ericsson.

com/
mobility-report

Ericsson
Mobility Report
Business Review 2024
2 Ericsson Mobility Report | Business Review 2024

Letter from
the publisher
Creating new opportunities in challenging times
Welcome to the latest business edition A very important aspect of 5G is that it
of the Ericsson Mobility Report. also brings cost efficiencies by reducing
The journey to unlock the 5G business energy consumption and supporting
opportunity is still in its early stages. service providers to manage the
Globally, we are seeing deployments anticipated data traffic. These efficiencies
continue at pace – around 290 service are vital to profitable growth.
providers have launched commercial The first step of the 5G value journey
5G services to date. Yet it is estimated has been taken, but more needs to be
that by the end of 2023, 5G mid-band done. Leveraging the evolving capabilities
was deployed in only around 30 percent of 5G networks to create new value pools
of existing 4G sites globally. will be essential for service providers.
Looking back, we can see how the In this report we share the latest insights
deployment of 4G – together with a global into how service providers are evolving
device ecosystem – laid the foundation their service offerings, addressing new
for the app economy, enabling today’s revenue opportunities, and transforming
mobile broadband business. However, their businesses.
due to strong competition and limited We hope you find the insights both
opportunities for service providers to engaging and valuable.
differentiate, mobile service revenues
have not grown in line with expectations.
Today, service providers are exposed to a Fredrik Jejdling
market reality of high inflation, contributing Executive Vice President and
to higher costs but also increasing revenues. Head of Business Area Networks

Contents Who we are

03 The 5G business horizons Executive editor: Peter Jonsson
04 Key highlights Project sponsor: Patrik Cerwall
Project manager: Anette Lundvall
05 Challenging market landscape Editor: Martin Ekstrand
for service providers Forecasts and data: David von Koch
08 A staircase to successful Fredrik Fornstad
monetization of 5G to consumers Contributors:
12 How US providers compete with Mats Arvedson
dual-play broadband strategies Greger Blennerud
13 Boosting value with speed-tiered FWA Victor Chen
17 Partnerships with content providers Lisa Elénius Taylor
can unlock new business models Per Lindberg
21 How leveraging network Peter Linder
APIs can create value and Taimur Lodhi
monetization opportunities Jeff Travers
25 5G private networks enhance John Yazlle
industry productivity

29 Glossary
30 Global and regional key figures
3 Ericsson Mobility Report | Business Review 2024

The 5G business
horizons
When examining the current mobile The next business horizon, with a thriving mines. In the consumer and enterprise
industry, four distinct business horizons device ecosystem and strong growth in spaces, the capabilities of the public
are emerging in the market. Service many markets, focuses on Fixed Wireless network, with network slicing, present
providers worldwide are actively exploring Access (FWA) and wireless WAN (WWAN) opportunities for service providers to target
and experimenting with new offerings opportunities. These target the residential new value pools, such as offering tailored
and go-to-market models across all broadband and enterprise segments. connectivity solutions to TV broadcasters,
four horizons. It represents new value pools for service pop-up stores, spectators at major events
The first horizon of 5G growth providers with higher average revenue and gamers.
emphasizes a superior and more efficient per user (ARPU) compared to traditional The industrialization of such use
version of 4G, known as enhanced mobile mobile broadband services. cases on a global scale is currently lacking
broadband (eMBB), which serves as the The third business horizon is the due to the absence of a strong device
foundation for all subsequent horizons. differentiated connectivity solution ecosystem and ubiquitous, reliable and
This largely follows the same monetization opportunity. This could manifest as high-performance networks. Once these
principles as 4G, while utilizing the offering a private network to enterprises elements are in place and the ability to
capabilities of 5G non-standalone (NSA). or utilizing the network slicing capabilities expose and program networks is available,
It provides network operation benefits of the public 5G standalone (SA) network it opens up the potential to access new
and efficiencies, delivering up to 10 times to offer a differentiated service to value opportunities, allowing application
more capacity and improving energy consumers or enterprises. developers to innovate on a large scale.
efficiency by over 30 percent compared For industries, 5G private networks This is the fourth business horizon.
to 4G, essentially serving as a more are driving digital transformation by This report includes the latest insights
efficient operations engine, delivering enabling innovation and value creation and findings from different service providers
greater value per invested dollar. in micro-environments like factories or covering activities across all four horizons.

Figure 1: 5G business horizons

Driving innovation
and ecosystem growth –
programmable networks

Differentiated connectivity solutions –

private and public networks

Enterprise and
public sector Consumer

Expanding into adjacent

profit pools – FWA and WWAN

Leveraging existing
use cases – eMBB
4 Ericsson Mobility Report | Business Review 2024

Key insights
Surging inflation has caused an increase
in operational costs, but also contributed
to revenue growth.

Service aggregation and

experience-based connectivity are
the next steps to enabling effective
differentiation and monetization of
5G, following baseline connectivity.

In the US, 5G mobile service

providers are capturing
over 90 percent of fixed
broadband net additional
subscriptions with FWA.

FWA value creation is achieved

by combining additional
revenues, reduced opex
and optimized capex shared
with mobile broadband.

Service providers are using

five partnership models
with content providers.

The go-to-market strategy for

exposing network APIs depends
on segment type, use cases and
geographical reach.

The fastest way to improve business

productivity with 5G private networks
is to deploy it over large coverage areas
and for high-mobility use cases.
5 Ericsson Mobility Report | Business Review 2024

Challenging market
landscape for
service providers
In a market challenged by inflation, leveraging the capabilities of
5G will be essential for service providers to drive profitable growth.

penetration of over 100 percent. Inflation contributes to both higher costs

Key insights In addition, the financial landscape
is hardening, with surging inflation
and growing revenues. Some service
providers have started to adjust prices in
• Surging inflation has caused and increasing costs of operating and relation to changes in the Consumer Price
an increase in operational maintaining networks. The economic Index (CPI), but they have also managed
costs,1 but also contributed situation is putting pressure on margins, to upsell to more expensive packages, with
to revenue growth. forcing service providers to find new larger data buckets, higher speeds, and
• Over the last 3 years, global ways to drive profitable growth. digital content. Another growth factor has
mobile service revenue has On the positive side, there are signs been the expansion into Fixed Wireless
grown at an annual rate of service revenues growing. Over the Access (FWA), representing an estimated
of 4.6 percent, or around past 3 years, from 2020 to 2023, global 20–25 percent of recent revenue growth.
15 percent in total.2 mobile service revenues increased by In addition, 5G brings cost efficiencies
• Service innovation and around 15 percent in total, or 4.6 percent by reducing energy consumption and
ecosystem collaboration will be per year. This is a significant change of supporting service providers to manage
key to driving profitable growth. trajectory, following years of declining increasing data traffic volumes, which
service revenue. will be vital to profitable growth.

Over the past few years, service providers Figure 2: Mobile service revenue growth and global inflation rate
have put significant efforts into deploying
5G networks, as well as promoting Service revenue Inflation
5G data plans. To date, around
10
290 5G networks have been launched
commercially,3 of which more than
8
40 service providers are offering
Change rate (percent)

services based on the more advanced

6
5G standalone (SA) technology. At the
same time, global 5G subscription uptake
has reached 1.6 billion, corresponding 4

to 18 percent of all mobile subscriptions.

2
A complex market
There is a positive momentum with the 0
deployment and uptake of 5G around
the world, including the exploration of -2
new services and business opportunities. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
However, the telecom market is Source (revenue): Ericsson analysis of public financial statements.
characterized by fierce competition Source (inflation): Ericsson analysis of Consumer Price Index (CPI) development
and a global mobile subscription based on input from Deutsche Bank and Goldman Sachs. The dotted line reflects estimates.

1
Service revenue references throughout this article are based on constant foreign exchange rates (FX), to eliminate the effects of currency fluctuations.
2
Data from Deutsche Bank and Goldman Sachs.
3
GSA, December 2023.
6 Ericsson Mobility Report | Business Review 2024

Since 2020, global ARPU

has grown over 5 percent.

5 %
7 Ericsson Mobility Report | Business Review 2024

Increasing ARPU indicates solid demand Service innovation key

In conjunction with growing service to profitable growth
revenue, the global trend also shows Challenges and opportunities in the
an increasing average revenue per user market may shift over time. However,
(ARPU), pointing to a solid demand for the key for service providers to drive
telecom services. profitable growth is to keep exploring
Since 2020, global ARPU has grown innovative ways to sell mobile data
at a CAGR of 1.7 percent per year, or over services, together with the wider
5 percent in total. One explanation for ecosystem of application developers,
this is the shifting mix of prepaid and device manufacturers and system
postpaid subscriptions, with the share integrators. In this context, the early
of high-value postpaid subscriptions deployment of 5G networks, the
increasing from 33 to 36 percent over increasing uptake of 5G subscriptions,
the period. 5G subscriptions typically and the growth of mobile service
belong to the postpaid category. revenue are only the beginning of a
Additional subscriptions and fees for longer journey, where service providers
devices such as smartwatches, alarms will play a vital role in delivering value
and other consumer IoT devices contribute for consumers, enterprises and society.
to increasing service revenues, but that
growth is not necessarily reflected in ARPU
figures reported by service providers, as
these typically lower-ARPU subscriptions
have a diluting impact on blended ARPU.

Figure 3: ARPU and 5G subscription penetration

ARPU 5G penetration

100 100

Global 5G subscription penetration (percent)

80 80
Global blended ARPU (percent)

60 60

40 40

20 20

0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Ericsson analysis of public financial statements.

Methodology
This article is based on Ericsson's analysis of financial data from several sources
including public financial statements and industry analyst reporting. The data
used covers the financial records of service providers in around 230 markets
(official countries and other regions), representing around 95 percent of total
global mobile service revenue. Annual service revenue is presented on an
aggregate level, representing all service providers, without filtering. Revenue
and ARPU are presented in USD, using fixed exchange rates to disregard effects
of currency fluctuations.
8 Ericsson Mobility Report | Business Review 2024

A staircase to
successful monetization
of 5G to consumers
The move into 5G standalone (SA) provides valuable new tools such
as network slicing, creating new opportunities for service providers
to reinvent offerings and deliver additional value to customers.

When 5G was introduced commercially mobile data plans include 100, 500, or
Key insights in 2019, it was anticipated that it would even 1,000 GB of data per month. Yet the
herald far-reaching changes in perceptions global average monthly data usage per
• As most service providers of networks, apps and services, which smartphone is around 20 GB, and even the
promote 5G today in a similar would mean service providers could markets with the highest data consumption
way to how they promoted position 5G as something new, innovative in the world still average below 50 GB.
4G, there is a pressing need and different – not just “another G”. With killer apps unlikely to emerge
to look for more ways to Yet today, most service providers are and the old ways of marketing being
grow revenues. promoting 5G with statements claiming insufficient to showcase the value of
• Baseline connectivity, to offer the best, fastest and most reliable 5G, there is a pressing need to recalibrate
service aggregation and network on the market. This lack of the fundamentals and look for more ways
experience-based connectivity differentiation is confirmed in research to achieve growth. Fortunately, suitable
are the steps to enable on service packaging across more than tools are emerging that make this shift
effective differentiation 300 service providers worldwide, revealing possible, thanks to the availability of 5G SA.
and monetization of 5G. little to no differentiation between service To navigate this landscape, service
• By using key aspects of the provider offerings of subscriber packages providers will have to address their entire
5G toolbox, service providers in any given market. offerings, starting at the foundation and
can start addressing quality Meanwhile, the majority of consumers building up toward utilizing all the new
of experience (QoE) for users. are ending the month with significant tools that are becoming available and
amounts of unused data. In some markets, maximizing the opportunities they bring.

Figure 4: Service providers‘ role as content aggregators

Customer Bundle savings

Content provider subscriptions

9 Ericsson Mobility Report | Business Review 2024

Figure 5: A staircase approach to differentiation

Experience-based connectivity
Upsell services based on 5G capabilities

Service aggregation and bundling

Leverage a marketplace structure

Baseline connectivity
Evolve existing business

Provides the foundation and includes Features an extensive ecosystem Focuses on addressing the
existing packaging and business from which service providers can opportunities enabled via the new
models, such as data buckets (with extract smaller streams of revenue. capabilities provided by 5G. These
or without speed tiers), device-based This is typically through simple position QoE as a key focus in new
offerings, as well as family and data agreements with individual offerings and make it possible to add
share plans. Also included are unlimited third-party service providers, such packages to already existing services.
data plans, with all the associated as tying connectivity to the usage of This gives users greater variation
risks, and basic home broadband specific service categories. Offering and access to more personalized
through Fixed Wireless Access (FWA). and positioning a large amount of and differentiated services.
services typically benefits from a
structure and marketplace, creating
an effective base for third-party
services and unique future services
and packaging.

Baseline connectivity service providers are placing themselves these packaging principles have existed for
remains the foundation at risk by effectively capping their ability years. But it could be highly rewarding for
Baseline connectivity represents the to grow revenue when usage increases. service providers – maybe even a necessity
foundation for service revenue generation Data usage is growing among existing to fully utilize the toolbox and capabilities
that all service providers rely on today. smartphone users at around 20 percent provided by 5G.
Therefore, there are good reasons to put annually on a global basis and could One of the capabilities made available
efforts into maintaining and developing potentially expand even more with by 5G is very high throughput. As
baseline connectivity offerings to have higher data usage generated by some 5G networks have launched worldwide,
sound and profitable long-term growth. services, such as XR and cloud gaming.1 speed tier offerings for smartphones have
An Ericsson study of retail packages If subscribers do not reach their quotas become increasingly popular and are
across more than 300 service providers despite increasing their data consumption, currently used by around 27 percent
worldwide shows that nearly all offer some then there will be little reason for them to of service providers.
combination of data buckets as their base engage with their service provider, except Consumers tend to equate speed
packaging. However, there has been a perhaps to upgrade their device. with quality, making this an excellent
trend toward rapid expansion of data A solution is to actively adjust plan motivator to pay more, which is a vital step
plans and a broader use of unlimited structures and realign packages to match toward providing quality of service (QoS)
data plans, especially when providing the actual usage of different subscriber oriented offerings.
5G. Globally, 42 percent of service segments. This can include removing Speed tiers, in combination with
providers have introduced unlimited plans. unlimited data plans or restricting them existing models with buckets and unlimited
In Western Europe, as many as 89 percent to a small, top-tier market segment, or data, also represent a tool to guide users
of service providers have unlimited data replacing substantial or unlimited data toward a desired package or proposition.
plans, and many have deployed them plans with service plans better suited This may be a way to exit from unlimited
across their entire postpaid structure, for long-term growth. This represents a propositions and to adjust bucket plans to
or just for 5G. With unlimited offerings, challenge, especially in markets where appropriate sizes.

1
Ericsson Mobility Report, "5G set to account for 25 percent of mobile data traffic this year" (November 2023).
10 Ericsson Mobility Report | Business Review 2024

Examples of this can be seen in select Zero rating doesn’t necessarily mean
markets, where unlimited data plans are the service can be used indefinitely.
offered with lower, less attractive speeds There are versions where the package
than those for data buckets. Similarly, has a limited amount of data, or time
speed tiers are used to support a reduced (bucket of hours), that can be used only
set of data buckets that are better aligned for the services it targets. However, the
with usage than existing plans that have most important aspect of this is the
grown too big, too quickly. There are also ability to grow revenue with increased
examples of service providers using AI to usage, while providing customers
adapt the data bucket, and the related with affordable pricing and packaging.
price, to the usage pattern of each user. Service aggregation lays the
groundwork for the next step. Service
Service aggregation providers that do this today have
grows revenues further spent considerable effort in building
Traditionally, service providers have marketplaces through which they position
bundled media content and other services and sell services. Such marketplaces, if
into what could be called hard bundles, found and accessed by subscribers, are a
meaning some subscriptions, typically great tool for selling any add-on services.
top-tier packages, include some added value Yet these marketplaces need to be efficient
or bundled service. It may simply be 24-hour and part of a wider digital integration
phone support or virus protection software and transformation, in order to handle
for the device. But the most attractive a multitude of services from a variety
bundles are those leveraging video or music of ecosystems in a cost-effective way.
streaming services provided by third parties. Optimally, the marketplace becomes
Service aggregation means offering both a highly productive machine and
a large number and a variety of services, a platform for any future offerings
typically to all subscribers, regardless of and packages that a service provider
which tier they are on. The content offered would like to monetize.
generally goes beyond streaming services
into areas such as lifestyle or well-being. Experience-based connectivity
Among the first mobile service providers addresses user experience
to do this was a service provider in the The third step uses the 5G toolbox fully
Oceania region. On their website, a user and starts addressing user experience.
can find more than 15 different services Service providers can now offer new
to which they can subscribe. As applied in and differentiated levels of performance
other markets, a service that a subscriber for specific use cases or applications.
adds to their bill also generates some Examples include guaranteed throughput
revenue for the service provider, based on speeds, increased reliability, security
retail agreements made with individual and low latency, which can form the
content owners. Besides the direct revenue basis of service level agreements for
generated, subscribers who add one or consumers and enterprises. This is
more of these services are less prone to something that previously has been
churn, especially if there is a discount challenging or even impossible to
incentive for adding two or more services implement in mobile networks.
to the monthly plan. Early differentiations launched in
There is a considerable difference in data some markets have typically been add-on
usage between some of the services, which offerings targeting specific applications
makes optimal alignment of packages or user segments. The services offered
challenging. Being able to separate are packaged with a clear use case that
connectivity, at least for some of the most involves some form of performance
data-hungry services, makes sense, and promise. For instance, a service provider
many service providers do this with what in Singapore used network slicing to
is often called service-based packaging or provide visitors to a Formula 1 racetrack
zero rating, which is allowed by regulators with a better experience when following
subject to certain conditions. the race on a smartphone. Other service
Service-based packages are commonly providers charge for better uplink
available as add-on packs on top of a basic performance, with offerings targeting
data plan, and target a group or category of influencers or people wanting to share
services, such as video and music streaming live moments. The technical solutions
or gaming. These packages allow the vary slightly, with some using network
consumer to use services within the selected slicing and others simpler priority functions.
category, without consuming data from Other examples are complete packaged
their base subscription or data plan. A key solutions which may include hardware and
condition stipulated by the regulators is that software, as well as some performance
the service-based connectivity must cease guarantees for which the service provider
once the base subscription runs out of data. charges a premium.
11 Ericsson Mobility Report | Business Review 2024

Service providers
charge for better
uplink performance,
with offerings
targeting influencers.

Since experience-based services and offered to a day trader may instead be embedded service charging. APIs will allow
packages are targeted toward more considered an opportunity to increase applications to request specific functions of
specific use cases, customer segments earnings, and thereby have far greater the network, for which the service provider
or locations, there can be significant value to that user. will be paid: either by the user, the app
differentiation in the value and prices Service providers may ultimately developer, or both. Another exciting tool
for the underlying solutions. Consider a want to address every individual and is the ability to communicate with the
network slice guaranteeing a maximum their needs at almost any given moment. user in real-time, either through in-app
latency of 40 ms, which is packaged In reality, some segmentation is required. communication or the operating system.
and sold toward two very different user That said, it will become possible to Service providers who have tested
segments. One fairly large segment, known differentiate in completely new ways versions of in-app purchases and
to be interested in low-latency connectivity, when there is a correlation between the context-based marketing describe
is gamers. For them, the cost of such an application being used, the location of the this method as being far more effective
offer is still weighed against the potential user, and factors such as network load than traditional methods. Everyone
advantage they may get over their friends and time of day, in-app/content-based gains, including users who no longer feel
when playing online. The same slice marketing, opt-in and opt-out choices, or overwhelmed by marketing messages.
12 Ericsson Mobility Report | Business Review 2024

How US providers
compete with dual-play
broadband strategies
Service providers in the US have successfully delivered 5G growth for
mobile and fixed broadband. This market is being shaped by five Tier 1
service providers who are expanding beyond traditional boundaries.

offering for two broadband services they Figure 6: Five large US providers compete
Key insights already have and customers adding fixed with dual-play broadband strategies
or mobile to one existing service.
• Broadband providers become more The three major mobile service Mobile 5G/FWA Cable/MVNO
competitive with dual-play (fixed providers in Figure 6 have all invested in Fiber/copper
and mobile) broadband strategies. early 5G network builds have a strong
• 5G mobile service providers focus on expanding mid-band coverage Mobile net additions – rolling four quarters
capture more than 90 percent and capacity. Data plan prices and values
of fixed broadband net typically encourage upgrades to more
additional subscriptions. valuable plans, with extra attention paid
• Cable service providers capture to keeping existing smartphone customers.
more than 40 percent of mobile This is reflected in low churn numbers for
net additions. postpaid monthly subscriptions varying
43% 57%
between 0.8–0.9 percent.
By providing different fixed broadband
In 2023, the 5G penetration of mobile plans, 5G service providers can meet most
broadband subscriptions in North America consumers' broadband needs and offer
surpassed 60 percent1 and Fixed Wireless a value proposition based on simplicity:
Access (FWA) captured over 90 percent easy installation and activation, with
of fixed broadband net additional easy-to-understand bills. Choice is often
subscriptions. A key part of the success limited to selecting a suitable peak rate, Fixed broadband net additions – rolling four quarters
of 5G in North America has been data with a discount when subscribing to fixed
plans that enable 5G providers to compete and mobile broadband from the same
43%
with dual-play broadband strategies. provider. These plans are proven to work
Cable providers have expanded well in urban and suburban areas and are
beyond fixed broadband and offer wireless poised to play a major role in closing the
services. This cellular offering relies on digital divide in the rural US, where digital
Wi-Fi first when a user is in a home or an infrastructure is limited.
office, a cellular mobile virtual network The successful adoption of more
operator (MVNO) component when valuable FWA plans shows how far it is
outdoors and adding Citizens Broadband already possible to take 5G revenue growth
Radio Services (CBRS)2 in areas with high with non-standalone (NSA) architectures. 92%
cellular traffic. As a result, the two largest The next step of the journey in the US is
cable providers have captured 43 percent to unlock the new capabilities introduced Source: Quarterly reports (Q4 2022 to Q3 2023)
of mobile net additional subscriptions. with standalone (SA) architectures, for Tier 1 US fixed and mobile broadband
5G providers have expanded into network slicing and open network APIs. service providers.
fixed broadband with FWA in three
different spectrum band types. In total, Implications for the rest of the world Today, in a 5G world, borders between
5G has captured over 90 percent of fixed US mobile Tier 1 service providers these are more vague, and the competitive
broadband net additional subscriptions, have proven that dual-play broadband landscape is more complex, affecting both
with cable in a single digit percentage strategies are key in attracting new fixed and mobile service providers.
and fiber growth merely compensating revenues from FWA and defending the The US market shows that FWA can
for the copper decline. mobile customer base. Not having a fixed open doors to attracting fixed broadband
The net additions represent a mix of access network or owning licensed mobile revenues and use 5G as the foundation
customers looking for a more affordable spectrum have been blockers in the past. for all digital services.

1
Ericsson Mobility Report (November 2023).
2
CBRS is a unique shared type of mid-band spectrum, available in both licensed and unlicensed versions.
 13 Ericsson Mobility Report | Business Review 2024

Boosting value with

speed-tiered FWA

The number of service providers offering Fixed Wireless Access (FWA)

over 5G is growing in all regions, creating global economies of scale.

Measured by service revenue and growing in adoption and are key

Key insights connection uptake, FWA has emerged to meeting the various needs of
as one of the most successful 5G use consumers and businesses for fast
• FWA value creation can be cases. By leveraging advancements in and reliable broadband.
achieved by combining the levers infrastructure and the evolution of 5G to Among the 50 percent of global
of additional revenues, reduced address this large opportunity, service service providers that have launched
opex and smartly optimized capex provider FWA revenues are estimated 5G FWA, a select few have emerged as
shared with mobile broadband. to reach USD 75 billion by 2029.1 In frontrunners, significantly scaling up their
• Three successful FWA deployment addition, there is even more expansive customer base several times in 2 to 4 years.
strategies offer options to migrate, market potential, given that over 1 billion This article outlines key levers
compete and bridge connectivity households and businesses currently for value creation, three successful
gaps, aligning with varying lack access to broadband services.2 strategies being pursued, and how
market needs. speed-tiered plans are implemented
• By embracing speed-tiered Frontrunners adopting to capture the full value of 5G FWA.
pricing models, service providers successful strategies
can create opportunities for Successful service providers with a Key levers for value creation
revenue generation and market strong connection uptake utilize three There are three key levers for value creation
differentiation across diverse types of FWA deployment strategies with FWA, with the ability of service
customer segments. depending on their assets and market providers to capture these depending
situation. Speed-tiered plans are on their market position and assets.

Three key levers for value creation

Revenue growth: The most common Opex reduction: Operational benefits Smart capex:
With new FWA connections, service Converged service providers with Agnostic capital allocation
providers can grow additional legacy copper-based fixed broadband For converged service providers,
revenues. For instance, a higher networks can achieve operational FWA represents an alternative way
ARPU can be achieved when savings related to energy consumption to optimize capex, deploying lower
migrating existing customers on and operation and maintenance costs upfront cost and cost-per-home passed
slow-speed offerings (such as xDSL) from xDSL commissioning. Additional compared to fiber. In addition, the
to high-speed 5G FWA offerings. operational benefits from bundling capex invested can also be shared
Moreover, the fact that FWA can FWA with mobile broadband include with mobile broadband, thus reducing
be deployed quickly means service reduced subscriber acquisition cost, risk. Mobile-only service providers
providers can have weeks (or months) reduced churn and increased mobile have an additional revenue source to
of additional revenues compared broadband capacity in areas with FWA finance high-capacity deployments
to other technologies, such as fiber, deployed. Service providers can also outside large cities, resulting in
that take longer to deploy. In addition achieve savings from migrating improved mobile broadband user
to FWA connectivity revenues, 4G FWA traffic to a more efficient experience and a lower cost per GB.
service providers can provide extra 5G FWA with lower cost per GB.
value-added services such as video
streaming, TV and gaming.

1
Ericsson estimate, November 2023.
2
Ericsson Fixed Wireless Access Handbook.
 14 Ericsson Mobility Report | Business Review 2024

Market position and Capture fixed broadband adjacency Focus on unserved areas
deployment strategies Typically, challengers are mobile-only Digital divide closers are service
To explore fully the potential across service providers or converged service providers that bring high-speed
the value levers, three different major providers challenging the fixed broadband broadband primarily to rural areas.
FWA strategies are utilized globally. incumbents, such as the US service providers These may include FWA-only providers
These strategies are depicted in Figure 7, in the previous article on page 12. These in addition to mobile and converged
in relative perspective, based on their service providers focus primarily on service providers. The example depicted
adoption rate and FWA connection growth, upgrading subscribers with slow-speed in Figure 7 is from a wholesale broadband
indexed by population size (all service broadband to high-speed 5G FWA. provider that has built an FWA-only
providers are normalized as countries with Challengers often target regions with only network to connect homes in rural
100 million inhabitants). Service providers one fixed broadband option, introducing a areas. After 10 years with 4G FWA, this
also use a combination of these strategies. more competitive price offering. They are in service provider has begun expanding
many cases opportunistic, selling FWA only and upgrading the network for 5G FWA,
Migrate and retain customer base in eligible areas based on the competitive including migrating existing satellite
Modernizers are converged service situation and available capacity. customers to FWA.
providers with legacy xDSL networks that
migrate their subscribers to FWA, thereby
reducing opex, retaining customers and
upselling with higher speeds. This strategy Households and businesses want
could also include migration of 4G FWA
connections to 5G FWA. A fast adoption fast, reliable broadband for digital
curve characterizes these cases as
it is primarily a migration of existing entertainment, working from home
customers rather than the acquisition of
new customers. The focus is on retention and increased productivity.
and conversion of legacy customer base.

Figure 7: Major FWA strategies adopted by service providers A–H

Primary technology: 4G 5G

Modernizer Challenger Digital divide closer

4
Relative FWA connections (million) indexed for country with 100 million population

3 Modernizer (A and B)
• Migrate DSL users to FWA
• Migrate 4G FWA to 5G
• Suits wireline incumbent
A
Digital divide closer (H)
• Sparse rural FWA
• High speed using
outdoor CPE
2
B
Challenger (C–G) • Leverage government
• Challenge fixed incentives
broadband monopolies • Migrate satellite to FWA
• Target slow speed
fixed broadband
• Selective on eligible areas
H

1
F

G
C
D

E
0
0 1 2 3 4 5 6 9 10

Years since FWA launch

15 Ericsson Mobility Report | Business Review 2024

Speed tiers – the opportunity It is a model based on simplicity, often with a combination of factors, including site
for large-scale offerings a range of marketed speeds, for example, capacity planning and network features,
Households and businesses want typical downlink speeds of 100–150 Mbps. and it is also common to use outdoor
fast, reliable broadband for digital In most cases, service providers use indoor CPE, which enables better reception
entertainment, working from home and customer premises equipment (CPE) for and antenna gains.
increased productivity. While the majority such pricing plans.
of offerings (70 percent) are best-effort, Emerging plans
differentiating services based on speed is Tiered speeds FWA pricing plans are expected to evolve
increasingly common among broadband Tiered speed plans involve service further, with emerging gigabit speeds
service providers, allowing them to create providers with two or more FWA speed and enhanced experience features such
pricing models to cater for diverse customer tiers, similar to fixed broadband offerings. as improved uplink and latency. Such price
needs and budgets. The speed tiers are eligible for a selected plans would focus on specific needs for
As higher speeds often come at a location/address. To deliver such residential services such as gaming and
premium price, service providers can speed levels, service providers utilize enterprise services.
generate different revenue streams
based on the speed at which customers Figure 8: Relative proportions of speed-tiered plans and new emerging plans
want to access data. By providing a more
comprehensive range of speed options, 100%
or better speeds than competitors, service 16% Tiered speeds 19%
21%
providers can attract customers looking for 30%
5%
a specific speed or quality of service (QoS). Typical speeds
11%
An Ericsson study of retail packages
offered by 310 service providers in
over 100 countries shows that using
speed-tiered pricing models for FWA is
increasingly popular. Currently, there are
two main FWA pricing plan models, both 79% Best-effort 70%
centered on speed – typical and tiered.

Typical speeds
In typical speed plans service providers
have a single plan for FWA, advertising 0%
an average/typical speed plan. April 2022 October 2022 April 2023 November 2023
 16 Ericsson Mobility Report | Business Review 2024

Speed-tiered implementation resources for FWA while protecting operations, engineering and sales and
The evolved capabilities of networks mobile broadband performance. The customer care in areas such as traffic
and CPE offer a smooth implementation next implementation step includes growth, available speeds, eligible areas,
of speed tiers. The most common initial improved and intelligent QoS with CPE type required, geo-sales and uptake,
step is to optimize network performance enhanced scheduling, management as well as customer satisfaction.
by ensuring eligible areas utilize and automation. In summary, 5G service providers
outdoor CPEs, geo-locking, and service As the capabilities for differentiation are well positioned to serve more than
differentiation using the 5G QoS identifier evolve, the different parts of an 1 billion premises currently lacking
(5QI). With 5G standalone (SA), organization need to be synchronized in fast and reliable broadband,3 closing
end-to-end slicing and radio resource continuous performance management. the digital divide and empowering
partitioning can ensure minimum These organizational parts will include consumers and enterprises.

Figure 9: Continuous performance management Figure 10: Evolving network and

CPE capabilities for differentiation

Next
Engineering
• Build capacity for FWA
• End-to-end network slices
• Configure FWA slice
• Improved QoS with enhanced scheduling
• Set FWA speed tiers
• Intelligent QoS management
and automation

Enhanced

• 5G FWA on 5G SA
Operations Sales and • Radio Resource Partitioning (RRP)
to protect mobile broadband and
customer care
• Utilization and minimum resources for FWA
busy hour speeds • Geo-sales and uptake
• FWA traffic growth • Fulfillment and install
• FWA eligible areas • Satisfaction/churn
Most common

• Differentiation using 5QI/QCI

• Speed tiers (max) using bandwidth
control/policy control
• Eligible areas with outdoor
CPE and geo-lock

3
Ericsson Fixed Wireless Access Handbook.
17 Ericsson Mobility Report | Business Review 2024

Partnerships with content

providers can unlock new
business models
Service providers are in a unique position to offer content providers
additional distribution channels, often to a sizeable market.

Service providers can offer more This is particularly true for services
Key insights than a parallel sales channel like phone insurance, cybersecurity
The unique ways in which service and home security, but also for
• The insights held by service providers can offer content providers products related to energy, healthcare
providers on subscribers and a parallel distribution channel can be and financial services.
their usage patterns can bring seen in Figure 11. In addition to their The majority of service providers
new routes to market for retail channels, service providers have have developed a direct carrier billing
content providers. developed their own digital channels relationship with their subscribers
• There are a number of potential and apps, for example, to optimize which not only increases B2B2C
partnership models with content self-services and billing as well as to subscription revenues, but also reduces
providers that service providers provide personalized campaign offers. involuntary churn due to non-payment
can develop, either individually Service providers often enjoy a (such as expired credit cards and
or collaboratively. relationship of trust with their subscribers outdated or incorrect payment
• Well-defined, open APIs can help and have a route to market through information). Service providers
service providers and content established processes, channels and also hold a rich set of insights on
providers to partner successfully, billing mechanisms. Some 56 percent subscribers and their usage patterns,
improving in areas like services, of European consumers say they would which enables them to offer relevant
time to market and cost savings. buy a service other than connectivity and personalized services for their
from their service provider.1 subscriber bases.

Consumers not only demand a choice Figure 11: Service providers can help content providers
of personalized services that are highly overcome key challenges by offering a new route to market
relevant for them. They also require
flexibility to drop in and out of subscriptions
Key challenges for content providers Key benefits enabled by service providers
at any time. Subscribers routinely move
across different platforms when searching
for the latest or best streaming series,
or rejoin when incentivized by new live On-boarding of new partners can be slow A route to market by a trusted partner
sports or music events.
Service providers are in a unique
position to tap into these consumer
needs and also offer content providers an The risk of failed payments is high Direct carrier billing with subscribers
alternative sales channel. Many service
providers have a large customer base in
their local or regional markets and are often
Providers have little influence
regarded as a trusted partner. Therefore, over the cost of mobile data
Service packages including mobile data
they can leverage and make use of their
established retail and digital channels
and billing capabilities to drive sales of Hosting servers close to subscribers
content and subscription services. Service Local technology partner
can be costly and difficult to maintain
providers are also well placed to explore
B2B2C and aggregation opportunities
and can incentivize content usage through Subscribers' experience of the
Guaranteeing quality of service
discounts, service bundles, loyalty rewards service can vary considerably
and other customer engagement activities.

1
McKinsey & Company, "Thinking like a ‘ServCo’: How telcos can drive B2C growth" (November 15, 2022).
18 Ericsson Mobility Report | Business Review 2024

But the key to success is a fast and service provider is given a discount on Not only is hard bundling expensive
streamlined process for onboarding the retail price. Alternatively, this could for service providers (sacrificing margin),
and provisioning of third-party content. be done as a co-marketing agreement but it is also often hit and miss, as
One UK-based service provider has in which costs are shared, or as revenue consumer preferences increasingly vary.
reportedly doubled the size of its partner sharing where an agreed percentage of It still has its place, such as including
ecosystem since 2018 by successfully the retail content revenue is shared with content with strong general appeal
defining APIs and onboarding practices. the service provider. Exclusivity could be (for example, entertainment and music)
Service providers can also help an element of all three and then affect into connectivity plans. It could also
content providers by leveraging their the level of monetary compensation. make good sense when introducing
core connectivity offering and designing new, unique content on an exclusive
complete service packages. These could The basic reseller model basis in the local market for a specific
include a defined amount of mobile data A simple way to test the appeal of target group (for example home security
or sponsored data for a specific service. new content, which is also at the low for the residential market), or for
A service provider in Latin America, for end of the risk scale, is the basic reseller a limited time as an incentive for
example, includes two hours of unlimited model. While it is straightforward to consumers to accept price hikes
data in its gaming bundle. Others sell add-on apply, it offers moderate rewards for from their service providers.
packages with data only to be used for service providers in terms of sales and
services such as gaming or video streaming. customer loyalty. This makes it an easy Reseller – soft bundling
Content providers can improve quality starting point to try out the appeal The likelihood of retaining customers
of experience by forming technology of new third-party content (for increases with the freedom to make
partnerships with local service providers. example, home or cybersecurity, choices about which content to bundle
This is especially relevant for real-time or new membership services) with with a plan. Although nearly 80 percent
services, such as cloud gaming. Servers consumers or residential customers. of all connectivity plans today are still
need to be located locally, and close to Often, this model is applied to tiered based on inclusive content and
subscribers, to offer better ping times content sold as add-ons and with no services, service providers are increasingly
and improve latency for gamers. links to connectivity services. Typically, moving away from hard bundling. Rather
service providers will sell these add-on than forcing consumers into paying
Partnership models evolve with subscriptions at the same price point as for connectivity plans with defined
digitalization and aggregation the content provider. While the basic subscription content, they are more often
Figure 12 shows a model that could reseller model has its merits in simplicity allowed to choose which content to put
determine how content providers work (quick to add or remove), it is also easy into the bundle, which makes it more
with service providers. In practice, service for other service providers to copy and relevant for their individual needs.
providers use a blend of these models when does little to improve customer loyalty.
working with different types of content Reseller plus
providers and for various purposes. The Reseller hard bundling Expanding on the reseller model with
level of investment needed, skills, risks and A common variant of the reseller model co-branded offerings – for example, in
potential rewards vary across the models. is to create static or “hard” bundles of cloud gaming where service providers
Regardless of the model, monetary content, coupled with one or a few of can help guarantee latency or queue
compensation could be defined in a the top-tier plans that a service provider priority – is an attractive proposition
wholesale agreement in which the is offering. for providers and consumers alike.

Figure 12: The five partnership models and their impact on service providers

Impact on service providers

Five partnership models: Revenue potential Investment Effect on loyalty

Basic reseller model

Guaranteeing quality of service

Reseller hard bundling

Open APIs

Reseller soft bundling

Reseller plus

Service aggregation

Reseller flow Reseller flow enhances and improves impact and effectiveness
19 Ericsson Mobility Report | Business Review 2024

In this reseller-plus model, in return for these consumers went on to subscribe Notably, 7 in 10 consumers say they value
hosting and maintaining local servers, to another (or the same) streaming ecosystem and aggregated offerings
service providers have the potential to service during that same timeframe.2 that simplify the purchasing journey.2
reach an entirely new customer base, The service providers in these markets are
beyond their own subscribers. Doing moving towards a B2B2C ecosystem and
so will grow both service provider and creating their own platforms to aggregate
content provider revenues. In return for and recommend a wide variety of content,
While service providers will be from big entertainment streaming brands
incentivized through additional revenue, hosting and and cloud gaming to productivity, security
it has a modest additional effect on services and lifestyle subscription services.
customer loyalty, and the way to improve maintaining local Aggregation is the partnership model that
on this is to discount the offering for their requires the most investment in resources,
subscriber base. Typically, these types of servers, service but it also has the potential to yield the
co-branded propositions – plan tiering, highest rewards. By realizing economies of
features and subscription pricing – are providers have scale, an aggregation platform is a way for
largely driven by the content provider. service providers to reduce the costs of, for
Nevertheless, the reseller-plus model the potential example, onboarding, customer acquisition
helps service providers reach entirely and marketing. It will also reduce the time
new target audiences. Exclusivity is to reach an needed for introducing new content or
sometimes part of co-branded reseller service partners to the ecosystem.
agreements for a limited time, and entirely new Ultimately a well-branded and
therefore harder for others to copy. established platform will improve customer
Usually, this would apply to new content customer base. retention for both service providers and
or content providers in a market. content providers. By aggregating all content
into one place, it also becomes easier for
Service aggregation Consumers want more flexibility to manage service providers to boost their engagement
Subscribers are often inclined to the increasing number of subscriptions with consumers. Service providers can
drop in and out of streaming and from one place, on one plan and on one develop dynamic offers around exclusive
other subscription services. More bill. Aggregation of ecosystem partners to streaming content (for example, live sports
than half of consumers say they one platform is an interesting proposition, or music) combined with 5G connectivity
canceled at least one streaming as evidenced by service providers in plans and network priority. In doing so, they
service in the first three quarters several markets like the US, Australia, not only sell exclusive streaming services but
of 2023. However, 73 percent of Singapore, the Netherlands and the UK. also increase the sales of connectivity plans.

2
McKinsey Digital, "Ecosystem 2.0: Climbing to the next level" (September 11, 2020).
20 Ericsson Mobility Report | Business Review 2024

Reseller flow Well-defined APIs are key to building Exposing advanced 5G functionality
In moving away from hard bundles, and an ecosystem and dynamic provisioning through APIs will help service providers
introducing more flexibility and choice In this context, APIs can essentially provide monetize 5G with their ecosystem of
in the model, there is a risk of increased access to business support systems such partners, as well as deliver new services
complexity and a need to position and as provisioning, billing and user account with speed. APIs are a crucial element
market the offerings such that customers setup and integration. All the models that makes service and content provider
are exposed to the choices at hand. An described here are subscription-based. partnerships work in practice. But
efficient way of handling this is to place The main, or key, financial incentive for they will also unlock new business
the content and bundle choices in the service providers is the discount they opportunities as developers have
purchase “flow,” or journey. receive when purchasing or committing more freedom to innovate new use
Some service providers have invested to large volumes of these applications or cases, services and applications for
in their digital sales flow by defining a content subscriptions. These discounts 5G networks.
set of open APIs that enable them to typically range from around 10–30 percent, The definition of “customer” will
integrate new content partners in a matter or even more in some cases. broaden with network slicing and dynamic
of days. A well-defined digital sales flow Along with the time to market and cost provisioning. The business models used
– with a menu of content and services to savings, well-defined APIs represent the for APIs can differ from the traditional
choose from – improves ease of purchase dashboard that allows the content or subscription model, in that they can
and transparency. With more choices also application provider access to the service be dynamic and transaction-based.
comes better customer retention. provider – without surfacing all the A developer of the application may
These service providers can quickly complexities in onboarding, provisioning be paying for the use of certain APIs,
introduce new content and choices that and business operations in general. used only if and when there is a need.
are increasingly relevant for its subscriber Third-party providers may also need A bank may be paying for all the
base, while also saving time and the cost ways to access and interface with network possible connections to their online
of onboarding. The reseller flow model functions through network APIs to, for service to make sure they are secure.
therefore requires more investment from example, define QoS levels delivered. A game developer may be paying for
service providers, but also leads to higher Such APIs can enrich the mobile the use of APIs which allow the game
customer loyalty in the long run. It is cloud gaming experience by improving to instantly adapt to network conditions.
also a stepping stone into the service latency, jitter and mobility. They can also The opportunities for app developers,
aggregation model. ensure secure connections for all online content providers and third parties
customers of a bank, or provide instant to innovate in how their services are
improvements for conversational video delivered – based on time, location
when the situation calls for it. and context – are endless.

Figure 13: The reseller flow model can improve ease of purchase

AR Video streaming pack

4 GB

8 GB
Smart watch Gaming pack

12 GB

VR Music streaming pack

Customer 20 GB Checkout

Data bucket

Smart speaker Chat pack

IoT devices Add-on packs

21 Ericsson Mobility Report | Business Review 2024

How leveraging network

APIs can create value and
monetization opportunities
Providing developers with easy access to
advanced 5G capabilities through network APIs
will drive innovation and ecosystem growth.

as quality of service, security and APIs, and specifically 5G network

Key insights location, are exposed, consumed and APIs, their value becomes more apparent
paid for globally. This will create new when multiple APIs are used to create
• When accessing and creating revenue streams for service providers, use-case-driven services as offerings for
applications through network enterprises and developers — through the application developers, enterprises
APIs, developers expect their new and advanced use cases using and consumers. The value network APIs
experience to be similar to 5G capabilities. can potentially bring are in the context
accessing communication APIs. Providing developers access to of 5G use cases, as well as the way in
• Service providers can capture advanced capabilities through network which application developers can access
value from network APIs through APIs will enable service providers to 5G network capabilities to create new
diverse business models, engaging charge for new services. These services applications. The potential of capturing
CPaaS aggregators, application include enhancing quality and value from APIs is dependent on a clear
service providers and customers. performance for mobile gaming, ensuring understanding of market segments,
• The go-to-market strategy for reliable drone management through use cases, and go-to-market channels.
exposing network APIs, involving low-latency video and location services, To this end, many service providers
various ecosystem stakeholders, and enhancing authentication and are becoming part of standardization
depends on factors such as security for financial transactions. organizations like CAMARA1 and Open
segment type, use cases and Another significant potential impact is Gateway,2 and are also seeking a deeper
geographical reach. stimulating increased 5G network services understanding of the revenue prospects
usage by businesses and consumers. from exposing network capabilities.

The evolution of cloud-based technologies API monetization value chain: How

paired with 5G capabilities offers service providers can capture value
numerous opportunities for developers. Currently, service providers around the Leveraging
Leveraging network APIs can foster a world are at different maturity levels
combination that delivers innovative when it comes to network API exposure. network APIs
solutions that will enable developers to But no matter what their level of maturity,
create new and advanced applications 5G technology provides the opportunity can foster a
to enrich customer experiences. to expose advanced network capabilities
For service providers, the focus by enabling and stimulating the creation combination
on network APIs is not just about of dedicated solutions to serve enterprises
introducing new product offerings, and consumers. that delivers
but also about nurturing and mobilizing The exposure of APIs to application
the industry to develop new services at developers is not a new concept. innovative
scale. Exposing advanced 5G network Communication APIs have long
capabilities to application developers, provided businesses with the ability solutions.
through network APIs, brings new to embed video, voice, SMS and more
possibilities to drive innovation and into their applications to enhance and
enable new ways of monetizing 5G by personalize the customer experience.
transforming how network features, such With the development of network

1
GSMA, CAMARA: Telco Global API Alliance.
2
Open Gateway.
22 Ericsson Mobility Report | Business Review 2024

Figure 14: Network API monetization value chain

Service Aggregators/Application End user

providers developers/Enterprises market segment

Activate network Expose and offer Leverage network APIs Use cases or
capabilities network APIs to create 5G solutions applications

5G network Network APIs Network APIs

functions exposure Vertical/
Enterprise

Network API 1 Indirect

(high volume) App developers/
Network API 2 Enterprises
Aggregators Consumer

Government/
Network API n
Direct Institutions
(low volume)

Service providers have the opportunity Potential business models Figure 16: API provided
to capitalize on the expansion of the Business models where service providers through aggregator
communication platform as a service can commercialize APIs include wholesale
(CPaaS) market, which has already or retail applying revenue share,
Utilizes Uses
enabled them to realize substantial subscription, or usage-based commercial
application network
value through communication APIs models. This is also dependent on a service
such as those for SMS. CPaaS providers provider’s go-to-market strategy, including
End
have also expanded significantly from other CPaaS, aggregators, or direct from customer
SMS, now also delivering video, voice, service provider's platform. For example,
messaging and over-the-top (OTT) in a direct relationship model with an
social media messaging apps, advanced application service provider (ASP),
authentication, AI processing and virtual the end-customer uses current network
agents for voice and messages, all within subscription from a service provider, while
ASP CPaaS / Service
a single developer experience with an ASP offers applications to the user and
Aggregator provider
low-code/no-code3 tools. Developers pays the service provider for the API usage.
will expect to use new network APIs Compensates Compensates
with a similar experience, increasing Figure 15: API provided for API usage for API usage
the need for service providers to directly by service provider
participate in full CPaaS offers. Another In a typical model, the CPaaS providers
value sought by developers, application acquire APIs from service providers.
Utilizes Uses
service providers and enterprises with The CPaaS providers then aggregate,
application network
global users are common APIs that normalize and harmonize these APIs
work across service providers worldwide, before offering them to ASPs as one
End
provided through both standardization customer single API, who subsequently integrate
and CPaaS platform aggregation. More them into their applications or other
than 40 service providers have deployed software solutions. The application
or launched 5G standalone (SA).4 As provider compensates the aggregator
more service providers invest in this according to usage – by the minute,
technology, we will see enterprises across message or conversation – which is then
ASP Service
industries and the world unlock value by bundled into the application charges to
provider
harnessing 5G’s advanced capabilities the enterprise. The CPaaS aggregator
to create innovative services via open Compensates then shares the usage revenue with the
standard network APIs. for API usage service providers involved.

3
Low-code and no-code are methods of designing and developing apps using intuitive drag and drop tools instead of coding.
4
GSA and Ericsson (November 2023).
23 Ericsson Mobility Report | Business Review 2024

Figure 17: Go-to-market choices

Use case Geographical reach

Single
Single
Localized connected manufacturing service
country
provider

Multiple
Single
Real-time gaming service
country
providers

Multiple
Multiple
Connected vehicles service
countries
providers

Go-to-market strategy verifications, which is now used across Pricing APIs – estimating
The choice of whether the service industries. Other examples are global values and cost
provider should launch its own voice and speech applications with A service provider’s decision on the
marketplace through direct selling, or local numbers interconnected with go-to-market and commercialization
by partnering and selling through other mobile apps and AI processing. models will have implications on
ecosystem stakeholders, depends on These equip service providers pricing and cost assessment. If a service
various factors such as the type of use with the flexibility to choose their provider decides to leverage a third-party
cases and geographical reach. A network go-to-market approach based on the aggregator, then most of the pricing and
API and its use case could be relevant API and use case. For a global business, costing discussion will be between the two
for either one country/market with it would be simpler to purchase API partners. If, on the other hand, a service
single or multiple service providers, or access from a single provider rather provider is interested in exploring go-direct
across multiple countries and service than establishing separate relationships channels, then it will need to define the
providers addressing the international with hundreds of service providers. service for the specific API and validate
market. For example, digital native For such solutions, collaborating with the benefits and values for application
companies offering ride-sharing apps, other service providers based on a developers and enterprises. Furthermore,
which have users across international common API may be preferable, the service provider also needs to assess
markets, are primarily consuming telecom making a third-party aggregator more willingness to pay among the target market
services, such as SMS and voice services suitable. Conversely, in some cases segments. The resulting value and cost
from global CPaaS providers. SMS of local offerings, service providers assessment enables the service provider to
one-time password is such an example, may consider direct engagement charge for APIs under various tiers based
where CPaaS providers have worked with developers and enterprises to on pay-as-you-go subscriptions or revenue
with digital natives to adopt SMS be more appropriate. share including service level agreements.

A service provider’s decision on the

go-to-market and commercialization
models will have implications on
pricing and cost assessment.
24 Ericsson Mobility Report | Business Review 2024

Enabling rolling launches

through co-branded partnerships
Another strategy for service
providers, which may provide faster
market entry, is through co-branded
partnerships. Collaboration with
leading CPaaS providers can swiftly
offer low-code/no-code solutions
for small to medium businesses,
as well as robust API solutions for
more tech-savvy large enterprises.
Early collaboration among partners,
and building a go-to-market
strategy collectively, can facilitate
a rolling launch, where initial APIs
can be built upon and utilized
while keeping an open aperture
of opportunities. Additionally,
co-branded partnerships make it
possible to integrate go-to-market
strategy, sales training and customer
support. Offering a combination of
communication and network APIs
including open standard (CAMARA)
APIs to developers, can simplify
and guide the service provider’s
customers to rapidly implement and
achieve revenue growth through
new and differentiated experiences.

Building value across

the industry ecosystem
Enabling developers to access APIs in
an easy and scalable manner empowers
the creation of new and enhanced
applications, thereby presenting service
providers with additional revenue streams
through performance-based business
models. As more service providers begin
to expose network capabilities, they
can capitalize on their investments
in high-performing networks, further
stimulating the developer community
to drive service innovations.
25 Ericsson Mobility Report | Business Review 2024

5G private networks enhance

industry productivity

5G has a vital role to play in accelerating industry productivity. A logistics

case study highlighted in this article reports 20 percent improved
productivity and 15 percent lower capex compared with Wi-Fi.

Figure 18: Frequency of use cases in live operations with 5G private networks
Key insights
• The fastest way to move beyond
ker
trials and drive adoption by Wor (7 )
a f e ty
businesses is to apply 5G to s
gu
s i d e Auto
use cases which surpass the le s ) dv m
ir e ( 3 e h at
capabilities of Wi-Fi. Examples W ols i cl
to

ed (1
include those which require high

es
mobility, serve larger coverage Au

8)
s) to
areas, or extend beyond office n
se

om
a

areas onto the factory floor

0c

ou
(3

se
and outdoors.
ers

qu
• Private networks today
o rk

ipm
Co nn e c te d w

commonly support use cases

ent (30 cases)

L ap t o p s an d
tablets (20)

such as camera and sensor

deployment for data analytics,

)
co ntr o l ( 7
Re m o t e
connected workers, and automated
guided vehicles (AGVs).
• Frontrunner service providers
scale up by targeting multiple use
cases per site, address adjacent
l

areas such as logistics zones, and

nt tr ia
(5)
co du s

replicate across multiple sites.

rol

S ens
In

ors (20 cases)

En
v
s e ir o n
5G private networks are now ns me
or
s ( n t al era 0)
being deployed at scale for the 5)
Telem Cam nce (1
ati l a
digitalization programs pursued data c s s ur v e i l
(5)
by enterprises, playing a vital
role in accelerating productivity.
An Ericsson survey of private
networks deployed across a range Survey of 40 private networks in operation across 15 countries and 10 industries,
of industries and countries show serving 80 use cases (Ericsson interviews 2024).
the main use cases to be:
Countries: Australia, Austria, Brazil, Chile, Canada, France, Germany,
• connected workers Hungary, Japan, South Korea, Malaysia, Mexico, Sweden, UK, US.
• autonomous equipment Industries: Aviation, energy, events, healthcare, logistics,
• sensors discrete and process manufacturing, mining, offshore, ports.
26 Ericsson Mobility Report | Business Review 2024

Moving 5G private networks

into live operations Case study: CJ Logistics
As the use cases indicate, the building
blocks for enterprise productivity CJ Logistics is the largest parcel Transformative outcomes:
improvements are already there. delivery firm in South Korea, with • Installed 22 small cells instead of an
However, enterprise digitalization operations in 249 warehousing and estimated 300 Wi-Fi access points.
projects can be frustrated by the distribution centers across 36 countries. • Achieved 15 percent of investment
potentially wide scope, which can CJ Logistics introduced a private savings for infrastructure, relative
result in projects remaining under 5G network to the logistics hub in to Wi-Fi.
continuous evaluation and struggling Icheon City, South Korea, to meet the • Realized a significant increase in
to move beyond the pilot stage. increasing demands upon connectivity productivity for over 100 handheld
Use cases that deliver immediate in their large warehouses. scanners, due to the instant
business value are likely to be moved acknowledgment received after
into live operations quickly. For example: Use cases deployed with 5G: scanning via 5G, compared with
• For public sports and media events, • handheld scanners and tablets Wi-Fi response times of several
dedicated network resources ensure • fleet of autonomous guided seconds. The time saving is multiplied
reliable communication to support vehicles and mobile robots per scanner and item scanned,
business operations at venues, increasing the productivity of the
such as food and beverage facilities, scanning operation by 20 percent.
shops and stands and medical and
security services.
• As the energy industry invests in
the offshore energy and mineral
resources sectors, reliable connectivity
is needed in remote areas to monitor
equipment performance, for safety and
to support on-site maintenance workers.
• As the mining industry introduces
autonomous vehicles and
remote-controlled equipment,
5G provides the mobility and latency
that the vehicles and equipment
depend upon.

5G networks add a vital new dimension

for success when digitalization use
cases require performance, reliability
and security.
These networks coexist with
alternatives, such as cables and Wi-Fi.
The reasons for introducing 5G private
networks include:
• Providing cost-effective wireless
coverage and capacity for large areas
– the case presented in this report
deployed 5G with 22 radios where
Wi-Fi would have required more
than 10 times as many hotspots.
• Addressing demanding radio
environments, such as sites
featuring building layouts with
heavy obstructions such as steel, The fastest way to improve business
concrete, raw materials and inventory.
• Delivering high performance in terms productivity with 5G private networks
of data throughput in both downlink
and uplink (required by cameras), is to deploy it over large coverage
low latency (required by devices
supporting industrial protocols such areas, and for high-mobility use cases.
as PROFINET),1 and high resilience.

1
PROFINET is an open technical standard for data communication over Industrial Ethernet.
27 Ericsson Mobility Report | Business Review 2024

Productivity Scaling coverage beyond the site Insights: Growth vectors adopted
Production sites do not operate in isolation: by service providers and resellers
enhancements are They are integrated with nearby ports, Frontrunner service providers and
amplified when railways, transit hubs and partners. resellers are increasingly addressing private
deployed at scale For example, battery manufacturing
may collocate with vehicle production,
network opportunities holistically by:
• Crafting an offering with a network
Deployments that have the potential mining extraction may collocate with a that is preconfigured and prepackaged,
to scale span several dimensions: preprocessing plant. rather than offering a customized
These integration zones represent further solution that limits scalability.
Scaling coverage within the site potential for productivity gain and scale. • Preparing suppliers, partners, and
One way to scale is to cover larger the wider ecosystem to improve the
sections of the production site – the relevance of the offering.
key is to have the network serve more Use case: • Prioritizing high-profile lighthouse
use cases. enterprises (those that make targeted
Of the networks surveyed, 60 percent
Camera-based investments to get primary use cases
deployed 2 or more use cases into quality inspection off the ground, which other enterprises
operations simultaneously. AGVs move may emulate).
materials around the floor, cameras Cameras represent a form of sensor, • Prioritizing enterprise opportunities
monitor the production process for quality, valued because they are non-invasive, the use cases of which go beyond
workers are connected with online systems data-rich, easily moved and can be Wi-Fi's capabilities.
expertise is offered remotely. These drone-mounted for mobility. • Revisiting the sales engagement toolkit,
three common use cases jointly push Cameras combined with AI can, adding dimensions such as business
the coverage area that the network for example, interpret quality faults case and value calculator tools.
must serve. during the production process. • Positioning the offering within
Production sites may cover 100,000 sq m In one case, wasted materials the bigger picture of the enterprise
(more than 20 football fields), while and lost production were reduced digitalization or automation agenda.
examples such as auto-manufacturing, by simultaneously inspecting
steel and semiconductor plants may extend 24 assembly components, compared These growth vectors, adopted by service
over areas 5 times larger. Cellular networks with inspecting them one-by-one providers and resellers, are also described
are designed for providing radio coverage using conventional approaches.2 in detail in the Ericsson Mobility Report
at such scale and beyond. Business Review 2023.

Figure 19: Scaling network coverage beyond the production area, to colocated zones and sites

2
Ericsson, "Ericsson works with AWS and Hitachi America R&D to showcase smart factory potential" (August 29, 2023).
28 Ericsson Mobility Report | Business Review 2024

Deployment options for service providers to reach

enterprises, using both public and private networks

Enterprise needs differ, and service providers and resellers will factor in several parameters as they select the best offering.
While this article focuses on private networks, public networks are also readily available with coverage and performance,
and can serve enterprises in new ways.

Slicing the public network, Extending the public network Private networks for
for flexibility and speed onsite for performance performance and security
If dedicated service levels are required For connected workers in remote A private network may be a suitable
for specific areas or use cases, the locations, there may be a requirement offering when the enterprise needs:
public network resources may for better coverage onsite which can be • fully dedicated connectivity
be sliced to provide committed fulfilled by placing public network radios resources, such as for the main
resources enabled across the onsite or in a building. production line
end-to-end radio, transport and Where data cannot leave the site, • fully isolated networks, for security
core network. or very low latency is required, the data or privacy reasons
can be switched locally within the site. • very low latency, which is commonly
This is done by extending the public expected by industrial protocols
network by placing radio and the user such as PROFINET
plane onsite.

Public network Public network hybrid Public network

Public networks
Network radio and core
slice switching onsite On-site private network

Enterprise Enterprise Enterprise

Service providers bring licensed spectrum Technology evolution: 4G and 5G Reduced capability (RedCap) devices
assets, an existing wide-area network While 4G offers lower module prices Where the use case is for widely deployed
base, and expertise in deploying, and generally broader coverage, sensors, a key factor will be whether the
optimizing, operating, and supporting 5G provides additional spectrum and sensor has cellular connectivity at the right
cellular networks. performance. 5G can be implemented price point. For this, service providers and
While the network is fundamental, it is with a 4G dependency (5G NSA) or as sensor providers are preparing for RedCap
only part of the solution. Service providers standalone (5G SA). The capability needs devices. These use just 20 MHz spectrum
and resellers can bring additional offerings to be provisioned both in the network and rather than 100 MHz, enable low-power
such as consulting, system integration, the devices, where considerations include consumption, and fit well to the needs of
or bundle devices such as cameras functionality, availability and price. industrial sensors.3
with analytics capability. Ecosystem
engagement, such as engaging with a
crane manufacturer or a forklift truck
provider that serves the enterprise, can
bring value by de-risking the enterprise
investment decision. Financing may also
be a valued function.

3
Ericsson Mobility Report, "RedCap 5G NR expands Broadband IoT possibilities" (November 2023).
29 Ericsson Mobility Report | Business Review 2024

Glossary

4G: 4th generation mobile FWA: Fixed Wireless Access NR: New Radio as defined
networks (LTE, LTE-A) by 3GPP Release 15
FX: Foreign exchange
5G: 5th generation mobile Postpaid subscription: Service
networks (IMT-2020) GB: Gigabyte, 109 bytes paid at the end of the billing cycle

5QI: 5G QoS Identifier Gbps: Gigabits per second Prepaid subscription: Service
paid in advance
AGV: Automated Guided Vehicles GSA: Global mobile Suppliers Association
PROFINET: An open technical
API: Application programming interface GSM: Global System for standard for data communication
Mobile Communications over Industrial Ethernet.
AR: Augmented reality. An interactive
experience of a real-world environment HSPA: High speed packet access SA: Standalone
whereby the objects that reside in the
real world are “augmented” by LTE: Long-Term Evolution TD-SCDMA: Time division-synchronous
computer-generated information code-division multiple access
MB: Megabyte, 106 bytes
ARPU: Average revenue per user Tier 1: Nationwide dominant
Mbps: Megabits per second and leading service providers
B2B2C: Business to business to
consumer. With B2B2C models, Mobile broadband: Mobile data service Triple/Quad Play: Typically
businesses partner with other using radio access technologies including offering mobile and fixed services
companies to reach new customers 5G, LTE, HSPA, CDMA2000 EV-DO, in combination with media content
Mobile WiMAX and TD-SCDMA (three or four services combined)
CAGR: Compound annual growth rate
Mobile PC: Defined as laptop or desktop VR: Virtual reality
CDMA: Code-division multiple access PC devices with built-in cellular modem
or external USB dongle WCDMA: Wideband code-division
CPaaS: Communications platform multiple access
as a service Mobile router: A device with a cellular
network connection to the internet and xDSL: The family of digital
CPE: Customer premises equipment Wi-Fi or Ethernet connection to one or subscriber line technologies
several clients (such as PCs or tablets)
Dual-play broadband: Fixed and XR: Extended reality. An umbrella
mobile broadband from one provider MR: Mixed Reality category for virtual or combined
real/virtual environments, which
EB: Exabyte, 1018 bytes MVNO: Mobile virtual network operator include AR,VR and MR
30 Ericsson Mobility Report | Business Review 2024

Key figures
Key figures are from Ericsson Mobility Report, November 2023.
The figures for 2023 are estimates from November 2023.

Global key figures Forecast CAGR*

Mobile subscriptions 2022 2023 2029 2023–2029 Unit
Worldwide mobile subscriptions 8,310 8,460 9,210 1% million
•S martphone subscriptions 6,620 6,970 8,060 2% million
• Mobile PC, tablet and mobile
router subscriptions 230 260 510 12% million
• Mobile broadband subscriptions 7,090 7,470 8,740 3% million
• Mobile subscriptions, GSM/EDGE-only 1,110 890 380 -13% million
• Mobile subscriptions, WCDMA/HSPA 1,040 850 270 -17% million
• Mobile subscriptions, LTE 5,180 5,130 3,210 -8% million
• Mobile subscriptions, 5G 963 1,570 5,330 23% million
• Fixed Wireless Access (FWA) connections 107 132 330 17% million
Fixed broadband connections 1,450 1,530 1,850 3% million
Mobile data traffic
• Data traffic per smartphone 16 21 56 18% GB/month
• Data traffic per mobile PC 20 22 34 8% GB/month
• Data traffic per tablet 12 14 33 16% GB/month

Total data traffic**

Mobile data traffic 97 130 403 21% EB/month
• Smartphones 95 128 398 21% EB/month
• Mobile PCs and routers 0.8 1 2.4 16% EB/month
• Tablets 0.7 0.9 2.8 21% EB/month
Fixed Wireless Access (FWA) 22 30 159 32% EB/month
Total mobile network traffic 119 160 563 23% EB/month
Total fixed data traffic 270 330 660 12% EB/month

Regional key figures Forecast CAGR*

Mobile subscriptions 2022 2023 2029 2023–2029 Unit
North America 420 430 470 2% million
Latin America 710 720 790 2% million
Western Europe 540 550 560 0% million
Central and Eastern Europe 560 560 560 0% million
North East Asia 2,160 2,200 2,260 0% million
China1 1,690 1,720 1,760 0% million
South East Asia and Oceania 1,140 1,160 1,310 2% million
India, Nepal and Bhutan 1,150 1,160 1,270 1% million
Middle East and North Africa 730 740 850 2% million
Gulf Cooperation Council (GCC)2 75 76 81 1% million
Sub-Saharan Africa 900 940 1,130 3% million

Forecast CAGR*
Smartphone subscriptions 2022 2023 2029 2023–2029 Unit
North America 360 370 390 1% million
Latin America 570 600 690 2% million
Western Europe 440 460 490 1% million
Central and Eastern Europe 410 410 450 2% million
North East Asia 2,020 2,060 2,160 1% million
China1 1,600 1,640 1,700 1% million
South East Asia and Oceania 950 970 1,160 3% million
India, Nepal and Bhutan 870 950 1,180 4% million
Middle East and North Africa 560 600 780 5% million
GCC2 63 64 72 2% million
Sub-Saharan Africa 420 460 760 9% million
31 Ericsson Mobility Report | Business Review 2024

Regional key figures Forecast CAGR*

LTE subscriptions 2022 2023 2029 2023–2029 Unit
North America 230 160 40 -21% million
Latin America 520 540 290 -10% million
Western Europe 420 380 80 -23% million
Central and Eastern Europe 420 460 280 -8% million
North East Asia 1,420 1,230 430 -16% million
China1 1,050 890 260 -19% million
South East Asia and Oceania 630 720 680 -1% million
India, Nepal and Bhutan 850 860 390 -12% million
Middle East and North Africa 420 470 470 0% million
GCC2 55 44 3 -35% million
Sub-Saharan Africa 265 330 550 9% million

Forecast CAGR*
5G subscriptions 2022 2023 2029 2023–2029 Unit
North America 170 260 430 9% million
Latin America 10 28 400 N/A million
Western Europe 67 139 480 23% million
Central and Eastern Europe 5 14 280 N/A million
North East Asia 646 890 1,800 12% million
China1 569 769 1,480 12% million
South East Asia and Oceania 33 57 550 N/A million
India, Nepal and Bhutan 10 130 860 N/A million
Middle East and North Africa 18 44 350 N/A million
GCC2 13 26 75 19% million
Sub-Saharan Africa 3 11 180 N/A million
Forecast CAGR*
Data traffic per smartphone 2022 2023 2029 2023–2029 Unit
North America 19 26 66 17% GB/month
Latin America 12 15 50 22% GB/month
Western Europe 22 27 64 16% GB/month
Central and Eastern Europe 16 19 43 15% GB/month
North East Asia 18 21 64 20% GB/month
China1 18 22 66 20% GB/month
South East Asia and Oceania 16 24 66 19% GB/month
India, Nepal and Bhutan 25 31 75 16% GB/month
Middle East and North Africa 14 17 45 17% GB/month
GCC2 26 30 66 14% GB/month
Sub-Saharan Africa 5 6.7 23 22% GB/month

Forecast CAGR*
Total mobile data traffic 2022 2023 2029 2023–2029 Unit
North America 6.8 9.6 27 18% EB/month
Latin America 5.8 7.8 30 25% EB/month
Western Europe 8.8 11 28 16% EB/month
Central and Eastern Europe 4.8 6.3 15 15% EB/month
North East Asia 30 37 116 21% EB/month
China1 20 26 88 23% EB/month
South East Asia and Oceania 14 21 69 22% EB/month
India, Nepal and Bhutan 18 26 73 19% EB/month
Middle East and North Africa 6.8 9 31 23% EB/month
GCC2 1.3 1.5 3.8 16% EB/month
Sub-Saharan Africa 1.8 2.7 15 33% EB/month

1
These figures are also included in the figures for North East Asia.
2
These figures are also included in the figures for Middle East and North Africa.

* CAGR is calculated on unrounded figures.

** Figures are rounded (see methodology) and therefore summing up of rounded data may result in slight differences from the actual total.
About Ericsson Ericsson enables communications service providers and
enterprises to capture the full value of connectivity.
The company’s portfolio spans the following business
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Wireless Solutions, Global Communications Platform,
and Technologies and New Businesses. It is designed to
help our customers go digital, increase efficiency and find
new revenue streams. Ericsson’s innovation investments
have delivered the benefits of mobility and mobile
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