GSMA Mobile Economy Report 2023 Key Themes – Part 1

The glorious future of mobile technology is front and centre in the GSMA Mobile Economy Report 2023, which somewhat glosses over the realities of the current telecommunications industry and the challenges operators face. Along with strategic decisions about diversification in an evolving and highly competitive market, operators in different parts of the world will have to grapple with the complications of rolling out standalone (SA) 5G alongside multi-generation networks.

GSMA puts 5G’s role in underpinning private networks, the metaverse, and digital services as a focal point in the report, forecasting that by 2029, 54% of global mobile connections will be 5G, and regions like North America will have 91% 5G subscriber penetration. However, that doesn’t necessarily mean there will be 91% SA 5G coverage, on which these new technologies will need to function properly. The vast majority of the one billion 5G connections achieved up to 2022 that the GSMA report highlights, run on 4G networks. So, we must view GSMA’s forecast of approximately 5.3 billion 5G connections by 2030 in the context of the challenges in rolling out SA 5G networks.

Predictions by region of the 5.3 billion global 5G connections by 2030

Source – GSMA Mobile Economy Report 2023

There are several hurdles that operators need to contend with regarding SA 5G, such as, the coverage/capacity trade-off. Telecom operators will have to balance the smaller coverage of SA 5G nodes against their larger data traffic capacity when determine how best to generate revenue and satisfy subscribers. Additionally, there are issues of a changed deployment method, multi-layered spectrum management, geographic deployment complexities, sustainability goals, effective monetisation, and the need to incentivise subscribers appropriately to migrate to 5G. It’s no wonder GSMA estimates that only Europe, North America, Greater China, and Latin America will have more than 50% 5G subscriber penetration by 2030, and even that may be optimistic.

The obsession about 5G supporting a metaverse, private networks, and digital services needs to take a backseat to the realities of the global network landscape. GSMA expects that in 2030, 43% of mobile connections in Latin America will be 3G or 4G; in the Middle East and North Africa, 2G, 3G, and 4G networks will support 53% of connections; and in Sub-Saharan Africa, 84% of connections will be 2G, 3G or 4G. So, 5G or even 6G subscribers are going to have difficulty maintaining a connection when visiting these regions unless operators take action to make their networks compatible.

A 2030 breakdown of networks in LATAM, MENA and Sub-Saharan Africa.

Source – GSMA Mobile Economy Report 2023

The world of telecoms is a completely interconnected world where every country needs to be able to exchange data, make phone calls, and roam freely with every other country. And the need for forward and backward compatibility is greater than ever to support technologies that are evolving at such a rapid pace.

Squire Technologies’ offering to provide signalling interworking between multi-generation networks, signalling normalization between multi-vendor eco systems, and signalling harmonization between multi-segments (IoT, Connected Cars to Smart Meters etc.) is well suited for the evolution the industry is experiencing.

“Technological advances are rapidly changing the way we live and do business, and the telecoms industry is no exception. We look forward to contributing to the industry and rising to its needs over the years and decades to come.”

Melissa Webb, Head of Marketing at Squire Technologies.

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GSMA Mobile Economy Report 2023 Key Themes – Part 1