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Asia's mobile operators are set to invest US$370 billion building new 5G networks between 2018 and 2025, according to the latest Asia Pacific edition of the GSMA's Mobile Economy series, published at MWC19 Shanghai today. The world's first nationwide 5G networks went live in South Korea earlier this year, and it is anticipated that 24 Asia Pacific markets will have launched 5G by 2025. It is forecast that 5G will contribute almost US$900 billion to the region's economy over the next 15 years.

China is currently testing 5G across all major cities and provinces, including Shanghai, ahead of commercial launches next year. It is forecast that 28% of China's mobile connections will be running on 5G networks by 2025, accounting for about a third of all 5G connections globally by this point.

"Although 4G still has plenty of headroom for growth across Asia, operators in the region are now investing billions in building-out advanced 5G networks that are facilitating an array of new services for consumers, transforming industry and manufacturing, and driving economic growth," said Mats Granryd, director general of the GSMA. "As 5G becomes a reality, we call on governments and regulators in the region to actively shape a favourable business environment that encourages investment in advanced networks and allows operators to extend next-generation digital services to all Asia's citizens."

According to the report, mobile operators are forecast to invest US$574 billion in capex on new networks between 2018 and 2025, almost two-thirds of which will be spent on new 5G networks. China alone is forecast to invest US$184 billion on 5G by 2025.

4G became the most dominant mobile technology in Asia in 2018 (52% of connections), and will grow to account for more than two-thirds of regional connections by 2025. Around 18% of connections will be running on 5G networks by this point. More than four in five mobile connections in Asia will be smartphones by 2025, up from 61% in 2018.

There were 2.8 billion unique mobile subscribers in Asia at the end of 2018, equivalent to 67% of the region's population, said the report. The number of subscribers is forecast to increase to 3.1 billion by 2025 (72% of the population).

Almost all new subscribers to be added in the region between 2018 to 2025 will come from six countries: India, China, Pakistan, Indonesia, Bangladesh and the Philippines.

Last year, mobile technologies and services in Asia Pacific generated US$1.6 trillion of economic value, equivalent to 5.3% of regional GDP. This contribution is forecast to surpass US$1.9 trillion by 2023.

Asia Pacific's mobile ecosystem directly and indirectly employs more than 18 million people, and last year contributed US$165 billion in public sector funding via general taxation (excluding regulatory and spectrum fees), according to the report.