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| Ericsson: China is driving the demand for 5G networks |
Swedish company Ericsson raised its estimate of global 5G users to 220 million by the end of this year on Monday, citing an unexpectedly rapid uptake from China.
The company predicts that four out of ten mobile phone users will be 5G by 2026 if service providers continue to build networks.
The current proliferation of 5G networks in coverage of subscribers and residents confirms that the spread of technology is faster than any generation of communications.
The telecom equipment maker previously forecast 190 million users and said China is expected to account for roughly 80% of the new forecast.
“The increase is mainly due to the rapid growth in China,” said Frederick Gigdling, Executive Vice President and Network President at Ericsson.
He added: This is due to the national strategic priorities and the fierce competition between service providers and the increase in sales of smartphones that support 5G networks at affordable prices.
“This year the company has taken a big step towards digitalization as this epidemic has exposed the impact of communications on our lives and has become a catalyst for rapid change,” Erickson said in the semi-annual report.
“By the end of this year, an estimated 15% of the world's population (or one billion people) will be living in the area covered by 5G networks,” said Gigling.
The company expects 3.5 billion 5G users, or more than 50% of mobile traffic, by the end of 2026.
The Swedish company is competing with Huawei in China and Nokia in Finland, adding that by 2026, 60% of the world's population will be covered by 5G.
Ericsson has signed contracts with three major Chinese operators to deliver equipment for 5G networks.
The cellular network industry is facing a downward trend in demand for legacy devices and 4G networks, but spending on 5G networks in North America helped resume growth.
The next generation of mobile technology provides excellent data speeds and supports a wider range of connected devices.
Ericsson predicts that 80% of North American cell phone users will use 5G by 2026.