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Ericsson (NASDAQ:ERIC) lays out a roadmap for operators to unlock the revenue potential of 5G-enabled industry digitalization. In ‘5G Business Potential beyond Mobile Broadband’ – a sequel to the ‘5G Business Potential’ report – Ericsson delves deeper into industry verticals that are prominent in the region and offer clear opportunities for 5G use cases.
According to Ericsson report, MEA network developers can expect an estimated potential revenue opportunity up to USD 46 billion by 2030 provided they adapt their business model to become service enablers and creators.
Chafic Traboulsi, VP and Head of Networks, Ericsson Middle East and Africa says: “5G will introduce opportunities that will allow operators to adopt new business models, and develop new services, applications, and revenue streams. These new 5G applications and services are expected to have a profound impact on consumers, businesses and industry digitalization which underscores the importance of releasing our research at this time.”
Harnessing 5G-enabled revenue opportunities
During the second quarter of 2019 several markets switched on 5G following the introduction of new 5G-compatible smartphones. As 5G devices increasingly become available and more service providers launch 5G, over 10 million 5G subscriptions are projected worldwide by the end of 2019.
In Middle East and Africa, the operators in the advanced markets of the Gulf were among the first in the world to launch 5G, with commercial 5G services live in majority of the Gulf countries. There will be 60 million mobile 5G subscriptions in the Middle East and Africa by the end of 2024 according to Ericsson latest mobility report, though that will represent just 3% of all mobile subscriptions in the region.
Ericsson has identified four industry verticals that form the primary focus in the addressable 5G business potential opportunity in Middle East and Africa. Regional service providers not only have established expertise in these verticals, they offer clear opportunities for 5G use cases: Oil and gas (Mining), Transport and automotive, Public Safety and Critical infrastructure, Manufacturing.
The secondary focus for 5G services in the region should be on industry verticals that offer some opportunities for 5G services, but on a smaller scale – Media and Entertainment, Healthcare and Retail. Tertiary focus is on financial services and agriculture.
Read the ‘5G Business Potential beyond Mobile Broadband’ report
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