Greater availability of 5G handsets such as the iPhone 12 series and the Samsung Galaxy S20 FE are said to be driving the increase in 5G mobile services. According to tech firm Telsyte’s Australian Mobile Services Market Study 2021, around two million 5G mobile services were in operation at the end of December 2020, increasing nearly five-fold from six months ago.
Telsyte predicts more than 60% of smartphones sold in 2021 will support 5G and more Mobile Virtual Network Operators (MVNOs) will begin to offer 5G mobile services this year, helping to bolster uptake. Telsyte expects demand to ramp up quickly with over 55% of Services in Operation (SIOs) expected to be on 5G by 2024, currently sitting at 6%.
Also, Telsyte believes more internet service providers will begin offering 5G home internet services as a potential alternative to NBN if it can provide better margins.
According to Telsyte’s most recent consumer survey, around one quarter of Australians are interested in subscribing to home internet services based on 5G. The flexibility of installation and the prospect of ultra-fast internet speeds is making 5G home services particularly appealing for those living in shared accommodation and hardcore gamers.
However, 46% of Australians said the cost of the plan is the most important factor when choosing a fixed wireless home internet service and over one million homes could potentially opt for fixed wireless services by 2023.
Even during a pandemic, uptake of Internet of Things (IoT) devices continued to grow strongly. Mobile IoT was the only category that grew in 2020 with the number of connections increasing by almost 800,000, with handsets and mobile broadband both experiencing declines.
The uptake of mobile IoT connectivity will remain strong, particularly as more businesses continue to invest in digital transformation. Telsyte predicts eSIM number sharing services will grow as MVNOs begin offering it this year. The study also found one in three Australians with an eSIM enabled smartwatch are willing to pay for number sharing service at an average of $6 per month. With number sharing, people can receive calls, SMS and use mobile data on a smartwatch even if they do not have a smartphone connected to it.