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How Mobile data traffic is changing due to 5G

Presented by Ericsson North America

How Mobile data traffic is changing due to 5G

Recently we have observed a trend in the mobile industry that shows an incredible and quickly growing appetite for data. Over the previous year, there has been a 68% rise in mobile data traffic usage across the world. This data has been released by the most recent Ericsson Mobility Report.

In the coming years, it is expected that mobile data traffic will raise more around the globe. This increase in data traffic will automatically lead to the adoption of 5G and sustained expansion of 4G coverage. It is anticipated by Ericsson that by the end of 2025, there will be a total of 2.6 billion subscriptions for 5G which will cover up to 65% of the world’s population and generate 45% of the world’s total mobile data traffic. It will then turn out to be the wildest emerging mobile communication technology on a global scale.

The 5G momentum will be affecting mobile users in the following ways:

It is expected that North America will turn out to be the market leader. The customers of North America follows a high adoption rate of communication technology, so it is anticipated that this area will become one of the hottest markets for 5G over the next few years. It’s estimated that there will be 320 million 5G subscriptions in North America, which will count for 74% of all mobile subscriptions around the world. Moreover, 91% of current wireless subscriptions in the North American market are 4G, which shows the maximum share worldwide. As we know that the service suppliers continue organizing 5G networks across the continent, we will witness more and more customers switching to 5G data network.

Data consumption is going to increase significantly in the coming years. The quick adoption rate, speed, and fast activity of 5G will drive data use. Mobile data traffic increase is driven by video, but there are other aspects which include mobile gaming, and a powerful thrust towards higher resolutions. 5G will also permit the users for more immersive media formats and requests like VR/AR and 360 videos, providing the presentation needed for great user experience.

The Mobility Report approximates that by 2025; the anticipated average monthly mobile data usage will be 45GB per smartphone in North America only. Presently, 5G is accessible in some cities, but as service providers continue to increase their 5G networks, we can predict that data usage will be increased tremendously. If we do a comparison of South Korea with North America, we can see those service providers which launched nationwide 5G in South Korea witnessed the mobile data traffic per subscriber of over 25GB per month in August. This traffic flow was an outcome of the 3 million yearly subscriptions in South Korea who had subscribed to 5G since its organization in April.

The future holds 5G, but 4G subscriptions will continue on a moderate growth rate. Despite the arrival of new 5G networks, the importance of 4G cannot be denied and it is expected that 4G will continue to be a significant network for people around the globe. Presently, there are 4.34 billion 4G subscriptions globally. This number is predicted to rise modestly over the next six years and according to reports, these figures will reach 4.79 billion by 2025. Contrariwise there are a number of countries that do not show a large number of subscriptions despite their growing population i.e. Pakistan, India, and Bangladesh. So, we can expect customers from these countries to be a large percentage of this growth. By 2025, the amount of mobile subscriptions in India is expected to increase by 3%, and will primarily consist of 4G (80%) and 5G (11%).

In an age of increasingly faster and sophisticated smartphones, it is clear that people will only continue to increase the amount of content they consume on their mobile devices. To capitalize on the findings from this report, service providers will need to provide customers with networks capable of withstanding the rapid growth of data consumption in the coming years. Increased focus on capacity and a closer look into consumer behavior will be critical for service providers and businesses

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