85% of MEA mobile subscriptions expected to be 3G, 4G by 2020

85% of MEA mobile subscriptions expected to be 3G, 4G by 2020

90% of global population over 6 years old to have a mobile phone, says Ericsson report

By Staff Report

Published: Sat 22 Nov 2014, 11:28 PM

Last updated: Tue 7 Apr 2015, 10:40 PM

Dubai: The latest edition of the Ericsson Mobility Report, a comprehensive update on mobile trends leveraging big data from live networks worldwide, was launched on Tuesday, revealing that proliferation of mobile technology continues at a rapid pace

The study showed that 90 per cent of the world’s population over six years old is predicted to have a mobile phone by 2020. Furthermore, by that year, smartphone subscriptions are forecast to top 6.1 billion.

Rima Qureshi, senior vice-president, chief strategy officer and head of M&A at Ericsson, said: “The falling cost of handsets, coupled with improved usability and increasing network coverage, are factors that are making mobile technology a global phenomenon that will soon be available to the vast majority of the world’s population, regardless of age or location.”

“The Ericsson Mobility Report shows that in 2020, the world will be connected like never before,” Qureshi added.

Rafiah Ibrahim, president of Ericsson Middle East region, said: “As we head into 2015, we should consider the phenomenal transformation of the telecoms industry over the past few years, including the convergence of the telecom, IT and media industries. Through this and the explosive development in fixed and mobile Internet usage fueled by smartphone uptake, mobile communications in the region has had a remarkable growth. With 55 per cent growth in mobile subscriptions in between 2014 and 2020, and with 85 percent of MEA mobile subscriptions expected to be 3G/4G by 2020, the region is definitely paving the way to the networked society.”

Smartphone penetration

Smartphone growth is continuing as 65-70 per cent of all phones sold in the third quarter of 2014 were smartphones, compared with 55 per cent in the same quarter in 2013.

Despite this increased rate of sales, which will see the addition of an estimated 800 million new smartphone subscriptions by the end of 2014, the report finds there is still plenty of room for growth in the sector. Smartphones currently account for just 37 per cent of all mobile phone subscriptions, meaning that many users have yet to make the switch to the more feature-rich, Internet-friendly option.

The report predicts a strong uptake in the coming years as the number rises from 2.7 billion smartphone subscriptions today to the forecasted 6.1 billion in 2020.

Video dominance

Video continues to dominate mobile networks; in 4G-dominated networks it currently constitutes 45-55 per cent of mobile traffic, driven largely by increased usage of video streaming and improvements in the mobile video experience.

Video is increasingly appearing as part of other online applications such as news and adverts, and on social media platforms. At the same time, growth in video streaming is being driven by access to over-the-top services and content, such as those provided by YouTube.

Devices used to watch video are also evolving. Many have larger screens, enabling higher picture quality for streamed video, which results in video being consumed on all types of devices and in higher quantities, both at home and on the move. In terms of future outlook, Ericsson estimates that mobile video traffic will increase 10-fold by 2020, ultimately constituting around 55 per cent of all mobile data traffic in 2020.

5G subscriptions on horizon

5G is expected to be commercially deployed in 2020, and the technology is predicted to have a faster uptake than 4G LTE, just as 4G had a faster uptake than 3G.

The difference here is that, in addition to new radio technologies, 5G will also encompass evolved versions of existing radio access (such as 3G and 4G), cloud and core technologies to cater for the thousands of new ways that mobile technology will be used. 5G growth will be driven to a large extent by new use cases, especially in machine-type communications.

This is the seventh issue of the Ericsson Mobility Report.


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