With the spread of COVID-19, fixed and mobile telecommunications networks have become an even bigger part of the critical infrastructure, showing the importance of quality in the connectivity.

This is according to Ericsson President and CEO, Börje Ekholm who delivered a virtual keynote presentation as part of the launch of the company’s new series of online events, the Ericsson UnBoxed Office.

In a recent study based on 4G life cycle data from more than thirty countries, Ericsson analysed the correlation between network quality and financial performance.

The company concluded that network quality is a powerful way to drive lower churn rate and increase the average revenue per user (ARPU).

“When we looked across all service providers, not just leaders, network quality correlated with increased ARPU and reduced churn. Put simply, investing in network quality keeps subscribers happy,” said Ekholm.

He added that 5G offers service providers an opportunity to gain first-mover advantage and create a significant network performance gap with the competition.

“We are already seeing early signs of service providers monetising the 5G opportunity, with positive ARPU trends and growing revenues in pioneering 5G markets.”

The future of 5G

Given the importance of connectivity, and 5G in particular as critical national infrastructure, Ekholm believes that it is in the public interest to ensure that pervasive, high quality, affordable and secure networks are available when and wherever they may be required.

“5G will unlock the potential of the Fourth Industrial Revolution and will be the cornerstone upon which a country’s relative competitiveness is built. While 4G gave us the app economy, 5G will be the greatest open innovation platform ever,” he said.

Ekholm added that 5G will drive exponential public and private sector value including efficiencies in public services and new and more effective modes of delivery, for example in healthcare, education, transport and disaster control.

“It is vital that public policy supports a narrowing of the digital divide. Governments should ensure that every citizen and business will enjoy the benefits of the 5G era equally.”

This includes, according to Ekholm, countries developing a common and holistic policy that maximises investment incentives for the private sector. It also includes making sufficient 5G spectrum available as soon as possible and optimizing spectrum assignments to deliver expansive 5G connectivity.

“In this time of crisis, we are prouder than ever of our people, the ones who are helping us connect the world. We have the best people in the industry, and I know I speak for all Ericsson employees when I say that we are, and will continue to be, a significant company on the world stage.”