Ericsson shares are trading higher Tuesday, as the Swedish telecoms equipment business almost doubled it’s Internet of Things (IoT) forecast for 2023. The company now expects the new 5G networks will encourage further development of connected devices for consumers to buy and use.
By 1130 BST, Ericsson shares were 0.22% higher at SEK63.34. The stock has had a tough four weeks, with a notable downward turn.
Ericsson’s Mobility Report
The latest edition of Ericsson’s regular Mobility Report, shows it now expects there will be some 3.5 billion IoT cellular 5G connections by 2023. That’s a huge increase from the current 700 million. It’s also almost double the company’s November forecast for 1.8 billion.
The Swedish business said the commercial investment in 5G networks is a key detail behind its forecast upgrade. It adds that large-scale 5G deployments in China and a strong 5G uptake in the US, featured in its assessment.
“2018 is the year 5G networks go commercial as well as for large-scale deployments of cellular IoT,” said Ericsson’s executive VP and head of business area networks, Fredrik Jejdling.
“These technologies promise new capabilities that will impact people’s lives and transform industries. This change will only come about through the combined efforts of industry players and regulators aligning on spectrum, standards and technology,” he added.
Increasingly connected world
The IoT industry is a fast growing one as consumers gain confidence in using electronic and tech devices to control their home and other gadgets and appliances. And, if the market grows as Ericsson expects, it will provide support for the revenues of telecoms and mobile equipment makers, like the Swedish business.
But, it’s not just the IoT that Ericsson anticipates will grow in the next five years. Other forecasts in its Mobility Report include:
- There will be over 1 billion 5G subscriptions – equal to around 20% of all mobile data traffic.
- Smartphone generated mobile data traffic is set to rise to 95% in 2023, from 85% at the end of 2017.
- The number of global smartphone subscriptions seen rising from 7.8 billion in 2017 to 8.8 billion in 2023.