Ericsson Mobility Report June 2023
Ericsson Mobility Report June 2023
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mobility-report
Ericsson
Mobility Report
June 2023
2 IFnotrreocdauscttsion Ericsson Mobility Report | June 2023
Contents
Forecasts Articles
Co-writers:
Martin Bäckström, Greger Blennerud,
Fredrik Burstedt, Marko Cejvan,
Yossi Cohen, Gunnar Heikkilä, Josip
Jelic, Doroteja Kobescak, Fredric
Kronestedt, Per Lindberg, Peter
Linder, David Lindero, Jun Ying Liu,
Karl Olsson, Natasa Pipic, Eliane
Semaan, Raymond Soh,
Tomislav Tolic, Kenneth
Wallstedt, Li Yang G, Jialong
Zhang
Forecasts
20
The monthly global
Revenue is rising for service More than 100 service
average usage per
providers in the top 20 5G providers are now offering
smartphone is expected to
markets, increasing by Fixed Wireless Access services
exceed
7 percent in the last 2 years. over 5G.
20 GB at the end of 2023.
G
B 7 % 100
5G mobile
subscriptions are set
to reach
1.5 billion globally
by the end of 2023.
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.
1.
9 billion
6 bn
5
0
5 Forecasts Ericsson Mobility Report | June 2023
2023 E/TD-LTE
WCDMA/HSPA
5G
GSM
L
TD-SCDMA
2024 2025 2026 2027 2028
T
CDMA
1
GSA (May 2023).
2
A 5G subscription is counted as such when associated with a device that supports New Radio (NR),
as specified in 3GPP Release 15, and is connected to a 5G-enabled network.
3
Mainly CDMA2000 EVDO, TD-SCDMA and Mobile WiMAX.
6 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.
110% 24%
Methodology
A list of the top 20 5G markets
5G subscription penetration
105% 18%
was identified, based on 5G
subscription penetration ranking.
For each service provider in these
Revenue
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.
8 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.
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 The focus is on 4G and 5G, driven by
Despite the challenging macroeconomic
growth rate in subscriptions, attributed the exploration of service offerings
environment, nations in Sub-Saharan
primarily to coming from a low base. requiring high bandwidth and low
Africa are expected to invest in network
More than latency, and the availability of a wide
infrastructure, driven by a large youthful
10 countries in Sub-Saharan Africa have range of devices
population and a high demand for
launched commercial 5G networks to date, at attractive price points. As a result, 2G
connectivity. This will also enable new
with more planned, raising the forecast for subscriptions will experience a significant
growth opportunities for service providers,
5G subscriptions to 13 percent of the total decline between 2022 and 2028, to
driven by advanced mobile data and
subscription base in 2028. account for around 5 percent of total
value-added services like mobile banking
subscriptions at the end of the period.
and payments.
Middle East and North Africa Mobile financial services are expected
Migration to 4G networks
Service providers are continuing to invest to continue to gain momentum, with an
continues. 4G will be the main
in 4G and are predicted to see increase in mobile connectivity and
contributor to new subscriptions up to
subscriptions rise by 4 percent annually expansion of propositions from basic
2028, accounting for
between 2022 and 2028, to account for transfers. Merchant payments, remittances,
more than half of all mobile subscriptions
around 60 percent of the total insurance and other services will also be
at the end of the period. While 2G
subscriptions base in the region at the end factors to increase the usage of mobile
remains an important technology in the
of the period. financial services.
region due to low-priced devices,
Strong growth in 5G subscriptions
affordability of service plans and a large
will see these account for 32 percent of
number of rural subscribers, 2G
the total in 2028, as more countries
subscriptions are projected to continuously
issue licenses and spectrum to enable
decline between now and the end of our
5G network investment.
forecast period, 2028, at which point they
will account for 29 percent of total
subscriptions.
9 Forecasts Ericsson Mobility Report | June 2023
1
All Middle East and North Africa figures include GCC countries.
1 Forecasts Ericsson Mobility Report | June 2023
2
Population coverage figures for each of these countries as reported by service providers in the region.
1 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 However, in recent quarters they have Around one-third of all mobile subscriptions
Asia region made significant turned this around, and now show a are currently for 5G. More than 200 million
investments in early 5G deployments. modest increase in ARPU. In addition, 5G smartphones had been delivered to
South Korea was the first country to they are proactively looking for other the market in 2022, which accounted for
launch commercial 5G networks, and revenue opportunities from enterprises 35 percent of all global shipments.
these were available in all five markets and consumer financial services. The upgrade to SA took place just one
by 2020. Currently, Compared to some countries in year after the 5G commercial launch. Now,
5G population coverage and North East Asia, Japan still has room all 5G sites and the majority of 5G
subscription uptake in the region is for additional mid-band deployment, smartphones have SA capability. Currently,
ahead of most of the rest of the world. which is the optimum way for more than 95 percent of 5G traffic is
The region is home to key players consumers to experience high- carried by 5G SA technology. Based on SA,
from across the 5G ecosystem, performance new network capabilities have been
including leading service providers, 5G. Service providers are expected commercially available for over a year,
mobile infrastructure vendors, chipset to accelerate their investment in including network slicing for service
manufacturers, terminal providers 5G separation and differentiated offerings, and
and over-the-top (OTT) players. This deployment, especially with mid-band. Voice over New Radio (VoNR) for the
has helped to realize 5G This will continue to drive a positive evolution of voice. RedCap from 3GPP
monetization opportunities in the experience for consumers and help to Release 17, which reduces cost, power
region with tariff premiums, content realize 5G monetization opportunities. consumption and network resource needs is
aggregation and new service under field trials for cellular IoT solutions.
introductions such as Fixed Wireless Mainland China: Leading 5G in scale Leveraging early 5G SA deployment,
Access (FWA) and network slicing. 2023 is the fourth year since the service providers in mainland China have
Supported by strong macroeconomics, commercial launch of 5G. There were 2.64 successfully harnessed 5G private networks
healthy financial results for service million 5G sites in the country by the end as a new growth engine. According to MIIT,
providers and a full ecosystem of wireless of the year’s first quarter, including mid- more than 14,000 virtual private networks
and digital industries, regulators and band Massive MIMO in 2.6 GHz and 3.5 using network slicing were in service by
service providers have the shared GHz, FDD 700 MHz 2022.1
ambition to be leaders in 5G. and 2.1 GHz for national coverage,
and plenty of dedicated 5G indoor
sites.
been impacted by a government-led
Japan: Dynamic in initiative pressuring them to introduce lower tariff plans, causing ARPU
technology, steady in
deployment
The Japanese mobile market has a strong
focus on both the introduction of
advanced technologies and sustainability.
Major service providers in Japan are
exploring the potential for Cloud Radio
Access Networks (RAN), making it a
leading market in introducing this
technology. The focus on sustainability in
Japan is backed up by aggressive plans
from service providers to be carbon
neutral in their own activities by 2030.
In the telecom business environment,
Japanese service providers have
1 Forecasts Ericsson Mobility Report | June 2023
2 0
declines since March 2020 2021 2022 2023 2024 2025 2026 2027 2028
2020.
1
MIIT, www.miit.gov.cn/zwgk/zcjd/art/2023/art_9f5022af3cdf48789484117d9da03c58.html.
9 Forecasts
Mainland
Taiwan
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 service providers offer service bundling
Since South Korean service users when comparing the average including AR and VR services. Service
providers launched 5G commercial across all types of data plans. When providers are also expanding into the
services in comparing data consumption on enterprise segment with AI, data centers
April 2019, they have been at the unlimited plans and cloud.
forefront of 5G deployment and the difference is around 1.6 times.
performance. The government supports service Taiwan: Focused on 5G performance
Focus is on 5G mid-band, with no providers’ 5G ambitions and the need Service providers are continuously
low- or high-band services available for capacity, and plans to allocate improving network performance and are
yet. However, 5G population coverage additional spectrum bands to three ranking highly in third-party as well as
has already reached 94 percent. To service providers. The 3.40–3.42 local government benchmarking.
expand GHz band has already been Taiwanese service providers often appear
5G coverage nationwide, service providers assigned. near the top of 5G global benchmarks.
have introduced RAN sharing for South Korean service providers 5G subscriptions reached 7 million
cost-effective deployment in suburban promote the utilization of renewable in Taiwan in Q1 2023, which
and rural areas. Service providers energy translates
have plans to achieve 100 for RE100 roadmap to 30 percent penetration. Major service
percent population coverage implementation, an international providers expect penetration to reach
during 2024. climate initiative targeting 100 40 percent by the end of 2023. This
By the end of February 2023, 5G percent renewable energy for uptake in 5G has driven an increase in
subscription penetration reached over business activities.2 mobile service ARPU over the last 24
37 percent, and 5G subscribers months.
generated 78 percent of total mobile As unlimited data plans are prevalent
data traffic.
Figure 5: North East Asia region mobile data traffic (EB per in Taiwan, monthly data consumption
month) is among the highest globally, with an
average of 30 GB. A government
5G 2G/3G/4G survey
100
shows 46 percent of consumers
connect to mobile networks for
internet access even at home.
0 2027
2020 2021 2022 2023 2024 2025 2026
2028
2
RE100, www.there100.org.
1 Foreca Ericsson Mobility Report | June
UL 2CC
FDD+TDD
RedCap RedCap
Note: The graph illustrates the availability of network functionality, as well as support in devices.
1
Source: Canalys.
2
Source: IDC.
1 Foreca Ericsson Mobility Report | June
0
2016
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
1 Foreca Ericsson Mobility Report | June
1
Source: GSA March 2023.
2
These figures are also included in the figures for wide-area IoT.
1 Foreca Ericsson Mobility Report | June
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%
70%
60%
67% 51%
79%
77%77%
73%
69%
31%
61% 28%
56% 52%
14% 21%
9%
32%
27%
25% 25%
21%
13% 41%
350
FWA service provider advancements Over 300 million FWA connections by The number of FWA connections in
• Together, 2 leading service 2028 APAC is expected to nearly triple,
providers in the US have more than From 100 million at the end of 2022, increasing
5 million 5G FWA connections. FWA connections worldwide are projected its share of global FWA connections
• A service provider in Norway has to increase to 300 million by the end of from 36 to 46 percent by 2028.
become the first in Europe to close its 2028. This represents 17 percent of all
copper fixed broadband connections. Of the 300 FWA’s impact on global mobile data traffic
DSL network, and replace 51,000 million projected connections, nearly 80 FWA data traffic represented 21
of its connections with FWA percent are expected to be over 5G. percent of global mobile data traffic at
services. This has enabled energy the end of
savings comparable to usage levels Almost half of global FWA connections 2022 and is projected to grow by a factor
of a medium-sized Norwegian city. to be in Asia-Pacific (APAC) by 2028 of nearly 6 to reach 143 EB in 2028 –
• Oman – where 43 percent of The forecast has taken the high about 30 percent of total mobile data
all broadband connections are ambitions of 5G FWA in emerging traffic.
FWA – has experienced a 95 markets into account, increasing the
percent annual 5G FWA revenue number of connections as well as the
increase in 2022 (year-on-year). share of 5G FWA connections. Higher
• A major service provider in India volumes of In 2028, 5G will account for
has expressed the goal of 5G FWA in large, high-growth countries almost 80 percent of FWA
8
serving 100 million homes and such as India have the potential to drive connections.
businesses economies of scale for the overall 5G
with a combination of 5G FWA FWA ecosystem, resulting in affordable
services and fiber in the coming 2 to 3 CPE that will have a positive impact
years. across low-income markets.
%
• Japan has become one of the
first 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
pocket router services.
connections will be in APAC in 2028.
%
50
Middle East and Africa Latin
Figure 12: Regional split in FWA connections: 2022–2028
3
in 2022
%
1 Foreca Ericsson Mobility Report | June
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.
instead of 30 days.
Additionally, most offer a discount on the 24-
month contract option to incentivize users to
Key insights choose this over the 30-day option. Some
• As 5G matures, service form of data buckets are available from 99
providers are making it the percent of the surveyed service providers,
standard choice for consumers. while 43 percent offer at least
Only 22 percent of service 1 unlimited data package to consumers.
providers that offer 5G are Service providers with 5G commonly have
differentiating the price more unlimited packages available,
compared to their 4G offerings. sometimes limiting bucket packages to
• Around 58 percent of 5G service prepaid offers. Around 17 percent of the
providers offer bundles with service providers offering unlimited data
entertainment services included, have some boundary conditions tied to the
such as television and music offer. The majority (79 percent) with such
streaming or cloud gaming terms and conditions are among those
platforms. who offer 5G.
• On a country level, there is often There is a continuous shift back and
very little or no differentiation forth among the base offers, and during
between the prices and the 6 months since the previous survey,
packages for smartphones and 16 service providers have removed their
unlimited offers, while 17 have newly
An updated Ericsson study1 of retail introduced this type of package.
packages offered by 310 mobile This represents over 10 percent of the mobile
service providers worldwide shows service providers in the survey. Similar
that as 5G matures, service providers changes have been seen in the past,
are making it the standard choice for revealing some uncertainties and a lot of
consumers. experimentation. An example of this change
Only 22 percent of the 182 service is a service provider that removed unlimited
providers offering 5G are showing a price data from their general offerings and made it
difference which the consumer needs to exclusive to those customers who subscribe
pay in order to gain access to 5G to a bundle combining
services. Interviews undertaken in a fixed and a mobile subscription.
December 2022 and January 2023 reveal Nearly 70 percent of the service providers
that many service providers want to who removed their unlimited offerings now
actively move users over to 5G, as it is the provide service-based connectivity packages
more efficient technology. instead. With this type of package consumers
This number is expected to continue can purchase some form of add-on package,
to decrease as 5G matures and such as a “streaming pass” that allows
service consumption of video at an attractive price
providers actively move users from without using data from the base bucket.
their previous-generation networks.
The practice of having long-term
contracts as the default for SIM-only
plans seems to be continuing and
expanding among service providers, with
most of them setting the default option on
their websites to 24-month contracts
1 Foreca Ericsson Mobility Report | June
These are designed either as “buckets Europe, and are now also appearing
The total number of service providers of hours,” in a few countries in
offering some type of service-based for example video streaming, to Latin America.
connectivity has reduced from 179 to be consumed over a month, or
176. for a few continuous hours of
At the same time, those who unlimited Only 22 percent of service providers
target high-consumption services consumption, which consumers that offer 5G are differentiating the
like video simply buy ”on demand” before price compared to their 4G offerings.
2
streaming, cloud gaming, or high-definition starting a movie or a gaming session.
audio remain at the same level (119). A new type of connectivity
Some shifts can be seen in this package which emerged during the
area, with a small drop in service pandemic typically offers
%
providers offering monthly discounted GB to use when working
unlimited packages, or studying from home. These
while there is an increase in those types of packages started in South
offering time-based packages instead. East Asia, expanded into Eastern
1
May 2023.
1 Foreca Ericsson Mobility Report | June
5
can include things
variation and the number of different
like football season tickets, cooking classes
packages used, as well as choices
or yoga sessions. Besides being able to
available to consumers, are increasing.
find all services in one place and sign up
%
However, at a country level, there is often
in a simple manner, a key benefit to
very little or no differentiation at all. For
consumers is often a small discount when
a consumer who is shopping for a new
selecting two or more of these services.
phone or subscription, the prices and
packages from the
Apr 2021
Oct 2021 Apr 2022 Nov 2022 Apr 2023
350
245
250 237 238
225
213
200
182
179 176
174
170
164 164
152151 154
147 146 147
150 136
140141
131 132
125 124 124
118
108 110 106
93 97 98 95
100 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
1 Foreca Ericsson Mobility Report | June
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.”
2 Foreca Ericsson Mobility Report | June
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.
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.
2 Foreca Ericsson Mobility Report | June
month).
er
of total traffic.
Across both networks, Facebook has a
0% 10% 20% 30% 40% 50% 60% 70% 80%
90% 100% significant percentage of video traffic share
for all subscriber clusters, but its share
decreases significantly with increasing
Figure 15: North American service provider: Subscriber and
data consumption. The YouTube share of
traffic volume shares of different subscriber clusters
traffic displays a similar trend, while
TikTok shows a trend toward an
Light Moderate Medium Heavy Intense Extreme
increasing share of traffic with increasing
data consumption.
Subscrib
er
Impact of video
Video is having a significant influence
on data consumption and traffic
volumes in advanced mobile broadband
markets.
This trend is being driven by intense
and extreme users, who have the
highest percentages of video
consumption.
Traf
fic
4
”Other” includes uncategorized traffic and traffic from services that have too small a share to be significant
compared to the categorized segments in this figure. A large share of ”Other” is presumably video traffic.
5
”Unclassified” includes video traffic that was not possible to identify as a specific service or has too
small a share to be significant compared to the specified services.
2 Foreca Ericsson Mobility Report | June
Figure 18: Global mobile network data traffic and year-on-year growth (EB per month)
140 140
120 120
100 100
Total (uplink + downlink) traffic (EB per
Year-on-year growth
80 80
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
1
Traffic does not include DVB-H, Wi-Fi or Mobile WiMAX. VoIP is included.
2 Foreca Ericsson Mobility Report | June
500
450
400
350
300
250
200
150
100
2 Foreca Ericsson Mobility Report | June
and FWA 5G gaming, XR traffic, and more 2028, 5G subscription penetration in North
subscribers. and video- data from devices America is predicted to be the highest of
The data based off-loaded to all regions, exceeding 90 percent.
traffic apps. cloud computing In Western Europe, service usage
generated per These resources to and traffic growth are expected to follow
minute of experiences satisfy users. similar patterns to those anticipated for
usage will require FWA has started North America. Although a more fragmented
increase higher to affect overall market situation has led to a later
significantly in video traffic patterns, mass-market adoption of 5G, by 2028
line with the resolutions, accounting for a traffic usage per smartphone is projected
expected increased large share of to reach 56 GB per month – close to
uptake of uplink total traffic. In the usage in North America at that time.
0
2017
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
2 Foreca Ericsson Mobility Report | June
Figure 20: Mobile data traffic per smartphone (GB per month) CAGR
2022–
65 Regions 2022 2028 2028
India, Nepal,
60 26 62 16%
Bhutan
55
GCC 26 59 15%
50
North America 20 58 20%
45
Western Europe 20 56 19%
40
North East Asia 18 54 20%
35
South East
30 15 54 24%
Asia and
Oceania
25
Global average 16 47 20%
20
Latin America 11 41 25%
Middle East and
15 North Africa1 12 37 20%
10 Central and
Eastern Europe 14 37 18%
5
Sub-Saharan Africa 4.7 19 26%
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
1
All Middle East and North Africa figures include GCC countries.
2 Foreca Ericsson Mobility Report | June
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- Europe has large variation between
85 percent globally at the end of 2022 band frequency division duplex (FDD) 5G 58 percent total 5G population coverage
and is projected to reach over 95 percent carrier it can provide full coverage and and mid-band coverage of around
in 2028. There are currently 816 4G mobility. While 5G mid-band population 15 percent (both figures excluding Russia).
networks deployed worldwide, with 336 coverage reached 30 percent worldwide This is due to the limited availability
upgraded to LTE-Advanced and 62 by the end of 2022, outside China it is of mid-band spectrum in some
Gigabit enabled.1 estimated to be just over 10 percent. countries, resulting in deployments
The build-out of 5G continues, with There are large regional variations in being mainly in low-band. North
around 240 networks launched worldwide. total 5G population coverage as well as America has 5G deployments across
Global 5G population coverage reached mid-band coverage. Regions such as low-, mid- and high-band frequencies.
around Latin America and Middle East and Several service
35 percent at the end of 2022 and is Africa have reached about 7 percent providers have deployed 5G on low-band,
projected to increase to about 85 percent mid-band population coverage, with a covering around 95 percent. During recent
in 2028. similar total years, mid-band has been rapidly
5G population coverage of around 8 deployed and has now reached around 80
Large regional variations in percent. percent.
5G population coverage China has built 5G population
Mid-band is a sweet spot for delivering coverage mainly on mid-band and has
the 5G experience, as it combines high reached coverage of around 90 percent.
capacity with good coverage and is
available in
5G mid-band 5G total
4G
30% 2022 >85%
World 35%
2028 >95%
World 10%
(without China) 20%
5G
80% ~35%
North 2022
America 95%
2028 ~85%
Latin 7%
America 8%
Europe 15%
(without Russia) 58% Globally, 5G population
7% coverage
8%
Middle East
and Africa
12% China
13%
Asia-Pacific
(without China)
90%
90%
3
3 Foreca Ericsson Mobility Report | June
reached 35
percent at
%
the end of
2022.
0 10 20 30 40 50 60 70 80 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).
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 on mobile QoE grow
urban than rural locations.
through offering premium capacity, is predicted to alongside the uptake of new
Analysis of North American
services to 5G customers, accelerate services, the need to improve
and European networks
as Singtel proved at the in the coming years. In this mobile network performance
provides insights for service
Singapore Grand Prix. article, a modeled scenario will
providers as to how they
With Singtel, this article shows how AR demand is also rise. Yet, traditional
should consider location,
explores the future of projected to outpace mobile ways of measuring mobile
plus traffic consumption
differentiated services broadband capacity growth, QoE
patterns, when designing
over 5G. and discusses what are limited in their usefulness,
networks.
additions will be needed to and new models must
keep pace. be developed.
2 Artic Ericsson Mobility Report | June
different location types: dense But it has been much lower in rural areas
urban, urban, suburban and rural with growth below 10 percent. The
Key insights areas. proportion of traffic on 5G in rural areas is
Traffic demand per location is 500 to lower due to reduced population coverage
• Traffic demand is up to 1,000
1,000 times higher in dense urban at the current stage of network
times larger in dense urban
locations relative to more sparsely deployment and also likely lower
areas relative to rural areas.
populated penetration of 5G devices.
• More services now require
rural locations in both Western When comparing North America with
uplink performance to be
Europe and North America. Western Europe, there are a couple of key
considered. This becomes
In Western Europe, relative growth differences that can be observed in the 2022
even more critical for new
in traffic during peak periods across the traffic. Firstly, traffic demand is higher
uplink-demanding services
four different locations between 2021 in North America in both dense urban
like XR.
and 2022 can be seen in Figure 23. and urban locations. Secondly, in all
• The 5G rollout is far from
Data for the most recent year shows locations, a greater proportion of traffic
complete. 5G mid-band is only
that traffic growth per location is highest comes from 5G, which is likely a driving
deployed
in dense urban and urban locations, with factor behind higher traffic volume in
in around 25 percent of 4G
up to 80 percent growth. urban areas.
sites globally, with North
Figure 23: Relative traffic growth for peak period by location type in Western Europe
Mobile networks must continuously
4G 5G
evolve within the RAN domain, utilizing
mid-band
and mmWave to meet capacity and
Dense urban Urban
speed demands, but not all locations are
Relative traffic for busy hour Relative traffic for busy hour
equal. This is highlighted by a detailed
analysis of data traffic growth and 2 2
patterns across
different locations in some North American 1.5 1.5
and European networks, providing
key insights and considerations
1 1
for network evolution.
1.4 1.2
Methodology 1.2 1
In Western Europe, traffic 1
0.8
data was retrieved from 4
0.8
networks, with 21 data sets 0.6
from across 0.6
18 locations, collected in Q3 0.4
0.4
2021 and Q3 2022. In North 0.2
0.2
America, 30 data sets were
retrieved from 3 networks 0 0
2021 2022
2 Artic Ericsson Mobility Report | June
2021 2022
Rural
Relative traffic for busy hour
2021 2022
2 Artic Ericsson Mobility Report | June
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
2 Artic Ericsson Mobility Report | June
Time of day
25 Articles Ericsson Mobility Report | June 2023
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.
to change as new applications that
• Energy Market Authority (EMA) to
leverage 5G, such as AR and VR, become
investigate the potential of 5G in
Key insights smart grid technology
more prevalent.
1
www.imda.gov.sg/How-We-Can-Help/5G-Innovation.
27 Articles Ericsson Mobility Report | June 2023
Premium subscribers at
the Singapore GP
enjoyed 437 Mbps on
average
due to network slicing.
43
2
Radio resource partitioning is a software solution that allocates
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
Consumer Smart home devices and appliances Remote work and telecommuting
B2C
Consumers can be offered a range of service
B2B
Enterprises
plans withcan
different
be offered
attributes,
a rangefor
B2B2X
of performance-based
example
Service
an economy
providers
service
service
couldplans,
offer
plan network
which may
slicing-based c
(best-effort quality), a gaming service planbe
(QoS
applied
on-demand,
to different
guaranteed
applications
latency
andlevel)
tools
variety
orprovided
a performance-based
of customers
to their employees.
in different
premium
Industrial
market
service
segments,
enterprise
plan (gua
w
high-quality video and audio). different slices for various productivity- or for
process-oriented
their customers.internal operations.
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.
Around 2030
3 Artic Ericsson Mobility Report | June
Mobile broadband AR
Around 2030
32 Articles Ericsson Mobility Report | June 2023
Excellent4.5–5.0
Media parameter extraction Good3.5–4.5
Pq: Long-term quality predictor module (P.1203.3)
Fair2.5–3.5
Pa: Short-term audio quality predictor module (P.1203.2) MOS Poor1.5–2.5
Video Bad1.0–1.5
stream
3
Ericsson, Video QoE, leveraging standards to meet rising user expectations (June 2017).
4
3
GitHub,
Artic
VMAF.
Ericsson Mobility Report | June
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
7
Xbox Game Pass requirements, Microsoft.
8
”XR and 5G: Extended reality at scale with time-critical communication” (August 24, 2021).
Methodology
Forecast methodology
Mobile subscriptions
Rounding of Subscribers Mobile data Population coverage
figures traffic
Glossary
environment are fully interactive with
2CC: Two component carrier GHz: Gigahertz, 109 hertz (unit of each other
RedCap: Reduced
capability SA:
Standalone
Key figures
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
4 Key Ericsson Mobility Report | June
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.
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