Ericsson expects 5G subscriptions in India to represent around 40 per cent of mobile subscriptions at the end of 2027, reaching over 500 million users. Even though 5G services are yet to kick-start in the world’s second-largest smartphone market,
The Ericsson mobility report highlights the robust demand for data connectivity and digital services that are making several hundred million people new mobile broadband subscribers every year. Over 70 million 5G subscriptions where added during the first quarter of 2022 alone. And by 2027, about three-quarters of the world’s population will be able to access 5G, according to the report.
Notably, mobile networks in India continue to play a pivotal role in driving social and economic inclusion, how as service providers in India prepare to launch 5G this year. India’s first 5G spectrum sale is scheduled from July 26,
As per the report, 4G is the dominant subscription type driving connectivity growth in India. While 4G contributes around 68 per cent of the total mobile subscriptions in India, its contribution is expected to drop to 55 per cent in 2027. 4G subscriptions are forecast to decline annually to an estimated 700 million subscriptions in 2027 as subscribers migrate to 5G post introduction of 5G in India.
“Total mobile data traffic in the India region is estimated to grow by a factor of 4 between 2021 and 2027. This is driven by high growth in the number of smartphone users and an increase in average usage per smartphone,” said Dr Thaw Sheng NG, Head of Network Evolution, SEA, Oceania and India, Ericsson.
The average data traffic per smartphone in the India region is the second-highest globally. It is projected to grow from 20 GB per month in 2021 to around 50 GB per month in 2027 – a CAGR of 16 per cent.
Meanwhile, the study further reveals that more than half (52 per cent) of Indian enterprises want to start using 5G within the next 12 months. A further 31 per cent expect to use 5G by 2024. The top-ranked benefits of 5G are superior network performance, enabling automation and new ways of working.
The study notes that quality of experience rather than price drives customers to buy 5G, changing the competitive dynamics of India’s telecoms market. The top 5G use cases that enterprises identify are enhanced content streaming, real-time video analytics and control of autonomous vehicles and drones.
According to the research, North America is forecast to lead the world in 5G subscription penetration in the next five years, with nine-of-every-ten subscriptions in the region expected to be 5G by 2027.
He points out that in the future, “satellite internet services will serve as a competitive play in urban areas, particularly where fiber hasn’t been deployed, offering competitive speeds (as we’ve seen from our recent analysis).” But he admitted that sizeable costs could play a dampener in making satellite internet more widespread, especially in the price-sensitive Indian market, where the Average Revenue Per User (ARPU) stood at around Rs 128 in the first quarter.
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