India's 5G growth story: 700 million users expected by 2028, Ericsson Mobility Report says

The latest edition of the Ericsson Mobility Report, released in June 2023, highlights the resilience of the global 5G market amid geopolitical challenges and macroeconomic slowdown in certain regions. Despite these obstacles, communication service providers (CSPs) worldwide remain committed to investing in 5G technology. The report showcases significant advancements in the deployment of 5G networks, particularly in India, where the Digital India initiative is driving massive network deployments. Additionally, North America has witnessed stronger than anticipated 5G subscription uptake. Let's delve deeper into the key findings of the report.

Rapid Growth of 5G Subscriptions in India

By the end of 2028, it is projected that 5G users in India will soar to 700 million, representing a significant 57 per cent share of all mobile subscriptions. During this period, the average data traffic per smartphone is expected to experience robust growth, surging from 26 GB per month in 2022 to approximately 62 GB per month in 2028, achieving a compound annual growth rate (CAGR) of 16 per cent. Moreover, the total mobile data traffic is estimated to witness substantial expansion, escalating from 18 EB (exabytes) per month in 2022 to a remarkable 58 EB per month in 2028, reflecting a CAGR of 22 per cent.

North America Leading in 5G Subscription Penetration

The Ericsson Mobility Report also reveals that North America has surpassed previous forecasts in terms of 5G subscription penetration. At the close of 2022, North America boasted the highest global 5G subscription penetration, with 41 per cent of the region's mobile subscriptions utilising 5G technology. This achievement underscores the region's proactive approach to embracing next-generation connectivity solutions.

Global Surge in 5G Subscriptions

The report indicates that 5G subscriptions are on the rise across all regions, with an estimated 1.5 billion subscriptions expected worldwide by the end of 2023. This growth in subscriptions is driving global mobile network data traffic, with the average monthly usage per smartphone anticipated to surpass 20 GB by the conclusion of 2023.

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Positive Revenue Growth in Leading 5G Markets

Fredrik Jejdling, Executive Vice President and Head of Networks at Ericsson, highlights the positive revenue growth that leading 5G markets are experiencing. The report reveals a strong correlation between the increase in 5G subscriptions and service revenue. Over the past two years, the introduction of 5G services in the top twenty markets has resulted in a seven per cent boost in revenue. This trend not only benefits users but also provides considerable advantages to service providers.

5G's Impact on Mobile Service Packaging

In addition to connectivity, 5G is driving innovation in mobile service packaging. The report identifies a growing trend among CSPs, with approximately 58 per cent of 5G service providers offering bundles that include popular entertainment services such as television, music streaming, or cloud gaming platforms. This shift in service packaging demonstrates the industry's recognition of the value-added opportunities provided by 5G technology.

Strong Growth of Fixed Wireless Access (FWA)

Fixed Wireless Access (FWA) is witnessing robust growth in various key parameters, including the number of mobile service providers offering FWA, the proportion of FWA services delivered over 5G, the prevalence of speed-based tariff structures, and the volume of traffic served. By 2028, 5G is expected to account for nearly 80 per cent of all FWA connections.

5G's Role in India's Digital Transformation

Nitin Bansal, Head of Ericsson India and Head of Network Solutions for Southeast Asia, Oceania, and India, emphasises the crucial role of mobile networks in driving social and economic inclusion in India. He highlights that the strong digital infrastructure being established in the country will bridge the digital divide, generate employment opportunities, promote entrepreneurship, and bolster the overall economy.

Projected Growth of Smartphone Subscriptions in India

The Ericsson Mobility Report projects substantial growth in smartphone subscriptions in India, with a compound annual growth rate (CAGR) of 5 per cent. By 2028, smartphone subscriptions are expected to exceed 1.14 billion, constituting approximately 93 per cent of total mobile subscriptions, up from 76 per cent in 2022. This surge in smartphone adoption will facilitate greater access to digital services and contribute to India's digital transformation.

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