Nokia has announced the
results of its new research report, the Nokia MEA Mobile Broadband Index,
which provides a comprehensive overview of the MEA region's
mobile broadband landscape.
The in-depth
report highlights the steady growth of 5G in the Middle East and
Africa region (MEA) as well as its impact on digital
transformation. It confirms that the Middle East is far ahead of
Africa in terms of 5G adoption, while many operators in Africa are
still developing their business models around 4G. Voice traffic still
relies on 2G and 3G networks in many parts of the region.
5G is
forecast to increase steadily and will contribute to the growth of the mobile
broadband subscriber base, which is expected to grow with a CAGR of six
percent in MEA.
According to
the report, 4G networks in MEA account
for 79 percent of overall data traffic today, and by
2027, 4G and 5G will together account for
90 percent of data traffic. In the same year, 4G
subscribers will reach 1,214 million (53 percent of total
subscribers) whereas 5G adoption is estimated to reach 380 million
subscribers (17 percent of total). Yearly ARPU is
estimated to increase at USD$3.4 in 2027, and total data traffic is
expected to increase at a CAGR of 32 percent from 2022 to 2027.
The report
shows that in the Gulf Cooperation Council (GCC) region, 5G adoption is the
fastest, and 5G subscribers are expected to reach 75 percent by 2027, mainly
driven by Saudi Arabia. In non-GCC Middle Eastern countries and in
Africa, 4G will continue to expand and remain dominant until
2027, while 5G deployment is at nascent stage today and poised
to gain more and more momentum over the next years.
As the
report confirms, 5G Fixed Wireless Access (FWA) in the GCC countries and 4G FWA
in the rest of the MEA region are one of the most attractive use cases,
with a significant opportunity for operators to drive incremental
revenues. Furthermore, 5G networks are more energy efficient than previous
radio network generations, helping operators reach their sustainability
targets.
Mikko
Lavanti, Head of Mobile Networks at Nokia MEA, said: "MEA is a diverse region with many
countries at different stages of development and that is reflected in our
report. Data consumption with high-speed networks is increasing exponentially
across the MEA market in both urban and rural areas. Reliable 4G and 5G
networks are critical for bridging the digital divide in the region, in
addition to supporting data-intensive applications for communities and
businesses. Nokia is helping both operators and enterprises unlock new
opportunities with 5G, building the evolution towards future technologies that
will enable enhanced experiences such as the Metaverse."
