Telecom operators around the globe, including Taiwan-based Chunghwa Telecom (CHT) and Far EasTone Telecommunications (FET), are positive about building their 5G networks, driven by product developments and the push of technology standards by equipment suppliers, including Ericsson, according to Hakan Cervell, president of Ericsson Taiwan.
Meanwhile, a number of Taiwan-based companies have shown strong interest in using 5G technology to improve their manufacturing or management efficiency, Ericsson Taiwan said.
Ericsson expects the total number of 5G users to reach 500 million in 2020, with North America achieving a coverage rate of 25% and Asia-Pacific 10% on average, Cervell said, citing data from the recently released Ericsson Mobility Report.
North America will have a high 5G penetration rate initially as telecom operators in the region have begun deploying fixed wireless broadband networks using a 28GHz frequency band, according to Ericsson Taiwan CTO Dann Yao.
The development of 5G fixed wireless broadband networks has great potential as deployment costs are more competitive than those of fixed optical broadband networks, Yao said.
According to the mobility report, 4G will become mainstream telecom technology by 2022 with total LTE subscribers to reach five billion.
Meanwhile, the benefits of digitization brought by 5G technology are likely to reach US$1.23 trillion by 2026, with revenues generating from the energy and public utility sectors accounting for 20%, said the report.