New research shows that the APAC region is poised to set the pace for the next wave of mobile technology.
The Global Mobile Suppliers Association has predicted that APAC will lead the global 6G mobile network rollout in the next decade, as telecommunications operators in the region innovate and outpace some of their more conservative counterparts in other parts of the world.
However, the popularity of 5G remains high. GSA, which tracks over 2,500 operators worldwide, also indicated on a recent webinar that a number of 5G launches are set to occur in the short to medium term, with many more companies in APAC projected to see commercial 5G deployment over the longer term.
APAC’s ‘innovative, aggressive’ operators to be global 6G leaders
GSA research suggests the global rollout of 6G will occur in 2030, with some potential earlier launches in 2029. Ian Fogg, a tech industry analyst at CCS Insight, stated on the webinar that APAC operators are expected to lead globally in the rollout of 6G networks.
“I think one of the interesting dynamics is that European operators are being very cautious about investment in new technology and monetary return,” he said. “In APAC, we see much more innovative, aggressive operators. So it’s likely we’ll see some of these early 6G launches in the APAC region.”
SEE: The potential use cases for 6G
While saying that the technology remains several years away from launching, Fogg mentioned that the current spectrum discussion for 6G is centered on the 7Ghz to 15Ghz range worldwide.
He believes that “the thinking is that 7Ghz-ish will be a key focus for the 6G era.”
APAC experiencing strong rollout of 5G technologies
The number of 5G networks in APAC is expected to continue rising in the coming years, according to GSA data. This trend reflects a global acceleration in the adoption and investment in 5G by mobile network operators, with GSA noting a significant increase in launches since the end of 2020.
The GSA’s data on APAC 5G also indicates:
- 92 operators in 27 countries are investing in 5G mobile or fixed wireless access networks, representing most of the countries and territories in APAC.
- 47 operators in 17 countries have so far launched the technology.
- Seven operators across seven countries are currently in the process of deploying 5G technology, pointing to an increase in launches over the short to medium term.
- 13 operators in eight countries are in the planning phase for 5G deployments.
- APAC accounts for 14% of the operators investing in and launching 5G networks globally.
SEE: The differences between 5G and 6G
Jordan Cox, a GSA researcher, said on the GSA webinar that with the ongoing and planned 5G deployments by operators, this could “over the longer term result in the majority of the Asia-Pacific seeing commercialised 5G networks.”
APAC declared a 5G standalone ‘hotspot’
APAC accounts for a “particularly strong” 27% of global investments in 5G standalone networks.
5G standalone is considered a “next step” in 5G technology because it does not rely on a core network and has potential benefits such as improved reliability, lower latency, enhanced coverage, stronger indoor signals, and advanced security software.
However, its adoption has been slower. GSA suggests this may be due to the comparatively slower upload and download speeds compared with non-standalone 5G.
According to GSA’s data, in APAC:
- 40 operators in 14 countries are investing in 5G standalone, and 22 operators in nine countries have launched the technology; these include China’s three largest operators — China Mobile, China Telecom, and China Unicom — as well as Globe Telecom in the Philippines and Australia’s Telstra.
- 10 operators in eight countries are currently testing the technology, including Cellcard in Cambodia and Spark in New Zealand.
APAC operators are talking about 5G-Advanced networks
Some operators in the region are already talking about 5G-Advanced or 5.5G launches, including the timing and packages they may offer, particularly operators in China. Operators with 5G standalone networks are expected to quickly launch 5G-Advanced offerings.
“The current flagship smartphones in the market are using Snapdragon 8 Gen 3 [Mobile Platform], the Qualcomm chipset that arrived in smartphones at the very end of last year, so those products have hardware that is 5G-Advanced capable,” Fogg noted. “So once operators start switching on 5G-Advanced, we should see reasonably rapid uptake among recent flagship smartphone purchases.”
Additional trends across APAC communications networks
The APAC telecommunications market is seeing LTE launches tapering off with the growth of 5G, the expansion of private networks, and low levels of 5G RedCap and millimeter wave activity.
LTE declining, 5G surging
Only six APAC-based operators are deploying LTE networks, most commonly associated with 4G, while 12 have planned launches, according to data from GSA. A total of 116 operators across APAC have already launched LTE technologies, with 2015 the peak year for LTE globally.
“This shows that in Asia-Pacific, like other regions such as North America, Western Europe and even Latin America, the market for LTE has peaked and the shift to 5G is currently in progress,” Cox said.
GSA said several market drivers support this trend, including higher levels of consumer 5G devices and subscribers as well as the reduced operating costs and higher efficiency of 5G networks for operators.
Private network deployments led by manufacturing sector
APAC accounts for 22% of global enterprise private networks. GSA’s database contains 314 unique customer references for the region, mainly located in Australia, China, and Japan. There are fewer private networks located in South Korea, India, and Thailand.
The dominant sectors for private networks were:
- Manufacturing, due to China, Japan, and India’s large manufacturing sectors.
- Mining, due to Australia’s large mining sector.
- Device testing and lab service.
Low levels of 5G RedCap activity tracked in APAC
Only five operators in APAC are investing in 5G RedCap, a more recent addition to the 5G standards. This includes:
- Two launches in China.
- Two current testing-phase RedCap networks in Thailand and Singapore.
- Telkomsel’s planning of a RedCap launch in Indonesia.
Early use cases include using RedCap consumer premise equipment, enabling operators to access 5G bands at a more cost-effective price point as they transition from LTE networks. GSA expects other capabilities of 5G RedCap will come into play once 5G-Advanced is rolled out.
As 5G grows, expect more network switch-offs to come
GSA concluded by saying “strong progress” was being made towards retiring legacy 2G and 3G networks in favor of newer and more efficient LTE and 5G networks. As of July 2024, APAC has seen 24 operators in 14 countries complete switch-off activity, including 2degrees in New Zealand and KDDI in Japan.
“As more consumers move away from legacy devices across the Asia-Pacific, and operators continue to upgrade their networks, we can expect to see greater switch-off activity within the region over the course of the next two to five years,” Cox said.