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MEA region to reach 380 million 5G subscribers by 2027: Nokia

Nokia

Image courtesy of Nokia.

Nokia said that 5G will account for 17% of the region’s overall mobile subscribers in 2027

5G subscribers in the Middle East and Africa region (MEA) are forecast to reach 380 million by 2027, according to Nokia’s MEA mobile broadband index.

The report noted that 5G technology will account for 17% of MEA’s overall mobile subscribers by 2027.

In the 4G segment, total subscribers will reach 1.21 billion by 2027, accounting for 53% of the total mobile subscriber base.

The report highlights 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, Nokia said.

The report also shows that in the Gulf Cooperation Council (GCC) region, 5G subscribers are expected to reach 75% 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 momentum over the next years, Nokia said.

The report showed that 5G subscribers in the GCC region will grow by 78 million from 2022 to 2027, with Saudi Arabia contributing more than 60% of new subscribers.

GCC currently is the most mature region in terms of 5G device ecosystem, with approximately 20% of the smartphones with 5G capability. Nokia said that many 5G capable devices are still connected to 4G networks due to lack of 5G coverage.

Meanwhile, 5G subscribers in Southern Africa are estimated to reach 36 million subscribers by 2027, accounting for 18% of total subscribers. By that year, 4G will represent 63% of the overall mobile base in this region.

The new report also highlights that 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.

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.”

The Nokia report also stated that the region’s overall mobile revenues are forecast to reach $94.7 billion by 2027, up from $74.7 billion in 2021. Revenues in the MEA region will expand at a CAGR of 4.3% in the 2022-2027 period. By the end of 2027, data revenue is estimated to reach $66.4 billion, accounting for 70% of total revenue, while voice revenue will reach $26.8 billion.

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