Swedish multinational networking and telecommunications company Ericsson says more service providers in the Middle East and Africa (MEA) region will this year adopt 5G technology in their operations.
Chafic Traboulsi, head of networks at Ericsson Middle East and Africa, says preparing for 5G opportunities is a must for service providers.
His assessment comes as there is general consensus the 5G market is developing much faster than the previous generation 4G LTE standard.
In its Mobility Report published in November last year, Ericsson predicted 5G will be adopted faster than 4G LTE.
The IHS Markit 5G Economy Study, commissioned by Qualcomm, shows 5G sales enablement of $13.2 trillion by 2035, an increase of $1 trillion over the original forecast released in 2017 which estimated $12.3 trillion.
In SA, mobile data-only network operator Rain last September activated Africa’s first commercial 5G network in SA.
SA’s big mobile operators, such as Vodacom and MTN, are unable to launch 5G services until more spectrum is licensed to them by the communications regulator, the Independent Communications Authority of SA.
In November last year, the telecoms regulator published the long-awaited information memorandum on the licensing process for the assignment of the International Mobile Telecommunications spectrum, or what is also referred to as high-demand spectrum.
The announcement came after communications and digital technologies minister Stella Ndabeni-Abrahams said while 4G spectrum was characterised by years of waiting, that won’t be the case for licensing and assignment of 5G spectrum.
Now, Traboulsi says during 2019, his company saw increased uptake of 5G technologies as Ericsson MEA announced seven commercial 5G agreements with operators in different countries: Etisalat UAE, Ooredoo Qatar, STC Saudi Arabia, Zain Bahrain, Batelco Bahrain, MTN South Africa and Mobily.
“In fact, service providers in the MENA region can target a potential revenue opportunity from $15.18 billion to $45.91 billion by 2030 provided they adapt their business model to become service enablers and creators.”
Traboulsi explains: “On a global level, to date, Ericsson signed 78 commercial 5G agreements or contracts with unique operators, of which 24 are live networks with the Middle East and Africa region contributing to around 29%. In the MEA region, Ericsson has already cemented its 5G leadership position during 2019 by implementing the 5G networks and by improving our customers’ network capabilities in both 4G and 5G.”
Traboulsi notes that with consumer and personal communication-centric commercial 5G networks already live, the next wave of 5G expansion will allow businesses to digitalise with more mobility, flexibility, reliability and security – taking the Internet of things (IOT) and industrial applications to never-before-seen levels.
“Industry digitalisation opens new opportunities for service providers to build and extend their businesses beyond connectivity. The 5G-IOT landscape offers enormous potential but is complex to navigate and demands a comprehensive understanding of the different driving forces and barriers for different industries in focus.
“The probability to be successful in capturing parts of this potential is higher in the next five to seven years when roles and market shares are established rather than later. First mover’s advantage is clear. Addressing these opportunities could enable service providers to unlock additional revenue streams of up to 35%, on top of the current scope of business by 2030.”