5G has grown faster than any previous generation of mobile technology

“5G has grown much faster than any previous generation of mobile technology. In just 3 years, we have seen strong progress in network deployment, consumer services and industry applications,” according to Huawei’s Rotating Chairman.

[Bangkok, Thailand] As of October 2022, more than 230 operators around the world have launched commercial 5G services. In total, the industry has built more than 3 million 5G base stations, serving more than 700 million subscribers.

At the 13th Global Mobile Broadband Forum (MBBF), Huawei Rotating Chairman Ken Hu gave a speech on the rapid development of 5G and how to make the most of its opportunities.

“5G is in the fast lane,” he continued, “and we should all be proud of the progress we’ve made. But we can still do more to maximise its value. We need to work together to fully unleash the potential of 5G networks and expand into services such as cloud and systems integration. Together, we can drive the rapid development of 5G networks, applications and the industry as a whole.”

More than 230 operators around the world had launched commercial 5G services as of October 2022. In total, the industry has deployed more than three million 5G base stations, providing coverage for more than 700 million subscribers.

In telecoms, consumer services still account for the majority of operator revenue. As 5G becomes more mainstream, the vastly superior experience it offers is driving new changes in consumer behaviour, including a sharp rise in high-definition video traffic. New mobile apps that take advantage of 5G’s faster speeds and lower latency have doubled average data usage per user (DOU) and are increasing average revenue per user (ARPU) by 20%-40%, contributing to steady growth in operators’ connectivity revenue.

At the same time, 5G B2B applications are also giving new impetus to operator revenue growth, creating considerable value in sectors such as oil and gas, manufacturing and transport.

These applications are not only innovative but are also generating real business value for operators. In 2021, for example, Chinese operators generated more than CNY3.4 billion (around US$500 million) in new revenue from more than 3,000 industrial 5G projects. And that’s not all: these projects also generated 10 times that amount from integrated ICT services and related data.

5G B2B applications are set to become operators’ fastest-growing revenue stream. 5G is enabling new service scenarios, applications and business models, paving the way for unprecedented growth opportunities in the industry.

“To seize these opportunities,” said Hu, “there are a few things we still need to do.”

Building networks that deliver a better user experience

Beyond expanding coverage, networks must be built to optimise different types of user experience. For example, Chinese operators have optimised their networks for TikTok and other popular video services, cutting initial buffering delay by 50% and frame freezing by 90%. This much smoother video experience has doubled data usage and is attracting new users to 5G services.

Driving 5.5G development

To advance 5G, Huawei has worked with operators and industry partners to propose four features of 5.5G, the next evolution of 5G technology: 10 Gbps downlink, 1 Gbps uplink, capacity for 100 billion connections and native intelligence.

“The industry needs to work together to define standards, prepare spectrum and build the ecosystem,” said Hu.

Driving service innovation to maximise the value of 5G

Thanks to its high bandwidth and low latency, 5G can be integrated with cloud and AI to deliver completely new services for consumers and businesses alike. Operators can offer new experiences such as extended reality (XR), cloud gaming and enriched calling services to individual consumers, while providing more comprehensive digital transformation solutions to businesses. This creates new revenue streams, giving operators the opportunity to move beyond connectivity into cloud services and systems integration.

Industrial digitalisation is the next wave of global economic development. As a key enabler of digital transformation, 5G opens up a world of new opportunities. However, the ICT ecosystem needs to work together to make the most of them. “If we work together, we can drive the rapid development of 5G networks, applications and the industry as a whole,” Hu concluded.

The Global Mobile Broadband Forum 2022 is hosted by Huawei together with its industry partners GSMA and GTI. This annual forum brings together mobile network operators, vertical industry leaders and ecosystem partners from around the world to discuss how to make 5G a commercial success, as well as other high-priority industry topics such as green development, intelligence and the evolution of 5G. For more information, visit:

https://www.huawei.com/en/events/mbbf2022.

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