Swedish telecommunications equipment manufacturer Ericsson has upgraded its forecasted number of 5G subscribers over the next five years, stating that the new normal brought about by the coronavirus pandemic may lead to increased usage. The company stated on Monday that it expects 5G subscriptions to hit more than 2.8 billion worldwide by 2025.
The increased forecast is 2.6 billion subscribers more than what the company had previously stated. Apart from the telecommunications sector, several other industries have apparently experienced a surge in demand as a direct result of the pandemic. As people continue to stay at home to mitigate the continued spread of the pandemic, usage of new technologies such as teleconferencing, social media, and e-commerce has dramatically increased.
Ericsson's head of strategic marketing, Patrik Cerwall, mentioned during a web seminar that the company has upgraded its 2020 forecasts as well. He did not give any specifics on this year's forecast but stated that their long-term outlook for the next five years has pegged global 5G usage to reach 2.8 billion subscribers.
During the online event, which is part of the company's Ericsson UnBoxed Office series, Ericsson President and CEO Börje Ekholm highlighted how connectivity has become a vital tool during this time of crisis. He noted research conducted by the company that studied the "transformative changes" in global networks, which showed a dramatic shift in usage.
Its research showed that traffic has dramatically shifted from business areas to residential areas over the past months, with most being absorbed by fixed residential networks. Ekholm stated that connectivity will be the key and providing quality connection correlates to increased revenues for network providers. In line with this, Ericsson is preparing to make substantial investments in enhancing its ability to provide quality 5G equipment and services to global network providers.
Ericsson is directly competing with Finnish firm Nokia and Chinese tech firms Huawei Technologies and ZTE Corp in acquiring 5G telecom contracts from global network providers who are looking to upgrade their wireless infrastructure. Compared to 4G, next-generation 5G wireless technologies provide much faster data speeds and is capable of handling multiple devices. This is particularly useful in emerging technologies such as autonomous driving, the internet of things, and artificial intelligence.
Ericsson estimates a dramatic surge in 5G adoption in the coming years. It previously stated that 5G uptake will be much faster than that of 4G. The Stockholm-based company predicts that 5G subscriptions would likely account for about 29 percent of all mobile network users by 2025.
