KUALA LUMPUR, Nov 17 — The fifth generation of cellular technology or 5G handsets will make up 60.6 per cent of total handset shipments to Malaysia in 2025.
This will enable a rapid take-up rate of 5G services, the International Data Corporation (IDC), the global provider of market intelligence, said in a White Paper entitled “Building a 5G Foundation for Digital Malaysia”, commissioned by Ericsson, released today.
“The next three to five years will be an important period for Malaysia to integrate 5G into daily life and business processes,” said IDC vice-president of IoT and telecommunications Hugh Ujhazy.
Against such a forecast, IDC recommends that Mobile Network Operators (MNOs) should introduce innovative applications, work with and enable developers to create robust apps, and use cases that take full advantage of the speed, latency and reliability offered by 5G.
This will enable MNOs to rapidly grow their customer base, the paper said.
To realise the full benefits of 5G in Malaysia, 5G Standalone network (SA) is also recommended as the ultimate architecture for 5G, with careful planning required to prepare for 5G SA for both network and device readiness.
IDC also said the 2025 forecast on 5G handsets for Malaysia is 21.2 per cent as consumers have already started buying 5G devices since they become more affordable, despite the non-availability of a 5G network in the country.
Head of Ericsson Malaysia, Sri Lanka and Bangladesh David Hägerbro said 5G will serve as an economic and innovation driver for Malaysia, enhancing its global and regional competitiveness.
“5G would accelerate Industry 4.0 and enable new digital services in the consumer and enterprise spaces and provide Malaysia with secure, robust connectivity and infrastructure,” he said in a statement when commenting on the White Paper.
It would also set the foundation for future technological and business growth by delivering higher data speeds, ultra-low latency, greater reliability, massive network capacity, and an enhanced consumer experience for users.
The paper also emphasises the critical role of mobile networks (4G/5G) in accelerating the ‘Jendela’ and MyDIGITAL initiatives, Malaysia’s 5G readiness compared to its regional peers.
The potential impact of 5G on the consumer and enterprise segments in Malaysia has been examined and some recommendations for 5G deployment have been made.
“The White Paper was commissioned as part of our 5G study on Malaysia to see how Malaysians, investors and industries could be empowered to reach their full potential with a network that is reliable, robust, energy efficient and secure.
“Ericsson now looks forward to working with Digital Nasional Bhd to deliver a world-class 5G network for Malaysia and accelerate the digital transformation for Malaysian consumers and enterprises.” said Hägerbro.
To leverage the capabilities of 5G, mobile services providers, academia and the start-up ecosystem should work together to enable development of innovative applications and use cases for both consumers and industries.
IDC forecasts that by 2025 there will be 12.7 million 5G connections or roughly 22.4 per cent of total subscribers, as well as 43.1 million 4G LTE subscriptions in Malaysia or 76.2 per cent of total subscriptions.
Hägerbro said: “Across the world, 5G is already transforming industries by kickstarting the 4th Industrial Revolution and enriching the network experience for various businesses and end consumers.
“We stay committed to providing our leading edge 5G technology solutions and professional services to ensure that DNB can achieve the objectives of the MyDIGITAL programme of the Malaysian government and help transform Malaysia into a digital economy, ” he said.
According to the Malaysian Institute of Economic Research, 5G will contribute RM8.5 billion to Malaysia’s gross domestic product (GDP) in 2025.
A 5G-enabled infrastructure will impact the economy positively, across all industry verticals, including the consumer segment.
Consumers will become the foundation of 5G revenue for MNOs until enterprise revenues can be fully realised.
He said that 5G will play a critical role in enabling the MyDIGITAL initiatives.
Industries, including manufacturing, public sector, BFSI and retail will reap the benefits arising from 5G.
Infrastructure investments over the last decade have built the backbone that 5G innovation will rely upon.
DNB will pave the way for Malaysia’s wireless services to move to the next level, driving the convergence of fixed and wireless infrastructure. — Bernama