Mobile industry trends: 5G connections to surge 54% by 2030

In today’s interconnected era, mobile connectivity stands as a crucial lifeline for societies worldwide. It serves as a catalyst for innovation, providing advanced capabilities that various industries need to navigate through diverse political, social, and macroeconomic challenges. According to insights from “The Mobile Economy 2023” by GSMA, the impending revolution in mobile connectivity is encapsulated in the trajectory of 5G technology.

Projections indicate a remarkable surge, with 5G adoption expected to reach 17% this year, escalating to an impressive 54% by 2030, translating to a staggering 5.3 billion connections. The driving force behind this exponential adoption lies in the deployment of new networks and the increasing availability of affordable devices. This surge is not just a technological milestone; it is a gateway to an economic transformation, with 5G technology projected to contribute nearly $1 trillion to the global economy by 2030, fostering benefits across various industries.

Mobile industry trends that operators can expect to see

Perception Challenges of 5G:

Approximately 50% of individuals view 5G primarily as a speed upgrade rather than a genuinely new advancement compared to 4G.
This perception has intensified competition and price pressure, resulting in 5G tariff retail prices often being comparable to or slightly higher than 4G prices.

Opportunities in Digital Services:

The most significant opportunities for operators lie in the synergy between mobile devices, 5G, and digital services.
The research indicates that 5G users express greater interest in incorporating digital services and entertainment content into their mobile contracts compared to 4G users (50% for 5G users versus 38% for 4G users across nine categories of add-ons).

Private Wireless Revenue Projection:

About 50% of operators, as per GSMA Intelligence, expect private wireless to contribute over 10% to their total enterprise revenues by 2025.
This expectation holds consistent across various operator sizes and regions, with an anticipated rise in the significance of private wireless in the latter half of the decade.

Circularity in Development:

Mobile network operators and telecom equipment vendors are adopting circularity in product and service development, departing from a linear approach.
For instance, Telefónica’s Circular Economy Plan (2022) commits to reusing, reselling, or recycling 100% of network equipment by 2025, refurbishing and reusing 90% of fixed equipment by 2024, introducing circularity criteria in customer electronic equipment purchases by 2025, and refurbishing 500,000 mobile devices annually by 2030.

Metaverse Opportunities:

The momentum for the metaverse is gaining traction, offering new possibilities for operators, particularly when combined with advancements in 5G, AI, and wearables.
Operators are actively exploring new revenue streams, including opportunities for 5G monetization and innovative content delivery models.

Fintech Ventures Beyond Telecom:

In a recent development, operators worldwide are entering the fintech sector to diversify revenues beyond core telecom services.
Leveraging their scale, extensive reach, customer relationships, advanced analytics, and partnerships, mobile operators aim to support innovative and secure fintech solutions.
The advent of 5G and edge capabilities further enhances possibilities for real-time delivery applications and improvements to existing fintech solutions.

Top 3 mobile industry challenges being addressed for sustainable growth

Despite being a vital economic enabler, the mobile industry grapples with challenges such as declining revenues and diminishing investment resources. A well-structured telecommunications tax regime is imperative for fostering the health and sustainability of the mobile sector, ensuring reasonable government revenues. Conversely, a poorly structured tax system can diminish the affordability of mobile services, hindering infrastructure investment and reducing government income.
Authorities must refrain from interventions that dictate a specific market structure, instead advocate for the organic evolution of the number of mobile operators based on market dynamics. Sustained network investment may lead to market consolidation, necessitating a balance between growth and stability in the mobile industry.
Effective spectrum pricing policies are crucial for supporting higher quality and more affordable 5G services, addressing issues like the usage gap. Challenges such as high reserve prices, limited spectrum supply, and poor auction design can negatively impact the industry. Therefore, it is becoming necessary to develop thoughtful regulatory measures.

In conclusion, as the mobile industry continues to evolve, the integration of 5G, exploration of new revenue streams, and addressing challenges through effective policies are pivotal for sustainable growth and ensuring that mobile connectivity remains a cornerstone of global communication and progress.

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