GSMA: CIS to have 54 mln connections to 5G nets by 2025

MOSCOW, Oct 8 (PRIME) -- The CIS will be home to around 54 million 5G connections by 2025, representing an adoption rate of 13% with Russia and Belarus intending to launch 5G by the end of 2020, the GSM Association (GSMA) said on Tuesday in research The Mobile Economy: Russia and CIS 2019.

The association, which is a trade body representing interests of mobile network operators worldwide, said that 5G networks in the region’s other 10 markets will appear by 2025.

Though lagging behind many developed markets, the CIS now accelerates the shift to mobile broadband.

“Between 2019 and 2025, mobile revenue in the CIS is forecast to remain largely stable. However, market-level analysis paints a more nuanced picture. In certain countries, we expect greater smartphone adoption, 4G upgrades and growing data usage to deliver some revenue uplift,” the document read.

“In others, factors such as plateauing subscriber penetration and acute competition could contribute to negative revenue growth, possibly pressing the case for structural change. Over the same period, operators are forecast to invest U.S. $39 billion in capital expenditures, of which more than 70% will be 5G-specific. Delivering 5G connectivity will increase capital intensity, stretching operators’ financial resources.”

In 2018, mobile technologies and services generated 4.7% of gross domestic product (GDP) in the CIS, a contribution of $101 billion of economic value added. This figure will increase to $122 billion, or 5.1% of GDP, by 2023.

The mobile ecosystem supported 620,000 jobs in the CIS in 2018, either through direct employment or indirectly through activity in the wider economy. Mobile also contributes to the funding of the public sector, raising $12 billion in 2018, mainly via general taxation.

According to the document, 5G technologies are to contribute $34 billion to the CIS economy over the next 15 years, impacting the key sectors such as manufacturing, utilities and construction, the report read.

The Internet of Things (IoT) is an area where mobile operators can grow their business beyond traditional communications. Industrial IoT connections in the CIS will see strong growth out to 2025, driven by increased interest in smart cities and smart utilities. With IoT revenue set to reach $26 billion in 2025, operators are implementing strategies designed to capture opportunities at the applications, platforms and services layer.

Further, operators are seeking to invest or formalize partnerships in the e-commerce market, particularly as smartphone and mobile broadband adoption rates grow. The industry is also exploring potential applications of, and devising solutions based on, artificial intelligence (AI) and blockchain technologies, and injecting greater funds in the start-up ecosystem to protect itself from disruption and diversify revenues.

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