 Forecasts Ericsson Mobility Report  |  June 2023

Continued revenue growth


in leading 5G markets

The top 20 5G markets are continuing to convert 5G capabilities into


business value, growing revenues by 7 percent over the past 2 years.

Analysis of developments in leading now started to adjust their tariffs in relation speeds, and improved user experiences.
5G markets shows a strong correlation to the Consumer Price Index (CPI). So far, For service providers, the additional
between increased 5G subscription adjustments have been significantly lower value provided to consumers and
penetration and service revenue. When than inflation and this practice is still far enterprises translates into opportunities
data from Q4 2022 is added to previous from commonplace. As these adjustments for upsell and revenue increase.
analysis by Ericsson,1 it is evident that the only apply to entirely new or renewed The revenue trend in Figure 2 indicates
positive revenue trend is continuing. contracts, they would have had little this value capture has already begun.
As shown in Figure 2, the launch of impact on revenue growth during 2022. As 5G networks and ecosystems mature,
5G services in the top 20 5G markets2 In contrast to such reactive price with more services and applications being
is followed by a positive revenue adjustments, which provide no incentive developed and offered, even more
development of 3.5 percent CAGR over for consumers to pay more, the launch of value for customers will be unlocked.
the last 2 years, or a total of 7 percent. 5G services has enabled service providers
to proactively drive a shift to higher mobile
Service providers promoting 5G value tariffs, while adding value for consumers.
in times of surging inflation
Historically, service providers have found it Value of connectivity strengthened
challenging to increase consumer prices for by new 5G services
mobile subscriptions in line with inflation. 5G has created new value for consumer
With the current surge of inflation across and enterprise customers, with service
many areas, some service providers have offerings of larger data buckets, higher

Figure 2: Revenue vs. 5G subscription penetration – top 20 5G markets


(reference point Q1 2017, percent)

Revenue 5G subscription penetration

110% 24%
Methodology
A list of the top 20 5G markets was
5G subscription penetration (%)

105% 18% identified, based on 5G subscription


penetration ranking. For each
service provider in these markets,
Revenue (%)

relative revenue development was


100% 12%
calculated, using the first quarter
of 2017 as a reference point.
The development was calculated
95% 6% as a rolling four-quarter average,
to filter out seasonality. Finally,
individual developments were
aggregated into an average
90% 0% development representing all service
2017 2018 2019 2020 2021 2022
providers in the top 20 5G markets.
Source: Ericsson analysis of TechInsights data, Q4 2022.

1
Ericsson Mobility Report – Business Review edition (February 2023).
2
Markets categorized as the “top 20 5G markets”: Australia, Bahrain, China, Denmark, Finland, Hong Kong, Ireland,
Japan, Kuwait, Monaco, Norway, Qatar, Saudi Arabia, Singapore, South Korea, Switzerland, Taiwan, UAE, UK, US.
6 Forecasts Ericsson Mobility Report  |  June 2023

5G subscriptions rising
in every region

Uptake is strong in North America, and the region reached a


5G subscription penetration of 41 percent at the end of 2022.

Figure 3: Mobile subscriptions by region and technology (percent)

5G LTE (4G) WCDMA/HSPA (3G) GSM/EDGE-only (2G) TD-SCDMA (3G) CDMA-only (2G/3G)

2022 2028 2022 2028 2022 2028 2022 2028 2022 2028 2022 2028 2022 2028 2022 2028 2022 2028 2022 2028

30% 13% 32% 34% 73% 41% 74% 42% 74% 57% 30% 71% 18% 86% 13% 88% 41% 91%
58% 56%

55% 79%
73%

66%
59% 60%
58% 45% 55%

49%
32% 40%

22% 27%
25% 17%
22%
9% 12% 9%

Sub-Saharan Middle East South East Central and Latin India, North East Gulf Western North
Africa and North Asia and Eastern America Nepal and Asia Cooperation Europe America
Africa1 Oceania Europe Bhutan Council

Sub-Saharan Africa 5G is forecast to have the fastest growth The focus is on 4G and 5G, driven by the
Despite the challenging macroeconomic rate in subscriptions, attributed primarily exploration of service offerings requiring
environment, nations in Sub-Saharan Africa to coming from a low base. More than high bandwidth and low latency, and the
are expected to invest in network 10 countries in Sub-Saharan Africa have availability of a wide range of devices
infrastructure, driven by a large youthful launched commercial 5G networks to date, at attractive price points. As a result, 2G
population and a high demand for with more planned, raising the forecast for subscriptions will experience a significant
connectivity. This will also enable new growth 5G subscriptions to 13 percent of the total decline between 2022 and 2028, to
opportunities for service providers, driven subscription base in 2028. account for around 5 percent of total
by advanced mobile data and value-added subscriptions at the end of the period.
services like mobile banking and payments. Middle East and North Africa Mobile financial services are expected
Migration to 4G networks continues. Service providers are continuing to invest to continue to gain momentum, with an
4G will be the main contributor to new in 4G and are predicted to see subscriptions increase in mobile connectivity and
subscriptions up to 2028, accounting for rise by 4 percent annually between 2022 expansion of propositions from basic
more than half of all mobile subscriptions at and 2028, to account for around 60 percent transfers. Merchant payments, remittances,
the end of the period. While 2G remains an of the total subscriptions base in the region insurance and other services will also be
important technology in the region due to at the end of the period. factors to increase the usage of mobile
low-priced devices, affordability of service Strong growth in 5G subscriptions financial services.
plans and a large number of rural will see these account for 32 percent of
subscribers, 2G subscriptions are projected the total in 2028, as more countries issue
to continuously decline between now and licenses and spectrum to enable
the end of our forecast period, 2028, at 5G network investment.
which point they will account for 29 percent
of total subscriptions.

1
All Middle East and North Africa figures include GCC countries.
7 Forecasts Ericsson Mobility Report  |  June 2023

Gulf Cooperation Council (GCC) This is an adjustment to the previous North East Asia
GCC countries are frontrunners in global forecast of 620 million, impacted by Service providers have been investing
5G network deployments and service delayed spectrum auctions in several in 5G to improve coverage and capacity,
offerings, with strong regulatory policies countries and slower-than-expected growth. with a focus on indoor coverage. Strong
and frameworks as well as public sector Service providers continue to focus on 5G subscription growth continued in 2022,
initiatives driving acceleration of growth creating innovative products and services adding around 240 million subscriptions.
of the 5G market. 5G subscriptions are for both consumers and businesses. 5G is the only growing subscription type
projected to grow from 13 to 70 million An example of this is utilizing the and is expected to reach 1.1 billion in
between 2022 and 2028, accounting for capabilities of 5G standalone (SA) to the region at the end of 2024. The rapid
86 percent of the total subscriptions at the build network slicing use cases. There is growth of 5G subscriptions, supported by
end of the period. significant momentum around 5G FWA. the availability of more 5G device models,
Accounting for 73 percent of total While service providers in Australia and has positively impacted service providers’
subscriptions currently, 4G is expected the Philippines continue to expand their financial performance. Major service
to decline by 29 percent annually as commercial 5G FWA offerings, a 5G FWA providers in leading 5G markets, such as
subscribers increasingly move to 5G, trial with sub-6 spectrum and mmWave mainland China, Taiwan and South Korea,
and are offered various services such as is being carried out in Indonesia. Service have reported a positive impact of 5G
enhanced mobile broadband (eMBB) and providers are also forging partnerships subscribers on service revenues and ARPU.
Fixed Wireless Access (FWA). Additionally, and actively expanding the 5G ecosystem.
service providers will continue to explore Western Europe
enterprise opportunities, as major digital Latin America 4G is widely deployed and has had the
transformation projects take place across 4G is currently the dominant radio access highest penetration of all regions at
various industries. technology in the region, accounting for 79 percent at the end of 2022.
74 percent of all subscriptions at the end 5G subscription growth was strong
Central and Eastern Europe of 2022. 4G subscription growth is strong, during the year, rising from 32 million in
Technology adoption and subscription with around 60 million added during 2022. 2021 to 69 million at the end of 2022.
uptake are typically slower in this region However, 3G subscriptions are declining as 4G is expected to decline in favor of
than in Western Europe. This is due in part users migrate to 4G and 5G. Many service substantially increased 5G subscription
to slower spectrum allocation processes, providers will sunset 3G networks in the uptake from 2023 onward. 5G subscriptions
as well as consumers being reluctant to next two years to enable the reuse of radio are anticipated to reach 143 million at
upgrade to more expensive subscriptions. spectrum for 4G deployments. the end of 2023, representing 88 percent
4G is the dominant technology, accounting The forecast for 5G subscriptions has penetration by the end of 2028. Many
for 73 percent of all subscriptions at the been pushed forward one year, based on service providers will be sunsetting 3G
end of 2022. Mobile subscription growth slow uptake and expected continued difficult networks in the next few years to enable
has flattened and is expected to be virtually macroeconomic conditions in the region. the reuse of radio spectrum for 4G and 5G.
zero in the coming years. However, the There were around 7 million 5G subscriptions
migration from 2G/3G to 4G continues at the end of 2022. A more substantial North America
to look strong up to 2024. From 2025, uptake is expected from 2024 onwards. The addition of mid-band spectrum
5G is expected to be the only growing By the end of 2028, 5G will account for now enables superior multi-band 5G
subscription type. 42 percent of all mobile subscriptions. experiences for many users. In 2023,
During the forecast period, there will 5G adoption is continuing to grow strongly,
continue to be a significant decline in 3G India, Nepal and Bhutan with more than 250 million subscriptions
subscriptions, from 22 percent of mobile Following the launch of 5G services in India expected by the year’s end. FWA, providing
subscriptions to just 1 percent. in early October 2022, India is seeing high-speed internet to homes and small
aggressive 5G network deployments by businesses, has become the primary
South East Asia and Oceania service providers. Fast-growing network technology fueling fixed broadband growth
Service providers are continuing to expand availability across cities, attractive 5G in North America. 5G is also growing in the
their 5G population coverage. By the end pricing and the growing availability of 5G enterprise segment with wireless WAN to
of 2022, 5G was available to around smartphones has seen 5G subscriptions branch office locations and to serve mobile
50 percent of the population in Malaysia reach around 10 million by the end of 2022. professions. By 2028, around 410 million
and 66 percent in the Philippines. At the Pan-Indian availability of 5G networks by 5G subscriptions are expected, accounting
same time, more than 80 percent of the the end of 2023/early 2024 will further fuel for over 90 percent of mobile subscriptions.
population in Australia and Thailand had growth. 5G subscriptions are expected to
access to the technology, and Singapore reach 700 million and are estimated to
achieved more than 95 percent coverage account for 57 percent of mobile
by mid-2022.2 Leading service providers subscriptions in the region by the end of
in Indonesia that launched commercial 2028. eMBB and FWA are already
5G services using their existing spectrum emerging as the initial use cases for 5G.
holdings are awaiting the release of Meanwhile, 4G continues to be the
new 5G spectrum bands to expand their dominant subscription type driving
networks. Meanwhile, service providers connectivity and fueling data growth in
in Vietnam are making good progress the region. 4G subscriptions are forecast
with trials as they await spectrum to decline from 820 million in 2022 to
availability. 5G subscriptions are 500 million by 2028. Total mobile
forecast to reach around 430 million subscriptions in the region are estimated
by the end of the forecast period. to grow to 1.2 billion in 2028.

2
Population coverage figures for each of these countries as reported by service providers in the region.
8 Forecasts Ericsson Mobility Report  |  June 2023

North East Asia:


A closer look

The North East Asia region consists of five distinct,


vibrant markets at the center of modern digital innovation,
with 5G being one of the key enabling technologies.

Service providers in the North East Asia However, in recent quarters they have Around one-third of all mobile subscriptions
region made significant investments in turned this around, and now show a are currently for 5G. More than 200 million
early 5G deployments. South Korea was modest increase in ARPU. In addition, 5G smartphones had been delivered to
the first country to launch commercial they are proactively looking for other the market in 2022, which accounted for
5G networks, and these were available revenue opportunities from enterprises 35 percent of all global shipments.
in all five markets by 2020. Currently, and consumer financial services. The upgrade to SA took place just one
5G population coverage and subscription Compared to some countries in year after the 5G commercial launch. Now,
uptake in the region is ahead of most of North East Asia, Japan still has room all 5G sites and the majority of 5G
the rest of the world. for additional mid-band deployment, smartphones have SA capability. Currently,
The region is home to key players which is the optimum way for consumers more than 95 percent of 5G traffic is carried
from across the 5G ecosystem, to experience high-performance by 5G SA technology. Based on SA, new
including leading service providers, 5G. Service providers are expected network capabilities have been commercially
mobile infrastructure vendors, chipset to accelerate their investment in 5G available for over a year, including network
manufacturers, terminal providers deployment, especially with mid-band. slicing for service separation and
and over-the-top (OTT) players. This This will continue to drive a positive differentiated offerings, and Voice over
has helped to realize 5G monetization experience for consumers and help to New Radio (VoNR) for the evolution of
opportunities in the region with tariff realize 5G monetization opportunities. voice. RedCap from 3GPP Release 17,
premiums, content aggregation and which reduces cost, power consumption
new service introductions such as Mainland China: Leading 5G in scale and network resource needs is under field
Fixed Wireless Access (FWA) and 2023 is the fourth year since the commercial trials for cellular IoT solutions.
network slicing. launch of 5G. There were 2.64 million 5G Leveraging early 5G SA deployment,
Supported by strong macroeconomics, sites in the country by the end of the year’s service providers in mainland China have
healthy financial results for service first quarter, including mid-band Massive successfully harnessed 5G private networks
providers and a full ecosystem of wireless MIMO in 2.6 GHz and 3.5 GHz, FDD 700 MHz as a new growth engine. According to MIIT,
and digital industries, regulators and and 2.1 GHz for national coverage, and more than 14,000 virtual private networks
service providers have the shared ambition plenty of dedicated 5G indoor sites. using network slicing were in service by 2022.1
to be leaders in 5G.

Japan: Dynamic in technology, Figure 4: North East Asia region mobile subscriptions by technology (billion)
steady in deployment
5G LTE (4G) WCDMA/HSPA (3G) GSM/EDGE-only (2G) CDMA
The Japanese mobile market has a strong
focus on both the introduction of advanced 2.5
technologies and sustainability. Major
service providers in Japan are exploring the
potential for Cloud Radio Access Networks 2
(RAN), making it a leading market in
introducing this technology. The focus on 1.5
sustainability in Japan is backed up by
aggressive plans from service providers to be
carbon neutral in their own activities by 2030. 1
In the telecom business environment,
Japanese service providers have
0.5
been impacted by a government-led
initiative pressuring them to introduce
lower tariff plans, causing ARPU 0
declines since March 2020. 2020 2021 2022 2023 2024 2025 2026 2027 2028

1
MIIT, www.miit.gov.cn/zwgk/zcjd/art/2023/art_9f5022af3cdf48789484117d9da03c58.html.
9 Forecasts

South Korea Japan

Mainland China

Taiwan

Hong Kong SAR

South Korea: Advanced in 5G Monthly 5G data consumption was When it comes to monetization strategies,
adoption and service innovation around 3.6 times higher than for 4G users service providers offer service bundling
Since South Korean service providers when comparing the average across all including AR and VR services. Service
launched 5G commercial services in types of data plans. When comparing providers are also expanding into the
April 2019, they have been at the forefront data consumption on unlimited plans enterprise segment with AI, data centers
of 5G deployment and performance. the difference is around 1.6 times. and cloud.
Focus is on 5G mid-band, with no The government supports service
low- or high-band services available yet. providers’ 5G ambitions and the need Taiwan: Focused on 5G performance
However, 5G population coverage has for capacity, and plans to allocate Service providers are continuously
already reached 94 percent. To expand additional spectrum bands to three improving network performance and are
5G coverage nationwide, service providers service providers. The 3.40­–3.42 GHz ranking highly in third-party as well as local
have introduced RAN sharing for band has already been assigned. government benchmarking. Taiwanese
cost-effective deployment in suburban South Korean service providers promote service providers often appear near the top
and rural areas. Service providers the utilization of renewable energy of 5G global benchmarks.
have plans to achieve 100 percent for RE100 roadmap implementation, 5G subscriptions reached 7 million
population coverage during 2024. an international climate initiative in Taiwan in Q1 2023, which translates
By the end of February 2023, 5G targeting 100 percent renewable to 30 percent penetration. Major service
subscription penetration reached over energy for business activities.2 providers expect penetration to reach
37 percent, and 5G subscribers generated 40 percent by the end of 2023. This uptake
78 percent of total mobile data traffic. in 5G has driven an increase in mobile
service ARPU over the last 24 months.
As unlimited data plans are prevalent
in Taiwan, monthly data consumption
Figure 5: North East Asia region mobile data traffic (EB per month)
is among the highest globally, with an
average of 30 GB. A government survey
5G 2G/3G/4G
shows 46 percent of consumers connect
100 to mobile networks for internet access
even at home.

Hong Kong SAR: Positive 5G uptake


80
While total mobile subscription growth
remains flat-to-slightly-increasing,
the transition to 5G continues, with
60 penetration increasing from around
20 percent at the end of 2021 to over
30 percent at the end of 2022. The outlook
is positive for 2023, with 5G uptake
40
expected to continue, plus the return of
revenue from roaming after the pandemic.
5G FWA and enterprise solutions are
20 regarded as the new business growth
areas for service providers.

0
2020 2021 2022 2023 2024 2025 2026 2027 2028

2
RE100, www.there100.org.
10 Forecasts Ericsson Mobility Report  |  June 2023

Weak smartphone market


is not stopping 5G adoption

The high-end segment has been resilient, and global


market leaders performed better than average.
Global smartphone shipments are expected to recover
in the second half of 2023.

• The fourth quarter of 2022 saw a A growing number of service providers are A second wave of RedCap devices is in
double-digit decline in the smartphone enabling New Radio standalone (NR SA) development and will eventually compete
market, continuing the previously reported in their networks. As non-standalone (NSA) with low-cost IoT devices using LTE Cat-1.
trend in the first three quarters. This and SA support can coexist in a network,
continued at the beginning of 2023, with and SA-capable devices retain support for Non-terrestrial networks (NTN)
global shipments dropping by 13 percent the NSA mode of 5G, many SA deployments Support for non-terrestrial connections in
year-on-year in the first quarter.1 are carried out in a stepwise fashion. ordinary smartphones has started to emerge
• Over 870 5G smartphone models have Device manufacturers can upgrade the in the last year. Satellite-based networks
been launched in total, with more than software on devices when sufficient testing can provide outdoor coverage in nearly any
80 so far in 2023. has been performed. With increased carrier location globally, but find it challenging
• 5G smartphones are expected to account aggregation capabilities in networks and to provide the capacity of a ground-based
for 62 percent of all smartphones devices, the SA proposition is now deemed network. The first initiatives have targeted
shipped in 2023.2 to be on par with NSA in terms of data rates, emergency and personal safety use cases
• Even though foldable device shipments while adding to the many benefits of the based on proprietary solutions. The use of
grew by 26 percent in 2022, this new 5G core network. 3GPP-based NTN technology is expected to
category represents only 1 percent of the open this market on a global scale.
smartphone market. RedCap – the new kid on the block
The first reduced capability (RedCap)
Evolution of network slicing and 5G SA devices have been announced, further
User equipment route selection policy (URSP), strengthening SA technology. These are
a capability that enables devices to based on 3GPP Release 17 and are
automatically select network slices according expected to target the current market for
to which application they are using, has been LTE Cat-4 devices, such as smart watches,
introduced on laptops running Windows 11. pocket routers and IoT devices.

Figure 6: 5G technology market readiness

SA SA/NSA

Legacy 2023 H1 2023 H2 2024 2025


Architecture NR-DC (including mmWave)

2CC FDD, TDD, FDD+TDD


2-3CC FDD+TDD SDL 4CC FDD+TDD, 5CC FDD+TDD 6CC FDD+TDD
Carrier DL
3CC FDD 4CC FDD
aggregation
2CC TDD 3CC TDD 4CC TDD

UL 2CC FDD+TDD

VoNR VoNR (selected markets)

SA (mmWave only) Fixed Wireless Access


mmWave
256 QAM DL

RedCap RedCap

Note: The graph illustrates the availability of network functionality, as well as support in devices.

1
Source: Canalys.
2
Source: IDC.
11 Forecasts Ericsson Mobility Report  |  June 2023

4G/5G IoT connections


rising as 2G/3G declines

LTE Cat-1 devices are increasingly being


used for a variety of use cases.

The Massive IoT technologies NB-IoT In 2022, broadband IoT (4G/5G) Figure 7: IoT connections (billion)
and Cat-M – supporting wide-area reached 1.3 billion connections, and is the
use cases involving large numbers of technology that connects the largest share IoT 2022 2028 CAGR
low-complexity, low-cost devices with of all cellular IoT devices. This segment Wide-area IoT 2.9 6.0 13%
long battery lives and low-to-medium mainly includes wide-area use cases that
throughput – continue to be rolled out require higher throughput, lower latency Cellular IoT 2
2.7 5.4 12%
around the world. Globally, 125 service and larger data volumes than can be
Short-range IoT 10.2 28.7 19%
providers have deployed or commercially supported by Massive IoT devices.
launched NB-IoT networks and 56 have LTE Cat-1 devices, which support 10 Mbps Total 13.2 34.7 18%
launched Cat-M, while 40 have deployed downlink and 5 Mbps uplink speeds,
both technologies.1 The number of devices are increasingly being used for a variety Note: Based on rounded figures.
connected by these technologies reached of use cases. Broadband IoT will be
almost 500 million at the end of 2022. further strengthened by the introduction
The growth of Massive IoT technologies of RedCap. By the end of 2028, almost
is enhanced by added capabilities in the 60 percent of cellular IoT connections
networks, enabling Massive IoT to co-exist are forecast to be broadband IoT, with
with 4G and 5G in frequency division 4G connecting the majority. As 5G New
duplex (FDD) bands, via spectrum sharing. Radio (NR) is being introduced in old and
IoT devices connected via 2G and 3G new spectrum, throughput data rates will
are in slow decline, and are predicted to increase substantially for this segment.
have a negative annual growth rate of North East Asia is the leading region
around 20 percent up to 2028, as the rate in terms of the number of cellular IoT
of switch-off for both technologies will connections, and is expected to pass
continue to increase in the coming years. 2 billion connections in 2023.

Figure 8: Cellular IoT connections by segment and technology (billion)

Broadband IoT and Critical IoT (4G/5G) Massive IoT (NB-IoT/Cat-M) Legacy (2G/3G)

0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

1
Source: GSA March 2023.
2
These figures are also included in the figures for wide-area IoT.
12 Forecasts Ericsson Mobility Report  |  June 2023

Over 100 service providers


offering FWA over 5G

About 40 percent of Fixed Wireless Access (FWA) service providers,


over 100 in total, are offering it over 5G. North America and
Western Europe have the highest regional adoption with close to
70 percent of FWA service providers offering it over 5G.

FWA is growing solidly in terms of: Continued increase of Regional variations


• number of mobile service providers speed-based tariff plans There are large regional variations in the
offering FWA Speed-based tariff plans are commonly proportion of service providers adopting FWA:
• proportion of those offering it over 5G offered for fixed broadband services such • In North America, Western Europe,
• proportion of providers with as those delivered over fiber or cable. Central and Eastern Europe as well
speed-based tariff structures This type of plan is well understood by as the Middle East and Africa, over
• amount of traffic served, as both number consumers, enabling service providers to 80 percent of mobile service providers
of connections and traffic volume monetize FWA as a broadband alternative. offer FWA.
per connection increase Over one-quarter of FWA service providers • Currently, North America stands out
now offer speed-based tariff plans as the region in which all of the service
Global FWA momentum (also referred to as quality of service, or QoS). providers studied have an FWA offering.
An updated Ericsson study of retail The remaining three-quarters are still • North America has the highest
packages offered by mobile service best-effort, with volume-based tariff percentage of service providers offering
providers1 has shown that around plans (buckets of GB per month). speed-based tariff plans, with it
80 percent had an FWA offering, up from being provided by 90 percent.
77 percent in November 2022. There are • In both North America and
now 100 service providers, representing Western Europe, around 70 percent
around 40 percent of FWA service of FWA service providers are offering
providers, offering services over 5G. services over 5G.

Figure 9: Global FWA service provider adoption: 2020–2023 Figure 10: Regional FWA service provider adoption 2023

FWA (total) FWA (total)


Percentage of FWA that is 5G Percentage of FWA that is speed-based Percentage of FWA that is 5G Percentage of FWA that is speed-based

100% 100% 96%


90% 89%
84%
79%
77% 77%
73%
69% 70%
67%
61% 60%
56%
51%

41% 52%
37% 31% 33%
32% 28% 30%
27%
25% 25%
22% 21% 32%
14% 21%
13%
9%

0% 0%
Apr 20 Oct 20 Apr 21 Oct 21 Apr 22 Nov 22 Apr 23 North Western Central Middle APAC Latin
America Europe and Eastern East and America
Europe Africa
1
310 service providers, representing around 90 percent of global mobile revenues.
13 Forecasts Ericsson Mobility Report  |  June 2023

Figure 11: FWA connections (millions)

5G FWA connections 4G and other technology FWA connections

350

300 Definition of FWA


FWA is a connection that provides
250 primary broadband access through
mobile network-enabled customer
200
premises equipment (CPE). This
150 includes various form factors of
CPE, such as indoor (desktop and
100 window) and outdoor (rooftop and
wall-mounted). It does not include
50 portable battery-based Wi-Fi
routers or dongles.
0
2020 2021 2022 2023 2024 2025 2026 2027 2028

FWA service provider advancements Over 300 million FWA connections by 2028 The number of FWA connections in APAC
• Together, 2 leading service providers From 100 million at the end of 2022, is expected to nearly triple, increasing
in the US have more than 5 million FWA connections worldwide are projected its share of global FWA connections from
5G FWA connections. to increase to 300 million by the end of 36 to 46 percent by 2028.
• A service provider in Norway has become 2028. This represents 17 percent of all fixed
the first in Europe to close its copper broadband connections. Of the 300 million FWA’s impact on global mobile data traffic
DSL network, and replace 51,000 of projected connections, nearly 80 percent FWA data traffic represented 21 percent
its connections with FWA services. are expected to be over 5G. of global mobile data traffic at the end of
This has enabled energy savings 2022 and is projected to grow by a factor of
comparable to usage levels of a Almost half of global FWA connections nearly 6 to reach 143 EB in 2028 – about
medium-sized Norwegian city. to be in Asia-Pacific (APAC) by 2028 30 percent of total mobile data traffic.
• Oman – where 43 percent of all The forecast has taken the high ambitions
broadband connections are of 5G FWA in emerging markets into
FWA – has experienced a 95 percent account, increasing the number of
annual 5G FWA revenue increase in connections as well as the share of 5G In 2028, 5G will account for almost
2022 (year-on-year). FWA connections. Higher volumes of 80 percent of FWA connections.

80
• A major service provider in India 5G FWA in large, high-growth countries
has expressed the goal of serving such as India have the potential to drive
100 million homes and businesses economies of scale for the overall 5G FWA
with a combination of 5G FWA services ecosystem, resulting in affordable CPE

%
and fiber in the coming 2 to 3 years. that will have a positive impact across
• Japan has become one of the first low-income markets.
countries where all major service
providers offer 5G FWA, including
5G standalone (SA) support for
FWA and/or battery-powered Almost half of global FWA connections
pocket router services. will be in APAC in 2028.

50
Figure 12: Regional split in FWA connections: 2022–2028

North America Western Europe Central and Eastern Europe


Middle East and Africa APAC Latin America

%
FWA to represent 30 percent of global
mobile data traffic in 2028.

30
100m 300m
in 2022 in 2028

%
14 Forecasts Ericsson Mobility Report  |  June 2023

5G continues to drive innovation


in mobile service packaging

As 5G begins to be seen as the default offering for


consumers, service providers are incentivizing subscribers
to move from previous-generation networks.

Additionally, most offer a discount on the The total number of service providers
Key insights 24-month contract option to incentivize offering some type of service-based
users to choose this over the 30-day option. connectivity has reduced from 179 to 176.
• As 5G matures, service providers Some form of data buckets are available At the same time, those who target
are making it the standard choice from 99 percent of the surveyed service high-consumption services like video
for consumers. Only 22 percent of providers, while 43 percent offer at least streaming, cloud gaming, or high-definition
service providers that offer 5G are 1 unlimited data package to consumers. audio remain at the same level (119).
differentiating the price compared Service providers with 5G commonly Some shifts can be seen in this area,
to their 4G offerings. have more unlimited packages available, with a small drop in service providers
• Around 58 percent of 5G service sometimes limiting bucket packages to offering monthly unlimited packages,
providers offer bundles with prepaid offers. Around 17 percent of the while there is an increase in those offering
entertainment services included, service providers offering unlimited data time-based packages instead. These are
such as television and music have some boundary conditions tied to designed either as “buckets of hours,”
streaming or cloud gaming platforms. the offer. The majority (79 percent) with for example video streaming, to be
• On a country level, there is often such terms and conditions are among consumed over a month, or for a
very little or no differentiation those who offer 5G. few continuous hours of unlimited
between the prices and packages There is a continuous shift back and consumption, which consumers simply
for smartphones and subscriptions forth among the base offers, and during buy ”on demand” before starting a movie
offered by different service providers. the 6 months since the previous survey, or a gaming session.
16 service providers have removed their A new type of connectivity package
unlimited offers, while 17 have newly which emerged during the pandemic
An updated Ericsson study1 of retail introduced this type of package. typically offers discounted GB to use
packages offered by 310 mobile service This represents over 10 percent of the when working or studying from home.
providers worldwide shows that as 5G mobile service providers in the survey. These types of packages started in
matures, service providers are making Similar changes have been seen in the South East Asia, expanded into
it the standard choice for consumers. past, revealing some uncertainties and a Eastern Europe, and are now also
Only 22 percent of the 182 service providers lot of experimentation. An example of this appearing in a few countries in
offering 5G are showing a price difference change is a service provider that removed Latin America.
which the consumer needs to pay in order unlimited data from their general offerings
to gain access to 5G services. Interviews and made it exclusive to those customers
undertaken in December 2022 and who subscribe to a bundle combining Only 22 percent of service providers
January 2023 reveal that many service a fixed and a mobile subscription. that offer 5G are differentiating the price
providers want to actively move users over Nearly 70 percent of the service compared to their 4G offerings.

22
to 5G, as it is the more efficient technology. providers who removed their unlimited
This number is expected to continue offerings now provide service-based
to decrease as 5G matures and service connectivity packages instead. With this
providers actively move users from their type of package consumers can purchase

%
previous-generation networks. some form of add-on package, such as a
The practice of having long-term “streaming pass” that allows consumption
contracts as the default for SIM-only plans of video at an attractive price without using
seems to be continuing and expanding data from the base bucket.
among service providers, with most of them
setting the default option on their websites
to 24-month contracts instead of 30 days.

1
May 2023.
15 Forecasts Ericsson Mobility Report  |  June 2023

Content aggregation and gaming Using speed tiers to segment offerings service providers in the country are
attract consumers to 5G In our November 2022 updated study, it generally very similar. This is especially
It is common to offer bundles with various was found that 24 percent of 5G service apparent in Western Europe where there
popular entertainment services included, providers differentiated their offerings for appears to be more focus on price than
such as television, music streaming or cloud smartphones by using speed tiers. This other differentiating factors. In rare cases,
gaming platforms. Around 58 percent of 5G number remains at 24 percent, although there is one challenger service provider that
service providers are doing this in various the total number of service providers has tried to streamline its offering, limiting
forms. The most common practice is to with 5G has increased from 174 to 182 it to only two or three packages. However,
increase the bundle value (content) as the in the survey. Around 68 percent of these in most cases they simply mimic their larger
price of the tiers increases. Another way of service providers use speed tiers in some competitors, with some small price benefit
offering value-added services is for service combination with data buckets, and for the consumer. Where new packaging
providers to act as content aggregators. 39 percent have a hybrid version (speed in schemes are being introduced, it seldom
Here, the service provider offers a menu combination with both data buckets and takes more than a few months before
where the consumer can choose from a unlimited data tiers). Two service providers others follow with very similar packaging.
(sometimes large) variety of monthly or with 4G networks are also using speed to This is especially obvious where new
yearly subscriptions. In most cases, this differentiate their packages. ideas are being introduced, such as speed
menu is available regardless of which tier This model is most common in tiers. In most countries where speed tiers
a subscriber is on, and the consumer has Western Europe, where the highest exist, most or all service providers in that
almost complete flexibility in terms of the proportion of unlimited offerings can country offer them. However, it is quite
number of services that can be added. be found. Here, around 60 percent of common for the challenger to stand out by
The most proactive service providers all service providers use speed tiers in offering only the maximum speed across
place these offers clearly in the path of combination with data buckets and all price tiers.
any customer shopping for a smartphone 15 percent have a hybrid version.
or SIM card subscription. The value-add Around 58 percent of 5G service
offered is not limited to digital content or Lack of local differentiation providers offer bundles with
streaming services but can include things On a global level, there is considerable entertainment services included.

58
like football season tickets, cooking classes variation and the number of different
or yoga sessions. Besides being able to find packages used, as well as choices available
all services in one place and sign up in a to consumers, are increasing. However, at a
simple manner, a key benefit to consumers country level, there is often very little or no

%
is often a small discount when selecting differentiation at all. For a consumer who is
two or more of these services. shopping for a new phone or subscription,
the prices and packages from the

Figure 13: Number of service providers per type of offering

Apr 2021 Oct 2021 Apr 2022 Nov 2022 Apr 2023

350

304 306 306 306


299
300

245
250 237 238
225
213

200
182
179 176
174
170
164 164
152 151 154
147 146 147
150 136 140 141
131 132
125 124 124
118
108 110 106
98
100 93 97 95
86 89
80 82
74
67

50

0
Buckets Unlimited Service-based Off-peak Device-based FWA Family and Triple/quad 5G
share plans play

Note: ”Off-peak” includes discounts to incentivize usage during low traffic periods, typically at night. ”Device-based” refers to consumer IoT offerings with SIM/eSIM,
typically smart watches or bag/dog trackers. Combination offers which include mobile, fixed broadband, landline and TV/media services are referred to as ”triple/quad play.”
16 Forecasts Ericsson Mobility Report  |  June 2023

High-data users driving


mobile traffic

A significant proportion of traffic is generated by a limited number


of users, while application mix changes across subscriber clusters.

Traffic measurements from mobile networks (messaging, VoIP, video calls and so on) percentage share for clusters with higher
in two advanced mobile broadband and web browsing, while over 30 percent data consumption. This suggests that heavy
markets show similarities and differences of traffic comes from a long tail of and extreme users are more likely to engage
in application usage among different various apps.1 in downloading software and gaming
subscriber groups. compared to other clusters. The share of
The analysis is restricted to data Application mix and traffic share gaming for extreme users in the European
consumption on devices over cellular in sampled networks network was around 3 percent and in the
networks, and subscriber groups have When analyzing the application mix and North American network around 2 percent.
been clustered based on their monthly share of traffic in the sampled networks, In both networks, the share of traffic
data usage. It is based on data from traffic it should be considered that these might for software downloads, file sharing and
measurements in two commercial 4G and not represent the absolute shares of the gaming was significantly higher for the
5G networks in Europe and North America. total traffic, as some traffic could not extreme users compared to all other clusters.
be classified. For example, the absolute
One-tenth of users generate share of video traffic is presumably higher Traffic share increase for video-on-demand
70 percent of traffic across all subscriber clusters, as part of it is among high-data users
The distribution of subscribers across included in the category “Other”. However, In both sampled networks, social
different clusters and their data it remains true that analyzing the relative media-generated video is decreasing,
consumption varies from market to market, changes in application mix over subscriber while Video-on-Demand (VoD) streaming
mostly depending on available data tariff clusters provides insights into different services are increasing their traffic share
plans. However, the traffic contribution of data consumption patterns. across subscriber clusters when going
the top percentile of users (in terms of data Video consumption: The dominant from light users to extreme users.
consumption) is usually very similar. activity across all subscriber clusters. North America: Social media-generated
In both networks sampled, the top 10 Intense and extreme users have the video is experiencing a decline in its share
percentile of users generated around highest percentages of video consumption, of video traffic, from 88 to 49 percent,
70 percent of the total traffic. In the accounting for over 60 percent2 of total while the share of VoD streaming services
North American network, users consuming traffic in the sampled networks. Share of is increasing from 4 to 23 percent.
over 20 GB per month represented only video increases by more than 20 percentage In the North American network,
around 14 percent of all users, but points when comparing light to intense YouTube has the highest share of video
generated 80 percent of the total traffic. users in both networks. traffic across all user groups, with light
A similar pattern was found in the European Social networking: The second and moderate users having the highest
network, where users with consumption most-consumed application after video. percentage. This is followed by Facebook
over 20 GB per month represented around The highest share of social traffic is in the and TikTok up to and including heavy users.
17 percent of all users, but generated moderate to medium user groups in both For subscriber groups with more than
81 percent of the total traffic. Users with a sampled networks. 50 GB per month of data consumption,
monthly data consumption of over 50 GB Audio: There is a difference between TikTok has a higher share than Facebook.
represented only around 5 percent of users the sampled networks, where the North Europe: Social media-generated video
in the North American network and American network share is 2–3 percent is experiencing a decline in its share of
7 percent in the European network. across subscriber clusters, while it is less video traffic, from 93 to 71 percent, while
Light consumers of data, those than 1 percent in the European network. the share of VoD streaming services is
consuming less than 5 GB per month, Gaming3 and software downloads: increasing from 1 to 17 percent.
make up 63 percent of all users in the This category represents a relatively low In the European network, Facebook has
European network. Among these users, percentage of traffic. For gaming, it is the highest share of video traffic across all
a significant share of traffic, 16 percent, below 1 percent across subscriber clusters user clusters, with light and moderate users
comes from communications services up to intense users, with an increasing having the highest percentage.

1
For example: email, location services, photo sharing, weather, presence, health or fitness.
2
Unclassified video traffic is part of the category “Other.”
3
Includes both app-based and cloud gaming.
17 Forecasts Ericsson Mobility Report  |  June 2023

Figure 14: European service provider: Subscriber and traffic


In both networks, the Netflix share of
volume shares of different subscriber clusters
traffic goes from 1–5 percent among light
to intense users to make up around
Light Moderate Medium Heavy Intense Extreme
13 percent of the video traffic among
extreme users (over 100 GB per month).
Subscriber

Facebook and YouTube have the


share

highest video traffic share in both networks


across all subscriber clusters, with a typical
joint share of 50–60 percent of total traffic.
Traffic

Across both networks, Facebook has a


share

significant percentage of video traffic share


for all subscriber clusters, but its share
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% decreases significantly with increasing
data consumption. The YouTube share of
traffic displays a similar trend, while TikTok
Figure 15: North American service provider: Subscriber and traffic shows a trend toward an increasing share
volume shares of different subscriber clusters of traffic with increasing data consumption.

Light Moderate Medium Heavy Intense Extreme Impact of video


Video is having a significant influence
on data consumption and traffic volumes
Subscriber
share

in advanced mobile broadband markets.


This trend is being driven by intense
and extreme users, who have the highest
percentages of video consumption.
Traffic
share

Video traffic share changes across


subscriber clusters when going from
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% light users to extreme users, with social
media-generated video reducing its
share in favor of a higher share of VoD
Figure 16: European service provider: Traffic volume streaming services.
per application type of different subscriber clusters

100% Other 4
90%
Marketplace
80%
70% Gaming
60% File sharing
50% Software download
40%
Storage services
30%
20% Web browsing
10% Communication
0% Social networking
<5 GB 5–10 GB 10–20 GB 20–50 GB 50–100 GB >100 GB All
Audio
Light Moderate Medium Heavy Intense Extreme

Video
Figure 17: North American service provider: Traffic volume per Unclassified5
application type of different subscriber clusters VoD streaming services
(Netflix, HBO Max, Disney +, Amazon Prime)
100% Social media-generated video
90% (YouTube, TikTok, Facebook, Instagram)
80% Video (all)
70%
60%
50%
40%
30%
20%
10%
0%
<5 GB 5–10 GB 10–20 GB 20–50 GB 50–100 GB >100 GB All
Light Moderate Medium Heavy Intense Extreme

”Other” includes uncategorized traffic and traffic from services that have too small a share to be significant
4

compared to the categorized segments in this figure. A large share of ”Other” is presumably video traffic.
”Unclassified” includes video traffic that was not possible to identify as a specific service or has too small
5

a share to be significant compared to the specified services.


18 Forecasts Ericsson Mobility Report  |  June 2023

Mobile network traffic has


almost doubled in two years

Mobile network data traffic grew 36 percent


between Q1 2022 and Q1 2023.

The quarter-on-quarter mobile network traffic has almost doubled in just 2 years, by increased viewing of video content.
data traffic growth between Q4 2022 from 66 EB per month in Q1 2021. Figure 18 shows the net addition and total
and Q1 2023 was around 7 percent. Long-term traffic1 growth is being global monthly network data traffic
Total monthly global mobile network driven by both rising smartphone from Q1 2016 to Q1 2023, along with
data traffic reached 126 EB. In absolute subscriptions and increasing average data year-on-year percentage growth for
numbers, this means mobile network volume per subscription, fueled primarily mobile network data traffic.

Figure 18: Global mobile network data traffic and year-on-year growth (EB per month)

Data Year-on-year growth

140 140

120 120
Total (uplink + downlink) traffic (EB per month)

100 100

80 80 Year-on-year growth (percent)

60 60

40 40

20 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 Q2 Q3 Q4 Q1
2016 2017 2018 2019 2020 2021 2022 2023

Source: Ericsson traffic measurements (Q1 2023).


Note: Mobile network data traffic also includes traffic generated by Fixed Wireless Access services.

1
Traffic does not include DVB-H, Wi-Fi or Mobile WiMAX. VoIP is included.
19 Forecasts Ericsson Mobility Report  |  June 2023

5G to account for all mobile


data growth within 5 years

In 2027, all mobile data traffic growth


will come from 5G, as 4G traffic declines.

Total global mobile data traffic – excluding uplink. Currently, video traffic is estimated can be attributed to three main drivers:
traffic generated by Fixed Wireless Access to account for 71 percent of all mobile data improved device capabilities; an increase
(FWA) – reached 93 EB per month at the traffic, and this share is forecast to increase in data-intensive content; and growth
end of 2022 and is projected to grow by a to 80 percent in 2028. in data consumption due to continued
factor of 3.5 to reach 329 EB per month in Populous markets that launch 5G early improvements in the performance of
2028. When FWA is included, total mobile are likely to lead in terms of traffic growth deployed networks.
network traffic reached around 118 EB per over the forecast period. 5G’s share of mobile An example of these differences can
month at the end of 2022 and is expected to data traffic was 15 percent at the end of be seen in the contrast between the
reach 472 EB per month by the end of 2028. 2022, an increase from 9 percent at the end Sub-Saharan Africa region, where the
Predicted traffic growth up to 2028 includes of 2021. This share is forecast to grow to average monthly mobile data usage
an assumption that an initial uptake of 66 percent in 2028. per smartphone was 4.7 GB, and the
XR-type services, including AR, VR and Gulf Cooperation Council (GCC) countries
mixed reality (MR), will happen in the latter Traffic growth varies across regions which had 26 GB per smartphone at the
part of the forecast period. However, if Traffic growth between years can be end of 2022. The global monthly average
adoption is stronger than expected, data highly volatile and can vary significantly usage per smartphone is anticipated to
traffic could increase significantly more between countries, depending on local exceed 20 GB in 2023 and is forecast
than currently anticipated toward the end market dynamics. Globally, the growth to reach 47 GB by the end of 2028.
of the forecast period, particularly in the in mobile data traffic per smartphone Average monthly mobile data usage per
smartphone in North America is expected
to reach 58 GB in 2028, as unlimited data
Figure 19: Global mobile network data traffic (EB per month) plans and improved 5G network coverage
and capacity increasingly attract new mobile
FWA (3G/4G/5G) Mobile data (5G) Mobile data (2G/3G/4G) and FWA 5G subscribers. The data traffic
500
generated per minute of usage will increase
significantly in line with the expected uptake
of gaming, XR and video-based apps. These
450
experiences require higher video resolutions,
increased uplink traffic, and more data
400 from devices off-loaded to cloud computing
resources to satisfy users. FWA has started
350 to affect overall traffic patterns, accounting
for a large share of total traffic. In 2028, 5G
300 subscription penetration in North America
is predicted to be the highest of all regions,
250 exceeding 90 percent.
In Western Europe, service usage
200
and traffic growth are expected to follow
similar patterns to those anticipated for
North America. Although a more fragmented
150
market situation has led to a later
mass-market adoption of 5G, by 2028
100 traffic usage per smartphone is projected
to reach 56 GB per month – close to the
50 usage in North America at that time.

0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
20 Forecasts Ericsson Mobility Report  |  June 2023

Figure 20: Mobile data traffic per smartphone (GB per month) CAGR
2022–
Regions 2022 2028 2028
65
India, Nepal,
26 62 16%
60 Bhutan

GCC 26 59 15%
55

50 North America 20 58 20%

45 Western Europe 20 56 19%

40
North East Asia 18 54 20%
35
South East Asia
15 54 24%
and Oceania
30
Global average 16 47 20%
25

20 Latin America 11 41 25%

Middle East and


15 12 37 20%
North Africa1
10 Central and
14 37 18%
Eastern Europe
5
Sub-Saharan Africa 4.7 19 26%
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

The North East Asia region’s share of total at 37 GB at the end of the period. GCC Mobile data traffic per smartphone
global mobile data traffic is expected to be countries will still experience growth in continues to grow strongly in South East
around 30 percent in 2028. In the region, data traffic despite slow growth in total Asia and Oceania and is expected to reach
5G subscribers currently use, on average, overall subscriptions, as data usage per around 54 GB per month in 2028 – a CAGR
2–3 times more data than 4G subscribers. smartphone rises by 15 percent annually of 24 percent.
As more 4G subscribers migrate to 5G, between 2022 to 2028 to reach an average In Latin America individual countries
average mobile data traffic per smartphone of 59 GB monthly. This will be driven by show very different growth rates for data
will increase and reach 54 GB per month growing uptake of data-intensive services. traffic per smartphone. Traffic growth
in 2028. Video is the dominant traffic type. Various industrial use cases for 5G will also is driven by coverage build-out and
Additional traffic growth is expected with contribute to a rise in total data traffic. continuing strong adoption of 4G
the introduction of new video services, In India, Nepal and Bhutan, mobile (and eventually 5G), linked to a rise in
for example HD video and XR services. networks continue to play a pivotal role smartphone subscriptions and an increase
Sub-Saharan Africa is forecast to be in driving social and economic inclusion. in average data usage per smartphone.
the region with the highest growth in total In the case of India, enhanced mobile The average data traffic per smartphone is
mobile data traffic, rising by 37 percent broadband is serving as the foundation expected to reach 41 GB per month in 2028.
annually between 2022 and 2028 as for the government’s “Digital India” vision, In Central and Eastern Europe,
service providers across the continent which seeks to transform the country growth is fueled by the migration of
continue to invest in 4G networks and into a digitally empowered society and 2G and 3G subscribers to 4G, up to 2024,
migrate customers from 2G and 3G. knowledge economy. which is when 5G is expected to overtake
This increase in data traffic will primarily Average data traffic per smartphone previous generations as the technology
be driven by a 4 times increase in in the India region is the highest globally, making the greatest contribution to
smartphone traffic in the period, with together with GCC. It is projected to grow subscriptions. Over the forecast period,
average data per active smartphone from 26 GB per month in 2022 to around monthly average data traffic per
settling at 19 GB per month in 2028. 62 GB per month in 2028 – a CAGR of smartphone is expected to increase
In the Middle East and North Africa 16 percent. Total mobile data traffic is from 14 GB to around 37 GB per month.
region, data traffic growth will similarly estimated to grow from 18 EB per month It is important to bear in mind that
be driven up as more subscribers are in 2022 to 58 EB per month in 2028, there are significant variations in monthly
transitioned to 4G, and current momentum growing at a CAGR of 22 percent. This data consumption within all regions,
in 5G coverage increases uptake, in is driven by high growth in the number of with some individual countries and service
addition to attractive service offerings smartphone users and increased average providers having considerably higher
and more affordable smartphones. Total usage per smartphone. monthly consumption than any
data traffic is forecast to rise by 27 percent Smartphone subscriptions in India as regional averages.
annually between 2022 and 2028 with a percentage of total mobile subscriptions
monthly data usage per smartphone are expected to grow from 76 percent in
2022 to 93 percent in 2028.

1
All Middle East and North Africa figures include GCC countries.
21 Forecasts Ericsson Mobility Report  |  June 2023

5G population coverage
has reached 35 percent

Globally, 5G mid-band population coverage has reached around 30 percent.


However, outside China it is just over 10 percent. There are large variations
between regions, ranging from 7 percent to 90 percent.

4G population coverage surpassed most markets. Combined with a low-band Europe has large variation between
85 percent globally at the end of 2022 frequency division duplex (FDD) 5G carrier 58 percent total 5G population coverage
and is projected to reach over 95 percent in it can provide full coverage and mobility. and mid-band coverage of around
2028. There are currently 816 4G networks While 5G mid-band population coverage 15 percent (both figures excluding Russia).
deployed worldwide, with 336 upgraded to reached 30 percent worldwide by the end This is due to the limited availability of
LTE-Advanced and 62 Gigabit enabled.1 of 2022, outside China it is estimated to be mid-band spectrum in some countries,
The build-out of 5G continues, with around just over 10 percent. resulting in deployments being mainly
240 networks launched worldwide. Global There are large regional variations in in low-band. North America has 5G
5G population coverage reached around total 5G population coverage as well as deployments across low-, mid- and
35 percent at the end of 2022 and is projected mid-band coverage. Regions such as high-band frequencies. Several service
to increase to about 85 percent in 2028. Latin America and Middle East and Africa providers have deployed 5G on low-band,
have reached about 7 percent mid-band covering around 95 percent. During recent
Large regional variations in population coverage, with a similar total years, mid-band has been rapidly deployed
5G population coverage 5G population coverage of around 8 percent. and has now reached around 80 percent.
Mid-band is a sweet spot for delivering the China has built 5G population
5G experience, as it combines high capacity coverage mainly on mid-band and has
with good coverage and is available in reached coverage of around 90 percent.

Figure 21: World population and mid-band Figure 22: World population
coverage split by region (end of 2022) coverage by technology

5G mid-band 5G total
4G
30% 2022 >85%
World
35%
2028 >95%
World 10%
(without China) 20%
5G
North 80% 2022 ~35%
America 95%
2028 ~85%
Latin 7%
America 8%

Europe 15%
(without Russia) 58% Globally, 5G population coverage
7% reached 35 percent at the end of 2022.

35
Middle East
and Africa 8%

Asia-Pacific 12%
(without China) 13%

China

0 10 20 30 40 50 60 70 80 90
90%
90%

100
%
Note: The figures in these graphs refer to coverage of each technology. The ability to utilize the technology is subject to factors such as access to devices and subscriptions.
1
Ericsson and GSA (May 2023).
22 Articles Ericsson Mobility Report  |  June 2023

Advanced services and new devices including AR, VR and mixed


reality will drive additional traffic growth. New requirements will
also be placed on networks as traffic patterns change. Ensuring
these services are a success is a matter of preparing the networks
for this increased demand, as well as making sure services are viable
and can be commercialized. Our articles focus on being prepared for
this future demand, discussing modeled scenarios, required network
capabilities and experience of live network slicing implementation.
The articles discuss how service providers can meet both consumer
demand and enterprise expectations on service quality.

Traffic demand is up to Network slicing can be AR uptake, and therefore As consumer expectations
1,000 times larger in dense successfully monetized demand for network capacity, on mobile QoE grow alongside
urban than rural locations. through offering premium is predicted to accelerate the uptake of new services,
Analysis of North American services to 5G customers, in the coming years. In this the need to improve mobile
and European networks as Singtel proved at the article, a modeled scenario network performance will
provides insights for service Singapore Grand Prix. shows how AR demand is also rise. Yet, traditional ways
providers as to how they With Singtel, this article projected to outpace mobile of measuring mobile QoE
should consider location, plus explores the future of broadband capacity growth, are limited in their usefulness,
traffic consumption patterns, differentiated services and discusses what additions and new models must
when designing networks. over 5G. will be needed to keep pace. be developed.
23 Articles Ericsson Mobility Report  |  June 2023

Exploring how traffic patterns


drive network evolution

To achieve optimum 5G performance, both coverage


and capacity must be available throughout the
network according to location-specific needs.

different location types: dense urban, But it has been much lower in rural areas with
Key insights urban, suburban and rural areas. growth below 10 percent. The proportion of
Traffic demand per location is 500 to traffic on 5G in rural areas is lower due to
• Traffic demand is up to 1,000 times 1,000 times higher in dense urban locations reduced population coverage at the current
larger in dense urban areas relative relative to more sparsely populated stage of network deployment and also
to rural areas. rural locations in both Western Europe likely lower penetration of 5G devices.
• More services now require uplink and North America. When comparing North America with
performance to be considered. In Western Europe, relative growth Western Europe, there are a couple of key
This becomes even more critical in traffic during peak periods across the differences that can be observed in the 2022
for new uplink-demanding four different locations between 2021 traffic. Firstly, traffic demand is higher
services like XR. and 2022 can be seen in Figure 23. in North America in both dense urban and
• The 5G rollout is far from complete. Data for the most recent year shows that urban locations. Secondly, in all locations,
5G mid-band is only deployed traffic growth per location is highest in a greater proportion of traffic comes from
in around 25 percent of 4G sites dense urban and urban locations, with up 5G, which is likely a driving factor behind
globally, with North America to 80 percent growth. higher traffic volume in urban areas.
ahead and Europe behind.

Figure 23: Relative traffic growth for peak period by location type in Western Europe
Mobile networks must continuously evolve
4G 5G
within the RAN domain, utilizing mid-band
and mmWave to meet capacity and speed
Dense urban Urban
demands, but not all locations are equal.
Relative traffic for busy hour Relative traffic for busy hour
This is highlighted by a detailed analysis
of data traffic growth and patterns across 2 2
different locations in some North American
and European networks, providing 1.5 1.5
key insights and considerations for
network evolution.
1 1

Traffic growth is not universal


across locations 0.5 0.5
Variations in subscriber concentrations are
clearly illustrated when traffic growth in 0 0
several networks from Western Europe 2021 2022 2021 2022
and North America are analyzed across
Suburban Rural
Relative traffic for busy hour Relative traffic for busy hour

1.4 1.2
Methodology 1.2 1
In Western Europe, traffic data
1
was retrieved from 4 networks, 0.8
with 21 data sets from across 0.8
0.6
18 locations, collected in Q3 2021 0.6
and Q3 2022. In North America, 0.4
0.4
30 data sets were retrieved from
0.2
3 networks across 12 locations, 0.2
collected in Q1 2022. 0 0
2021 2022 2021 2022
24 Articles Ericsson Mobility Report  |  June 2023

Traffic behavior drives different needs Examination of network data across the The 5G deployments in Western Europe
across locations locations shows that, although total traffic and North America for the locations
To support network evolution strategies, it is is significantly higher in urban locations, sampled give a snapshot of the status
important to understand traffic patterns and individual traffic in peak periods is highest of network deployment in the two
behavior in more detail in different locations. in suburban locations, with this difference regions, as illustrated in Figure 25.
Understanding daytime population density being much more pronounced in Western The figure shows the proportion of sites
is very important, especially in dense Europe. This shows how the combination of that have been upgraded to 5G NR FDD,
urban-to-urban areas, since the highest population density and peak usage per user compared to sites where 5G carriers have
traffic is in the middle of the day in both is important when considering network been added in either the mid-band TDD
Western Europe and North America. capacity requirements. or with mmWave. Depending on the
Figure 24 shows that in Western Europe, capacity demands of a particular site,
dense urban areas have the peak traffic North America leads Europe with mid-band TDD and mmWave carriers
period during the middle of the day, mid-band deployments can be co-located at the same site.
compared with the rural areas, which have Globally, 5G population coverage In Western Europe, it is notable that while
the peak traffic period in the evening. reached 35 percent at the end of 2022. the 5G NR FDD bar is as high as North
The rural areas are likely to be impacted by However, when looking into the mid-band America – or higher in certain cases –
Fixed Wireless Access (FWA) subscriptions deployments that bring the step change much of this has been achieved through
which have a significantly higher usage per in network performance, only about spectrum sharing. This gives a high level
subscription. North America follows a similar 25 percent of 4G sites have been upgraded, of coverage but without the same levels of
pattern, and in both regions urban and and outside China this drops to around capacity, latency, or uplink capabilities.
suburban traffic has a much flatter profile 20 percent. There is a significant In North America, there has been
with the highest traffic levels more evenly difference in the regions studied here, a focus on mid-band and mmWave from
distributed between the middle of the day with North America at over 30 percent the early stages of 5G deployment to
and the late evening before traffic drops off. and Europe just above 10 percent. deliver higher capacity alongside coverage.
Analysis of traffic by location shows a Looking at the specific networks mmWave is capable of supporting higher
greater proportion of total traffic is uplink analyzed, 5G has been commercially capacity in the network for dense urban
in dense urban locations in the peak period deployed in Western Europe and and urban locations. Since the data set was
compared with other locations. In North North America since 2019, but rollout collected, the North American operators
America, dense urban uplink traffic is around is far from complete. In Europe, some have continued deploying mid-band
14 percent of total traffic compared with additional sites, totaling around at pace, as reflected in the number of
rural areas, where it is around 9 percent of 5–10 percent, have been added to sites deployed now being higher than
total traffic. Traditionally for mobile suburban and rural areas to meet increased the global average.
broadband and FWA services, uplink has had coverage expectations and license
a smaller impact on overall user experience. obligations. The focus on fulfilling coverage
However, with more uplink-centric services requirements is reflected in the much
there is now also a need to consider uplink higher levels of New Radio (NR)
performance, especially in dense urban frequency division duplex (FDD)
areas. This is also required to prepare for sites deployed for coverage, compared
new uplink-demanding services like XR, with mid-band time division duplex (TDD)
which will place even more demanding sites for capacity in the networks analyzed
requirements on networks. from Western Europe.

Figure 24: Western Europe hourly traffic over a typical 24 hours

Dense urban – Western Europe Rural – Western Europe


Percentage of data traffic per hour

00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

Time of day
25 Articles Ericsson Mobility Report  |  June 2023

Rollout is far from complete Figure 25: Relative site density of 5G deployments
Network deployment comprises
NR FDD NR mid-band TDD mmWave
both coverage and capacity sites.
Coverage sites provide basic EU US EU US
geographical coverage while 50%
capacity sites add extra capacity
where coverage is good and there
is a high density of subscribers.
40%
To achieve optimum 5G performance,
both coverage and capacity must be
available throughout the network.
Upgrading coverage sites with 5G 30%
enables coverage to be built out,
but upgrades of capacity sites are
also required to realize 5G services 20%
to most subscribers. Our analysis
shows that firstly there are still
existing sites without 5G, which need 10%
upgrading to 5G to enhance network
coverage. Secondly, there are
many sites without the additional
0%
capacity dimensions, and mid-band
Dense urban, Urban,
TDD deployments, needed to deliver relative site density relative site density
the step change in 5G performance.
Without network evolution,
resource utilization will increase,
resulting in poor user experience.
Therefore, peak utilization must
be maintained or, ideally, reduced
EU US EU US
over time to offer higher speeds
50%
and ensure a high-quality
user experience.

40%

30%

20%

10%

0%
Suburban, Rural,
relative site density relative site density
26 Articles Ericsson Mobility Report  |  June 2023

Exploring differentiated
services with 5G networks

At the 2022 Singapore Grand Prix (GP), Singtel became the


world’s first service provider to deploy 5G network slicing at
a major sporting event – and demonstrated the commercial
opportunities of differentiated connectivity services.

• Energy Market Authority (EMA) to However, Singtel is already seeing


Key insights investigate the potential of 5G in smart significantly higher data consumption
grid technology among 5G customers. This is partly
• Supported by network slicing, • a multinational automotive attributed to consumers being able to
racing fans at the Singapore manufacturer deploying 5G-enabled experience higher-quality video and richer
GP enjoyed high-quality video robots that will help transport media over its 5G network, contributing
streams, taking their event vehicle-manufacturing materials for to a better customer experience.
experience to the next level. the development of Singapore’s first
• A consumer service based on build-to-order (BTO) electric vehicle Challenges of implementing
5G network slicing must be (EV) factory 5G in Singapore
appealing, valuable and • the healthcare sector as a key area Singtel considers extensive 5G SA
differentiated with clear benefits for 5G implementation, with potential coverage, combined with network slicing
compared to a 4G service. applications including remote healthcare capabilities, to be key for unlocking new
• Network slicing enables monitoring and telemedicine customer values. An essential part of its 5G
the introduction of new SA deployment strategy includes extensive
business models for different Singtel has launched a 5G SA network coverage for more than 700 indoor locations,
market segments. with an aim to support new digital growth in underground sites and along underground
opportunities within consumer, enterprise train lines where traffic demand is
and public sector segments. Its 5G strategy substantial. However, considering most of
Singapore is an island country, similar in includes a network evolution journey to a Singapore’s geography consists of dense
size to New York City, with a population fully automated network with intelligent urban areas, ensuring coverage for high-rise
of around 6 million people. In July 2022, orchestration capabilities, enabling buildings and underground areas has been
it became the first country in the world to consumers and enterprises to subscribe a significant challenge.
be fully covered (95 percent) by on-demand to multiple products, services
5G standalone (SA). or use cases.
The Singaporean government’s
Infocomm Media Development Authority Deploying nationwide 5G SA coverage
(IMDA)1 is driving a national digital In May 2021, Singtel launched the world’s
transformation plan, which emphasizes the first nationwide 5G SA network, despite
importance of a world-class 5G infrastructure the network rollout challenges at the time
to enable innovative new use cases and due to the pandemic. It has currently
transform industries. Among the initiatives achieved island-wide coverage of over
are new policies to encourage and foster 95 percent with 3.5 GHz TDD and 2.1 GHz This article was written in
collaboration between industry players. spectrum bands. As of March 2023, more collaboration with Singtel, a leading
Examples of such IMDA initiatives include than 760,000 subscribers had signed up communications and digital services
partnering with: for 5G subscriptions. In terms of the top 10 provider in Singapore aiming to
• Building and Construction Authority (BCA) most used applications, the behavior of capture untapped digital growth
to develop a 5G-enabled Building 4G and 5G subscribers is largely similar in the 5G era.
Information Modeling (BIM) system that with strong data usage across social media
will improve productivity and safety in and video applications. This is expected
the construction industry to change as new applications that
• Land Transport Authority (LTA) to leverage 5G, such as AR and VR, become
explore the use of 5G in autonomous more prevalent.
vehicle technology

1
www.imda.gov.sg/How-We-Can-Help/5G-Innovation.
27 Articles Ericsson Mobility Report  |  June 2023

The main challenges Singtel Network slicing opens Differentiating consumer offerings
had to overcome were: new opportunities with network slicing
• Line-of-sight obstruction: Obstacles 5G network slicing enables multiple During 2022, Singtel applied a
such as walls, floors and other structures independent logical networks to exist on test-and-learn approach to ensure that
present a significant challenge as they the same physical network infrastructure. network slicing was correctly implemented.
can cause signal blockages, leading Each slice serves as an isolated end-to-end Two excellent test case opportunities were
to poor coverage. network accommodating different the Singapore GP in October and the
• Signal attenuation: High-rise buildings application requirements for security, World Cup football tournament in December.
and underground areas often contain reliability and performance. It enables Singtel was the first service provider in
materials that absorb or reflect 5G service providers to go from providing the world to use radio resource partitioning
signals, causing signal attenuation. one-size-fits-all wireless connectivity to and deliver end-to-end network slicing in
• Limited space: High-rise buildings and services and customer-adapted network a live 5G SA network for the Singapore GP.
underground areas often have limited slices for specific use cases. As the More than 300,000 spectators attended the
space, making it challenging to install capabilities of 5G networks evolve, slices event in the Marina Bay area, concentrated
5G antennas or small cells. will progress from being static in small areas around the racetrack.
• High-density areas: Singapore is a (preconfigured) with basic functionality Live streams of sports typically experience
high-density city, prone to congestion, to being dynamically created, deployed lag, jitter and other disturbances in busy and
resulting in poorer customer experience. and modified as customer needs change congested radio environments, which has a
• High costs: Deploying 5G infrastructure (on-demand). The latter will enable negative impact on the viewing experience.
in high-rise buildings and underground on-time and fast delivery of slices with Given that F1 cars can reach speeds of
areas can be costly due to the complex automated deployment and operations. more than 300 km/h, fans in attendance
and challenging nature of the For service providers, slice observability, will want ways to watch the race around
installation process. orchestration, automation and service the whole F1 circuit. This presented an
level agreement (SLA)-based charging are excellent opportunity to test the capabilities
To overcome these challenges, fundamental critical functionalities to both manage and of 5G network slicing, where a dedicated
radio planning designs need to be sound, monetize network slices. slice of Singtel’s network was reserved
including the deployment of the right Network slicing will play an for subscribers of Sports Plus, a service on
number of cell sites to ensure 5G coverage instrumental role in supporting different Singtel’s video streaming platform (CAST).
and use of all the available 5G spectrum QoS and service-based connectivity The slice was designed and configured
bands in an optimal manner. With strong offerings. For most communications end-to-end in the core, transport, and radio
5G traffic growth, the network needs service providers, network slicing is networks to enable higher throughput
to be able to handle demanding use cases currently about trialing, exploring and and consistent low latency. In addition,
and still be capable of serving casual learning from such deployments. radio sites were allocated a radio resource
users with internet traffic. Network partition to provide protection for radio
technologies such as slicing, radio resource resources in the event area.
partitioning2 and quality of service (QoS)
features are increasingly important for
managing different use cases and traffic
demands efficiently.

Premium subscribers at
the Singapore GP enjoyed
437 Mbps on average
due to network slicing.

437
2
 adio resource partitioning is a software solution that allocates
R
spectrum resources at millisecond-level scheduling.
28 Articles Ericsson Mobility Report  |  June 2023

Figure 26: Singtel’s view on network slicing use cases for the near to mid term

Segment 1–2 years 2–4 years

Individual customized slices Autonomous vehicles

Consumer Smart home devices and appliances Remote work and telecommuting

Logistics and transportation Smart cities

Smart factories and industrial IoT Remote training and education


Enterprise
Healthcare

Public safety and emergency Smart energy grids

Smart transportation infrastructure Smart water management


Public sector
Public Wi-Fi networks

5G subscribers who purchased CAST In a similar way, the expansion of 5G Based on the Singapore GP experience,
Sports Plus could stream content by signing SA network slicing and radio resource Singtel has recognized the business
up to this package for SGD 9.90 during the partitioning across all of Singapore made potential of deploying network slices
race weekend and enjoy an excellent video it possible to offer full HD video streaming to support new use cases in other
experience everywhere along the racetrack of World Cup football matches for 5G geographically limited areas, such as
area, compared to 4G subscribers. Users with subscribers with a Singtel TV plan. shopping districts, convention centers,
a 4G subscription experienced lower video stadiums, school campuses, factories,
quality, due to low downlink throughput Learnings from the first network airports and mines. Network slicing-based
(on average 4.2 Mbps) because of high slicing implementations services could also be dynamically created
traffic congestion, while 5G premium By applying a test-and-learn approach, and deployed in these limited geographical
package subscribers experienced a full Singtel was able to better understand the areas, fulfilling a specific need at the time
HD-quality stream due to a high downlink behavior of network slicing and radio it is required. In those areas, a range of
throughput (on average 437 Mbps). resource partition mechanisms. This will be customer segments that would benefit
The value for the 5G network slicing users relied on when designing the 5G network from differentiated service offerings could
was the assurance of seamless video to meet more demanding use cases from be identified by leveraging customer and
streaming under radio resource constraints. both consumers and enterprises. It is also market research and insights.
The 5G network slicing was a “teaser” important to have worked out a good
for Singtel to learn how to implement a traffic forecast for the “slicing area” and to Opportunities for commercializing
network slice with the right parameter not under-dimension for both slice and network slicing
settings and radio resource management non-slice users. There should be a distinct Singtel aims to understand how to capture
for this specific use case. Customers were difference in experience for users of the enterprise business requirements through
not charged extra for the network slicing generic service compared to users of the market research and surveys, in order to
capabilities. The network slices were premium service enabled by network then customize slice capabilities for current
manually preconfigured, with efforts slicing. The implementation of radio use and to build service evolution maps for
being put into ensuring they were created resource partitioning in the live 5G the future. As new use cases and business
homogeneously in each tracking area. network meant that engineers were better models evolve, a better understanding
Going forward, this process will be able to understand the behavior of the will emerge of what 5G performance levels
automated to increase efficiency and feature. For example, using radio different customer segments prefer.
enable scaling. Network slice orchestration partitioning for generic users as well as It is therefore important to build a network
will be an integral aspect of this process, premium users resulted in unexpected slicing foundation that scales with new
providing network slice management, results in certain scenarios. Network customer insights.
including planning, lifecycle management slicing design was subsequently amended Network slicing enables the introduction
and configuration. Another important based on insights from the event. of new business models for different
aspect will be to implement slice Another learning is the importance of market segments, see Figure 27.
observability solutions to provide real-time having seamless service provisioning, New services that can be offered include
visibility into slice performance so that making it easy and convenient for customized subscriptions for specific services
changes can be made on the fly in response customers to subscribe to a service and geolocation-based subscriptions to
to changes in traffic patterns. and immediately enjoy it. satisfy specific customer needs, as below.
29 Articles Ericsson Mobility Report  |  June 2023

Figure 27: Market segment opportunities presented by network slicing

B2C B2B B2B2X


Consumers can be offered a Enterprises can be offered a Service providers could
range of service plans with range of performance-based offer network slicing-based
different attributes, for example service plans, which may connectivity services to a
an economy service plan be applied to different variety of customers in different
(best-effort quality), a gaming applications and tools provided market segments, who in turn
service plan (QoS on-demand, to their employees. Industrial use them to realize use cases
guaranteed latency level) or a enterprises can utilize for their customers.
performance-based premium different slices for various
service plan (guaranteed productivity- or process-oriented
high-quality video and audio). internal operations.

B2B needs: Learnings from network When designing network slices,


• logistics management/port operations slicing implementation the user experiences of prioritized and
to ensure the service assurance for the Network slicing is the starting point for traffic normal services need to be balanced
operation of automated guided vehicles segregation in the connectivity layer. It will within available network resources.
(AGV) remotely via 5G evolve into user equipment route selection For crowded events, a network slice with a
• surveillance/security to ensure video priority (URSP) which enables dynamic QoS guarantee also has to function in a high
feeds continually transmit via 5G with slicing where traffic can be segregated by radio noise environment. Therefore, an
reliable upload speeds user application in the device itself. accurate forecast of traffic demands by
• medical applications to ensure remote Close cooperation with device manufacturers users is required to balance resource
diagnostics can be performed via a is required to shape URSP’s capabilities to allocation between priority and non-priority
stable 5G connection market requirements. services. As customers expect their service
The main go-to-market challenge for experience quality to be premium,
B2C needs: 5G network slicing for the consumer partnerships with over-the-top (OTT)
• app-based to differentiate user segment is creating appealing and valuable service providers will be important to
experience through different services that are differentiated from the ensure the service is prioritized end to end.
application subscriptions current 4G offering. 5G SA and network More advanced network and service
• enhanced security for subscribers slicing brings new capabilities, orchestration capabilities need to be
through network slicing such as data prioritization, faster speeds implemented as demand for network
• priority access (location/geographical and lower latency. However, these slices increases. Service assurance will be
based) to provide differentiated user capabilities will require purposeful use important, especially for industries where
experiences by location, for example cases with clear value propositions to drive mission-critical operations will require
at gaming hotspots consumer adoption. Singtel is constantly well-defined SLAs.
working to identify potential 5G use cases
Singtel considers security slices to be one and migrating its non-5G customer base
of the early promising enterprise use cases. to 5G subscriptions so that they can enjoy
Figure 26 shows Singtel’s view on network the full benefits of 5G SA and network
slicing use cases for the near to mid term. slicing-based services.
30 Articles Ericsson Mobility Report  |  June 2023

AR uptake enabled
by mobile networks

Video, messaging and multimedia services currently dominate mobile


broadband network traffic, with most of this coming from video streaming.
However, as AR traffic grows, questions about network coverage, capacity
and performance will need to be addressed.

Consequently, parameters have been This assumes all currently available


Key insights defined to model a scenario which enables spectrum is deployed, and takes industry
radio network capacity to be compared projected 5G performance evolution into
• Growth in devices and applications with expected traffic demand, and explores consideration. In particular, uplink will
using AR in wide-area use cases is alternatives for increasing radio network face challenges in meeting the projected
expected to accelerate in the latter capacity sufficiently to support the growth traffic demand. Already, there is a need for
part of this decade. of AR services. additional capacity, for example through
• Mobile networks will need to added mid-band spectrum.
be re-dimensioned to handle Methodology
the traffic and performance Data from Los Angeles, a city dominated
requirements of these new by a dense urban low-rise landscape, Spectrum used in simulation:
real-time services. was used to simulate the network impact of • 2x20 MHz low-band FDD
• The solution will be a combination combined mobile broadband and AR traffic. • 2x40 MHz mid-band FDD
of additional spectrum and new This was done under a range of assumptions • 1x120 MHz mid-band TDD
functionality offering greater around AR uptake through 2030. The aim • + mmWave
efficiencies, complemented was to explore the operating conditions
with increased Radio Access under which mobile networks need to be Mobile broadband traffic and
Network (RAN) density. prepared for increased requirements, and the simulation parameters for 2030:
additional radio network capacity that will • subscriber density: ~10,000/km2
be needed to handle the projected demand. • number of subscribers constant
AR enables users to experience information Mobile data traffic forecasts were taken over time
or digital objects overlaid onto views of the into account to define growth rates, along • average macro layer inter-site
physical world. The level of augmentation with the AR traffic scenario. The forecasts distance: 700 m
can vary from a simple display of project average monthly mobile data traffic • total traffic demand (uplink and
information to fully realized digital objects per device in GB, as well as total mobile downlink): 63 GB per month
that adapt to the dynamic environment, traffic in EB per month. • uplink share of total traffic
moving as if they were physically present Ericsson simulations show that radio demand: 15 percent
in it, with multiple users simultaneously network capacity in areas like Los Angeles • share of traffic during a
interacting with them. These new services will narrowly meet mobile broadband busy hour: 10 percent
hold the promise of a leap forward in the traffic requirements around 2030. • busy hour uplink throughput
digitalization of industrial and business per subscriber: 69 kbps
processes as well as offering new ways to
communicate. Consumers will also benefit,
as these technologies are applied to Figure 28: Mobile broadband traffic and capacity evolution
entertainment, gaming and social media.
The AR ecosystem is moving toward
a tipping point when all the key elements
are sufficiently developed to support
services at scale, and this is expected in the Capacity
latter part of this decade. Critical elements
RAN resource

evolution
in the ecosystem include attractive devices
and applications, enabled by computation
offload to the edge cloud, which will need
high-quality mobile connectivity. Projected mobile
broadband
traffic demand

Around 2030
31 Articles Ericsson Mobility Report  |  June 2023

Given the development of the AR market, In addition, AR drives higher radio network In this scenario, the simulation indicated
AR users are likely to demand radio resource consumption per bit due to its AR users would consume (in uplink) around
network capacity in the same timeframe. stringent margins for the bounded latency three times the bits during the busy hour
Several scenarios could play out, each with and high reliability necessary to realize a relative to a mobile broadband user.
different capacity requirements, above good user experience. The difference Each bit would require on average
projected mobile broadband traffic demand. between mobile broadband and AR traffic four times more radio network capacity
Projections of AR glasses’ unit volume is especially significant for uplink traffic. relative to mobile broadband best-effort.
growth through 2030 show a ramp-up of Figure 29 illustrates the impact of an AR user, This totals 12 times (3x4) more uplink radio
sales to 20–35 million glasses by 2030 in relative to a mobile broadband user, on network capacity requirements than a
North America. Assuming a renewal rate of mobile radio networks during the busy hours. mobile broadband user in this timeframe.
around 30 percent, this could indicate an Traffic profiles were simulated in a Consuming 12 times the capacity of
installed base of 30–50 million AR headsets computation offload scenario for AR mobile broadband users over a busy hour
by 2030 – equal to 10–15 percent (peak traffic speeds of 50 Mbps downlink will put significant requirements on the
smartphone subscription penetration. and 10 Mbps uplink) with a traffic profile network for a relatively low user
Mobile broadband and AR applications of heavy use for 2 hours per day. Bounded penetration. With the 10–15 percent
differ in the type of traffic they generate. latency was set to 20 ms round trip time penetration range (taken from the
AR uptake will drive significant capacity and reliability to 99 percent. The results estimated installed base of AR glasses
requirements in the radio network, were then compared with traffic projected above), we see a relative increase of
depending on the level of cloud for a mobile broadband user by 2030. more than double (2.1–2.7 times) the
computation offload and usage. Relative Capacity requirements in this scenario uplink traffic load compared to a network
to (best-effort) mobile broadband, an increase significantly for both uplink and with only mobile broadband traffic.
AR user will consume more bits due to downlink, however as uplink is predicted to The increased traffic load puts additional
continuous high-resolution video streams be the bottleneck, the results presented will requirements on network performance to
as well as edge cloud computation offload. focus on uplink. be able to supply the extra capacity.

Figure 29: Radio network resource consumption (busy hour)


Mobile broadband AR

Stringent delay requirements


(bounded latency) and limited
packet loss (high reliability) are needed
Video resolution for emerging real-time applications
and computation
such as AR. This can be achieved by
offload
Bits

adopting more conservative operating


Reliability parameters in the RAN, in essence,
and bounded using more network resource to deliver
latency
a given amount of traffic. Additionally,
an AR user will consume more bits.
Network resource per bit

Figure 30: AR and mobile broadband traffic and capacity evolution

Capacity Capacity evolution with:


evolution • additional mid-band spectrum
• new functionalities for
AR traffic characteristics
• complementing RAN
densification
Projected AR
RAN resource

traffic demand

Projected mobile
broadband
traffic demand

Around 2030
32 Articles Ericsson Mobility Report  |  June 2023

There are several solutions to address this: • New functions to increase capacity Toward 2030, this demand will not feasibly
• Additional mid-band spectrum will be and improve coverage are needed. be met by the available spectrum and 5G
needed for increased capacity. One example is intelligent steering of performance evolution on an existing site
Depending on the country, additional traffic to spectrum bands based on both grid. Adding spectrum and functionality on
mid bands may be within the 3.3–4.2 GHz, throughput and latency requirements. existing sites would be the first steps, with
4.4–5 GHz and 6.425–7.125 GHz Another example is optimized scheduling network densification as a complement
frequency ranges. Some of the to reduce latency and increase reliability where and when needed. In the long term
3.3–4.2 GHz and 4.4–5 GHz bands by allowing additional retransmissions (2030 and beyond), the centimetric range
have already been licensed in parts within a given latency budget. 7–15 GHz will be essential to support
of the world and there is a device • RAN densification will help – however, AR uptake and more advanced use cases.
ecosystem with support for those bands. it is associated with high costs and
The 6.425–7.125 GHz band is long lead times.
currently under discussion for IMT
identification at this year’s ITU World None of these solutions will be sufficient
Radiocommunication Conference 2023 on their own to address the capacity gap
(WRC-23) and an ecosystem is under toward 2030 in the studied AR scenarios;
development, noting that the band is a combination of all three will be needed
already included in 3GPP standards to satisfy future network demands.
(3GPP n104). The 6.425–7.125 GHz Mobile broadband traffic, plus a scenario
band is a key opportunity for large-scale of AR traffic uptake, combined with an
harmonization of wide-area licensed assumed level of cloud computation offload
use and, in many cases, the last available indicates significant network load demand.
mid-band resource.

In 2030 and beyond, 7–15 GHz


will be essential to support
AR uptake and more
advanced use cases.
33 Articles Ericsson Mobility Report  |  June 2023

Mobile quality of experience:


Network readiness for
new services
The next wave of 5G applications will bring new network requirement
challenges. Communications service providers will have to apply new
models for rating mobile quality of experience (QoE) to design networks
that support performance needs of future applications.

Models to predict the quality These will rely on a set of data points as
Key insights of mobile experiences input, with a known impact on the QoE,
Traditional proxy measures for QoE and a calculated overall rating as output.
• Data captured from US networks are generic, and unrelated to a specific In collaboration with Ookla, Ericsson
shows that 5G substantially application and network combination. conducted a nationwide data-gathering
improves video streaming quality What users can expect from the network project in the US during the first quarter
compared to 4G. is typically measured in three ways: of 2023. All data points were uniformly
• Application developers and • population coverage (percentage with captured from smartphones across the
network planners need a new access to a specific cellular access three largest service providers’ mobile
approach to rate QoE for emerging technology (4G, 5G) in low- or networks, and were used to rate mobile
mobile services. mid-band spectrum) QoE with the aforementioned approach.
• A need to continue improving • radio signal strength (measured on the The three experiences studied were
mobile network performance device and presented as 1–4 bars) video streaming (ranging in resolution
capabilities to meet the • speed tests (user-initiated peak rate from 144p to 4K), mobile gaming and
requirements of new mobile tests of throughput at a given location video conferencing. All these services are
experiences and rising user during a defined time) mature and expected by customers to be
expectations of QoE will grow delivered with excellent quality over a
with uptake of new services. These measures indicate network cellular network. The results indicate an
fundamentals for users, but have limited ongoing need for network performance
value as input for planning networks for improvements to deliver a consistent
The first wave of 5G primarily brought more advanced experiences. An alternative QoE for these types of applications.
enhanced user experience for existing method is to calculate the quality of General network readiness for delivering
applications to smartphone users. New various mobile experiences using good QoE for cloud gaming and extended
types of applications and use cases are secondary data points retrieved from reality (XR) applications is still in its infancy.
expected in the next wave, bringing to devices and analyzing by:
networks new challenges in delivering • uniformly capturing data across different Modeling mobile video streaming QoE
sufficient mobile QoE to customers. service, equipment, measurement and Video is the dominant traffic type in cellular
Mobile user experience is a function of device providers networks, and its use continues to grow.
both application quality and network • applying algorithms and standardized A total of 80 percent of all data traffic in
quality. Service providers need ways to rate models, where a specific set of data points cellular networks is forecast to be video by
experiences, and to become known in the can be measured and correlated with the 2028 (see page 19). Video consumption
market for delivering a mobile experience QoE for a specific service has gradually shifted from broadcast to
consumers and enterprises can rely on. streaming, and mobile video quality evolves
Ultimately, this will impact how much ITU’s Telecommunication Standardization toward full-HD, 2K and 4K resolutions.
customers are willing to pay for a service. Sector (ITU-T) set out to standardize and However, user experience of mobile video
secure a broad anchoring for models to depends on many different measurable
use. The ITU-T Rec. P.1203 is the world’s aspects, such as intrinsic encoding quality
first standard for measuring the QoE (affected by resolution, frame rate and
of video streaming services for longer codec) and dynamic quality effects
viewing sessions and has been (such as time-to-content, rebufferings and
established for years. Models for measuring resolution adaptation to channel capacity).
cloud gaming1 and video telephony2
QoE are under development.

1
ITU-T work item P.BBQCG, www.itu.int/ITU-T/workprog/wp_item.aspx?isn=17809.
2
G.CMVTQS, www.itu.int/ITU-T/workprog/wp_item.aspx?isn=17785. Note: Video telephony is not the same as video conferencing,
but still similar to a two-party video conference call.
34 Articles Ericsson Mobility Report  |  June 2023

Figure 31: Video streaming quality model

Theoretical maximum of
Pv: Short-term video experience quality, defined
quality predictor will by encoding quality (MOS)
use VMAF replacing
P.1203.1 module MOS
Media parameter
extraction Excellent 4.5–5.0
Pq: Long-term
Good 3.5–4.5
Pa: Short-term audio quality predictor MOS
module (P.1203.3) Fair 2.5–3.5
Video quality predictor
stream module (P.1203.2) Poor 1.5–2.5
Bad 1.0–1.5

Stalling parameter
extraction

Video QoE is well-researched and relies Insights into mobile video • 5G increases video streaming quality
on models that were standardized before streaming QoE compared to 4G and Wi-Fi. The proportion
5G was introduced, such as the When applying the model (Figure 31) of streams with excellent quality increased
ITU-T P.1203 standard.3 This includes to mobile video streaming deliveries from 58 percent (4G) to 72 percent (5G).
modules for estimating short-term video over commercial networks in the US, The QoE gap compared to Wi-Fi
(P.1203.1) and audio (P.1203.2) quality, it was found that: decreased from 22 percent to 8 percent.
and an integration module (P.1203.3) • Excellent quality (MOS 4.5–5) 5G has reduced Wi-Fi’s previous
estimating the final session quality due to was achieved by 61 percent of the streaming quality advantage.
adaptation and stalling. The short-term mobile video streams measured.
video quality scores are fed into the The measurements varied 44–72 percent Insights into mobile gaming QoE
integration module and the final quality across the 3 large service providers. Two-thirds of mobile app revenues come
score is then presented as a single mean The differences between service providers from mobile games,5 and we are at the
opinion score (MOS) ranged 1–5 for the relate to spectrum used and network beginning of the fourth gaming wave
whole experience. This is an objective rollout strategies. The premium resolution (after console, PC, and mobile games)
model designed to mimic the behavior samples were limited and represented with cloud gaming increasingly offered
and perception of humans, producing the only 12 percent (2K) and 4 percent (4K) by service providers. The transition from
MOS values that would result from running of all measured streams. mobile app games, studied here, to mobile
a subjective video quality test with a group • Only 13 percent of the streams measured cloud games will materially change
of individuals in a laboratory environment. were less-than-good (below 3.5 MOS). network performance requirements.
In this study, Ericsson replaced the Poor radio conditions were the root cause For mobile games executed in an app6 on
P.1203.1 module with the open source-based for 40 percent of the less-than-good a smartphone or tablet, the QoE depends
Video Multimethod Fusion Approach (VMAF) experiences, with either poor radio on latency, packet loss and jitter. A simple
algorithm, as P.1203.1 does not support frequency (RF) strength, poor RF quality, evaluation model was applied to the captured
some commonly-used codecs.4 Since the or a combination of both. data for these parameters to rate the QoE:
test video is known, and pre-encoded, VMAF
could be used offline to assess the video
encoding quality for the resolutions utilized, Figure 32: Maximum possible MOS for video streaming to smartphones
while P.1203.3 was used to add the dynamic
effects of time-to-content, rebufferings and Bad Poor Fair Good Excellent
resolution adaptation. The resulting QoE 5
measure (output) from the model is
presented as a single mean opinion score 4
(MOS) in a range of 1–5 for the whole
experience (see Figure 31). This figure
3
shows the P.1203 architecture, with
P.1203.1 exchanged to VMAF.
The model relies on a theoretical 2
maximum value defined by the resolution,
where standard definition (SD) is the 1
lowest possible resolution that gives a good
experience (MOS 3.5–4.5) on a smartphone, 0
and excellent experience (MOS 4.5–5) QCIF QVGA Ninth HD SD HD Full HD 2K 4K
requires at least full HD (see Figure 32). (144p) (240p) (360p) (480p) (720p) (1080p) (1440p) (2160p)

3
Ericsson, Video QoE, leveraging standards to meet rising user expectations (June 2017).
4
GitHub, VMAF.
5
Data.ai, State of Mobile 2023 (January 11, 2023).
6
No video component is transmitted, only metadata in the uplink and downlink.
35 Articles Ericsson Mobility Report  |  June 2023

• 57 percent of the mobile gaming The resolution estimate comes from the modeled service access attempts:
experiences measured were of excellent available bit rate at the initiation of the • mobile cloud gaming: 40 percent of
quality. Mobile app-based gaming video conferencing service. The impact of measured throughput and latency values
is latency-sensitive. However, the network delays leverages the ITU-T G.107 meet minimum requirements
differences in latency between service model, initially defined for voice-quality • AR: 3–32 percent of measured
providers was limited, and all 3 Tier-1 predictions, as users tend to be more throughput and latency values meet
providers fall within the 54–58 percent sensitive to audio delays than video delays. minimum requirements
bracket for an excellent QoE. The shift The key results were:
from 4G to 5G increased gaming sessions • 79 percent of mobile video conferencing The large spread in network readiness
with excellent QoE by 6 percentage points. experiences (4G) were of excellent values for AR depends on the “flavor” of
• Server locations influence mobile gaming quality, with both throughput and latency AR in play, and where in the requirement
QoE due to longer delays. There is a variables meeting the threshold for span each flavor falls. The locations of
difference in mobile gaming QoE between excellent quality servers required for remote rendering have
servers located in the US (82 percent • 88 percent of mobile video conference a high impact on the results for data points
providing excellent quality) and elsewhere experiences (5G) were of excellent collection coupled to latency. As AR flavors,
(38 percent providing excellent quality). quality – a leap upward by server locations, model development and
9 percentage points from the data point collection mature, the initial
In this case, a simple evaluation model was 79 percent for 4G spread in network readiness will be replaced
used to rate the QoE. More work is needed • 5G emerged as the best network, even by specific values.
to develop a deeper understanding of what 3 points ahead of Wi-Fi, for overall QoE The difference between the high
parameters influence the perceived QoE of mobile video conferencing percentage (61 percent) of mobile video
for mobile gaming. streaming experiences rated “excellent
Network readiness for new types quality” and the low percentage for meeting
Insights into mobile video conferencing QoE of mobile experiences the minimum network requirements of
COVID-19 led to 2D video conferencing The most significant value of the approach mobile cloud gaming (40 percent) and AR
being universally adopted in home offices. described in this article will be for new types (3–32 percent) experiences points to a
Not only is it here to stay in the hybrid of experiences, for which both application need for continued 5G network evolution.
workplace, but it will evolve toward developers and network planners need new This will be necessary to meet a large
immersive 3D communication. While PCs tools to rate QoE. However, QoE models variety of requirements of new types of
presently dominate as the platform for video are experience-specific and need to be services, with higher demands on
conference calls at work and home, mobile standardized for new types of experiences network performance.
devices are growing in importance in the like cloud gaming and XR.
workplace and when commuting. The QoE As part of the analysis, the capabilities Performance capabilities need
for mobile video conferencing is dependent of existing networks to meet quality further improvements
on video resolution and round-trip delays. thresholds on downlink, uplink and latency The work to define QoE rating models
A few aspects make mobile video for these types of services were examined. for new experiences with high network
conferencing different to using a fixed 5G connectivity requirements vary for performance requirements is still to be
network connection. The high-end mobile cloud gaming and AR use cases: undertaken. However, the work to define
resolutions of 4K and 2K are typically not • mobile cloud gaming:7 10 Mbps the models and the job of capturing
used, and the usage of Full HD (1080p) and downlink, 5–9 Mbps uplink, and datapoints for predicting quality for an
lower resolutions vary somewhat between 30–75 ms one-way latency experience can happen in parallel, so that
different video conferencing services. Video • AR:8 2–60 Mbps downlink, 2–20 Mbps both models and robust data sets can guide
conferencing is inherently latency-sensitive, uplink, and 5–50 ms one-way latency network evolution plans before standards
but material drops in quality do not occur are complete. A need to continue improving
until after about 100 ms in round-trip delay. Through modeling of measured downlink mobile network performance capabilities
In anticipation of a standardized model, throughput and round-trip delays, network to meet the requirements of new mobile
we have used the same resolution base as readiness for these types of services were experiences, and rising user expectation on
for video streaming (see Figure 32). measured as follows, as a percentage of QoE, will grow with uptake of new services.

7
 box Game Pass requirements, Microsoft.
X
8
”XR and 5G: Extended reality at scale with time-critical communication” (August 24, 2021).

The proportion of “excellent” quality


mobile video streams increased from
58 percent over 4G to 72 percent over 5G.

72 %
36 Methodology and glossary Ericsson Mobility Report  |  June 2023

Methodology
Forecast
Mobile subscriptions Rounding of figures Subscribers Mobile data traffic Population coverage
methodology

Forecast methodology FWA is defined as a connection that Mobile network traffic


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

Ericsson Mobility Visualizer


Explore actual and forecast data from the Mobility Report in our Find out more
interactive web application. It contains a range of data types, Scan the QR code, or visit
including mobile subscriptions, mobile broadband subscriptions, ericsson.com/mobility-visualizer
mobile data traffic, traffic per application type, VoLTE statistics,
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.
37 Methodology and glossary Ericsson Mobility Report  |  June 2023

Glossary

2CC: Two component carrier GHz: Gigahertz, 109 hertz (unit of frequency) NB-IoT: A 3GPP standardized low-power
wide-area (LPWA) cellular technology for
2G: 2nd generation mobile networks GSA: Global mobile Suppliers Association IoT connectivity
(GSM, CDMA 1x)
GSM: Global System for Net Zero: Defined in ITU standards as a
3CC: Three component carrier Mobile Communications future state where all emissions that can
be reduced are reduced, with like-for-like
3G: 3rd generation mobile networks GSMA: GSM Association or permanent removals applied by
(WCDMA/HSPA, TD-SCDMA, CDMA carbon-removal technologies to balance
EV-DO, Mobile WiMAX) HSPA: High speed packet access the remaining emissions

3GPP: 3rd Generation Partnership Project IoT: Internet of Things NR: New Radio as defined
by 3GPP Release 15
4CC: Four component carrier Kbps: Kilobits per second
NR-DC: NR-NR Dual connectivity
4G: 4th generation mobile networks LTE: Long-Term Evolution
(LTE, LTE-A) NSA 5G: Non-standalone 5G is a 5G Radio
MB: Megabyte, 106 bytes Access Network (RAN) that operates on a
4K: In video, a horizontal display legacy 4G/LTE core
resolution of approximately 4,000 pixels. Mbps: Megabits per second
A resolution of 3840 × 2160 (4K UHD) is PB: Petabyte, 1015 bytes
used in television and consumer media. MHz: Megahertz, 10 hertz
6

In the movie projection industry, (unit of frequency) RedCap: Reduced capability


4096 × 2160 (DCI 4K) is dominant
MIMO: Multiple Input Multiple Output SA: Standalone
5G: 5th generation mobile networks is the use of multiple transmitters and
(IMT-2020) receivers (multiple antennas) on wireless Short-range IoT: Segment that largely
devices for improved performance consists of devices connected by
AI: Artificial intelligence unlicensed radio technologies, with
mmWave: Millimeter waves are radio a typical range of up to 100 meters,
AR: Augmented reality. An interactive frequency waves in the extremely high such as Wi-Fi, Bluetooth and Zigbee
experience of a real-world environment frequency range (30–300GHz) with
whereby the objects that reside in the wavelengths between 10mm and 1mm. Sunsetting: The process of closing down
real world are “augmented” by In a 5G context, millimeter waves refer older mobile technologies
computer-generated information to frequencies between 24 and 71GHz
(the two frequency ranges 26GHz and TD-SCDMA: Time division-synchronous
ARPU: Average revenue per user 28GHz are included in millimeter range code-division multiple access
by convention)
CAGR: Compound annual growth rate TDD: Time division duplex
Mobile broadband: Mobile data service
Cat-M1: A 3GPP standardized low-power using radio access technologies including VoIP: Voice over IP (Internet Protocol)
wide-area (LPWA) cellular technology 5G, LTE, HSPA, CDMA2000 EV-DO,
for IoT connectivity Mobile WiMAX and TD-SCDMA VoLTE: Voice over LTE as defined by
GSMA IR.92 specification
CDMA: Code-division multiple access Mobile PC: Defined as laptop or desktop
PC devices with built-in cellular modem VR: Virtual reality
dB: In radio transmission, a decibel is a or external USB dongle
logarithmic unit that can be used to sum WCDMA: Wideband code-division
up total signal gains or losses from a Mobile router: A device with a cellular multiple access
transmitter to a receiver network connection to the internet and
Wi-Fi or Ethernet connection to one or Wide-area IoT: Segment made up
EB: Exabyte, 1018 bytes several clients (such as PCs or tablets) of devices using cellular connections
or unlicensed low-power technologies
EN-DC: EUTRA-NR Dual connectivity MOCN: Multi-operator core network like Sigfox and LoRa

FDD: Frequency division duplex MORAN: Multi-operator Radio XR: Extended reality. An umbrella category
Access Network for virtual or combined real/virtual
FWA: Fixed wireless access environments, which includes AR,
MR: Mixed reality. Immersive technology VR and MR
GB: Gigabyte, 109 bytes in which elements from both the real
world and a virtual environment are fully
Gbps: Gigabits per second interactive with each other
38 Key figures Ericsson Mobility Report  |  June 2023

Key figures

Global key figures Forecast CAGR*


Mobile subscriptions 2021 2022 2028 2022–2028 Unit
Worldwide mobile subscriptions 8,200 8,260 9,100 2% million
• Smartphone subscriptions 6,160 6,420 7,740 3% million
• Mobile PC, tablet and mobile
router subscriptions 390 410 660 8% million
• Mobile broadband subscriptions 6,770 7,030 8,490 3% million
• Mobile subscriptions, GSM/EDGE-only 1,290 1,100 440 -14% million
• Mobile subscriptions, WCDMA/HSPA 1,330 1,030 220 -22% million
• Mobile subscriptions, LTE 5,050 5,160 3,800 -5% million
• Mobile subscriptions, 5G 510 950 4,620 30% million
• Fixed wireless access connections 88 107 300 19% million
Fixed broadband connections 1,360 1,450 1,800 4% million
Mobile data traffic
• Data traffic per smartphone 12.2 16 47 20% GB/month
• Data traffic per mobile PC 17 20 30 7% GB/month
• Data traffic per tablet 9.5 11.2 27 16% GB/month

Total data traffic**


Mobile data traffic 69 93 329 23% EB/month
• Smartphones 66 90 320 24% EB/month
• Mobile PCs and routers 0.6 0.8 2.1 17% EB/month
• Tablets 2.1 2.4 6.7 18% EB/month
Fixed wireless access 15.6 24 143 34% EB/month
Total mobile network traffic 84 118 472 26% EB/month
Total fixed data traffic 220 270 600 14% EB/month

Regional key figures Forecast CAGR*


Mobile subscriptions 2021 2022 2028 2022–2028 Unit
North America 400 410 450 2% million
Latin America 700 710 790 2% million
Western Europe 540 540 560 0% million
Central and Eastern Europe 570 570 560 0% million
North East Asia 2,110 2,160 2,270 1% million
China1 1,640 1,680 1,740 1% million
South East Asia and Oceania 1,150 1,140 1,290 2% million
India, Nepal and Bhutan 1,140 1,110 1,230 2% million
Middle East and North Africa 750 730 880 3% million
Gulf Cooperation Council (GCC)2 74 75 80 1% million
Sub-Saharan Africa 860 900 1,070 3% million

Forecast CAGR*
Smartphone subscriptions 2021 2022 2028 2022–2028 Unit
North America 310 320 340 1% million
Latin America 550 560 670 3% million
Western Europe 400 420 450 1% million
Central and Eastern Europe 380 390 430 2% million
North East Asia 1,900 1,970 2,130 1% million
China1 1,500 1,560 1,650 1% million
South East Asia and Oceania 890 930 1,120 3% million
India, Nepal and Bhutan 800 840 1,140 5% million
Middle East and North Africa 550 560 800 6% million
GCC2 61 63 71 2% million
Sub-Saharan Africa 370 410 690 9% million
39 Key figures Ericsson Mobility Report  |  June 2023

Regional key figures Forecast CAGR*


LTE subscriptions 2021 2022 2028 2022–2028 Unit
North America 320 230 40 -25% million
Latin America 460 520 360 -6% million
Western Europe 440 430 60 -27% million
Central and Eastern Europe 350 410 330 -4% million
North East Asia 1,590 1,420 630 -13% million
China1 1,200 1,050 480 -12% million
South East Asia and Oceania 560 640 770 3% million
India, Nepal and Bhutan 780 820 500 -8% million
Middle East and North Africa 370 420 520 4% million
GCC2 58 55 7 -29% million
Sub-Saharan Africa 183 270 590 14% million

Forecast CAGR*
5G subscriptions 2021 2022 2028 2022–2028 Unit
North America 55 166 410 16% million
Latin America 3 7 330 N/A million
Western Europe 32 69 490 39% million
Central and Eastern Europe 1 5 230 N/A million
North East Asia 397 637 1,610 17% million
China1 353 560 1,310 15% million
South East Asia and Oceania 9 25 430 N/A million
India, Nepal and Bhutan 0 10 700 N/A million
Middle East and North Africa 11 22 290 N/A million
GCC2 6 13 70 31% million
Sub-Saharan Africa 1 3 140 N/A million
Forecast CAGR*
Data traffic per smartphone 2021 2022 2028 2022–2028 Unit
North America 13 20 58 20% GB/month
Latin America 7.8 11 41 25% GB/month
Western Europe 16 20 56 19% GB/month
Central and Eastern Europe 10.2 14 37 18% GB/month
North East Asia 14 18 54 20% GB/month
China1 15 18 47 17% GB/month
South East Asia and Oceania 10 15 54 24% GB/month
India, Nepal and Bhutan 21 26 62 16% GB/month
Middle East and North Africa 8.7 12 37 20% GB/month
GCC2 22 26 59 15% GB/month
Sub-Saharan Africa 3.3 4.7 19 26% GB/month

Forecast CAGR*
Total mobile data traffic 2021 2022 2028 2022–2028 Unit
North America 4.6 6.7 21 21% EB/month
Latin America 3.8 5.3 24 28% EB/month
Western Europe 6.0 8.0 23 20% EB/month
Central and Eastern Europe 3.1 4.3 12 19% EB/month
North East Asia 23 30 97 22% EB/month
China1 20 26 84 22% EB/month
South East Asia and Oceania 8.3 12.8 55 27% EB/month
India, Nepal and Bhutan 14.1 18 58 22% EB/month
Middle East and North Africa 4.3 6.2 27 27% EB/month
GCC2 1.1 1.3 3.3 17% EB/month
Sub-Saharan Africa 1.08 1.7 11.4 37% EB/month

1
These figures are also included in the figures for North East Asia.
2
These figures are also included in the figures for Middle East and North Africa.

* 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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