Ericsson Says AR a Growth Factor in Mobile Data Traffic

Ericsson Says AR a Growth Factor in Mobile Data Traffic

July 3, 2019

According to the latest Ericsson Mobility Report, total mobile data traffic is expected to grow from 2.3 exabytes to 16EB per month in SE Asia and Oceania region by 2024.

By Joanne Leila Smith

Rapid early momentum and enthusiasm for 5G has led Ericsson to forecast that the total mobile data traffic per month in South East Asia and Oceania is expected to grow seven times from 2.3 exabytes (EB) in 2018 to 16EB by 2024.

Data traffic per smartphone per month in this region will grow from 3.6GB to 17GB at a compounded annual growth rate of 29 percent. According to the June 2019 edition of the Ericsson Mobility Report, almost 12 percent of subscriptions in the region will be for 5G by the end of 2024.

Head of Ericsson Singapore, Brunei and Philippines Martin Wiktorin says mobile video traffic is fuelling the total data traffic as users are spending more time streaming and sharing video.

“This [trend] is expected to continue, as video is embedded in all types of online content. As 5G is gradually rolled out with compatible devices being successively introduced, streaming 360-degree videos and augmented/virtual reality will start to be a significant factor in mobile traffic growth,” says Wiktorin.

According to the latest Ericsson ConsumerLab study 5G Consumer Potential with specific insight on Singapore, Ericsson claims industry myths surrounding the value of 5G for consumers are not accurate. It also cites potential opportunities available for communications service providers. The report is based on 1,500 interviews with smartphone users aged between 15 to 69 years old. Statistically, Ericsson says the views of participants are representative of almost 4 million people in Singapore.

The study claims that 53 percent of smartphone users in Singapore believe AR glasses to be the norm by 2025. Consumers are expected to spend an additional three hours watching videos on mobile devices by 2025, out of which one hour will be on AR/VR glasses. Based on consumer predicted future usage patterns, heavy usage smartphone users in Singapore could be consuming as much as 200GB monthly by 2025.

In Singapore, the average smartphone user is ready to pay 52% premium for top selected 5G services. Ericsson says consumer expectation in Singapore is that services such as smart home sensors and 5G TVs will be the top two applications to be made available in a 5G plan. With growing consumer awareness around 5G, the average respondent believes that the next generation of cellular mobile technology will become a reality within two years.

Globally, Ericisson predicts 5G uptake will be faster than expected. It has forecast 5G coverage to reach 45 percent of the world’s population by end of 2024. This may surge to 65 percent, as spectrum sharing technology enables 5G deployments on LTE frequency bands. Communication service providers in several markets have switched on 5G following the launch of 5G-compatible smartphones. Service providers in some markets are also setting more ambitious targets for population coverage of up to 90 percent within the first year.

As 5G devices increasingly become available and more 5G networks go live, over 10 million 5G subscriptions are projected worldwide by the end of 2019.

According to Ericsson Executive Vice President and Head of Networks Fredrik Jejdling the commitment of chipset and device vendors is also key to the acceleration of 5G adoption.

“5G is definitely taking off and at a rapid pace. Smartphones for all main spectrum bands are slated to hit the market over the course of this year. This reflects the service providers’ and consumers’ enthusiasm for the technology. 5G will have positive impact on people’s lives and businesses, realizing gains beyond the IoT and the Fourth Industrial Revolution. However, the full benefits of 5G can only be reaped with the establishment of a solid ecosystem in which technology, regulatory, security, and industry partners all have a part to play,” says Jejdling.

 

[Ed. For further information read the full Ericsson Mobility Report June 2019 and the Ericsson Consumer Potential Study 2019]

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