4G Still Dominates Asia Pacific, but 5G Gap Narrows Rapidly
4G remains the dominant technology in Asia Pacific. But the gap with 5G is narrowing fast.
5G is now well established across leading Asia Pacific adopters, accounting for over 60% in South Korea and a third or more of total mobile connections in Australia, Japan, New Zealand, and Singapore at the end of 2024.
In second-wave deployment countries, notably India and Thailand, rapid 5G network expansion has driven fast adoption growth.
According to the Mobile Economy Asia Pacific 2024 report released by GSMA at the Digital Nation Summit in Singapore, commercial 5G standalone (SA) networks are now available in seven APAC countries: Australia, India, Japan, the Philippines, Singapore, South Korea, and Thailand. As of June 2024, 295 operators in 114 markets have launched commercial 5G services.
Growing focus on advanced 5G networks and services is expected to trigger a new round of 5G investments from 2024 onward, laying the foundation for next‑generation use cases that unlock new revenue streams for operators and the wider ecosystem across consumer and enterprise segments.
Which industries will benefit most from 5G?
GSMA states 5G will add nearly US$130 billion to the Asia Pacific economy by 2030, with manufacturing as the top beneficiary, driven by smart factories, smart grids, and IoT‑enabled applications. Financial services and public administration are also set to gain significantly through digital transformation.
“The large 5G investments by mobile operators and governments position many Asia Pacific nations to secure strong economic growth, unleashing innovation especially in fintech and manufacturing,” said Julian Gorman, Head of Asia Pacific at GSMA.
“However, hundreds of millions across the region still lack access. Closing the usage gap and building digital trust are critical to bridging the digital divide so everyone can benefit from mobile-enabled services in finance, education, and health.”
From 2023 to 2030, 37% of 5G economic benefits are expected to come from manufacturing, followed by public administration (14%) and services (9%). IoT is gaining momentum in South Korea, India, and Australia, supported by expanding low‑power wide‑area (LPWA) networks.
The report notes many regional operators are still prioritizing 4G capacity expansion in urban areas and coverage extension to underserved regions in the short‑to‑medium term. As a result, 4G will remain the dominant technology across APAC by 2030, though with a much narrower gap to 5G.
Large parts of the region remain unconnected despite existing mobile coverage, with high usage gaps in Bangladesh, India, and Pakistan. Key barriers include device affordability and limited digital skills, especially among older populations.
Satellite and non‑terrestrial networks can help reduce the connectivity gap by serving challenging terrains — archipelagos, rainforests, deserts, and mountains — where traditional infrastructure is costly and difficult to deploy.
GenAI’s impact on telcos
GSMA reports Asia Pacific operators are leveraging GenAI for internal transformation and new revenue opportunities. Use cases span customer service, sales, marketing, and code development, delivering immediate value.
Network optimization via AI remains a top priority. To explore new revenue streams, regional operators are investing in AI startups and building custom large language models (LLMs), which enable fast, efficient deployment of high‑quality GenAI capabilities.
Source: itnews ASIA
