In the region, 14 markets have already launched 5G commercial services, namely Australia, Bhutan, Guam, Indonesia, Japan, Laos, Malaysia, Maldives, New Zealand, North Mariana Islands, Philippines, Singapore, South Korea and Thailand. On the other hand, 5G is still undergoing planning for countries including Nepal, Bangladesh, Brunei, Cambodia, Myanmar, Vietnam, Sri Lanka, Samoa, Pakistan and India. South Korea takes the lead in terms of average and peak 5G download speeds according to market research firm Statista.
The Bangladesh Telecommunication Regulatory Commission (BTRC) for instance, is preparing to launch 5G after holding its auction for licenses in 2.3 GHz and 2.6 GHz bands in April 2022. In India, spectrum auctions will be held in late July, with spectrum to be allocated not only for telecom operators Reliance Jio, Airtel and Vodafone Idea, but also for private networks to enable enterprise 5G to address demands in Industry 4.0 applications.
Also gearing up for 5G momentum after months of tussle, six of Malaysia’s telecom operators have finally reached a consensus with stated-owed Digital Nasional Bhd (DNB) to collectively own a 70% equity stake in the country’s 5G network infrastructure. As part of the nation’s digital ambitions, Malaysia plans to extend 5G nationwide to 80% in populated precincts by 2024. In Thailand, the Digital Economy Promotion Agency (DEPA) has recently established the Thailand 5G Alliance to promote commercial 5G use and grow the country’s 5G ecosystem, aimed to elevate Thailand to become a digital hub for ASEAN.
Growing 5G Revenue with More Commercially Viable Solutions
According to Frost & Sullivan, 5G revenue in the region is expected to grow from $2.13 billion in 2020 to $23.89 billion in 2025, representing a 62.2% CAGR, attributed by accelerated 5G connectivity. Network slicing will play a big part in growing 5G capabilities and delivering 5G services for enterprises.
A notable trend is the rise of 5G private networks to ensure enhanced security and control, especially critical in growing smart factories and furthering Industry 4.0. In Southeast Asia, 5G private networks are expected to grow from $83.35 million in 2021 to $1,93 billion by 2030, at a CAGR of 41.9%, based on an analysis by Allied Market Research. In the region, mobile operators have embarked on commercial 5G private networks to capture new market opportunities created by growing demands for low latency, high-speed connectivity, as well as increased usage of artificial intelligence and other smart connected devices. In 2020, Indonesia contributed the highest market share in terms of revenue, accounting for 40% of Southeast Asia’s private 5G market. Being the fast-growing digital economy, Indonesia is projected to maintain its lead in the private 5G market until 2030, with Malaysia forecasted to report the largest CAGR of 48.6% during this period.