#mwc2017: GSMA predicts first commercial 5G networks launch in 2019

This is a key prediction made by GSMA, in the 2017 global edition of the GSMA Study unveiled at the Mobile World Congress 2017, dubbed ‘Mobile Economy’ report.

This follows the success of 4G connections following a forecast that showed 4G connections almost doubled from 23 per cent to 41 per cent by the end of the decade, a result of ongoing investments in 4G networks by operators.

At the end of 2016, 580 4G (LTE) networks had been launched across 188 countries, providing 4G coverage to approximately 60 per cent of the global population.

The study also highlights the on-going shift to mobile broadband networks and smartphones, paving the way towards the 5G era, and the mobile industry’s growing contribution to the global economy, jobs and social development.

“Our latest Mobile Economy report reveals how the near ubiquity of smartphones and high-speed connectivity is enabling innovation in areas such as artificial intelligence and driving the digital transformation. Mobile operators have invested over a trillion dollars in their networks since 2010 and will invest a further $700 billion over the remainder of the decade as we enter the 5G era,” said Mats Granryd, Director General of the GSMA at the 2017 Mobile World Congress in Barcelona Spain.

The report further showed that by the end of 2016 there were 4.8 billion unique mobile subscribers and 7.9 billion SIM connections worldwide. More than half of connections (55 per cent) were running on mobile broadband (3G/4G) networks, which are forecast to account for almost three-quarters of connections by 2020.

To a more interesting turn of events, the number of unique mobile subscribers around the world will surpass 5 billion later this year.

The report reveals that the 5 billion-subscriber milestone will be achieved by mid-year 2017 and will increase to 5.7 billion by the end of the decade. By that point, almost three-quarters of the world’s population will be subscribed to a mobile service.

“Mobile is a global platform that today supports two-thirds of the world’s population, delivering the connectivity and infrastructure that is powering new digital economies and addressing socioeconomic challenges,” added Mr. Granryd.

Subscriber growth over this period will be driven primarily by large Asia markets such as India, which alone is forecast to add 310 million new unique subscribers by 2020.

It is calculated that mobile technologies and services accounted for 4.4 per cent of global GDP in 2016, equivalent to around $3.3 trillion of economic value. This is forecast to increase to more than $4.2 trillion by 2020, or 4.9 per cent of projected global GDP, as countries around the world continue to benefit from the improvements in productivity and efficiency made possible by mobile technology.

The mobile ecosystem directly and indirectly supported 28.5 million jobs in 2016, a figure expected to increase to 30.9 million by 2020. The mobile sector is also making a growing contribution to public sector funding.

It is forecast that that the industry will contribute $500 billion in the form of general taxation in 2020, up from $450 billion last year. This does not include government revenue raised via spectrum auctions, which totalled almost $19 billion in 2016.

The report also highlights the leading role the mobile industry is playing in meeting the UN Sustainable Development Goals (SDGs), particularly in areas such as financial inclusion (supporting SDG 1), health (SDG 3), gender equality (SDG 5) and infrastructure (SDG 9).

Mobile networks are also pivotal in extending internet access to as much of the world’s population as possible. The number of individuals accessing the internet over mobile devices has doubled over the past five years to 3.6 billion, and will rise to 4.7 billion, equivalent to 60 per cent of the global population, by 2020.

“Mobile technology provides access to the tools and applications that address a wide range of socioeconomic challenges as well as enabling new technologies and innovations to build more efficient and environmentally sustainable societies,” added Granryd. “The GSMA and its members are united in working to achieve the SDGs across the world, leveraging the power of mobile networks to accelerate this journey in a way that no other technology can.”

The new report ‘The Mobile Economy 2017’ is authored by GSMA Intelligence, the research arm of the GSMA.