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Mobile Economy Asia Pacific 2024 FINAL

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hphuongg08
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The Mobile

Economy Asia
Pacific 2024
The GSMA is a global organisation unifying the mobile
ecosystem to discover, develop and deliver innovation
foundational to positive business environments and
societal change. Our vision is to unlock the full power of
connectivity so that people, industry and society thrive.
Representing mobile operators and organisations across
the mobile ecosystem and adjacent industries, the GSMA
delivers for its members across three broad pillars:
Connectivity for Good, Industry Services and Solutions,
and Outreach. This activity includes advancing policy,
tackling today’s biggest societal challenges, underpinning
the technology and interoperability that make mobile
work, and providing the world’s largest platform to
convene the mobile ecosystem at the MWC and M360
series of events.

We invite you to find out more at gsma.com

Follow the GSMA on X: @GSMA

Follow the GSMA on LinkedIn

GSMA Intelligence is the definitive source of global mobile


operator data, analysis and forecasts, and publisher of
authoritative industry reports and research. Our data
covers every operator group, network and MVNO in every
country worldwide – from Afghanistan to Zimbabwe. It is
the most accurate and complete set of industry metrics
available, comprising tens of millions of individual data
points, updated daily.

GSMA Intelligence is relied on by leading operators,


vendors, regulators, financial institutions and third-party
industry players, to support strategic decision-making
and long-term investment planning. The data is used as
an industry reference point and is frequently cited by the
media and by the industry itself.

Our team of analysts and experts produce regular


thought-leading research reports across a range of
industry topics.

www.gsmaintelligence.com

[email protected]

Copyright © 2024 GSMA


Contents
Executive summary 2

1. The mobile industry in numbers 10

2. Mobile industry trends 21

2.1 5G: focus shifts to 5G-Advanced and 5G RedCap 22

2.2 Open Gateway: operators unite to drive API progress 26

2.3 Satellites and NTNs: momentum builds behind aerial connectivity 28

2.4 GenAI: operators seek revenue-generating opportunities 31

2.5 Consumer trust: stakeholders take steps to enhance online safety 34

3. Mobile industry impact 36

3.1 Accelerating digital inclusion 37

3.2 The mobile industry’s impact on the SDGs 39

4. Mobile industry enablers 41

4.1 Policies to sustain investments 43

4.2 A spectrum roadmap towards 2030: meeting future connectivity 47


demand
Executive
summary
Mobile enabling digital transformation
The mobile industry continues to underpin the to just over 1.4 billion users – almost triple the
rapid digital transformation in Asia Pacific, with figure a decade earlier. However, large swathes
advanced mobile networks enabling innovative of the population across the region still remain
use cases for consumers and enterprises. The role unconnected, most of them within the usage gap.1
of mobile infrastructure and services will become Addressing the usage gap is crucial to closing
even more vital to the way society functions as the digital divide and enabling life-enhancing
governments increasingly use digital technologies applications around finance, health and education.
to tackle some of the most pressing social and
The impact of mobile connectivity is evidenced by
economic challenges.
its contribution to the economy. In 2023, mobile
By the end of 2023, 1.8 billion people in Asia Pacific technologies and services generated 5.3% of
(63% of the population) subscribed to a mobile Asia Pacific’s GDP, a contribution that amounted
service. Growth in mobile internet penetration has to $880 billion of economic value added, and
been remarkable. At the end of 2023, 51% of the supported around 13 million jobs across the region.
region’s population used mobile internet, equating

1. People covered by a mobile broadband network but do not yet subscribe to a mobile internet service

Executive summary 2 / 50
Key trends shaping
the mobile ecosystem

5G: focus shifts to 5G-Advanced


and 5G RedCap
Commercial 5G standalone (SA) networks
are now present in seven countries in Asia
Pacific (Australia, India, Japan, the Philippines,
Singapore, South Korea and Thailand), providing
the opportunity to develop new 5G applications.
Operators in the region are looking to leverage
5G-Advanced and 5G reduced capability
(RedCap) technologies to deliver new solutions
for enterprise. The growing focus on advanced 5G
networks and services is expected to kick-start a
new round of 5G investments in 2024 and beyond.
It will also lay the foundation for the next wave
of 5G use cases that could unlock new revenue
streams for operators and the wider ecosystem in
both the consumer and enterprise segments.

Open Gateway: operators unite to


drive API progress
Although it has been possible to expose network
APIs for some time, operators have struggled
to adopt a standardised approach that achieves
scale. However, recent initiatives by the mobile
industry have sought to provide fresh momentum
behind developing a common set of network APIs.
By April 2024, 49 operator groups had signed up
to the GSMA Open Gateway, representing 240
mobile networks and accounting for 65% of mobile
connections globally. Operators across Asia
Pacific have joined the initiative, including those in
Australia, Indonesia, Japan, Malaysia, Singapore,
South Korea, Sri Lanka, Thailand and Vietnam. The
focus is now on translating operator commitments
into commercially available network APIs and
demonstrable use cases.

Executive summary 3 / 50
Satellites and NTNs: momentum GenAI: operators seek revenue-
builds behind aerial connectivity generating opportunities
Due to the geographical make-up of several Operators across Asia Pacific are harnessing the
countries in Asia Pacific, aerial connectivity power of generative AI (genAI) to drive internal
will play an important role in realising universal transformations and seize new revenue streams
connectivity. From archipelagos and rainforests through AI investment. GenAI has applications
to deserts and mountain ranges, Asia Pacific is in various domains – such as customer service,
home to some of the most challenging terrains sales, marketing and code development – offering
for terrestrial networks. As a result, there has immediate opportunities. Moreover, leveraging
historically been significant interest in aerial AI for network enhancement remains a priority
solutions and the opportunity they offer to for operators. Exploring new revenue streams,
help extend connectivity to hard-to-reach regional operators are investing in AI startups and
locations. This interest has been heightened by organisations while developing their own large
the emergence of low Earth orbit (LEO) and language models (LLMs). Tailored LLMs make it
high-altitude platform station (HAPS) solutions. easier for operators to deploy high-quality genAI
Importantly, telecoms operators across the models swiftly and efficiently, helping them to
region are actively engaged in the evolving aerial accelerate AI-enabled transformation.
connectivity market, mostly through partnerships
and investments.
Consumer trust: stakeholders take
steps to enhance online safety
With the rise of online threats targeting individuals
and enterprises, there is a risk that consumer
trust in digital services will erode. Meanwhile, the
proliferation of advanced AI tools, notably genAI
applications, adds a new dimension to the threat
landscape by potentially enabling new types
of attacks and making existing ones harder to
detect. Such attacks can have a profound impact
on victims, including financial losses and a mental
toll, resulting in a loss of trust in digital platforms.
While governments and digital ecosystem players
have taken steps to combat online threats, the task
of maintaining trust must be viewed as a shared
responsibility between these stakeholders, as
opposed to the sole responsibility of any single
group.

The task of maintaining


trust must be viewed as
a shared responsibility
between governments
and digital ecosystem
players

Executive summary 4 / 50
Policies for growth and innovation
For the mobile industry to advance and deliver The ITU’s World Radiocommunication Conference
on digital transformation ambitions, the policy 2023 (WRC-23) opened the doors to a new era of
and regulatory environment requires an approach connectivity and laid the spectrum foundations
that supports a conducive environment for rapid for mobile to progress into 5G-Advanced and 6G.
growth and innovation. Policies that will have Importantly, WRC-23 identified 6 GHz (6.425–
a key role towards this objective include those 7.125 GHz) for mobile use by countries in every
that promote investment in networks, reduce ITU Region (EMEA, CIS, the Americas and Asia
taxation burdens, promote ease of doing business Pacific) and the conditions for its use have been
by reducing onerous compliance costs, improve agreed in the ITU’s Radio Regulations. Countries
efficiency, and foster inclusivity and online trust in Asia Pacific can now take advantage of the
and safety. Similarly, as demand for high-speed, harmonisation of 6 GHz that was achieved at
high-quality mobile connectivity continues to grow, WRC-23 and begin developing national plans to
regulators and policymakers should review current assign the band. With 6 GHz, mobile operators
policies to identify those that create unnecessary can meet the growth in 5G traffic demand in a
barriers for mobile operators, hindering their ability practical, cost-effective and environmentally
to invest without necessarily having any positive friendly way using existing 5G macro sites.
impact on consumer welfare.

Executive summary 5 / 50
The Mobile Economy
Asia Pacific
Unique Mobile
mobile internet
subscribers users

2023
1.8bn
63% penetration rate*
2023
1.4bn
51% penetration rate*

2030
2.1bn
70% penetration rate*
2030
1.8bn
61% penetration rate*

CAGR
2023-2030 2.1% CAGR
2023-2030 3.0%
*Percentage of population *Percentage of population

SIM 4G Percentage of connections


(excluding licensed cellular IoT)

connections
(excluding licensed cellular IoT)
2023
70%
2023
2.7bn
97% penetration rate*
2030
50%
2030
3.1bn 5G Percentage of connections
(excluding licensed cellular IoT)

10%
106% penetration rate*
2023

1.8%
45%
CAGR
2023-2030
2030
*Percentage of population
Smartphones Licensed
Percentage of connections
cellular
IoT connections
2023
78%
2030
94% 2023
144m
Operator
2030
270m
revenues and
investment
Mobile's
2023
$197m
Total revenues
contribution
to GDP

2030
$227bn
Total revenues
2023

$880bn
5.3% of GDP

$271bn
$1tn
Operator capex
for the period
2030
2023–2030:

Public Employment
funding
2023
2023
9m jobs
$90bn Directly supported by the
mobile ecosystem

Mobile ecosystem contribution to


public funding (before regulatory Plus 4m
and spectrum fees) indirect jobs
Subscriber and technology trends for key markets
Asia Pacific Technology mix* Subscriber penetration

12+8+7010J 2+2+5046J
10% 12% 2% 2% 2023 63%
8% 2030 70%
2023 2030
45% Smartphone adoption
50%
70% 2023 78%
2G 3G 4G 5G 2030 94%

Leading Nations programme 2

Bangladesh Technology mix* Subscriber penetration

32+17+510J 5+2+7221J
5%
21%
2% 2023 56%
51% 32% 2030 69%
2023 2030
Smartphone adoption
72%
17% 2023 56%
2G 3G 4G 5G 2030 84%

India Technology mix* Subscriber penetration

13+3+7212J 2+1+4948J
12% 13% 2% <1% 2023 71%
49%
3%
2030 78%
2023 2030
49% Smartphone adoption
72% 2023 80%
2G 3G 4G 5G 2030 95%

Indonesia Technology mix* Subscriber penetration

5+94+1J 1+67+32J
1%5% 1% 2023 66%
32% 2030 77%
2023 2030
Smartphone adoption
67%
94% 2023 87%
2G 3G 4G 5G 2030 94%

Pakistan Technology mix* Subscriber penetration

32+5+63J 7+1+839J
9%
7% <1% 2023 41%
32% 2030 55%
2023 2030
Smartphone adoption
63% 5% 84%
2023 63%
2G 3G 4G 5G 2030 80%

Philippines Technology mix* Subscriber penetration

3+11+806J 1+2+5344J
6% 3% 11% 1% 2% 2023 73%

46%
2030 78%
2023 2030
Smartphone adoption
51%
80% 2023 86%
2G 3G 4G 5G 2030 92%

2. The GSMA Leading Nations engagement (comprising Bangladesh, India, Indonesia, Pakistan and the Philippines) seeks to accelerate the growth of the digital economy
and advance the mobile industry’s sustainability by lobbying for regulatory modernisation with relevant stakeholders.

Executive summary 8 / 50
Developed 5G markets3
Australia Technology mix* Subscriber penetration

1+54+45J 6+94+J
1% 6% 2023 86%
45% 2030 88%
94%

2023 2030
53% Smartphone adoption
2023 89%
2G 3G 4G 5G 2030 94%

Japan Technology mix* Subscriber penetration

2+61+37J 8+92+J
2% 8% 2023 89%
37%
2030 90%
2023 2030
Smartphone adoption
61%
92% 2023 75%
2G 3G 4G 5G 2030 94%

New Zealand Technology mix* Subscriber penetration

1+5+7222J 5+95+J
1% 5% 5% 2023 85%
22%
72% 2030 88%
2023 2030
Smartphone adoption
95% 2023 90%
2G 3G 4G 5G 2030 94%

Singapore Technology mix* Subscriber penetration

2+3+6629J 1+3+96J
2% 3% 1% 3% 2023 90%
29%
2030 91%
2023 2030
Smartphone adoption
66% 96% 2023 91%
2G 3G 4G 5G 2030 96%

South Korea Technology mix* Subscriber penetration

2+49+J 1+5+94J
<1% 5%
2% 2023 95%
49%
2030 96%
2023 2030
49% 95% Smartphone adoption
2023 83%
2G 3G 4G 5G 2030 96%

* Percentage of total connections


Note: The penetration figures this year have been revised to reflect updates in population figures from the UN. Totals may not add up due to rounding.

3. Markets in Asia Pacific with the highest 5G penetration

Executive summary 9 / 50
01
The mobile industry
in numbers
By the end of 2023, Asia Pacific has experienced significant growth
in internet connectivity levels in recent years. The

more than half of the


number of people in the region who subscribe to
mobile internet services has more than doubled in

population in Asia
the last decade to over 1.4 billion. Growth during
this period was largely driven by the expansion of

Pacific subscribed to
mobile broadband networks, with the coverage
gap now under 2% in most markets across the
region.
mobile internet The usage gap has also narrowed on aggregate

services but remains stubbornly high in some markets,


notably Bangladesh, India and Pakistan, where
50% or more of the population are covered
by mobile internet networks but have not yet
subscribed to the service. Key adoption barriers
include lack of affordability, particularly for
devices, and lack of digital skills, particularly
among older citizens. For example, the Japanese
government estimates that around 20 million
older citizens are unfamiliar with how to operate
smartphones and other digital devices.4

Figure 1
Coverage gap
Asia Pacific: mobile internet connectivity in select markets, 2023 Usage gap

Percentage of population Connected

1% 1% 1% 2% 3%
7%
11%
20% 20% 19%

32%
46%
49%
63%

58%
93%
89%
80% 80%

65%
53%
49%
35%
23%

Australia Bangladesh India Indonesia Japan Malaysia South Korea Pakistan Singapore

Note: Totals may not add up due to rounding.


Source: GSMA Intelligence

4. “Japan looks to bridge digital divide between young and old”, The Japan Times, June 2023

The mobile industry in numbers 11 / 50


5G continues to 5G is now well established in pioneer countries
across Asia Pacific. By the end of 2024, the

rapidly grow, but 4G


technology will account for a third or more
of total mobile connections in five of these

will remain the


countries: Australia, Japan, New Zealand,
Singapore and South Korea (over 60% in South

dominant
Korea). In countries that form the second wave of
deployments, notably India and Thailand, rapid
5G network expansion has led to quickly rising
technology for the adoption.

foreseeable future However, many other operators in the region will


continue to prioritise the expansion of 4G capacity
in urban areas and the extension of coverage
to underserved regions in the short-to-medium
term. As a result, 4G will remain the dominant
technology across the region by 2030, albeit with
a much narrower gap with 5G compared to today.

Figure 2
Asia Pacific: mobile adoption by technology
Percentage of total connections

80%

70%

60%

50% 4G 50%
5G 45%
40%

30%

20%

10%

3G 2%
0%
2G 2%
2023 2024 2025 2026 2027 2028 2029 2030

Source: GSMA Intelligence

The mobile industry in numbers 12 / 50


By the end of 2030, By 2030, 5G adoption in developed 5G markets
in Asia Pacific will reach 95% of total connections,

Asia Pacific
on average, meaning these markets will be among
the global 5G leaders. However, the rest of the

countries will be on
region will be on the other end of the spectrum,
with 40% adoption on average. With nearly 80%

both ends of the


5G adoption by 2030, Thailand will be an outlier
among developing Asia Pacific economies.

global 5G spectrum

Figure 3
2024–2030 increase
5G adoption 2023
Percentage of total connections

5G connections
Leading 5G markets (2030)

GCC states 95% 99m

Developed Asia Pacific* 93% 296m

North America 90% 443m

Greater China 88% 1.69bn

Europe 81% 653m

Thailand 78% 85m

Emerging 5G markets

Latin America 55% 425m

India 49% 641m

Rest of MENA 44% 347m

Eurasia 41% 138m

Sub-Saharan Africa 17% 234m

Rest of Asia Pacific** 15% 427m

* Australia, Japan, New Zealand, Singapore and South Korea


** Excludes India and Thailand
Source: GSMA Intelligence

The mobile industry in numbers 13 / 50


Mobile data traffic in The growth in mobile data traffic per smartphone
is primarily being driven by enhanced device

Asia Pacific will


capabilities, network improvements and an
increase in data-intensive content. As 4G

quadruple between
subscribers migrate to 5G, average mobile
data traffic per smartphone will increase and is

2023 and 2030


expected to reach 53 GB per month in 2030. In
India, for example, 5G users have been consuming
approximately 3.6× as much mobile data
compared to 4G since October 2022, according
to Nokia’s MBiT 2024 report. Furthermore, as
countries in the region progress with their digital
nation agendas, new services could result in faster
growth in mobile data traffic.

Figure 4
Mobile data traffic per connection
GB per month

Region 2023 2030 Increase

Japan and South Korea 18 87 4.8×

Southeast Asia (Cambodia, Indonesia, Malaysia,


Myanmar, Singapore, Thailand and Vietnam)
13 59 4.5×

India 17 69 4.1×

Oceania (Australia, Pacific islands and New


Zealand)
13 50 3.8×

Global 13 48 3.7×

Rest of South Asia (Bangladesh, Bhutan, Nepal,


Pakistan and Sri Lanka)
4 12 3.0×

Top five smartphone markets in Asia Pacific


(number of smartphone connections, 2030)

India Indonesia Vietnam Japan Bangladesh


1.2bn 387m 190m 183m 178m

Source: GSMA Intelligence

The mobile industry in numbers 14 / 50


Licensed cellular IoT The licensed cellular IoT market of Asia Pacific
will almost double between 2023 and 2030 with

connections in Asia
a CAGR of 9%. Japan leads in the region and will
account for just under 40% of total connections

Pacific will reach


in 2030. IoT will also gain traction in South Korea,
India and Australia. The increasing availability of

270 million by 2030


low-power, wide area (LPWA) networks is crucial
to the widespread adoption of IoT.

Operators see the potential in partnerships for


jointly selling IoT solutions to local and global
customers. In Japan, NTT Docomo and NTT
Communications – whose focus has mostly been
the Japanese market – have integrated their
IoT-related assets and offerings with the wider
group’s global units (NTT Data and NTT Ltd.)
and Transatel, NTT’s subsidiary IoT mobile virtual
network enabler, to pursue a focused IoT strategy
with a global reach.

Figure 5
Rest of Asia Pacific
Asia Pacific: number of licensed cellular IoT connections
India
Million South Korea
Japan

300

250
30%
200
12%
150
20%

100

50 39%

0
2023 2024 2025 2026 2027 2028 2029 2030

Source: GSMA Intelligence

The mobile industry in numbers 15 / 50


By 2030, mobile Mobile revenues are expected to grow at a CAGR
of 2.2% between 2023 and 2030 as mobile

revenues will reach


markets increasingly become saturated. This will
drive operators to expand efforts in generating

$227 billion in Asia


new revenue streams beyond connectivity. GSMA
Intelligence research5 shows that operators in Asia

Pacific
Pacific prioritise revenue generation over cost
savings on a nearly three-to-one basis, when asked
about the primary success criteria of network
transformation initiatives. This has been true for
years – but there was a greater focus on new
revenues in 2023 than in 2022, potentially linked to
5G monetisation (and investment).

Figure 6
Revenue
Asia Pacific: mobile revenues and capex to revenue Capex to revenue (%)

Billion YoY growth

19%
17%
16% 16% 16% 15%
14%
14%

$227
$223
$220
$217
$213
$197 $209
$203
3% 3% 3%
1.8% 1.8% 1.6% 1.5% 1.5%

2023 2024 2025 2026 2027 2028 2029 2030

Source: GSMA Intelligence

5. Network Transformation 2023, GSMA Intelligence, 2023

The mobile industry in numbers 16 / 50


The mobile sector In 2023, mobile technologies and services
generated 5.3% of GDP across Asia Pacific, a

added $880 billion


contribution that amounted to $880 billion of
economic value added. The greatest benefits

of economic value to
came from the productivity effects generated by
the use of mobile services across the economy,

the Asia Pacific


which reached $510 billion. The direct contribution
by the mobile ecosystem was also significant at
$280 billion.
economy in 2023 The mobile ecosystem comprises three
categories: mobile operators; infrastructure and
equipment providers; and content and services.
The infrastructure and equipment category
includes network equipment providers, device
manufacturers and IoT companies. Meanwhile,
the content and services category encompasses
content, mobile application and service providers,
distributors and retailers, and mobile cloud
services.

Figure 7
Asia Pacific: total economic contribution of mobile, 2023
Billion, % of GDP
$510 $880

3.0%
Mobile ecosystem

$100 5.3%

$80 0.6%

$90 0.5%
$110 0.5%

0.6%

Mobile Infrastructure Content and Indirect Productivity Total


operators and services
equipment
providers

Note: Totals may not add up due to rounding.


Source: GSMA Intelligence

The mobile industry in numbers 17 / 50


At the end of the By 2030, mobile’s contribution will reach
approximately $1 trillion in Asia Pacific, driven

decade, mobile’s
mostly by the continued expansion of the mobile
ecosystem and verticals increasingly benefiting

economic
from the improvements in productivity and
efficiency brought about by the take-up of mobile

contribution will
services.

The increase in mobile’s contribution to the

reach $1 trillion economy in 2030 is expected to be higher in Asia


Pacific (15%) compared to average global growth
(12%). This is because 5G penetration is expected
to grow more quickly in Asia Pacific than many
other regions towards the end of the decade.

Figure 8
Asia Pacific: economic impact of mobile
Billion

$880 $1,010

2023 2030
Source: GSMA Intelligence

The mobile Mobile operators and the wider mobile ecosystem


provided direct employment for approximately

ecosystem in Asia
9 million people in Asia Pacific in 2023. In addition,
economic activity in the ecosystem generated

Pacific supported
more than 4 million jobs in other sectors, meaning
around 13 million jobs were directly or indirectly

around 13 million jobs


supported.

in 2023
Figure 9
Asia Pacific: employment impact of the mobile ecosystem, 2023
Jobs (million)

4.5

13.2
8.7

Direct Indirect Total


Source: GSMA Intelligence

The mobile industry in numbers 18 / 50


The fiscal In 2023, the mobile sector in Asia Pacific made
a substantial contribution to the funding of the

contribution of the
public sector, with around $90 billion raised
through taxes. A large contribution was driven by

mobile ecosystem
services VAT, sales taxes and excise duties, which
generated $30 billion.

reached $90 billion


in 2023

Figure 10
Asia Pacific: fiscal contribution of the mobile ecosystem, 2023
Billion

$20

$20

$90
$20

$30

Services VAT, Handset VAT, Corporate taxes Employment Total


sales taxes and sales taxes, on profits taxes and social
excise duties excise and security
customs duties

Source: GSMA Intelligence

The mobile industry in numbers 19 / 50


5G will add almost 5G is expected to benefit the Asia Pacific economy
by $130 billion in 2030, accounting for almost 12%

$130 billion to the


of the overall economic impact of mobile. Much
of the 5G benefit will materialise over the period

Asia Pacific
to 2030, as some countries are in early stages
of deployment and 5G economic benefits will

economy in 2030
increase as the technology starts to achieve scale
and widespread adoption.

While 5G is expected to benefit most sectors


of the Asia Pacific economy, some industries
will benefit more than others due to their ability
to incorporate 5G use cases in their business.
Between 2023 and 2030, 37% of the benefits are
expected to originate from the manufacturing
sector, driven by smart factories, smart grids and
IoT-enabled products, among other applications.
Other sectors that will experience significant
benefits are the public administration and services
sectors at 14% and 9%, respectively.

Figure 11 Other
Asia Pacific: annual 5G contribution by industry Construction and real estate
Finance
Billion
Information and communication
Services
Public administration
Manufacturing

$140

$120 19%

6%
$100
7%
8%
$80
9%

$60
14%

$40

$20 37%

$0
2023 2024 2025 2026 2027 2028 2029 2030

Source: GSMA Intelligence

The mobile industry in numbers 20 / 50


02
Mobile industry
trends
2.1
5G: focus shifts to 5G-Advanced
and 5G RedCap
5G technology is now available in more than 100 The commercialisation of 5G FWA services
countries around the world. As of June 2024, 295 continues to grow globally, highlighting the
operators in 114 markets had launched commercial capability of 5G FWA as a credible alternative to
5G services. GSMA Intelligence data shows that other broadband technologies. As of June 2024,
the number of 5G connections will reach 2 billion 131 operators had launched commercial 5G FWA
globally by the end of 2024, accounting for nearly services across 64 markets, while fixed broadband
a quarter of total mobile connections. In several service providers in several other countries have
pioneer countries, notably China, South Korea and announced plans to launch 5G FWA services.
the US, 5G adoption has reached mass-market As mobile networks usually offer nationwide
levels, accounting for more than half of total coverage, regional operators increasingly view 5G
connections. FWA as an opportunity to gain subscribers outside
of their traditional fixed broadband service areas.

Mobile industry trends 22 / 50


Advanced 5G technologies on the horizon
In Asia Pacific, operators are increasingly partnered with Nokia to make private wireless
deploying 5G networks based on the SA networking solutions available to more than
architecture and private 5G networks to enable 3.2 million enterprises across Thailand. In
innovative solutions for enterprises. Commercial Indonesia, Telkomsel has partnered with Huawei
5G SA networks are now present in seven to launch the country’s first 5G smart warehouse,
countries in the region (Australia, India, Japan, the which showcases the potential of 5G technology
Philippines, Singapore, South Korea and Thailand), to transform warehouse management and boost
providing the opportunity to unlock new 5G the operational efficiency of the logistics industry.
applications. For example, Jio has deployed more
Furthermore, operators in Asia Pacific are
than 1 million 5G cell sites for its SA network in
looking to leverage 5G-Advanced and 5G
India and has introduced network slicing with
RedCap technologies to deliver new solutions
dedicated slices for gaming, high-security services
for enterprises. 5G-Advanced, as part of 3GPP
and FWA customers, among other applications.
Release 18 in 2024, is the next milestone in the
In Australia, Telstra announced in February 2024
5G era. The technology is set to enhance mobility
that it had achieved an uplink speed of 340 Mbps
by enabling uplink and multicast at better
over 5G SA using sub-6 GHz frequencies in a live
latency, increasing accuracy for extended reality
commercial network.
(XR) applications and improving the reliability
GSMA Intelligence research found that 16% of of AI and machine-learning (ML) data-driven
operators in Asia Pacific expect private networks designs. Insights from the GSMA Intelligence
to account for over 20% of enterprise revenues Network Transformation Survey 2023 show that
by 2025.6 Private 5G networks are expected to 5G multicast and low-cost IoT top the list of
revolutionise industries, from manufacturing to 5G-Advanced use cases for operators.
healthcare. In Thailand, for example, NTT Ltd. has

Figure 12
Rank 1
5G-Advanced: priority use cases
Rank 2
Which 5G-Advanced use cases and applications are most important
to your network transformation priorities? (Top two choices – ranked)

Score

5G multicast services 67% 52% 29%

Low-cost IoT support 46% 23% 45%

Enhanced integration with 29% 20% 18%


satellite resources

Enhanced integration 6% 4% 4%
with drone resources

Improved device 2% 1% 2%
positioning accuracy

Improved AR/VR support 1% 2%

Source: GSMA Intelligence Operators in Focus: Network Transformation Survey 2023

6. Network Transformation 2023, GSMA Intelligence, 2023

Mobile industry trends 23 / 50


3GPP Release 17 introduced the RedCap user Operators in Asia Pacific have begun trials of 5G
equipment category for energy- and cost-efficient RedCap solutions, often in collaboration with
5G IoT connectivity (also known as 5G NR-Light). equipment vendors and other ecosystem players,
In comparison to 5G enhanced mobile broadband such as the following examples:
(eMBB) devices that can deliver gigabits per
• SK Telecom has worked with Nokia and MediaTek
second throughput in both the downlink and
to develop RedCap technology for commercial
uplink, RedCap devices efficiently support
frequencies and conduct trials at its testbed in
150 Mbps and 50 Mbps in the downlink and uplink,
Seoul.
respectively. The reduced complexity of RedCap
devices contributes to cost-efficiency, a smaller • Airtel began India’s first pre-commercial RedCap
device footprint and longer battery life due to trials in August 2023 in collaboration with
lower power consumption. Ericsson and Qualcomm.
5G RedCap is an important enabler for mid-tier • In August 2023, Australian operator Optus
cellular IoT applications; it serves as a platform completed an over-the-air data call using pre-
for the successful migration of IoT applications commercial Ericsson RedCap RAN software.
to 5G networks in order to take advantage of
the benefits of 5G beyond just speed. A range • In October 2023, AIS partnered with ZTE and
of use cases will benefit from RedCap, notably MediaTek to complete a validation test of 5G
wearables, video monitoring and telematics. For RedCap at 2.6 GHz at the AZ Innovation Centre
example, most wearables support medium data in Bangkok.
rates in small form factors with relatively low • In December 2023, Singtel announced that it had
power consumption, which is not achievable with successfully completed Singapore’s first RedCap
eMBB or massive machine-type communications trial on its live 5G network in collaboration with
(mMTC). Also, many video applications for Ericsson and MediaTek.
surveillance don’t require eMBB’s high data rates
and can therefore benefit from the lower power The growing focus on 5G-Advanced and 5G
consumption achievable with 5G RedCap. RedCap is expected to kick-start a new round of
5G investments in 2024 and beyond. It will also
lay the foundation for the next wave of 5G use
cases that could unlock new revenue streams for
operators and the wider ecosystem in both the
consumer and enterprise segments. More than half
of respondents in the GSMA Intelligence Network
Operators in Asia Pacific Transformation Survey 2023 indicated that they
have begun trials of 5G plan to deploy commercial 5G-Advanced solutions
and services within one year of the release of the
RedCap solutions, often 5G-Advanced standards.
in collaboration with
equipment vendors and
other ecosystem players

Mobile industry trends 24 / 50


5G development is still nascent in parts of Asia Pacific
The 5G landscape in Asia Pacific presents • In Cambodia, the Ministry of Posts and
a mixed picture. Despite widespread 5G Telecommunication is working on a policy
deployment and adoption in many pioneer that will allow all operators to have the
countries, some countries in the region are on required 100 MHz spectrum to run 5G
the other end of the 5G deployment spectrum. networks.
Given that 5G is a capital-intensive technology,
• In Bangladesh, operators have each received
it is essential for policymakers, operators and
a unified licence from the Bangladesh
other ecosystem players to put in place the
Telecommunication Regulatory Commission
necessary building blocks for the efficient
(BTRC), which allows technology-agnostic
deployment of 5G networks and a sustainable
deployment across existing network
business case ahead of commercial rollout.
generations and includes provisions for the
This includes ensuring the availability of
rollout of future technologies such as 5G and
adequate 5G spectrum and upgrading existing
beyond.
networks to prepare for future 5G rollout.
• Digicel is working with Nokia across several
Recent developments in some countries
Pacific islands, including Fiji and Samoa,
highlight progress being made, such as the
to upgrade its cell sites to support future
below:
5G rollout. Meanwhile, Vodafone Fiji has
• In Vietnam, the authorities concluded invested over $100 million to upgrade
spectrum auctions in April 2024, which and enhance its network for 5G, having
resulted in operators Viettel and Vietnam conducted live user trials in several districts
Posts and Telecommunications Group across the archipelago.
(VNPT) winning licences in the 2.5–2.6 GHz
band and the 3.7–3.8 GHz band, respectively.

Mobile industry trends 25 / 50


2.2
Open Gateway: operators unite to drive
API progress
Around 80% of operators in the GSMA Intelligence operators’ network capabilities within a consistent,
Network Transformation Survey 2023 claim to interoperable and federated framework. The APIs
have exposed network APIs on a commercial basis. are defined, developed and published in CAMARA,
However, while it has long been possible to expose the open-source project for developers to access
network APIs, operators have struggled to adopt a enhanced network capabilities, driven by the Linux
standardised approach that unlocks innovation at Foundation in collaboration with the GSMA.
a global scale. This is the driving force behind the
The GSMA Open Gateway comprises a library of 17
GSMA Open Gateway, which helps developers and
APIs. These are split into different families based
cloud providers enhance and deploy services more
on the use case being addressed. The APIs have
quickly via single points of access to operator
the potential to facilitate numerous use cases,
networks.
including tackling digital fraud, simplifying user
GSMA Open Gateway is achieved via common, authentication and addressing quality-of-service
northbound service APIs that expose mobile (QoS) issues.

Open Gateway is gaining traction across Asia Pacific


By the end of June 2024, 53 operator groups • March 2024: Thai operator AIS released its first
had signed up to the GSMA Open Gateway, batch of GSMA Open Gateway APIs, mainly
representing 247 mobile networks and accounting aimed at fraud prevention. Meanwhile, True
for 67% of mobile connections globally. Operators announced its readiness to support GSMA Open
in several countries across Asia Pacific have Gateway APIs in December 2023, launching an
committed to the initiative. These include early adopter programme targeted at startups
Australia (Telstra), Indonesia (Telkomsel, Indosat and developers in Thailand.
Ooredoo Hutchison, XL Axiata and Smartfren),
• February 2024: Four major Indonesian mobile
Japan (KDDI, NTT Docomo, SoftBank), Malaysia
operators – Telkomsel, Indosat Ooredoo
(Celcom Digi, Maxis, Telekom Malaysia, U Mobile,
Hutchison, XL Axiata and Smartfren – announced
YTL Communications), the Philippines (Globe
the launch of three API services: Number Verify,
Telecom, Smart Communications), Singapore (M1,
SIM Swap and Device Location. These API
Singtel, StarHub), South Korea (KT), Sri Lanka
services are focused on enhancing security and
(Airtel, Dialog, Hutch and Mobitel), Thailand (AIS,
customer experience.
Telkomsel, True/Dtac) and Vietnam (Viettel).
Moreover, operator commitments are beginning to • November 2023: All four Sri Lankan mobile
translate into commercially available network APIs: operators – Airtel, Dialog, Hutch and Mobitel –
have launched three GSMA Open Gateway APIs:
• March 2024: Singapore-based operators Singtel
One Time Password, Device Location and Carrier
and M1 revealed plans to work together on
Billing. The initial set of APIs gives enterprises
network APIs in alignment with the GSMA Open
and developers a standard way to technically
Gateway. The initial focus is on APIs that help
and commercially reach Sri Lankan mobile
combat digital fraud, starting with the Number
subscribers regardless of their network operator,
Verify and Device Location APIs.
opening up a range of new digital applications.

Mobile industry trends 26 / 50


Figure 13
Countries with operators that have commercially launched GSMA Open
Gateway APIs

Asia Pacific
countries that
have commercially
launched

Australia
Indonesia
Japan
Philippines
Singapore
South Korea
Sri Lanka
Thailand
Vietnam

Data correct as of June 2024


Source: GSMA Intelligence

Operators begin to formulate go-to-market plans


The next 12 months will likely bring more operator APIs such as Number Verification and SIM Swap,
commitments and further market launches in Asia among other capabilities. APC’s partners include
Pacific. Concrete examples of how federation and 13 operators, with Singtel being one of them.
agreement on common APIs can drive success will Google, Infobip and Nokia are also involved in the
be key to drive usage. This will require operators API aggregator space but have yet to publicly
to focus on the developer experience, dedicating announce partnerships with mobile operators in
internal resources to work directly with developers Asia Pacific.
while building partnerships with API aggregators
The ultimate impact of the GSMA Open
that can help operators reach a broader set of
Gateway will depend on the participation of API
developers.
aggregators and hyperscalers. These companies
Ericsson’s Vonage has been one of the most have already amassed legions of developers and
proactive aggregators in building partnerships go-to-market channels that operators will require
with mobile operators. It is working with multiple to monetise their networks at scale. Most of them
operators in Europe and North America, as well as see Open Gateway as a win–win, as it brings
Telkomsel in Asia Pacific. It also has a partnership further API assets for their own channels. However,
with KDDI, which is reselling the aggregator’s this should not be taken for granted; connecting
communication APIs. In addition, Microsoft’s Azure developers to the Open Gateway value proposition
Programmable Connectivity (APC) launched in will require work and messaging.
public preview at MWC Barcelona 2024, featuring

Mobile industry trends 27 / 50


2.3
Satellites and NTNs: momentum builds
behind aerial connectivity
Telecoms networks remain the primary form of The 3GPP has laid the foundation for satellite-
connectivity, supported by the wide area coverage based connectivity through standardisation
of wireless networks and the mass production to extend the reach of 5G to regions lacking
and adoption of mobile devices. In recent years, terrestrial infrastructure. Four broad use cases
however, technological advances in various have been identified:
satellite and other non-terrestrial networks (NTNs),
• Service continuity: For coverage where it is
such as unmanned aerial vehicles (UAVs), have
not feasible with terrestrial networks, such as
helped to overcome several limitations associated
maritime or remote areas.
with aerial connectivity. This has resulted in
significant performance improvements, lower • Service ubiquity: For mission-critical
deployment costs and more commercially viable communications, such as for disaster relief
business models for satellite and NTN-based during outage of terrestrial networks.
connectivity solutions.
• Service scalability: For offloading traffic from
LEO satellite and HAPS providers have attracted terrestrial networks to NTNs for better system
much attention on the back of significant efficiency.
investments and technical breakthroughs
that improve the business case for delivering • Backhaul services: For transport for sites with
connectivity at scale. A key selling point for aerial weak or no backhaul capacity.
connectivity solutions is the potential to provide
ubiquitous coverage all over the globe. Telecoms
networks now cover more than 95% of the world's
population but less than 45% of the world's
landmass. Satellites and NTNs are well suited to
deliver connectivity in maritime, remote and polar
areas, where deploying conventional terrestrial
networks could be costly and challenging.

Countries in Asia Pacific explore aerial connectivity solutions


The geographical make-up of several countries in Indonesia’s Palapa Ring project, which was
in Asia Pacific means that aerial connectivity designed to bridge the digital divide across the
will play an important role in realising universal country.
connectivity. From archipelagos and rainforests
The emergence of LEO and HAPS solutions
to deserts and mountain ranges, Asia Pacific is
have heightened this interest, as demonstrated
home to some of the most challenging terrains
by recent developments. Importantly, telecoms
for terrestrial networks. As a result, there has
operators across the region are actively engaged
historically been significant interest in aerial
in the evolving aerial connectivity market,
solutions and the opportunity they offer to help
mostly through partnerships and investments, as
extend connectivity to hard-to-reach locations.
highlighted in Figure 14.
For example, satellites play a prominent role

Mobile industry trends 28 / 50


Figure 14
Examples of recent aerial connectivity activities in Asia Pacific

Country Activity

Telstra has partnered with Starlink to offer LEO satellite connectivity


to consumer and enterprise customers, adding the service to a mix of
Australia
technologies it uses to provide voice and broadband services in rural
and remote Australia.

Bharti Group emerged as the largest shareholder of Eutelsat OneWeb,


following the completion of the merger between Eutelsat and OneWeb.
India
Bharti Airtel will leverage the strategic investment in the satellite service
provider to improve broadband connectivity in India and beyond.

Starlink internet service was formally launched in June 2024, with the
expectation that it will deliver much-needed connectivity to the most
Indonesia remote islands in Indonesia. The country’s government and SpaceX
also signed an agreement on enhancing connectivity in the health and
education sectors.

In May 2024, a Japanese consortium, which includes mobile operator


NTT Docomo, achieved what it called the world's first demonstration
of 5G communication from an altitude of 4 km using the 38 GHz
band. The demonstration is part of a project on HAPS-based wireless
Japan communications led by Japan’s Ministry of Internal Affairs and
Communications.

Separately, another consortium led by NTT Docomo has committed to


invest $100 million in Aalto HAPS, the company which manufactures and
operates the stratospheric, solar-powered Zephyr HAPS solutions.

A South Korean project to establish a satellite communications system in


South LEO has passed a preliminary feasibility study and will officially begin in
Korea 2025, according to a government statement. The Ministry of Science and
ICT aims to launch two LEO satellites based on 6G by 2030.

In June 2024, the Telecommunications Regulatory Commission of Sri


Lanka approved the launch of Starlink satellite connectivity services
Sri Lanka
in the country. Different sectors, including education and fishery, are
expected to benefit from improved connectivity in remote areas.

In December 2023, Thaicom announced the official launch of the


Thaicom and Globalstar satellite gateway. The new gateway will extend
Thailand Globalstar’s LEO satellite constellation coverage to Thailand and
Southeast Asia and enable the deployment of commercial LEO satellite
services.

Source: GSMA Intelligence

Mobile industry trends 29 / 50


D2D market poised for growth
There has been a resurgence of direct-to-device For operators, D2D services offer access to new
(D2D) solutions following technical breakthroughs customers in underserved areas and the capability
that enable satellites to connect to standard to provide connectivity in remote areas. For
smartphones for SMS, voice and data services. satellite providers, operators’ existing relationships
In January 2024, SpaceX launched six Starlink with end users and, where relevant, existing
satellites for D2D services to be delivered in spectrum holdings are crucial for satellite solutions
partnership with telecoms operators around the to achieve scale. The availability of compatible
world, including Optus and KDDI. For its part, devices will contribute to the take-up of end-user
satellite service provider Lynk Global has started satellite-enabled services, for example messaging
D2D services in Palau and the Cook Islands. and voice calling in emergency situations or areas
Meanwhile, Rakuten Mobile has outlined plans without access to terrestrial networks. GSMA
to provide D2D services in Japan in 2026, in Intelligence estimates a total incremental revenue
collaboration with AST SpaceMobile. opportunity from D2D services of over $30 billion
for telecoms operators by 2035.

Mobile industry trends 30 / 50


2.4
GenAI: operators seek revenue-generating
opportunities
The rise of genAI has pushed the envelope of enhance services in its call centres. The operator
AI capabilities. Operators are utilising advanced noted a 10% improvement in customer trust,
AI models, such as ChatGPT, to drive network accompanied by a similar level of improvement in
automation and deliver a smarter customer the share of customers reporting interactions with
experience. This has the potential to improve knowledgeable and friendly staff.
bottom-line performance by, for example,
Despite growing use of genAI in customer-
developing more personalised pricing to increase
facing operations, networks will remain the
ARPU and optimise staffing levels.
primary genAI focus for operators. Suppliers
In Asia Pacific, operators are using AI for internal are delivering diverse genAI operations and
improvements and investing in AI development support tools for network enhancement and
to explore revenue-generating opportunities. management. According to the GSMA Intelligence
Applications of genAI in customer services, Network Transformation Survey 2023, network
sales, marketing and code development present troubleshooting, maintenance and threat detection
near-term opportunities for operators in the are the top expected benefits of genAI by a
region. For instance, One New Zealand reported significant margin over other use cases, aligning
improvements in customer service three months well with operators’ strategic focus on user
after deploying genAI capabilities from AWS to experience and security.

Mobile industry trends 31 / 50


Below are recent examples of operators focusing • Airtel deploys predictive-maintenance solution:
on AI for networks: Bharti Airtel has partnered with Avanseus to
deploy a predictive-maintenance solution across
• Rakuten Mobile’s AI-powered analytics:
its operations. The solution utilises the principles
Rakuten’s continued collaboration with Radcom
of AI analytics to uncover actionable operational
will include advanced AI-powered analytics
insights, enabling Airtel to proactively predict
such as anomaly detection and automated root
and prevent incidents in the network.
cause analysis. Rakuten will use the new tools to
drive efficient network operations and network • Maxis uses genAI for network coding: Maxis
automation monitoring, as they proactively expanded its collaboration with Google Cloud
identify and prevent degradations. by integrating genAI into its workflow and
service offerings. By integrating these platform
• KT deploys AI-enabled VOC: KT has broadened
capabilities, Maxis seeks to upgrade its internal
the use of its AI-enabled voice of the customer
processes, productivity, operational insights and
(VOC) system, dubbed AI-VOC portal, to help
customer-behaviour modelling.
improve the quality of its customer-engagement
services. The portal gathers anonymised Operators appear to be taking different
customer interaction data and analyses, approaches to developing genAI solutions. Some
summarises and monitors this using KT’s LLM, have relied on partnerships with webscalers (such
Belief. The new system can quickly share up to as Google, AWS and Microsoft Azure) to support
3 million customer inquiries and complaints every their genAI efforts. For example, Google Cloud has
month with relevant departments through the announced partnerships with Airtel and Telkomsel
AI-VOC portal, and provide responses that can to utilise genAI for personalised offerings and
then be used to improve the quality of customer communications, and KDDI has partnered with
service. AWS to develop genAI solutions in Japan.

• KDDI uses AI to detect faults in its LTE core: Conversely, the Global Telco Alliance (SK Telecom,
KDDI is using a failure-detection system that Singtel, SoftBank, Deutsche Telekom and e&) are
utilises AI in its LTE mobile core network. It can co-developing their own telecoms-specific AI
monitor and analyse time-series performance models, benefiting from a global customer base
data such as the amount of traffic output from of 1.3 billion across 50 countries. Compared to
network devices, the number of successful general LLMs, telco-specific LLMs are tailored
connections and the device's CPU usage rate. It to match specific requirements and have a
uses these to detect when a standard value has better understanding of users. Tailored LLMs
been exceeded to prevent failures. also facilitate the swift and efficient deployment
of high-quality genAI models, accelerating AI
• DNB and Ericsson automate network
transformation. However, achieving a universally
management: Malaysia's Digital Nasional
applicable LLM across diverse telecoms
Berhad (DNB) and Ericsson conducted a proof
environments is a challenging task. Thus, the
of concept in the use of AI, ML and automation
success of collaborative efforts such as the Global
to simplify management of the 5G network and
Telco AI Alliance depends heavily on the degree of
reduce manual configuration tasks and human
LLM refinement and adaptation required by each
errors. The automation allows the manual
operator.
configuration of individual network elements,
reduces the maintenance period for upgrades
and enables service-level agreement obligations
to be maintained.

Mobile industry trends 32 / 50


Investing in AI development
Another notable trend among operators in • KDDI has joined forces with AI startup Elyza to
the region is the increase in investments and launch a genAI platform to deliver new services
partnerships to develop revenue-generating to enterprises and local governments. The
solutions and LLMs specific to local markets, such operator now owns a 43% stake in Elyza, while
as the following: KDDI Digital Divergence holds a 10% stake.

• Reliance Jio has partnered with the Indian • NTT Docomo Ventures has invested in Sakana
Institute of Technology Bombay to develop and AI, a company aiming to develop next-generation
launch BharatGP, an LLM designed to meet the genAI infrastructure models. The partnership
needs of India’s multiple languages. aims to develop sustainable genAI solutions
through ‘lightweight’ LLMs to mitigate the
• SK Telecom has invested an additional
enormous power-consumption requirements of
$100 million in Anthropic, an AI safety and
current LLMs.
research company based in San Francisco, to
jointly develop a multilingual LLM that supports • KT and KT Cloud have jointly invested
various languages, including Korean, English, KRW15 billion ($11.6 million) in Moreh, an AI
Japanese and Spanish. computing infrastructure startup. Moreh’s AI
solutions allow users, including AI developers,
• SK Telecom has invested $10 million in
data centre operators and AI chip makers, to
Perplexity, a San Francisco–based genAI-
build more flexible AI infrastructure.
enabled conversational search engine developer.
Perplexity will collaborate with SK Telecom on • KT has also partnered with the Thai
the development of genAI-based search engines communication technology company Jasmine
to be integrated in the operator’s AI personal Group to create an LLM service based on the
assistants, including its A Dot application. Thai language.

The GSMA and IBM collaborate to accelerate AI for the industry


In January 2024, the GSMA and IBM To achieve this, the new initiatives launched by
announced a new collaboration to facilitate the GSMA and IBM aim to provide the industry
and accelerate the adoption of genAI and with access to AI tools and knowledge,
the development of AI skills in the telecoms alongside the necessary skills and training. The
industry. Two initiatives are being launched: initiatives should help provide scale, allowing
GSMA Advance’s AI Training Programme and operators and industry players of all sizes and
the GSMA Foundry Generative AI challenge in all regions to navigate the fast-evolving
and programme. Democratising AI is critical landscape of AI technologies and associated
to ensure all players in the industry and their opportunities. This includes investigating the
customers can reap the benefits. use of genAI in various functional areas of a
telecoms provider and exploring innovative
use cases across vertical sectors.

Mobile industry trends 33 / 50


2.5
Consumer trust: stakeholders take steps to
enhance online safety
Asia Pacific is one of the most digitally advanced improve personal and business communications,
regions in the world. The number of mobile and build resilient and sustainable economies. It
internet subscribers has more than doubled in also underpins a slew of life-enhancing services,
the last decade and will reach 1.5 billion in 2024 including e-commerce, digital health, online
(Figure 15). Access to connectivity plays a central education and digital banking services.
role in efforts to accelerate economic growth,

Figure 15
Number of mobile internet subscribers in Asia Pacific
Million

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: GSMA Intelligence

However, the simultaneous rise of online threats Meanwhile, the proliferation of advanced AI tools,
targeting individuals and enterprises risks the notably genAI applications, adds a new dimension
erosion of consumer trust in digital services. These to the threat landscape by potentially enabling
threats, which vary considerably in scope and new types of attacks and making existing ones
scale, include online scams, frauds, abuses, and harder to detect. Across Asia Pacific (including
misinformation and disinformation perpetuated Greater China), there was a 1,530% increase in the
against vulnerable individuals and communities, number of deepfakes7 detected in 2023, with the
as well as malicious cyberattacks and data majority of cases in Vietnam and Japan. 8
breaches targeting enterprises of various
Online threats can have a profound impact on
sizes. The threat of online misinformation and
victims, including financial losses and a mental
disinformation becomes more acute considering
toll, resulting in a loss of trust in digital platforms.
its potential impact on major elections across the
region in 2024 and 2025.

7. The use of AI/ML algorithms to create highly realistic audio or video content with the intent to deceive or manipulate.
8. Identity Fraud Report 2023, Sumsub

Mobile industry trends 34 / 50


As a result, several countries in the region • SK Telecom has released an AI service called AI
have responded to the rising incidence and Spam Indicator that helps users recognise spam
sophistication of online threats through new calls in real time by displaying a spam rating
regulations, such as Australia’s Comprehensive (e.g. phishing alert, spam alert and suspected
Anti-Scam Initiative9 and the proposed Shared spam) when they receive a call from an unknown
Responsibility Framework in Singapore.10 number.

Beyond regulations, digital ecosystem players, • Airtel launched the Airtel IQ Spam Shield, an
notably mobile operators and social media firms, AI/ML-based solution, which helped a local bank
are taking steps to tackle online threats and, reduce spam messages by 98% and block more
by extension, protect their customers, mitigate than 8,000 suspicious SMS headers. This helped
reputational damage and maintain trust in digital to prevent over 160,000 potential frauds by
platforms. Awareness is an important first step to blocking harmful content and templates.
protecting individuals and businesses. As such,
• Meta has committed to build tools to detect,
operators across Asia Pacific have invested in
identify and label AI-generated images shared
various initiatives, for example dedicated pages
on its platforms. It has also committed to
on their websites, to inform their customers of
develop LLMs to automatically moderate content
new threats and educate them on how to protect
online and collaborate with industry partners on
themselves and others.
common technical standards for identifying AI-
A growing number of operators in the region generated content.
have also launched Rich Communication Services
• Google DeepMind has launched a watermarking
(RCS) to improve security for consumers and
tool that labels whether images have been
businesses. RCS protects consumers by enabling
generated with AI. The tool, called SynthID, can
spam filtration – a feature that prevents malicious
help people tell when AI-generated content
text messages from reaching your inbox. Flagged
is being passed off as real or help protect
spam texts are automatically sent to a spam filter,
copyright.
so that users don’t interact with a fake message.
This feature is often added on top of RCS and Importantly, the task of maintaining and enhancing
is currently being added to the RCS standard. trust must be viewed as a shared responsibility
Moreover, RCS business messaging (RBM) gives between stakeholders, as opposed to the sole
businesses the ability to verify their accounts, responsibility of any single stakeholder. To this end,
meaning that users can be certain that the stakeholders in some countries have announced
business they’re speaking to is not a fake account. collaborative initiatives to tackle online threats.
This business verification feature is a key consumer In June 2024, the South Korean government said
protection tool, as it prevents users from falling it will share phishing scam call data with private
prey to fake business spam texts. companies, including operators, to help them to
develop AI-based services and software to prevent
Other technical solutions have also been
voice phishing scams. In March 2024, Singtel
developed to combat various threats, such as the
Cyber Security Institute, SIM Academy and UOB
following:
announced the co-development of a cyber scam
• Singtel has launched SingVerify, a suite of preparedness programme called Defence Against
solutions to protect customer data and mitigate Cyber Scams to upskill and reskill employees of
online frauds. The solution enables a multifactor- large enterprises.
authentication process that instantly verifies
users’ digital identities to prevent phishing and
malware application scams.

9. “Banks unite to declare war on scammers”, Australian Banking Association, November 2023
10. Consultation Paper on Proposed Shared Responsibility Framework, Monetary Authority of Singapore

Mobile industry trends 35 / 50


03
Mobile industry
impact
3.1
Accelerating digital inclusion
Globally, digital inclusion has become a top GSMA’s Connected Women Commitment
policy priority. In 2023, the G20 Leaders’ Summit Partners have highlighted that setting clear
in New Delhi emphasised digital inclusion, targets and taking informed, targeted action
setting a target to halve the digital gender gap makes a difference. However, the digital gender
by 2030. Additionally, the UN Economic and divide is driven by a complex set of social,
Social Commission for Asia and the Pacific economic and cultural factors that cannot be
highlighted the importance of digital inclusion and addressed by one organisation alone. Further
cooperation in its 2023 Annual Report. Looking action is required by policymakers, industry, the
ahead, the upcoming Summit of the Future will development community and other stakeholders
see governments agreeing on the Global Digital working together to better measure, understand
Compact,11 aiming to overcome digital divides by and address the needs of digitally underserved
addressing key barriers such as affordability and populations and the barriers they face.
digital literacy.
For many, mobile devices are the primary, and
Addressing the digital divide is a key priority of the often sole, means of internet access, especially for
mobile industry, which, supported by the GSMA, women, older people, people with disabilities and
continues to lead on accelerating digital inclusion those in rural areas. While mobile technology has
for underserved groups. Through the GSMA significantly advanced digital inclusion, substantial
Connected Women Commitment Initiative, over 50 connectivity gaps remain. Mobile operators and
mobile operators across low- and middle-income their partners are continually addressing barriers
countries (LMICs) have made formal commitments to mobile internet adoption and use, focusing on
to reduce the gender gap in the customer base underserved populations.
of their mobile internet or mobile money services
since 2016, collectively reaching over 70 million
additional women with these services.

Connected Women Commitment Partners are


Further action is required to
actively working to tackle the barriers preventing better measure, understand
women from using mobile and mobile money and address the needs
services by:
of digitally underserved
• increasing awareness of relevant use cases
and the benefits of mobile internet and mobile
populations and the barriers
money for women (e.g. through enhanced they face
marketing and sales campaigns)

• improving affordability of internet-enabled


devices (e.g. through handset financing schemes
and improving availability of ultra-low-cost
internet-enabled devices)

• increasing knowledge and skills (e.g. through


digital skills campaigns)

• improving safety and security (e.g. by enabling


customers to privately recharge their credit or
data to minimise risk of harassment)

• ensuring services are relevant for women


(e.g. by adapting mainstream products and
services to better meet women’s needs).

11. https://www.un.org/techenvoy/global-digital-compact

Mobile industry impact 37 / 50


Supporting vulnerable populations
Operators in Asia Pacific recognise that and Donate Your Device programmes allow
vulnerable communities, such as older people customers to contribute their unused data
and low-income families, may encounter and devices to support vulnerable older
challenges in keeping up with technological people and low-income families. Since
advancements due to limited resources or 2015, Singtel has digitally empowered over
skill sets. Consequently, they are actively 840,000 individuals, with a target of reaching
addressing this issue. 1 million people by 2025. Through initiatives
such as Singtel Digital Silvers, the operator
For example, Singtel and its partners have
has significantly boosted older people's
launched various digital enablement initiatives
confidence in utilising mobile devices to
in Singapore to narrow the digital gap for
navigate the digital landscape.
older citizens. Singtel's Donate Your Data

Empowering users with assistive tech


Accessible digital solutions are essential for the deaf by offering on-demand sign-
preconditions for people with disabilities language interpretation via an app. The
to live independently and participate fully platform has had a significant impact, with
in the digital world. For them, access to 91% of users reporting an improvement in
assistive technology can be transformative their quality of life and 33% reporting that
and empowering. The Global Report on they used mobile internet services more, as
Assistive Technology by the World Health of December 2022. Furthermore, DeafTawk
Organization and Unicef estimates that has enhanced the earning potential for sign-
2.5 billion people need assistive technology language interpreters, who can connect easily
and that this will rise to 3.5 billion by 2050. to their deaf customer base without having
While a digital gap certainly exists in terms to travel, saving time and costs.14 Through
of access to digital devices such as mobile its innovation incubator programme, Jazz
phones and other assistive tech, there is also supported the development of DeafTawk in
a mobile disability gap12 in internet usage 2021,15 In 2023, Dialog launched DeafTawk
that needs to be addressed. Operators play for its Sri Lankan deaf customers and in
a crucial role in supporting the development 2024 it integrated DeafTawk services within
of disability innovations, either by ensuring its customer service call centre to improve
accessibility of their own products and communication and support to customers.
services or by supporting digital assistive-
The GSMA Innovation Fund for Assistive Tech
technology providers.
supported DeafTawk and similar assistive
For instance, Jazz Pakistan and Dialog Sri technologies providers in Africa and Asia that
Lanka have collaborated on DeafTawk,13 an are driving the digital inclusion of people with
assistive technology that aids communication disabilities.

12. The Mobile Disability Gap Report 2021, GSMA, 2021


13. See GSMA Innovation Fund Grantees: DeafTawk
14. See Empowering persons with disabilities through digital innovation, GSMA 2023
15. This started in 2019, while a significantly improved version (with group calling and enhanced scalability) was launched in December 2021.

Mobile industry impact 38 / 50


3.2
The mobile industry’s impact on the SDGs
The mobile industry continues to achieve its Sanitation and SDG 4: Quality Education were
impact on the UN Sustainable Development the most improved SDGs in the region between
Goals (SDGs), driven by the increased reach of 2015 and 2022. The growing use and adoption of
mobile networks and growing take-up of mobile smartphones and mobile internet is contributing to
internet services. SDG 9: Industry, Innovation mobile's impact on the SDGs.
and Infrastructure, SDG 6: Clean Water and

Figure 16
Mobile's impact on the SDGs in Asia Pacific

Most improved SDGs

Source: GSMA Intelligence

Mobile industry impact 39 / 50


Connectivity boosts smarter industrial solutions
Countries in Asia Pacific are utilising These technologies are boosting innovation in the
connectivity to boost production and enhance region, leading to a range of improved business
communications. SDG 9 aims to build resilient outcomes, such as productivity gains, cost savings
infrastructure, promote inclusive and sustainable and new revenue streams.
industrialisation and foster innovation. Additionally,
For example, Telkomsel and Huawei’s 5G smart
it strives for universal and affordable internet
warehouse solution in Indonesia uses IoT and big
access, with SDG target 9.c having the aim of
data analytics to support operations, enhance
substantially enhancing access to information and
security and reduce energy consumption. The
communication technology.
warehouse managers can use digital twins and
The mobile industry supports progress on SDG 9 real-time data analysis to optimise inventory
by building resilient infrastructure and improving management and prevent stock-outs. The 5G
industrial processes. Technologies such as 5G, IoT, network is designed to facilitate communication
cloud computing and AI all play a significant role in between staff and autonomous guided vehicles,
enterprise digital transformation across a range of ensuring goods movement.
sectors, such as manufacturing and logistics.

Protecting the environment through emissions reduction


Operators across Asia Pacific are also accelerating • MobiFone partners with Nokia to reduce
the shift to more sustainable operations, given the emissions: MobiFone achieved overall energy
demand for a greater focus on energy efficiency savings of almost 14% in a trial of Nokia’s Digital
from key stakeholders, including shareholders Design service. The service analyses each
and customers. The industry is working on this individual cell in the network to determine
challenge through a comprehensive set of actions, interference, load and beam-set configuration
including technical solutions that improve network and recommends the most appropriate radio
energy efficiency. Some recent developments link power balance to reduce transmit power.
demonstrate the commitment of operators and While the in-built RAN software functions help
their partners to meet key sustainability targets: reduce power consumption during low traffic
hours, the Digital Design service addresses
• KT develops AI technologies for power
peak-hour power consumption as well, leading to
reduction: KT has developed three AI
considerable energy savings.
technologies to reduce power consumption in
communication services in South Korea. These • Globe Telecom uses Nokia solution to cut
include AI TEMS for efficient temperature power use: Globe Telecom uses Nokia’s AVA
management; the energy-saving orchestrator for Energy Efficiency software, which is delivered
radio wave output control; and a server power in a software-as-a-service delivery model, to
supply optimisation solution for server power lower network power consumption and costs.
usage. The energy-saving orchestrator began The AI/ML-based solution enables Globe to shut
piloting in select 5G base stations from April idle and unused equipment automatically during
2024. low-usage periods.

Mobile industry impact 40 / 50


Mobile phones improving quality of life
SDG 6 aims to ensure the availability and Some examples are highlighted below:
sustainable management of water and sanitation
• Kacific and Microsoft improve rural education:
for all. Mobile technology improves many aspects
In April 2024, Kacific Broadband Satellites Group
of water delivery and sanitation provisioning.
announced a collaboration with Microsoft’s
Effective metering and revenue collection are
Airband initiative to connect rural educational
central to a healthy, functioning water utility,
and healthcare institutions across developing
but many utilities struggle to collect their tariff
countries in Asia Pacific using satellite broadband
revenues. IoT solutions such as smart water meters
connectivity. The project aims to deploy
can help break the vicious cycle of low revenue
broadband connections over the next two
collection and poor service.
years to 750 rural educational and healthcare
For example, XL Axiata and PT Berkat Air Laut institutions in Papua New Guinea, the Philippines,
(BAL) have developed an IoT-based smart water Solomon Islands, Vanuatu, Cook Islands, Samoa
meter solution to monitor the distribution of clean and Timor-Leste using high-powered Ka-band
water for residents of Indonesia. The smart water beams from the Kacific-1 satellite.
meter has an NB-IoT SIM card from XL Axiata to
• CelcomDigi and Virnect develop experiential
transmit the required data from the water meter
education services in the metaverse: CelcomDigi
to the server operated by PT BAL. The solution
and Virnect agreed to explore the development
enables transparent and more precise billing,
of experiential learning and education using the
making it easier for the bank to assess or calculate
metaverse for multiple Malaysian universities
cash flow. In addition, maintenance costs are lower,
in September 2023. Virnect is a technology
as it is easier and faster to detect leaks in water
company specialised in the development and
pipes or improper use.16
commercialisation of industrial XR services. The
Mobile technology also contributes to SDG 4 and collaboration aims to produce industry-ready
seeks to ensure inclusive and equitable quality graduates skilled in metaverse applications
education and to promote lifelong learning and to co-create industrial virtual learning
opportunities for all. Access to quality education programmes reimagined using the metaverse
in Asia Pacific has improved significantly, with and AI-based services.
increasing adoption of digital technologies.

16. “PT Berkat Air Laut Applying NB-IoT Technology for Smart Water Meter Solution, Ensuring Clean Water Supply in Gili Trawangan and Gili Meno”, XL Axiata, March 2023

Mobile industry impact 41 / 50


04
Mobile industry
enablers
4.1
Policies to sustain investments
The mobile industry is a major engine of economic taxation burdens, promote ease of doing business
growth across Asia Pacific and is expected to by reducing onerous compliance costs, improve
contribute more than $1 trillion to the region’s efficiency, and foster inclusivity and online trust
economy by the end of the decade. As mobile and safety.
networks continue to impact the daily lives of
As demand for high-speed, high-quality mobile
people, the rollout of 5G is amplifying that impact
connectivity continues to grow, regulators and
even further by enabling innovative solutions to
policymakers need to sufficiently incentivise
drive productivity across various sectors of the
investment in network infrastructure and services.
economy.
This requires a review of current policies to
For the mobile industry to advance and deliver identify those that create unnecessary barriers for
on these promises, policies and regulations need mobile operators, hindering their ability to invest
to support a conducive environment for rapid without necessarily having any positive impact
growth and innovation. In particular, policies that on consumer welfare. Some of these policies are
will play a key role towards this objective include highlighted below.
those that promote investment in networks, reduce

Reducing the taxation burden


A high tax burden on operators and mobile high tax burden with general and sector-specific
services, especially in the form of sector- taxes, comprising effective VAT rate (17.25%),
specific taxes, can negatively impact operators’ supplementary duty (15%) and surcharge (1%),
ability to invest in their networks and weigh resulting in a combined usage tax of 33.25%.
on the affordability of services for consumers.
In Pakistan, the mobile sector has expanded
Indeed, GSMA research has shown that sector-
rapidly over the last decade, but there remains a
specific taxes can be regressive (i.e. falling
significant unconnected population. The GSMA
disproportionately on the poorest households)
estimates that around three in five of Pakistan’s
where they raise the price of mobile services
population do not yet subscribe to a mobile service
across the population without regard for capacity
and only a quarter of the population subscribe
to pay.
to mobile internet services. In 2020, the total
In Bangladesh, where the mobile industry plays tax contribution of the mobile sector, amounted
an important role in driving digital transformation to PKR170 billion ($1.1 billion), equivalent to 38%
and the realisation of the Smart Bangladesh 2041 of mobile-sector revenues. This is substantially
aspiration, mobile operators have kept the price higher than the average in Asia Pacific (24%) and
of mobile internet services at a low rate. However, globally (22%). Additionally, mobile consumers
the tax contribution of the mobile sector remains in Pakistan must pay 16% or 19.5% in sales tax
significantly higher compared to similar markets on mobile services depending on their province,
in the region, thereby limiting the capacity of plus 15% advance income tax (or withholding tax).
the mobile industry to maintain low prices and Not many countries impose such sector-specific
to continue to invest in networks. The mobile taxation on mobile services, and among those that
sector in Bangladesh is subject to a turnover tax do, Pakistan has the highest rates.
of 2% of gross receipts applied irrespective of
bottom-line performance. Consumers also face a

Mobile industry enablers 43 / 50


The tax burden on operators and consumers in • aligning mobile-sector taxation levels with the
Bangladesh and Pakistan create additional barriers rest of the economy
to digital inclusion, particularly for low-income
• reducing sector-specific taxes on mobile
households. As such, a conducive tax framework
consumers
is required to incentivise investment and usage,
which in turn would maximise the benefits of • streamlining the tax assessment mechanism
connectivity for individuals and communities. To
achieve this, policymakers should adopt measures • removing certain onerous sector-specific taxes
to make the tax regime more conducive by: such as advance income tax in Pakistan.

Streamlining regulatory compliance around QoS


QoS regulations vary considerably across countries Poor QoS can constrain citizens’ participation
and regions. While there is no one size fits all, and contribution to the digital economy.
competitive advanced markets tend towards However, failures do not always sit squarely with
exercising an approach of light-touch regulation. operators. Quality from the mobile tower to the
Nonetheless, in recent times there has been a terminal is also affected by other factors such as
growing trend towards tightening QoS regulations consumption patterns, network load, user device
by regulators in Asia Pacific. For example, BTRC’s (especially counterfeit handsets), weather-related
working draft on QoS regulation, which was interference, fibre transmission networks and the
released in 2022 but is yet to be finalised, lays power supply. The availability of spectrum under
down specific benchmarks for KPIs, such as for the right conditions is crucial as well (see Chapter
voice, SMS, coverage and data, with penalties 4.2). Further, GSMA research shows that network
for failures. In India, the Telecom Regulatory deployment policies, such as those around rights
Authority of India (TRAI) released a consultation of way, directly impact QoS. To this end, regulatory
paper in 2023 on review of QoS standards and the actions designed to improve QoS in mobile
need for a revised regulatory framework. It has communications must focus on promoting the right
proposed several changes, such as reducing the incentives for operators and avoid worsening the
reporting requirement from quarterly to monthly investment gap.
and reducing the geographical area for reporting
from Licensed Service Areas, which span across
states, to district levels. TRAI has proposed a draft
regulation with parameters and benchmarks for
compliance.

Mobile industry enablers 44 / 50


Pro-investment business environment: trends in market consolidation
Policymakers and regulators should avoid Bharti Airtel and Dialog Axiata jointly announced
interventions that impose a certain market the signing of a formal agreement in April 2024 to
structure and, recognising the dynamics of a merge their Sri Lankan operations.
competitive mobile sector, allow the number of
When assessing a mobile merger, policymakers
operators to be determined organically as the
should consider a range of factors, not only the
market dictates. Given the level of sustained
expected price effects. For example, innovation
network investment that mobile operators are
and investment are significant factors that may
faced with, this may result in market consolidation
improve as a result of consolidation. Competition
(i.e. fewer players), which may lead to more
policy that favours a higher number of market
positive outcomes.
players can cause significant efficiency losses
In Thailand, after a year marked by a spate of related to costs, network quality and deployment
mergers and acquisitions in 2023, analysts expect by failing to give appropriate weight to the long-
the country’s remaining operators to emerge term effects of investment and innovation on
stronger and report better performance in the consumer welfare. A balanced consideration of
year ahead. In Indonesia, there are reports of a the effects of mergers on dynamic competition is
merger between XL Axiata and Smartfren – a unit necessary to incentivise investments.
of Indonesian conglomerate Sinar Mas. In Sri Lanka,

Developing policies that foster adoption and innovation in


emerging technologies
In recent years, governments and international As AI adoption accelerates, it is crucial to design,
organisations have begun issuing principles, develop, and deploy systems responsibly,
frameworks and recommendations on AI ethics protecting individual privacy and personal data.
and governance. Singapore’s Model AI Governance Governments and regulators can foster innovation
Framework serves as a good example. Singapore’s and build trust by ensuring laws are supportive
Infocomm Media Development Authority (IMDA) rather than restrictive. Policymakers and regulators
and Personal Data Protection Commission (PDPC) should consider legislative impacts on the
have also partnered with the World Economic industry, advocating for a risk-based approach
Forum Centre for the Fourth Industrial Revolution that is flexible and balances safeguards with
to develop the Implementation and Self- the promotion of innovation and competition.
Assessment Guide for Organisations. Standardising and consistently applying AI laws
internationally can also help achieve economies of
scale.

Mobile industry enablers 45 / 50


Spurring digital inclusion
Network quality continues to improve across from 41% to 31%. This was driven primarily by
all regions, driven by improved networks and India, where adoption among women increased,
consumers migrating to 4G or 5G. There was a while adoption among men remained unchanged.
notably large improvement in network quality in However, this gap remains one of the highest in the
South Asia, with download and upload speeds world.
increasing by 30% and 25%, respectively, between
As digital inclusion has emerged as a top policy
2022 and 2023.17 This was likely driven in part by
priority worldwide, a united and determined effort
the assignment of additional mid-band spectrum
is essential to attain meaningful connectivity,
(above 1 GHz) in India and Bangladesh, allowing
enabling users to have a safe, enriching experience
operators to expand capacity.
that is also affordable. Achieving this goal requires
However, despite these improvements, digital focused actions from stakeholders, including
inclusion remains a challenge in South Asia and the mobile operators, policymakers, international
wider Asia Pacific region. In South Asian markets, partners and the broader private sector. Strategies
the top barrier is literacy and digital skills, except should take into account structural disparities, such
in India. According to a GSMA report,18 between as income and education levels, and societal norms
2022 and 2023 the gender gap in mobile internet that affect adoption and usage.
adoption decreased most sharply in South Asia,

Rationalising networks
Legacy network sunsets continue to gain demand evolves. Comprehensive strategies require
momentum around the world. Between 2010 an understanding of key factors for both operators
and the end of Q1 2024, a total of 114 networks, and consumers. These include operational
including 2G and 3G, have been shut down. cost savings, legacy customer devices and
Momentum has accelerated in recent years, with associated migration costs and service disruption
more than half of total network shutdowns having risks, potential customer churn, and VoLTE
been completed in the last three years. Asia implementation and interoperability issues.
Pacific and Europe have been at the forefront of
While consumer protection is typically the
network sunsets, accounting for more than 75% of
paramount concern of regulators, the implications
shutdowns to date.
of a 2G or 3G switch-off should also be considered
Decisions to sunset legacy 2G and 3G services are in relation to key spectrum management issues.
based on a wide range of considerations. Mobile These include technology-neutral licensing and
network operators seek to rationalise legacy minimum spectrum assignments that are optimal
network technologies as more spectrally efficient for utilising newer technologies.
technologies become available and connectivity

17. The State of Mobile Internet Connectivity 2023, GSMA, 2023


18. The Mobile Gender Gap Report 2024, GSMA, 2024

Mobile industry enablers 46 / 50


4.2
A spectrum roadmap towards 2030:
meeting future connectivity demand
As connectivity permeates every aspect of society The ITU’s WRC-23 opened the door to a new era of
and digital transformation accelerates among connectivity and has laid the spectrum foundations
enterprises, mobile networks will require spectrum for mobile to progress into 5G-Advanced and 6G.
capacity plans that are integrated into a long-term Importantly, WRC-23 identified 6 GHz (6.425–7.125
vision of each nation’s industrial future. Spectrum GHz) for mobile use by countries in every ITU
roadmaps set the stage for this. They help define Region (EMEA, CIS, the Americas and Asia Pacific)
when spectrum should be made available to and the conditions for its use have been agreed in
meet surging demand for mobile services in the the ITU’s Radio Regulations.
short, medium and long terms. They also help
Countries in the Asia Pacific region can now take
governments to forecast future trends and manage
advantage of the harmonisation of 6 GHz that
their work, and they provide certainty for mobile
was achieved at WRC-23 and begin developing
operators to plan their investments.
national plans to assign the band. With 6 GHz,
Low, mid- and high bands are all required to mobile operators can meet the growth in 5G
support 5G use cases. Low bands (sub-1 GHz) traffic demand in a practical, cost-effective and
have strong propagation characteristics and are environmentally friendly way using existing 5G
essential to build coverage in thinly populated macro sites. This would ensure fast, affordable
areas and provide indoor coverage in built- and sustainable mobile broadband services
up areas. Mid-bands (1–7 GHz) are crucial for while unlocking digital growth and industrial
citywide 5G capacity to enable consistent 5G development through 5G-enabled innovation and
speeds for consumers and enterprises. High use cases. It would also set the foundations for the
bands or mmWave (above 24 GHz) support ultra- next generation of mobile connectivity.
high speeds and the lowest latencies, delivering
the highest performance envisioned for 5G over
shorter distances.

Mobile industry enablers 47 / 50


Effective spectrum pricing and investment-friendly conditions
While 5G networks are well established in To maximise the benefits of 5G, governments and
advanced Asia Pacific markets such as Australia, regulators should:
Japan and South Korea, the pace of 5G
• make available sufficient 5G spectrum and avoid
development differs significantly across the region.
limiting the supply via set-asides
5G deployment is expanding rapidly in India
following a successful auction in 2022, while the • set modest reserve prices and annual fees to let
5G journey is only just beginning in other countries, the market determine spectrum prices
including major markets such as Indonesia and
Vietnam and in the Pacific islands. • provide incentives for network coverage and
investment (e.g. in exchange for reducing
High-quality mobile connectivity depends on monetary payments or through more favourable
the adequate supply of spectrum across multiple payment structures)
frequency ranges. However, the expansion of
spectrum resources must take into account its • carefully consider auction design to avoid
overall cost to the industry. Expensive spectrum unnecessary risks for bidders (e.g. avoiding
negatively impacts the quality of mobile mismatched lot sizes, which create artificial
networks through reduced investment and slower scarcity)
deployment of the latest network technologies. • develop and publish a 5G spectrum roadmap
This in turn leads to less-than-optimal GDP growth with the input of stakeholders to help operators
and fewer social and environmental benefits linked plan effectively around future availability
to mobile-enabled innovations and advanced use
cases. • minimise uncertainty for expiring spectrum
by creating a presumption of renewal unless a
Governments and regulators should assign fundamental reallocation of spectrum to a new
spectrum to support their digital connectivity service is required or an overriding policy need
goals rather than as a means of maximising state arises.
revenues. Effective spectrum pricing policies are
vital to support 5G services that are better quality
and more affordable. This will help address issues
such as usage gaps. High reserve prices, artificially
limited spectrum supply (including set-asides) and
poor auction design can all have a negative impact
i.e. slower mobile broadband and suppressed
network investments.

High-quality mobile connectivity


depends on the adequate supply
of spectrum across multiple
frequency ranges, but the
expansion of spectrum resources
must take into account its
overall cost to the industry

Mobile industry enablers 48 / 50


GSMA Head Office
1 Angel Lane
London
EC4R 3AB
United Kingdom
[email protected]

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