Nokia’s MEA Mobile Broadband Index Report Points out 5G Promotes Digital Transformation
Nokia has released the results of its latest research report, the Nokia MEA Mobile Broadband Index, which provides a comprehensive overview of the mobile broadband prospects in the MEA region. This in-depth report highlights the steady growth of 5G in the Middle East and Africa (MEA) and its impact on Digital transformation. The report confirms that the Middle East is far ahead of Africa in 5G adoption, and many operators in Africa are still developing their business models around 4G. In many parts of the region, voice communication still relies on 2G and 3G networks.
It is expected that 5G will steadily grow and contribute to the growth of the mobile broadband user group, which is expected to grow at a compound annual growth rate of 6%. According to the report, MEA’s 4G network currently accounts for 79% of total data traffic, and by 2027, 4G and 5G will jointly account for 90% of data traffic. In the same year, 4G users will reach 1.214 billion (53% of total users), while 5G users are expected to reach 380 million (17% of total users). It is expected that ARPU will grow by $3.4 by 2027, and total data traffic is expected to grow at a compound annual growth rate of 32% from 2022 to 2027.
The report shows that in the Gulf Cooperation Council (GCC) region, 5G adoption is the fastest, and it is expected to reach 75% of 5G users by 2027, mainly driven by Saudi Arabia. In non Gulf Cooperation Council Middle Eastern countries and Africa, 4G will continue to expand and maintain its dominant position until 2027, while 5G deployment is currently in its infancy and is expected to gain increasing momentum in the coming years.
As confirmed in the report, 5G Fixed Wireless Access (FWA) in Gulf Cooperation Council countries and 4G FWA in other countries in the MEA region are one of the most attractive use cases, providing important opportunities for operators to drive revenue growth. In addition, 5G networks are more energy-efficient than previous generations of wireless networks, helping operators achieve their sustainable development goals.
Mikko Lavanti, Director of Mobile Networks at Nokia MEA, stated: “MEA is a diverse region with many countries at different stages of development, as reflected in our report. The data consumption of high-speed networks is growing exponentially in the MEA market in urban and rural areas. In addition to supporting data-intensive applications for communities and businesses, reliable 4G and 5G networks are crucial for bridging the digital divide in the region. Nokia is helping operators and businesses unlock new opportunities through 5G and drive the development of future technologies, thus achieving enhanced experiences such as Metaverse.”