By Syeda Bano
Barcelona, Spain, February 27, 2024: Mobile users have proven willing to purchase experience upgrades for their mobile packages if their networks are high enough quality. The traffic generated by these users is, therefore, expected to significantly increase, allowing carriers to maximize the value of traffic. This has led to more and more carriers proposing strategic goals that include the construction of high-quality 5G networks.
The benefits of 5G are many and varied – 5G has been a catalyst for building intelligence at the network edge, and with the next phase of 5G underlining the need for end-to-end AI integration, future mobile generations will learn fast, self-orchestrate, and open new possibilities of services, product offerings and features.
1.5 billion users worldwide have adopted 5G within 5 years. At the 5G Beyond Growth Summit, hosted by Huawei at the Mobile World Congress in Barcelona, Li Peng, Huawei’s Corporate Senior Vice President and President of ICT Sales & Service, discussed how carriers can achieve business success in 5G and how 5.5G will further unlock the potential of networks and create new growth opportunities.
“5G is on the right path to business success,” said Li. 5G began commercialization in 2019, and over the past five years, it has already gained 1.5 billion 5G users around the world. It took nine years for 4G to make this happen. Currently, 20% of global mobile subscribers are using 5G. These users generate 30% of all mobile traffic and contribute to 40% of mobile service revenue.
Globally, connections are expected to reach 1.9 billion by end of 2023, rising to 5.9 billion by end of 2027. The global 5G services market is estimated to reach $2,208.25 billion by 2030 with innumerable opportunities for stakeholders. Smartphones connected to 5G will reach download speeds of around 87.5 MB/s – about 20x faster than 4G and 57% of enterprises plan to invest in 5G in the next one to three years according to the EY Reimagining Industry Futures Study 2023.
Li explained, “5.5G is entering commercial use in 2024, and as 5.5G, AI, and cloud converge, carriers can unlock the potential of new applications and capabilities.” He went on to say that carriers around the world should focus on high-quality networking, multi-dimensional monetization, emerging services, and generative AI to grasp these opportunities.
High-quality networks are still the foundation of business success and multi-dimensional monetization maximizes the value of each bit. More than 20% of global 5G carriers have already adopted speed-tiered pricing models and new services are emerging that are gaining popularity like New Calling, cloud phones, and glasses-free 3D. Users are also willing to pay more for services that deliver real-time experience, such as one-stop car insurance claims. 5G and 5.5G have the potential to drive incredible new growth.
Generative AI will drive the mobile industry into the era of all intelligence. According to IDC, global AI mobile phone shipments will reach 170 million in 2024. This will account for 15% of all smartphone shipments. Next-generation AI phones will have more powerful storage, display, and imaging capabilities. The AIGC (Artificial Intelligence-Generated Content) applications powered by these phones will generate hundreds of billions of GB of data and create new opportunities for carriers.
