Ericsson (ERIC) Foresees Bright 5G Prospects by 2021
Leading telecom operator, Ericsson ERIC has highlighted the bright prospects for 5G networks in the latest edition of Ericsson Mobility Report. The company expects 5G mobile subscriptions to increase to 150 million by 2021. U.S., China, South Korea and Japan are projected to be the leaders with the highest uptake of 5G subscriptions.
With the emergence of the Smartphone market and subsequent usage of mobile broadband, the user demand for coverage speed and quality has increased in the recent times. Ericsson predicts the worldwide mobile data traffic to jump tenfold from 2015 to 2021, mainly on the back of a strong surge in mobile video surfing that is estimated to account for 70% of the total mobile traffic.
With regard to geographies, Ericsson foresees the Asia Pacific region grabbing the biggest bite of mobile data traffic in 2021 owing to high population. China alone is expected to bring in 260 million mobile subscriptions. This will be followed by Central Europe and Middle East and Africa that are supposed to enjoy a twelve-fold rise in mobile subscription by 2021. Also, North America, which currently boasts a larger share of total traffic volume, is expected to continue with its strong momentum.
Talking about the mobile video consumption, North America and Europe are expected to experience about 6x higher traffic volumes per smartphone due to this from 2015–2021. Specifically, by 2021, North America’s monthly data traffic volume per smartphone is anticipated to rise to 22 GB from 3.8 GB and Western Europe is said to see the increase to 18 GB from 2 GB for the same.
Bottom Line
Ericsson has been currently focusing on fortifying the 5G system development and has undertaken many notable endeavors related to that in the past. The company believes that standardization of 5G is the cornerstone for digitalization of industries as well as broadband. It is also important for different global network operators to provide uniform customer experience.
Moreover, Ericsson foresees the mainstream 4G offerings to ultimately be engulfed by adoption of 5G technology in the future, which is believed to unlock new possibilities for Internet of Things (‘IoT’) and ICT transformation in the coming years. By 2030, Ericsson projects ICT to leverage energy consumption and greenhouse gas emissions savings throughout all sectors, with total emission reduction assumption of up to 10 gigatonnes of CO2e – amounting to about 15% of global GHG emissions in 2030. Such breakthrough technological advancement is highly beneficial for the environment.
Ericsson currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Juniper Networks, Inc. JNPR, Motorola Solutions, Inc. MSI and ViaSat Inc. VSAT. All three stocks hold a Zacks Rank #2 (Buy).
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