5G handsets to reach 15 million by 2023

Adoption of 5G will ‘rejuventate’ Australia’s mobile services market

More than 15 million 5G handsets are expected to be operational in Australia within five years giving a much-needed boost to the mobile services market. 

According to research firm Telsyte, the number of 5G services in operation (SIOs) will reach around 1.1 million in 2020, a much faster adoption rate than previous network generations of 3G and 4G.

In its Australian Mobile Services Market Study 2019, Telsyte put the faster adoption rate down to the ready availability of 5G handsets, citing a previous study that claimed consumers are holding off buying a new smartphone ahead of the 5G roll-out. 

Telstra recently unveiled the first 5G smartphones in Australia through deals with Samsung, LG and Oppo.

In contrast, the first 4G handset in Australia (HTC Velocity 4G) was released 3 months after Telstra officially launched 4G, Telsyte noted.

As such, the “smartphone market is ripe for upgrades” the analyst firm claimed, giving hope to the struggling mobile services market.

According to Telsyte, total services revenue has been in decline since December 2017, mainly due to price-driven competition. 

However, a Telsyte survey of 1,006 Australians claimed around a quarter of Australians would pay up to $10 more a month for 5G connectivity, giving a boost to the carrier market. 

“Australia is at the very beginning of 5G, but when 5G becomes the standard, consumers won’t be able to look back,” Telsyte senior analyst Alvin Lee said. 

The arrival of 5G is also expected to drive business investment, especially within the internet of things (IoT) applications space. The report forecasted that enterprise 5G opportunities driven by application development, IT services, platforms and connectivity could reach around $45 billion per year by the mid-2020s.

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Eleanor Dickinson
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