Ericsson raises 5G forecasts

Ericsson raises 5G forecasts

Ericsson, a Swedish telecom equipment maker, announced it is raising its 2025 forecast 5G subscriptions globally to 2.8bn up 200m from 2.6bn on the back of the coronavirus pandemic.

Telecoms is one of the few sectors, along with Healthcare and parts of Technology that have benefited from significant growth in demand for their services during the Covid-19 crisis, as a result of the lockdowns around the globe that have forced people to work from home rather than the office.

Patrik Cerwall, head of strategic marketing at Ericsson, said that the 2020 forecast would also be raised, but gave no further detail during a web seminar held by the company.

Ericsson is one of a handful of equipment manufacturers capable of supplying telecoms companies with the infrastructure needed to build out their 5G networks. The two other leading competitors are Finland’s Nokia and China’s Huawei.

Analysts take the view that 5G rollout will happen more quickly than the previous network upgrade referred to as LTE. Ericsson believes that 5G subscriptions will make up 29% of all mobile subscriptions by 2025.

5G is the latest generation of mobile network technology that, it is hoped, will bring data download and upload speeds that compete favourably with current copper and fiber broadband offerings.

The office is not dead, indeed the Covid-19 crisis will emphasise the benefits of an office, but it will also show to employees and companies alike that there is no need to be there all working hours.

Nothing illustrates this better than the increased demand for new technologies during this pandemic, which in our view has changed, or perhaps simply accelerated changes to, the working office environment and all for the better in the long term. Companies should learn from this and invest sooner, rather than later, in remote working technologies. We would also encourage them to make more allowance for greater work/family life balance for their staff. If they don’t do this, mostly they will lose talent.