5G will account for almost 60% of global mobile service revenues in 2026, coming from 40% of subscriptions by volume as I shared in my recent presentation at the 5G Forum in Seville, Spain.

Omdia expects more 5G subscriptions to be added in 2022 than last the three years since the technology was launched commercially in 2019.

Although 5G is still in its infancy, representing just 5% of all mobile connections, 5G mobile service revenues are set for rapid growth over the coming few years, driven by rapid adoption of 5G devices and higher spending by 5G customers as they increase their usage of data and digital services.

We are expecting that by 2026 40% of all mobile subscriptions will be 5G, totaling 4.8bn. Furthermore, annual 5G mobile service revenues are expected to reach $540.01bn worldwide by 2026, representing 60% of global mobile revenues.

The growth in 5G mobile service revenues will drive overall mobile service revenues to $911.61bn globally in 2026, up from $798.57bn in 2019.”

Who leads the 5G race?
China leads in 2021 with 357million subscribers, followed by USA, Japan, and South Korea. UK is in the 5th place with more than 9 million 5G connections.

However, if we look at percentage of population with 5G connections then South Korea is ahead as more than 40% of the population has a 5G connection. South Korea is followed by Hong Kong at 39% and China at 30%. In the UK only 8% of the population has a 5G connection.

Regarding 5G monetization and increase in ARPU, although that direct evidence of the impact of 5G on ARPU is still fragmented, as 5G SIM penetration remains low in many markets and COVID restrictions are lifted/re-introduced; telcos should provide a strategy that makes 5G attractive to its users and that it is extremely likely that 5G will have an overall positive effect.

Omdia understands that gaming, streaming video, AR, and VR are some of the key drivers for consumers to take 5G plans.

Telcos who were previously not engaged with 5G, have most frequently added a new pricing model as “data tiers,” simply by adding extra data allowances to cater for a new or wider audience; “speed tiers” have also gained momentum in 2021. Only 10% of operators offering 5G have added 5G-rich services to 5G during 2021.

AIS Thailand claimed 2.2 million “high-value” 5G subscribers after 2 years of the launch of 5G and have experienced a corresponding ARPU uplift of about 10-15%, thanks to larger data volume consumed and additional benefits i.e., AR/VR services, 5G cloud games, and multiple SIMs.

Telcos should look to bundle-rich 5G apps and services to drive demand and sate consumer user-needs for more advanced connectivity.