According to a report by GSMA, Asia Pacific will have over 400 million 5G subscriptions by 2025, representing 14 per cent of overall mobile subscriptions in the region. While 4G will remain the dominant technology, its share has begun declining.
As per the report, the figure will be much higher at 67 per cent on average in the developed Asia Pacific, comprising Australia, Japan, Singapore and South Korea. 4G has the potential to grow elsewhere in the region, particularly in South Asia and Southeast Asia
5G adoption will continue to rise on account of recovery from the pandemic and growing 5G handset sales, while 4G adoption will peak at 71 per cent in 2023 before declining to 69 per cent by 2025 in the entire APAC region.
Further, the report noted that 5G is now commercially available in 14 countries. Whereas, several other countries, including India and Vietnam, are expected to switch on their 5G networks in the coming years. 25 operators in 18 countries have launched commercial 5G standalone (SA) services with the Asia Pacific leading in 5G SA commercialisation.
Meanwhile, telecom operators’ total revenues will rise from $210 billion in 2021 to $224 billion in 2025. Capital expenditure (capex) levels, on the other hand, are expected to remain stable in developing Asia Pacific in the coming years but will decline in the developed Asia Pacific following initial investments in 5G networks. Operators’ capex will be $134 billion during 2022-2025, 75 per cent of which they will spend on 5G.
The report further added that mobile broadband networks cover 96 per cent of the region’s population, but only 44 per cent or 1.44 billion people are using mobile internet services, indicating a large usage gap. This gap can be attributed to poor digital skills, lack of affordability of devices and services, a lack of relevant content to stimulate demand for digital connectivity, and online safety concerns, especially for vulnerable segments of the population such as women and people with disabilities.
According to the research firm, addressing the usage gap and extending the benefits of the internet to a larger set of population will require a concerted effort by a broad range of stakeholders, working together with mobile operators and other ecosystem players such as device manufacturers and digital content creators, to drive adoption and overcome the barriers.
