Mobile Data Traffic to Almost Triple
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Europe’s Mobile Data Traffic to Almost Triple Within Five Years

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As reported by the GSMA, owing to the continuous expansion of 4G in central and eastern Europe and a sudden boom of 5G in terms of coverage and capacity, it is expected that mobile data traffic will triple in the next five years.

The report also highlighted that apart from basic services like speed and uninterrupted connection, 5G subscribers are interested in services with higher bandwidth, such as online gaming, virtual reality, and video streaming, that require a big investment by the network providers.

Contribution to the Economy

The telecom industry has been stepping up in Europe in the past few years accounting for 2.2 million jobs directly and indirectly. In 2022, the European mobile market contributed €910 billion to the economy, which represents 4.3% of the region’s GDP. It is estimated that approximately €198 billion will be needed to upgrade the network by 2030. To summarize,

  • By 2030, 87% of mobile connections in Europe will be 5G.
  • Approximately 507 million unique mobile subscribers are expected by 2030, reflecting a 92% penetration rate across Europe.

Increased Productivity

As per the data, the mobile operators contributed €110 billion in Europe, and it was reported that the productivity in mobile technologies escalated by approximately €670 billion.  The sector has contributed significantly to the economy and the total contribution will reach up to €1 trillion by 2030. The pivotal reasons for the same are an expansion of the ecosystem and vertical segmenting that adds benefits to mobile services.

  • In the next 3 years, 5G will become the most dominant mobile technology driven by the uptake in the UK and Germany.
  • By 2030, 53% of 5G business will come from the service sector and 30% from the manufacturing sector including applications, such as smart cities, smart grids, and factories.

Fast-growing User base

The report highlighted the multiple applications of 5G in various sectors. It is estimated that almost 53% of 5G projected advantages will come from services and 30% from manufacturing by the year 2030. To sum up, it is predicted that 5G will contribute €153 billion to European GDP in the next ten years, which is almost 15% of the total economic gain by mobiles.

  • Easy 5G access in rural areas to expand the mobile ecosystem.
  • Increased investments in mobile technology of use cases supported by 5G standalone and 5G-Advanced technologies.

Despite the huge potential, the scope of policies about network investment seems like a small hurdle in Europe’s digital leadership. For instance, in Asia Pacific, 25% of standalone 5G networks are used as compared to 5% in Europe.

According to Daniel Pataki, VP for Policy and Regulation, and Head of Europe for the GSMA, “Although Europe has always been at the forefront in terms of mobile and digital technology, it is high time that the focus should shift towards sustaining investments in the mobile phone networks to retain the leadership globally. Meaningful changes in terms of policies, consolidation, investment models, spectrum harmonization, etc. is the need of the hour.”

Key Takeaways

Here are some of the key findings of the report-

  • There are more than 460 million Europeans (85%) with mobile internet, which reflects the reduction in the gap to just 14%.
  • Most European countries, like Denmark, Spain, Italy, and Portugal have mobile internet penetration of almost 90% in 2022.
  • More than 900 million active connections in Europe using smartphones and ‘feature’ phones. It is predicted that the ownership of such devices will be almost 90% by 2030.
  • Satellite connectivity is booming as satellite companies and mobile operators join hands to bridge the gap using low Earth orbit constellations.
  • Generative AI for code development, network management, customer care, etc. are being explored to make the best use of the same.
  • The focus is on a sustainable option by focusing on device longevity and circularity.
  • Securing over 24% of global investments, Europe’s fintech sector is being explored to monetize on modernization in the banking sector.

Network investments are the only way to boost Europe’s digital position globally. Rethink the current design of telecom networks promoting satellite connectivity and explore generative AI to meet the data demands and explore the future of 5G mobile technologies.

Conclusion

Network investments are the only way to boost Europe’s digital position globally. Rethink the current design of telecom networks promoting satellite connectivity and explore generative AI to meet the data demands and explore the future of 5G mobile technologies.   

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