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5G services revenue to grow in 5 years: Report

Mumbai, Mar 15 (UNI): At a time when India is awaiting the 5G rollout, it is estimated that the 5G services revenue is likely to grow at a CAGR of 164% in five years, a recent Nokia annual Mobile Broadband Index (MBiT) report stated.
According to the report, 5G will play a major role in connecting the unconnected and advancing India to become a USD 1 trillion digital economy by 2025. “5G services revenue is likely to grow at a CAGR of 164% in five years, which is in line with the global momentum gained by 5G. The technology is expected to contribute up to one per cent of global GDP or USD 1.3 trillion in revenue by 2030, driven by innovative use cases in several sectors, including healthcare, utilities, next-generation media applications, manufacturing and smart cities,” it said.
The report highlighted that India’s data traffic increased by 31% in 2021, with average mobile data consumption touching 17 GB per user per month. Also, India’s growing 4G networks carried almost all mobile broadband traffic in 2021.
According to the report, with a Compounded Annual Growth Rate (CAGR) of 53% over the last five years, India has one of the highest data usage in the world. Also, the mobile broadband subscribers have doubled from 345 million to 765 million in the last five years, it said. “The growing number of data users and consumption per user is helping the country advance towards realizing the vision of Digital India,” it added.
The report showed that more than 40 million subscribers were added or upgraded to 4G services in 2021. “This number will further grow as adaptation to digitization continues to grow. Metros have shown a significant increase in traffic as compared to the previous years,” the report revealed.
It further said the growing ecosystem of 4G-capable devices is driving the growth in 4G subscribers and data consumption. “India recorded the highest-ever shipment of more than 160 million smartphones, including 30 million 5G devices in 2021, with active 4G capable devices crossing 80 per cent and the number of active 5G capable devices crossing 10 million,” the report said.
The report has forecast that user adoption will increase to 60-75% of the smartphone user base by the calendar year 2025. “The massive uptake of mobile broadband and video content is projected in the rural segment on the back of growing smartphone adoption,” it said.

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