Ensuring Excellent Mobile Connectivity for Consumers and Enterprises Globally

In an exclusive interview with Asia Business Outlook, Chafic Nassif, CEO for Northeast Asia, Ericsson elucidates on how mobile service providers delicately balance the pricing and quality while touching up on the democratization of 5G in the emerging economies. He also worked for technology startups, IT industry organizations, and consultancies. He graduated from the American University of Beirut, Lebanon, with a BSc in Engineering, Computer and Communications. He holds two Master’s degrees from the Royal Institute of Technology in Stockholm (Sweden) with specializations in ICT entrepreneurship and Wireless Systems.

While high-quality mobile connectivity is a priority, how can mobile service providers strike a balance between offering high-quality services and maintaining affordable pricing models for different consumer segments across the world?

5G technology is recognized for delivering an exceptional end-user experience, primarily due to its capacity to support extensive data consumption. This capability allows users to benefit from increased data capacity, enabling a higher volume of data usage across various applications and devices. However, a significant challenge in the telecommunications industry is the stagnation of revenue growth on the service provider side despite this increased consumption.

While 5G technology continues to evolve with enhancements in capacity and capability, the revenue generated from consumer mobile broadband has remained relatively flat. Addressing this requires strategies beyond simply raising consumer prices. A more sustainable approach is to leverage 5G's unique value propositions. For example, Ericsson views consumer mobile broadband as just one aspect of 5G’s potential.

Beyond mobile broadband, 5G enables diverse use cases, such as fixed wireless access, mission-critical solutions, and network features like low latency and high reliability. These attributes allow for network segmentation or "slicing," which enables specialized user models that deliver targeted value and justify higher payments. This approach can unlock new revenue streams for service providers, balancing the current dynamic where user benefits from increased data capacity are outpacing corresponding revenue growth.

The rollout of 5G is revolutionizing mobile connectivity. What steps should be taken to accelerate the further global adoption of 5G technology and ensure its accessibility for enterprises and consumers in both developed and developing markets?

The 5G industry encompasses a diverse range of stakeholders, including technology vendors, service providers, governments, think tanks, and universities that drive innovation. Effective deployment of 5G requires cooperation among these groups to ensure the technology becomes accessible in both developed and developing regions.

From a governmental perspective, it's essential to strike a balance between immediate revenue and long-term sustainability. For instance, setting excessively high spectrum fees could limit service providers' capacity to expand their networks. Service providers, in turn, need to focus on innovation, developing new use cases and business models that support both 5G rollout and return on investment.

Technology vendors play a critical role as well, bringing the latest advancements to support service providers. Collaboration among all stakeholders, from governments setting supportive policies to service providers implementing innovative models to vendors delivering cutting-edge technologies—is crucial for ensuring that 5G technology is effectively rolled out and accessible to both consumers and enterprises in various markets.

As mobile networks evolve, what measures are being taken to ensure that mobile networks are secure from cyber threats, and how can enterprises and consumers be safeguarded against emerging risks?

Security is a top priority, and service providers adhere to all industry security standards for network infrastructure. We employ a comprehensive security architecture across all domains involved in the development of this technology, with a strong focus on both confidentiality and data integrity. These aspects are vital to our security approach.

We also apply a "defense in depth" principle, which ensures security is integrated at every stage of the product life cycle. Security is embedded at the core of our research and development processes. Looking ahead to future technologies like 6G, we are already developing advanced security solutions, such as new encryption algorithms and quantum cryptography, to stay ahead in protecting data and network integrity.

Emerging markets often face challenges related to mobile connectivity, what strategies can telecom providers and governments implement to bridge the digital divide and improve mobile connectivity in emerging markets, ensuring it benefits both consumers and businesses?

There are several effective solutions to help bridge the digital divide through improved connectivity. One such solution is fixed wireless access, which offers a more cost-effective alternative to fiber, particularly in areas where fiber installation would require extensive and expensive groundwork. Fixed wireless access can deliver high-speed connectivity without the high costs associated with fiber deployment, particularly in reaching the “last mile.” This approach significantly enhances digital inclusion.

Additionally, our solutions, including those at Ericsson, prioritize energy efficiency. Energy-efficient systems are advantageous for regions where power resources are limited, and they help service providers lower the operational costs of base stations, freeing up capital for broader network coverage.

Our focus also extends to enhancing connectivity solutions with longer-range capabilities, further supporting service providers in expanding coverage into rural and underserved areas.