[October 17, 2017] |
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GSMA Study: 5G to Account for a Third of Europe's Mobile Market by 2025
More than 30 per cent of Europe's mobile connections will be running on
5G networks by 2025, according to a new GSMA (News - Alert) study. The 2017 Europe
edition of the GSMA's Mobile Economy series, published today at the GSMA
Mobile 360 Series - Europe event in Brussels, forecasts that there will
be 214 million 5G connections in Europe by 2025, establishing the region
as one of the largest 5G markets in the world by that point. The first
commercial 5G networks in Europe are due to be switched on by 2020 and
are expected to provide 5G network coverage to almost three-quarters of
Europe's population by 2025.
"Europe has an opportunity to reestablish itself as a global technology
leader as we move toward the 5G era, but this can only happen if
policymakers move quickly and boldly to make the necessary regulatory
reforms to boost the region's competitiveness on the global stage and
bring innovative services to Europe's citizens," said Mats Granryd,
Director General of the GSMA. "A forward-looking regulatory environment
designed to encourage long-term investment and innovation in Europe's
digital infrastructure is essential to maintaining a vibrant European
mobile ecosystem and delivering the European Commission's vision for a
'Gigabit Society'."
Next-Generation Services Offsetting Slowing Subscriber Growth
Europe is the most highly penetrated mobile region in the world. At the
end of last year, there were 456 million unique mobile subscribers1
in Europe, equivalent to 84 per cent of the population. This high
penetration rate means that there is little room for subscriber growth
over the coming years: unique mobile subscribers in Europe are forecast
to reach 469 million by 2020, or 86 per cent of the population - a 0.7
per cent CAGR (2016-2020).
However, slowing subscriber growth is being offset by the rapid
migration to 4G networks. 4G accounted for a third of mobile connections
in Europe at the end of 20162, and is forecast to account for
more than 60 per cent of the total by 2020 as more Europeans take up 4G
devices amid a growing demand for data and as 4G network coverage
increases. The number of 4G connections will overtake 3G connections in
Europe for the first time this year. 4G networks are also set to evolve
and grow in popularity well into the 5G era, supporting higher speeds
via network upgrades based on MIMO (Multiple Inpt, Multiple Output) and
carrier aggregation technologies.
Revenue Growth Stabilising, Mobile GDP Contribution Increasing
Mobile revenue growth in Europe is showing signs of stabilising,
following a prolonged period of negative or flat growth. European mobile
operator revenue reached EUR143 billion in 2016 and is expected to
increase slightly to EUR146 billion by the end of 2020. The report
attributes the steadying performance to rising data demand, improved
macroeconomic conditions and an easing of regulatory pressures.
Last year, mobile technologies and services generated EUR540 billion in
economic value across Europe, a contribution equivalent to 3.4 per cent
of Europe's GDP3. By 2020, this figure is expected to
increase to around EUR670 billion (3.9 per cent of GDP), as the region
experiences strong growth in productivity brought about by continued
adoption of machine-to-machine technology and the increased digitisation
of industry and services.
Europe's mobile ecosystem supported 2.6 million jobs, directly and
indirectly, in 2016. The sector also makes an important contribution to
the funding of the public sector, with EUR100 billion raised in 2016,
mainly in the form of general taxation, including VAT, corporate taxes
and employment taxes.
A New Era of Regulation for a Digital Europe
To support the mobile industry's increasing contribution to Europe's
growth and innovation, the report highlights the need for new thinking
around telecoms sector regulation. It calls for a review of the European
Commission's Digital Single Market, launched two years ago, particularly
with regards to new proposals such as the European Electronic
Communications Code and ePrivacy Regulation.
"Europe needs a holistic policy and regulatory framework that reinforces
its position as a preferred location for investment and innovation,"
added Granryd. "We are calling for fresh dialogue between government and
industry to assess how the Digital Single Market has performed to date,
what needs to change and where regulation can promote the long-term
development of Europe's digital vision."
The new report 'The Mobile Economy: Europe 2017' is authored by
GSMA Intelligence, the research arm of the GSMA. To access the full
report and related infographics, please visit: http://www.gsma.com/mobileeconomy/europe.
-ENDS-
About the GSMA
The GSMA represents the interests of mobile operators worldwide, uniting
nearly 800 operators with more than 300 companies in the broader mobile
ecosystem, including handset and device makers, software companies,
equipment providers and internet companies, as well as organisations in
adjacent industry sectors. The GSMA also produces industry-leading
events such as Mobile World Congress (News - Alert), Mobile World Congress Shanghai,
Mobile World Congress Americas and the Mobile 360 Series of conferences.
For more information, please visit the GSMA corporate website at www.gsma.com.
Follow the GSMA on Twitter (News - Alert): @GSMA.
1 A unique mobile subscriber represents an individual that
can account for multiple SIM connections
2 There were 671 million connections (excluding M2M) in
Europe at the end of 2016 (34% 4G), forecast to rise to 709 million by
2020 (61% 4G)
3 GDP contribution includes direct mobile ecosystem
contribution (1.0% of GDP); indirect contribution (0.6%); and
productivity improvements (1.8%).
View source version on businesswire.com: http://www.businesswire.com/news/home/20171017005154/en/
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