Ericsson President and CEO, Börje Ekholm, said a killer app will emerge once the 5G infrastructure has been established. Speaking virtually to the recent 2020 GTI Summit, Ekholm said “We do know that the killer app will be clear once the infrastructure has been built out and that will create multiples of value compared to the infrastructure itself.”
Ekholm said early movers in 5G will likely gain the same market advantage as with the 4G rollouts. This means the next three years will be critical in determining the make-up of the 5G landscape. Ericsson research shows that operators who took the lead in launching 4G technology and 4G networks were able to outlast and out-perform those who arrived late to the game.
The latest Ericsson Mobility Report forecasts 190 million 5G subscribers by the end of 2020, with numbers increasing to 2.8 billion by the end of 2025. This will make 5G the fastest scaling technology ever. It also forecasts 160 million fixed wireless access (FWA) connections by the end of 2025, accounting for approximately 25 percent of all traffic.
Another Ericsson study found that most consumers are willing to pay a 20 percent price premium for 5G, but this is dependent on two factors. First, an enhanced consumer experience, in which the differences between 4G and 5G are clear and noticeable. Secondly, new and unique 5G use cases that are bundled with 5G subscriptions.
Ekholm also said that industry digitization will generate an estimated USD 700 billion market opportunity for service providers by 2030, equivalent to approximately 35 percent of current industry revenue. Moreover, Ericsson found that 70 percent of enterprises are seeking to engage with a non-telecoms service provider, while a third already consider communications service providers as an important partner in their digitization efforts.
