5G is expected to become the dominant mobile access technology by subscription before the end of 2029. What does that mean for businesses in the region? 

The 5G mid-band spectrum provides a sweet spot between coverage and capacity, yet it is only deployed in around 25% of all sites globally outside of mainland China. 

5G subscriptions are growing rapidly, with over 1.5 billion by the end of 2024, and 5.6 billion by end-2029. The technology is expected to be a major driving force behind many organizations’ digital transformation and innovation.

According to the Report, China leads in 5G adoption, followed by North America and Europe. 5G subscriptions in Southeast Asia stood at 61 million at the end of 2023, and Ericsson’s forecast is that it will reach close to 560 million in Southeast Asia and Oceania by the end of 2029.

“5G continues to grow in all regions and is expected to account for about 60% of all mobile subscriptions by the end of 2029,” said Daniel Ode, Head of Ericsson Singapore, Philippines & Brunei. “The 5G subscriber base in the [Southeast Asia and Oceania] region continues to grow as subscribers migrate to 5G, driven by more affordable 5G devices, promotional plans and large data bundles from service providers.”

Other key findings for Southeast Asia from the Ericsson Mobility Report 2024 include:

  • 5G subscriber base as a percentage of the total subscriber base has already reached over 20% in markets like Singapore, Australia, Thailand and Malaysia.
  • At the end of 2029, 5G mobile subscriptions are expected to reach 43% of all mobile subscriptions in Southeast Asia.
  • Data traffic per smartphone user in Southeast Asia is expected to grow from 17 GB/month in 2023 to 42 GB/month by 2029.

According to the Report, global mobile data traffic continues to surge, driven by video streaming, gaming, and IoT applications. 5G networks are handling this growth efficiently.

However, while 5G FWA (Fixed Wireless Access) is gaining traction as an alternative to traditional broadband, providing high-speed internet access to homes and businesses, cybersecurity becomes critical as 5G networks expand. 

AI-driven solutions are seen being used to protect against cyberthreats, but are also being exploited by cybercriminals. This is something  crucial organizations in the region need to look out for.

As 5G matures, the focus for many service providers is expected to shift toward developing differentiated connectivity offerings. “Service providers in the advanced 5G markets of Australia and Singapore continue to focus on innovations in speed, coverage and differentiated services,” said Ode. 

“Differentiated connectivity will give users, developers and enterprises the optimal level of connectivity at the right time for their needs, ensuring seamless performance and resource efficiency in the network.  High-performing programmable networks, utilizing 5G standalone (SA) architecture, provide new opportunities for service innovation and performance-based business models.”

For instance, according to Ode: “Singtel is utilizing its 5G SA network and network slicing to offer differentiated connectivity services across various industries in Singapore. There is a huge opportunity with network slicing and differentiated connectivity….”