Sylwia Kechiche, formerly Principal Industry Analyst, Enterprise at Ookla. Previously Principal Analyst, IoT and Enterprise at GSMA Intelligence, where she was responsible for the development of IoT & Enterprise product, including market sizing, custom consulting, survey work and report writing.
Ookla® recently hosted a webinar titled “Disaster Recovery: Restoring Connectivity and Ensuring Network Resiliency, a discussion on network preparedness in the face of disasters.” The discussion focused on how networks can prepare for disasters. A panel of industry experts from the GSMA, OECD, and The World Bank shared examples of real-world disaster recovery efforts. Below, we have summarized the key takeaways from the discussion.
Impact of Disasters on Networks
Pooja Rana from Ookla provided an example of how networks were affected during a disaster and how operators can facilitate a faster recovery. Specifically, she shared insight into the Maui wildfire that began in the city of Lahaina, located in Maui County, Hawaii, on August 8th, 2023. More information can be found here.
Natural disasters can strike anywhere and are just one example of the potential threats affecting society. Other threats include technological and industrial disasters, human-made ones, humanitarian crises, health emergencies, and climate change. In areas like Maui, where the impact of climate change is particularly felt, additional natural disasters can significantly affect critical mobile networks, making disaster relief planning and management especially challenging. Crowdsourced data, such as that provided by Ookla, can be invaluable in disaster management, helping communities to move towards proactive prevention and preparedness rather than reactive responses. This data can also aid in disaster risk management and increase the effectiveness of relief efforts.
Network Resilience Prioritization
Inmaculada Cava-Ferreruela from the OECD (Organisation for Economic Co-operation and Development) discussed the topic of network resilience from the perspective of policymaking. Network resilience is high on the agenda of OECD countries. This is because communications networks underpin our digital economies and societies. Therefore, when these networks become unstable or fail, the consequences for businesses, citizens, and governments can be severe, depending on the extent of the disruption. While implementing these measures is the responsibility of network operators, the critical nature of communications services in our economies and societies leads governments to intervene to ensure that networks are resilient enough. In this context, the OECD is preparing a new report to help policymakers assess network resilience and develop policies and practices that promote its improvement. Following the OECD’s evidence-based policy-making approach, the report will bring together information on the definition of network resilience and its metrics, its implementation, including technical and organizational measures, and insights into policy initiatives to improve it.
Role of mobile in humanitarian response
Bryce Hartley from the GSMA discussed the role of the Humanitarian Connectivity Charter (HCC) in engaging the mobile industry for humanitarian responses, particularly in rapid-onset disasters. The three key principles of the HCC are coordination, scale, and partnerships.
Coordination: The focus is on coordinating efforts across all phases of disaster management—preparedness, response, and recovery. The aim is to create awareness among stakeholders, including multilateral, governments, and private sector players, about available resources and needs to avoid duplication of efforts and leveraging resources collaboratively. Bryce provided an example of coordinating efforts in response to earthquakes in Turkey and Syria, where critical supplies were efficiently provided to restore mobile networks.
Scale: The emphasis is on deploying mobile technology to scale disaster resilience efforts. Standardizing response processes ensures a more predictable and effective response for responders and affected populations. The idea is to streamline efforts and create a more robust and scalable system.
Partnerships: The goal is to foster collaboration to achieve programmatic initiatives. Working together is seen as essential for successful outcomes. An example is the collaboration with the Digicel Group and the Civil Protection Agency of Haiti to develop a mobile-enabled early warning system.
Critical role of Internet connectivity
Sahiti Sarva from the Data Lab at the World Bank emphasized the role of internet connectivity and data associated with it in measuring the impact of and recovery from disasters. Internet infrastructure is critical in enabling citizens to access economic opportunities and relief during disasters. The loss of the internet has significant cascading impacts on access to aid and inhibits economic activity that uses the Internet (such as activity on social media). Therefore, international development organizations such as the World Bank have started using it in their analysis to observe economic recovery from disasters. For the Türkiye earthquake impact analysis, the Data Lab team used Meta Business Activity Trends and Ookla Speedtest connectivity data to observe economic recovery trends. In this case, the availability of the internet informs the Business Activity of Facebook, making the two indicators valuable when insights are combined.
The Data Lab created a “Data Good,” comprising reproducible methods, code documentation, and insights to inform analyses like economic recovery from disasters. Unlike traditional reports or data analyses that provide single-use visualizations, data goods are designed for reuse in future projects. If new data sets become available, they can easily be added to the analysis to generate updated insights. This is particularly useful in disaster projects where new data comes in daily, and the situation on the ground changes fast. For instance, in the case of Turkey and Syria, the Data Lab was able to update their insights every week, thanks to weekly data made available from their partners like Ookla.
Data visualization for effective disaster response
The Disaster Connectivity Maps (DCM) initiative involves collaboration between the GSMA, UN agencies (ITU and WFP), and Ookla. DCM is a tool used to identify communication gaps during disasters, aiding first responders in preparing and adapting their communication strategies. Insights from time series data help organizations learn from past crises, adapt for future preparedness, and incorporate lessons for more effective response efforts.
We asked the panel audience about the role of mobile in disaster resilience, and the word cloud answer highlighted the key roles of coordination, communication, emergency services, and backup plans.
During the discussion, the participants stressed that collaboration, preparedness, and data utilization are crucial to enhance disaster relief efforts and ensure network resilience. Policymakers, industry experts, and international organizations play vital roles in developing evidence-based policies to address the complexities of disasters. Ookla is committed to working with the broader mobile ecosystem to ensure that these objectives are achieved.
Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.
To gain insight into the current performance of networks, we analyzed Speedtest® data in Q3 2023. Our analysis compares changes in 5G performance to the previous year, identifies the top 10 countries with the best performance, and discusses customer satisfaction with 5G. We also ranked countries based on the performance of their fixed networks and investigated the connectivity gap across the world.
Global 5G download speed improved. The median global 5G download speed experienced a substantial 20% increase in Q3 2023, reaching 203.04 Mbps, compared to 168.27 Mbps in Q3 2022. This improvement aligns with a significant rise in global 5G subscriptions, indicating positive progress in user adoption of 5G and the performance of 5G networks.
Top 5G performers have shifted. The top 10 countries for 5G performance witnessed notable changes, with the United Arab Emirates claiming the top spot, surpassing South Korea. Malaysia, India, and the Dominican Republic also made significant strides, showcasing a dynamic shift in the global 5G landscape.
Speedtest user ratings indicate room for 5G improvement. Despite advancements in 5G technology, there has been a decline in the Net Promoter Score (NPS) among 5G users. Factors contributing to this dissatisfaction could include unmet expectations and discrepancies between actual 5G speeds and advertised speeds.
Fixed Networks Advancements. On a global scale, fixed networks demonstrated significant performance improvement, with a 19% increase in median download speed (83.95 Mbps) and a 28% increase in upload speed (38.32 Mbps) in Q3 2023 compared to the previous year. This highlights the ongoing transition to more advanced broadband technologies, particularly Fiber-to-the-Home (FTTH).
The imperative of closing the connectivity gaps. Despite improvements in global connectivity, there are still areas that fall outside of network coverage. Speedtest® data highlights disparities in internet performance between fixed and mobile networks across different regions, emphasizing the importance of addressing connectivity challenges worldwide.
5G Networks
Global 5G download speed improvements
The median global 5G download speed has experienced a noteworthy surge, registering a 20% increase and reaching 203.04 Mbps in Q3 2023, compared to 168.27 Mbps in Q3 2022, according to Speedtest Intelligence® data. This improvement coincides with a substantial rise in global 5G connections, reaching 1.4 billion according to GSMA Intelligence, representing a 65% year-on-year increase from 872 million a year ago.
In terms of upload speed and latency, only a very modest improvement of 1% occurred. Median 5G upload speeds reached 18.93 Mbps in Q3 2023, compared to 18.71 Mbps in the same period last year; multi-server latency, a critical metric for network responsiveness, improved from 45 ms in Q3 2022 to 44 ms in Q3 2023.
Speedtest users experiencing the top 10% of 5G download speeds globally have seen a 9% increase, rising from 525.54 Mbps in Q3 2022 to 573.12 Mbps in Q3 2023. However, speeds have not yet reached Gigabit levels, primarly because of network economics. 5G was originally designed to deliver peak data rates of up to 20 Gbps based on IMT-2020 requirements, but we are still a ways off before gigabit speeds become the new normal. For instance, symmetrical download, upload speeds, and ultra-low latency haven’t been realized, partially because the vast majority of 5G networks are not ‘true 5G’ as they have been deployed in Non-Standalone (NSA) mode, meaning they rely on a 4G LTE network core. According to GSA, over 40 operators have launched 5G standalone (SA) in public networks, but the rollout is not yet complete. Nevertheless, the industry is actively exploring the prospect of 5G Advanced, which promises symmetrical upload and download speeds and ultra-low latency, signaling a proactive stance ahead of the eventual transition to 6G.
Malaysia joined South Korea and the U.A.E at 5G speeds podium
During Q3 2023, the United Arab Emirates and South Korea stood out as leaders in 5G performance, boasting the fastest median 5G download speeds globally at 592.01 Mbps and 507.59 Mbps, respectively. Our top 10 list also includes Malaysia, Qatar, Brazil, the Dominican Republic, Kuwait, Macau, Singapore, and India. The shift in the top 10 rankings reveals dynamic changes, with Malaysia, the Dominican Republic, and India making significant strides, while Bulgaria, Saudi Arabia, New Zealand, and Bahrain dropped out of the rankings.
The U.A.E showcased a 14% increase in its median 5G download speed, reaching 592.01 Mbps in Q3 2023, up from 511.68 Mbps in Q3 2022, allowing the U.A.E to take the top spot from South Korea. Key factors contributing to the U.A.E.’s 5G leadership include fierce market competition driven by Etisalat and du, resulting in extensive 5G coverage and widespread access to 5G services. Additionally, the allocation of a 100 MHz of contiguous spectrum, as discussed in our 5G spectrum article, has played a pivotal role in achieving faster speeds, lower latency, and improved spectral efficiency.
The regional shift in 5G performance leadership is noteworthy. In 2022, half of the top 10 countries were from the Middle East, while in 2023, the same proportion hailed from the Asia Pacific region. Our analysis suggests that early adopters in the Asia Pacific region have outperformed major European markets in 5G performance, due to factors such as early spectrum availability and supportive government policies.
Malaysia’s remarkable achievement in reaching the third spot globally for 5G download speed, with a reported speed of 485.24 Mbps in Q3 2023, is particularly noteworthy. Despite launching its nationwide 5G network less than two years ago, Malaysia’s unconventional deployment strategy has proven effective. India has also made a significant leap, with its median 5G download speed of 312.26 Mbps allowing India to reach the top 10 worldwide. The country’s climb of 72 places on the Speedtest Global Index™ between September 2022 and August 2023 is primarily credited to the launch of 5G. Following a 5G spectrum auction in India, operators have successfully addressed network congestion issues by offloading 4G traffic onto 5G networks.
In Brazil, 5G download speed increased 1.4 times, jumping from 312.09 Mbps in Q3 2022 to 443.93 Mbps in Q3 2023. Before Brazil’s 5G spectrum auction, operators had offered 5G using DSS since July 2020. While DSS can provide broad 5G coverage, its speeds are often similar to those on 4G LTE networks. In November of 2021, however, Brazil’s multi-band 5G spectrum auction closed, which not only generated BRL47.2 billion ($8.5 billion) in total commitments, but it also allowed operators to deliver much faster speeds on dedicated 5G spectrum compared to DSS. National operators – Telefonica Brasil (Vivo), Claro Brazil, and TIM Brazil – ended up with 40 MHz or 50 MHz in the 2.3 GHz spectrum band and 100 MHz each in the 3.5 GHz band. The subsequent simultaneous activation of 5G networks in July 2022 marked a transformative moment with the continuous expansion of 5G services to 623 municipalities by December 2023. An upcoming spectrum auction expects to improve Brazil’s 5G standing even further.
The Dominican Republic’s entry into the top 10 fastest 5G countries was marked by its official launch of 5G services in December 2021, making it the first Caribbean nation and the third in Latin America to adopt a 5G network.
Disparity Between 5G Performance and Consumer Perception
The Net Promoter Score (NPS) is a tool that gauges customer loyalty and satisfaction. At the end of Speetest, users may be asked to answer “How likely is it that you would recommend [provider] to a friend or colleague?” on a scale from 0-10. Net Promoter Scores are applied to both users and providers. Users are categorized into Detractors (score 0-6), Passives (score 7-8), and Promoters (score 9-10). NPS is the percent of Promoters minus the percent of Detractors and is displayed in the range from -100 to 100. Providers are ranked in descending order of NPS. NPS categorizes users into Detractors (those that score 0-6), Passives (scores between 7 and 8), and Promoters (scores of 9-10). NPS represents the percentage of Promoters minus the percent of Detractors displayed in the range from -100 to 100.
In our article discussing whether 5G was meeting customer expectations, we found that 5G users typically rate their network operator with NPS scores universally higher than those for 4G LTE users. In Q3 2023, that trend continued, as 5G users that were on 5G network when answering the NPS question still scored higher than those on 4G across all markets analyzed. It isn’t surprising given that at a global level, 5G had a 637% better median download speed than 4G and a 130% better median upload speed.
While 5G NPS still outpaces scores on 4G, our data shows that 5G NPS has been decreasing annually. This could point to the fact that excitement about 5G as a new technology is waning as users become used to faster speeds, or as customers await new use cases that can take advantage of the faster speeds that 5G can provide. After all, we are still waiting for that killer app for 5G, the way the video and streaming were for 4G.
While it is difficult to fully explain the reasons behind the 5G NPS decrease without further research, we can clearly see that network performance isn’t the only factor at play influencing NPS declines. Others can include customer care, pricing, and other services. For example, in South Korea, one of the first countries to launch 5G with one of the world’s fastest speeds, consumers scored 5G networks -41.47 in Q3 2023 compared to -20.51 in Q3 2022.
In March 2021, South Korean consumers launched a class action suit against operators because they felt they were being misled by the promises of 5G in the country. Recently, South Korea’s antitrust regulator fined three 5G operators a total of 33.6 billion won ($25.06 million) for making exaggerated claims about the level of performance their networks could achieve. South Korean operators claimed consumers could experience theoretical 5G speeds, which are not practically achievable in a “real world” environment, as factors such as spectrum usage, network densification, user location, and device capability significantly affect actual performance. Our data shows that the top 10% of 5G users in South Korea experienced speeds of 1.004 Gbps in Q3 2023, which, although impressive, are far lower than the advertised 20 Gbps speeds.
Fixed Networks
Fiber driving fixed performance gains
On a global scale, fixed networks have demonstrated significant advancements, achieving a median download speed of 83.95 Mbps and an upload speed of 38.32 Mbps in Q3 2023, per Speedtest Intelligence data. This signifies a substantial 19% improvement in download speed and an impressive 28% enhancement in upload speed compared to those in 2022. This also indicates that more fixed connections have migrated to fiber networks.
According to the World Broadband Association (WBBA) report titled “Next Generation Broadband Roadmap 2023 to 2030” Fiber-to-the-Home (FTTH) is identified as the natural progression from copper-based xDSL broadband networks. The shift towards FTTH varies across different countries and regions, but the industry is committed to embracing more advanced and efficient broadband technologies.
Oftentimes, despite improvement in underlying broadband technology, Wi-Fi is the bottleneck that reduces customer experience. Our research has shown that Wi-Fi performance can lag behind ethernet in markets where advanced cable and fiber connections are replacing legacy broadband technology (such as DSL or coax cable). Wi-Fi speeds typically range from 30-40% of ethernet, indicating a need to accelerate the adoption of more advanced Wi-Fi technologies and optimize the home network environment.
The UAE, Singapore, and Hong Kong are in the lead for fixed
The United Arab Emirates (UAE) and Singapore led the way in fixed network performance.
The UAE achieved a median download speed of 247.63 Mbps in Q3 2023, representing a notable 1.83 times increase compared to the previous year. Most customers in the UAE have access to fiber networks, and additional measures have been implemented by operators in the region to enhance internet speeds, such as increasing the minimum download speed from 250 Mbps to 500 Mbps and offering price discounts to incentivize users to upgrade to higher-tier plans.
Singapore also leads on the 2023 Fiber Development Index (FDI), with maximum scores in seven of the nine metrics. Singapore, along with Qatar and South Korea, has achieved 100% FTHH coverage. One of the reasons for this success, besides having a smaller area, is that Singapore’s regulator mandates building owners and real estate developers to provide adequate space, facilities, and accessibility for network operators to pre-install fiber networks.
Hong Kong also demonstrated significant progress, with a 37% increase in median download speed and a 40% increase in upload speed. To track broadband adoption, the Office of the Communications Authority (OFCA) in Hong Kong monitors broadband adoption by advertised speed and technology mix; as of August 2023, 66% of residential clients already subscribed to the Internet with a download speed equal to or greater than 1 Gbps.
Chile has seen a 14% improvement in median download speed and a 29% improvement in upload speed on the back of a greater fiber adoption. Chile has been the top-performing fixed broadband market across Latin America, consistently outperforming other regional markets but over the last three years, it has also closed the performance gap with other leading markets globally. Chile’s strong fixed broadband performance — an anomaly in the region — is primarily due to strong competition among Chilean ISPs. Chile has seven ISPs with over 5% market share, all heavily focused on migrating customers to fiber.
Thailand is a newcomer to the ranking as FTTH continues to grow strongly. FTTH constitutes an impressive 95% of fixed broadband users in Thailand, equivalent to around 58.96% of household penetration. Operators have been actively rolling out fiber in adherence to the Digital Thailand National Policy.
In the United States, there has been a 26% improvement in median download speed and a 7% improvement in upload speed. In this very competitive market, with a range of access technologies vying for customers, a combination of migration to fiber, 5G fixed-wireless access (FWA), and faster cable connections is helping drive higher performance levels. In line with the demand for faster network performance in the market, the FCC recently announced that it is seeking input on a planned increase to its definition of broadband/high-speed internet to 100 Mbps download and 20 Mbps upload, up from the current 25 Mbps download and 3 Mbps upload standard.
As discussed in our recent article, several European countries are making substantial progress in offering high-speed broadband. Across Europe, Denmark had the fastest median download speed for fixed broadband (196.43 Mbps), followed by Spain (176.08 Mbps) and France (170.51 Mbps). Denmark experienced a 25% improvement in median download speed and a 16% improvement in upload speed. Spain also showed significant improvement, with a 32% increase in median download speed and a 29% increase in upload speed. France exhibited even stronger progress, with a 53% increase in median download speed and a 41% increase in upload speed. The speed gains we’ve seen in Spain and France are correlated with an increase in fiber adoption; for example, Spain boasts nearly 90% fiber optic coverage, thanks to private initiatives and government support, while France expects a full-fiber rollout by 2025.
Connectivity for All
The imperative of closing the connectivity gap
Massive investments are being made to bridge the connectivity gap as recognition of connectivity as a fundamental human right is growing. According to a WBBA Whitepaper, a high level of broadband penetration is critical to the country’s socioeconomic development. However, it’s not only about being connected to the network per se; the quality of that broadband connection is equally crucial. Unlike other utility services like gas and electricity, where quality is generally stable, with broadband, the quality of the network experience is crucial to ensure users can benefit fully from multiple applications.
To assess the digital divide, we mapped mobile and fixed internet performance using data from the Open Data Initiative, which Ookla provides as part of Ookla for Good.
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Determining where a digital divide exists is a complex issue that involves identifying where network infrastructure is located, where people need connectivity, and how affordable it is. Although it can be challenging to dig into a specific location, it is evident that there are varying levels of Internet performance worldwide. A quick glance at our data shows that fixed broadband customers are more likely to experience faster networks (measured as an average download speed of 100 Mbps and above) than mobile across the Americas and Europe. The opposite is true for mobile networks across Africa and APAC, where mobile networks are often the primary means of connectivity. Compared to urban areas, rural communities are often ill-equipped for broadband access. Due to a lack of bandwidth (and therefore slower speeds), people in these areas need help doing many things on the internet, such as streaming videos. The US regulator FCC defines broadband in the United States as access to 25 Mbps download and 3 Mbps upload speeds. Areas without those speeds are classified as broadband “digital deserts,” even if those areas have internet access. Although broadband definitions can vary considerably from country to country, we can see in the next section that many areas fall outside any standards of connectivity globally.
Despite the world becoming increasingly connected, many rural and remote areas still struggle to access the internet. For example, large swathes of South America and Africa fall outside terrestrial network coverage. As discussed in our recent article, cellular networks are critical to connecting individuals and businesses as internet access in Africa is predominantly mobile. Before we can start discussing 5G, connecting communities with the internet in general is a priority. Affordable 4G smartphones and targeted financing for under-served demographics are key for bridging the digital divide and reducing poverty, as a World Bank study found that 4G coverage can help cut poverty by up to 4.3%.
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5G technology can potentially replace fixed internet access in situations where the cost of fiber deployments is high and rolling out traditional fixed broadband networks isn’t commercially viable. However, in countries like Indonesia, satellite technology may be a more effective solution for connecting remote areas. While 5G Fixed Wireless Access (FWA) and satellite technology can complement each other, the adoption of satellite technology is currently limited by factors such as coverage, device affordability, and service cost. As revealed in our recent article, Starlink outperforms GEO satellites and is a suitable replacement for fixed networks in rural areas. While it may not match the leading cable or fiber providers in terms of median speeds or multi-server latency, satellite internet provides a viable alternative in places where cable and fiber access networks are unavailable. This is mainly due to a more consistent distribution of download performance across Speedtest samples, unlike FWA and DSL-based services, where performance is impacted by the distance from the cell site or exchange/DSLAM.
Fixed and mobile network operators across the globe widely use Speedtest data to enhance Internet quality, improve accessibility, and inform network expansion. The United States Federal Communications Commission and the Malaysian Communications and Multimedia Commission rely on Speedtest data to ensure accountability of telecommunications entities and allocate funds for rural and urban connectivity development. Ookla also licenses data to NGOs and educational institutions to help bridge the digital divide between areas with and without modern Internet access. Our mapping data is used to track results and determine whether broadband infrastructure can handle growth as more people connect devices and technologies demand more bandwidth. We are also actively involved in discussing best practices for ensuring digital transformation and connectivity for all in the APAC region, Central Asia, and Europe. If you are interested in working with us, please reach out.
Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.
The year 2024 is anticipated to be another challenging year as the world continues to struggle with economic downturns, political unrest, and military conflicts. Despite this, digital transformation is making strides in various sectors, leading to greater efficiency, innovation, and the emergence of new business models. There is also a continued focus on sustainability and addressing climate change, as well as enhancing the adaptability and resilience of supply chains. Given this context, we have compiled some predictions for what we can expect in 2024 across a number of themes:
5G rollout continues but user satisfaction and profitability miss the mark
The pace of 5G rollout remains robust, reaching 1.4 billion subscriptions globally, according to Ericsson’s latest Mobility Report. However, most of 5G today isn’t ‘true 5G’ as the majority of 5G networks have been deployed in non-standalone (NSA) mode, meaning they rely on a 4G LTE network core. Although 5G performance has shown improvement in 2023, not all consumers are satisfied with it. According to Speedtest Intelligence® Q3 2023 data, the global median 5G download speeds were 7.37 times faster than 4G (203.04 Mbps compared to 27.51 Mbps), and uplink was 2.3 times faster (18.93 Mbps compared to 8.21 Mbps).
However, 5G latency failed to impress, with global median 5G multi-server latency at 44 ms compared to 52 ms for 4G, showing a mere 1% year-on-year improvement. Telecom operators have invested heavily in 5G infrastructure, but they find it challenging to recover these investments. Without new value-added services that use 5G bandwidth, consumer sentiment looks bleak, with the Net Promoter Score (NPS) for 5G falling in mature markets. The challenge for the 5G industry in the year ahead will be to find ways to monetize 5G beyond Fixed Wireless Access (FWA) use cases and to support investment into standalone (SA) 5G as the industry readies for 5G Advanced ahead of the 6G era.
Phasing out legacy networks for spectrum efficiency
As 5G takes center stage, legacy networks such as 2G and 3G will gradually fade away. Similarly, the copper switch-off will continue. As 4G LTE and 5G technologies are much more efficient in terms of spectrum, network operators are phasing out their legacy networks. This move is motivated by freeing up spectrum and refarming it to deliver faster, more advanced, and more efficient networks. In our recent webinar, we shared how operators can use Ookla Cell Analytics™ to identify areas with high dependency on 3G networks, where consumers use older devices, and locations in need of improved 4G coverage. In 2024, operators in Europe and APAC, in particular, will continue to migrate customers away from 3G as they witness a decline in network traffic over 3G and seek to achieve efficiency gains and Capex reduction.
Private networks steadily carry on
Private mobile networks have become increasingly important for organizations with growing data and security needs as they cater to their specific Industry 4.0 goals. As enterprises of all shapes and sizes increasingly rely on data-intensive applications and IoT devices, legacy networks may struggle to keep up with the growing demand. WiFi and 5G technologies complement each other in modern enterprise networks, with 5G adding a new dynamic to replace legacy network functions where greater flexibility is required. GSA has recognised 1,279 customers deploying private mobile networks in Q3 2023, of which 45% using 5G. .3GPP Release 16 of 5G New Radio (NR) supports a wider set of industrial IoT use cases which should come to the fore in 2024 as more industrial 5G-ready devices that use chipsets based on the Release 16 standards enter the market. Moreover, the industry is already discussing NR Reduced Capability (RedCap), which is specifically designed for devices that do not require the full capabilities of 5G to further enhance cost efficiency and offer precise positioning. Those enterprises that base their networking strategy on problem-solving are well-positioned to meet their objectives no matter the technology they choose.
Telco Evolution
5G SA is still at the Proof of Technology stage
Although 5G Standalone represents the true potential of 5G, its rollout has been slow due to the extensive investments required and a challenging macroeconomic environment. As of October 2023, only 7% of global mobile network operators (43 operators) in 29 counties have launched 5G SA networks. On the public network side, early network performance data from RootMetrics® indicates that 5G SA outperforms its NSA 5G counterpart across various metrics, including latency and time to start playing video and start the file download. However, speeds remain similar due to identical NR bandwidth. In 2023, the focus was on demonstrating the power of 5G SA, including network slicing, through demos and proof-of-concepts. The crucial task for operators now is to translate these promising developments from controlled environments like laboratories and testing into real-world commercialization.
Open RAN faces a challenging year ahead
Beyond continued questions on its performance and limited traction beyond greenfield networks, there is growing concern over how open Open RAN will really become. Industry skeptics point to solving interoperability challenges across hardware and software stacks, slowing down its progress and adding to implementation timelines. AT&T has recently outlined a plan where 70% of its wireless network traffic will flow across open-capable platforms by 2026. The company plans to start fully integrated Open RAN sites in collaboration with Ericsson and Fujitsu starting in 2024. AT&T also plans to ramp up its Open RAN deployments from 2025 using technology from multiple suppliers, signifying a move away from closed proprietary systems. This move highlights the fact that, indeed, the industry’s direction of travel continues to be virtualizing network functions as they allow for greater flexibility, scalability, and cost-efficiency in network operations.
GenAI capturing attention
GenAI, short for Generative AI, like ChatGPT, has seen recently increased acceptance, particularly during 2023. Telecom operators can benefit from using GenAI in various ways, such as optimizing and managing their network without human intervention (zero-touch network management). When implementing GenAI, telecom operators usually follow a phased approach. They start by experimenting with GenAI for internal processes, such as marketing tasks like creating promotional content or analyzing market trends. After successfully implementing and experimenting with internal processes, telecom operators can gradually introduce GenAI into customer-facing functions. For instance, GenAI could automate customer support, offer personalized service recommendations, or manage network aspects based on customer usage patterns. 2024, however, will bring a degree of scrutiny. As the capabilities of Generative AI continue to expand, there will likely be an increase in calls for tighter regulation due to concerns about accuracy and potential harm. Industries, including telecom, must navigate these regulatory challenges and use GenAI responsibly.
Customer Impact
Cloud gaming market bounces back after a brief hitch
Mobile cloud gaming provides an accessible alternative for casual gamers who cannot afford or do not have access to a dedicated game console. By eliminating the cost barrier, it considerably expands the addressable market for gaming services. It allows for direct monetization and presents opportunities to generate revenue through advertising. Recognizing this potential, Samsung could launch its cloud gaming service in Q1 2024 to reach over 1 billion handset and tablet users worldwide. Netflix also started testing its cloud gaming service in 2023, targeting casual gamers on larger screens with nearly 250 million paying subscribers to its video streaming services in Q3 2023. The adoption of cloud gaming services will stimulate the demand for high-speed and low-latency connectivity at home and on the go. Operators can also leverage their edge computing capabilities and connectivity infrastructure to deliver an immersive and lag-free gaming experience.
Connectivity for All
Satellite technology coming of age
Globally, satellite already plays an important role in providing network backhaul for 2G, 3G, and 4G technologies in rural and remote areas while also connecting a range of enterprise verticals such as logistics. Starlink, which uses Low Earth Orbit (LEO) satellites, has proven that it performs better than GEO satellites and offers a viable alternative in locations where terrestrial networks aren’t present. Despite Qualcomm and Iridium terminating their partnership, the excitement around satellite will continue in 2024 and we anticipate greater terrestrial and non-terrestrial network (NTN) integration. We also expect more partnerships between satellite providers and telecom operators to build a seamless and robust communication infrastructure that can address connectivity challenges in underserved regions.
Monetizing 5G through FWA
Fixed Wireless Access (FWA) continues to be a poster child for 5G, as it is one of the only ways carriers have found to monetize 5G separately, leading many operators to pursue FWA actively as part of their 5G strategies. According to Ericsson, there are 121 service providers offering FWA services over 5G, representing 50% of all FWA service providers. FWA provides an opportunity for telecom operators to serve rural locations better and offer an alternative for customers dissatisfied with cable or other incumbent broadband providers. Operators leverage FWA as a part of their 5G monetization strategy, and as Verizon put it “It’s simple. It’s plug-in and go. And that resonates with customers”.
Navigating fair share and regulatory horizons
With the threat landscape and communication networks evolving, governments and regulatory bodies need to keep up with the rapid advancements in telecommunications. The ongoing “fair share” debate centers around how networks are funded and the contributions of different entities toward telecom network costs. The European Union is discussing the contributions of Big Tech companies to the costs of the telecom networks they benefit from, while in the United States, a similar debate centers around net neutrality, financial contributions for network infrastructure, and how to ensure a level playing field for various stakeholders in the telecom space. In 2023, Ookla was actively involved in discussing best practices for ensuring digital transformation and connectivity for all in the APAC region, Central Asia, and Europe. Our data and analysis have shown that regulatory support has been fundamental in promoting the growth of 4G in Africa and informing policy decisions across the Middle East and North Africa. Looking ahead, we will continue to lend a hand in shaping the digital future, offering insights and expertise to foster connectivity, navigate policy decisions, and propel global telecommunications into new and exciting territories.
Ookla will be at MWC Barcelona 2024 – visit us at our Stand 2I28 in Hall 2 to talk with us about telco trends. In the meantime, if you’re interested to find out more about Ookla Speedtest Intelligence and its wealth of fixed and mobile consumer-initiated data and insights, please get in touch.
Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.
Ookla® has recently hosted a webinar on “Accelerating Europe’s Gigabit Revolution: The importance of high-speed internet in the digital era.” We gathered representatives from three European fiber providers, vertically integrated UK Internet Service Provider (ISP) Hyperoptic, Polish open-access fiber network provider, Fiberhost, and Spanish wholesale provider Onvia, to discuss their strategies and challenges related to fiber roll out and adoption. Industry experts from the European Competitive Telecommunications Association (ecta) and two research houses, Assembly Research and Omdia, also joined us.
European Commission’s Digital Decade 2030 Strategy
The European Commission’s Digital Decade 2030 strategy, also known as the Digital Compass, is an ambitious roadmap to speed up the digital transformation of Member States by 2030. One of its primary objectives is to enhance digital connectivity, with specific targets such as 100 Mbps services by 2025 and gigabit coverage for all EU households by 2030. We recently published an article to provide a reality check on the progress towards a Gigabit society. Our data suggests a wide gap between advertised and actual speeds for gigabit services, with speeds approaching 100 Mbps commonly seen by users. Despite this gap, our webinar participants were optimistic about achieving the Gigabit Society goal, with 71% supporting that view.
The EU goal predominantly focuses on the availability aspect. However, it is important to note that having fiber networks available does not automatically equate to actual penetration or adoption rates, although it is a necessary prerequisite. Having physical accessibility to network services is, of course, a vital first step before actual usage, which is influenced by multiple factors such as affordability, awareness, and the perceived need for the service.
The European fiber network landscape
Stephen Wilson, Senior Principal Analyst from Omdia, provided an analyst’s perspective on how the fiber networks’ competitive landscape is evolving for alternative operators and incumbents. He stated that there has been a substantial increase in Fiber-To-The-Premises (FTTP) coverage, and the investment case for fiber has been spurred by the pandemic. Leading countries, including those in Iberia and Eastern Europe, are pushing coverage to 90% of premises or more, driven by a positive business case. While FTTH (Fiber to the Home) subscriber penetration is generally experiencing steady growth, country-level variations exist, with factors like digital literacy, existing broadband penetration, and competition playing crucial roles in the observed trends. Countries such as Spain and Romania have achieved significant FTTH penetration rates, while others like France have outperformed predictions, emphasizing the diverse dynamics influencing fiber adoption across Europe.
Importance of supportive regulatory framework
James Robinson, Senior Analyst from Assembly Research, highlighted three measures the European Commission is taking as it seeks to deliver against the Digital Decade’s connectivity targets: the draft Gigabit Recommendation, the proposed Gigabit Infrastructure Act, and a plan for a Digital Networks Act. Although broad industry support exists for the Gigabit Infrastructure Act (GIA), the draft Gigabit Recommendation has proven to be the most controversial. Both measures are still nevertheless expected to be finalized by the end of the year. The Digital Networks Act (DNA) will take longer to materialize, with a white paper not due until H1 2024. Despite its catchy title, the ‘DNA’ is unlikely to represent the urgent concrete action many operators had hoped to see from the Commission following the launch of the exploratory consultation back in February of this year.
Luc Hindryckx, Director General at ecta, expressed doubt about an investment gap that could endanger the 2030 targets. He suggested that some proposed legislation had been developed to support only a few operators rather than to promote competition. Hindryckx stressed the importance of bringing the Gigabit Infrastructure Act to “a good end” and ensuring the reduction of the timing for obtaining permits to deploy networks. He also pointed out that the GIA is complementary to the European Electronic Communication Code (ECCC), and its key elements include asymmetrical regulation and the Significant Market Power (SMP) regime. Overall, ecta emphasizes the importance of regulatory measures that foster competition, encourage investment, and create a level playing field, ultimately contributing to the successful deployment of gigabit connectivity and the Digital Decade 2030 objectives.
Succeeding in Rural Areas
Marta Wojciechowska, Chief Executive Officer at Fiberhost, has reported that the company has already met its goal of extending its fiber-optic network to over 1.3 million households by the end of the year. The company primarily focuses on underserved areas, where deployment costs tend to be higher and less predictable. While there are uncertainties regarding demand and fiber service uptake, there are unique benefits, including the low risk of overbuilding. However, the investment process varies significantly between urban and rural areas. In cities, one kilometer of infrastructure can connect one hundred to two hundred households, depending on the city’s size. In rural areas, connectivity extends to just seventeen households per kilometer.
Furthermore, up to 19 formal approvals may be required for infrastructure deployment, which extends the time to connect premises in rural areas to an impractical 24 months. The cost of connecting one household in these secluded “white spots” is over five hundred percent higher than in cities. Overcoming these challenges requires expertise, experience, and a collaborative approach, emphasizing the importance of partnerships with multiple stakeholders. These include local governments and subcontractors to achieve common goals in fiber network expansion.
Strategies for Expansion
Icíar Martínez, Markets and Product Director at Onivia, acknowledged they face similar challenges to Fiberhost but noted that their strategies for expanding the FTTH footprint might differ. Spain boasts close to 90% fiber optic coverage, thanks to private initiatives and government support. Their selective deployment focuses on rural and ultra-rural areas, addressing high customer interest. However, the cherry-picking strategy becomes expensive, impacting profitability, especially in densely competitive areas. Onivia aims to maximize capital returns by identifying key players, adopting XGPON technology for speeds up to 10 Gbps, and strategically balancing deployments in large cities and rural regions to optimize network utilization based on market demands.
On the other hand, Howard Jones, Head of Communications at Hyperoptic, noted that the Hyperoptic approach is distinct, focusing on urban areas with densely populated regions. The key lies in a granular business case approach, evaluating each deployment building by building and street by street. Hyperoptic’s philosophy centers on understanding that the network’s value lies in retaining customers, emphasizing a customer-centric business model. With a customer experience-oriented strategy, the ISP addresses challenges in the UK broadband market, historically marked by lower speeds and inadequate competition. By delivering a high-quality network, reliable service, and fair pricing policies, Jones highlighted that the company aims to set new standards in customer experience, achieving a 40% penetration rate within approximately a year of network deployment.
Addressing take-up challenges
Marta shared that Fiberhost’s network would not be deployed in white spot areas without EU funds. Fiberhost is the largest beneficiary of EU-funded grants, but this is just the beginning of the investment process. They need to “earn money, and for that, we need to have a good take-up rate.” She added that they must work hard to encourage people to join the fiber network. Their analysis showed that there is a slowdown in activations after ~40 %. While early adopters (47%) are willing to pay a premium for fiber internet, a substantial portion of potential users remain hesitant, contributing to the overall challenge of achieving a high take-up rate. The remaining 53% of households exhibit characteristics of an older demographic (above fifty-five) with limited internet usage, often for undemanding tasks. Their price sensitivity and lower discretionary income present a formidable barrier to higher adoption rates. As a result, Fiberhost adopts a multifaceted strategy, encompassing high-level engagement with Internet Service Providers (ISPs), targeted sales promotions, and educational initiatives. This strategic flexibility recognizes the absence of a one-size-fits-all solution and emphasizes the need for nuanced approaches tailored to the diverse challenges within each territory.
Iciar echoed this sentiment but also highlighted a need to implement a connectivity plan, not just deploy fiber, but also to digitalize rural areas. Access to a broadband network in rural households is essential, and so is educating people on the benefits of accessing new technologies. Onivia is exploring synergies with other technologies like 5G or satellite to extend broadband connectivity into areas that are difficult to reach. Iciar mentioned that working with local authorities is key to reusing existing infrastructure and avoiding building and disturbing neighborhoods with work.
Demand Aggregation and Competition
Stephen pointed out that the most successful operators are already in the 60-70% take-up rates of premises passed in countries like Norway, which points to demand aggregation being an important factor in getting pre-commitments before you roll out. Howard concluded, “Competition is the key to ensuring that these targets are met because I don’t believe that incumbents alone will do it. They need to be driven, and driven by competition.” He added the introduction of ‘One Touch Switch’ adds another layer of competition into the UK market and presents an opportunity to break the stranglehold of the big retail providers, who still often tend to sell FTTC (Fiber to the Cabinet), by moving a significant number of customers to alternate providers who are more likely to offer FTTP. This initiative is crucial, but what’s more important is the need to retain competition for everyone.
The journey towards Europe’s gigabit revolution is indeed multifaceted and involves various factors such as regulatory landscapes, diverse deployment strategies, financial dependencies, and the imperative of competition. Achieving the Digital Decade 2030 targets demands not just the availability of physical networks but also a concerted effort to address adoption challenges and ensure that the benefits of enhanced connectivity reach all corners of society. A shared commitment to realizing Europe’s digital potential is crucial, and a regulatory framework that fosters competition emerges as a common thread, underlining its pivotal role in driving investment, innovation, and equality. Moving forward, collaboration, adaptability, and a unified approach are essential to achieving Europe’s digital aspirations. From our side, we will continue to report what we see from Ookla® data in terms of users actually experiencing speeds.
Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.
The European Commission has set forth an ambitious goal of achieving a Digital Decade 2030 strategy, also known as the Digital Compass. The aim is to expedite the digital transformation of Member States by 2030. One of the primary objectives of this strategy is to improve digital connectivity, which will be measured through specific targets such as 100 Mbps services by 2025 and gigabit coverage to all EU households by 2030. In this article, we will discuss the progress made so far, the disparities in user experience, and the challenges that need to be addressed to achieve Europe’s connectivity goals.
Key messages
Digital Decade Ambition: The ambitious goals of the EU’s Digital Decade strategy are indeed lofty. Broadband services might promise speeds in excess of 1 Gbps, but the reality is that users rarely experience that level of speed. However, while the gap between advertised speeds and actual speeds for gigabit services is wide, speeds approaching 100 Mbps are far more common.
Median Download Speeds and Infrastructure Development: Several European countries are making substantial progress in offering high-speed broadband. Denmark, Spain, France, and Romania have notably fast median download speeds, primarily due to their fiber-to-the-home (FTTH) infrastructure investments. The type of broadband technology used in those countries (and others) significantly influences the gap between download and upload speeds, with fiber-based networks showing more balanced speeds.
AltNets Drive Fiber Adoption: Alternative network providers (AltNets) play a vital role in accelerating fiber adoption and addressing challenges mainstream ISPs face. Their role varies across countries and regions.
Take-up rates remain a challenge: With the completion of fiber rollout in several countries, the focus has now shifted towards promoting fiber subscriptions. However, there are challenges that persist, such as consumer reluctance and the need for incentives. A survey conducted in rural France revealed that 42% of the respondents found their current internet sufficient, while 37% said that they would be encouraged to upgrade if offered incentives.
You can also register for our November 8 webinar, where a panel of industry experts will discuss how Europe can accelerate the expansion of gigabit-capable infrastructure. Register now.
On the road to 100 Mbps
The European Commission aims to ensure that all European households, businesses, and public institutions should have access to “high internet speeds” of at least 100 Mbps by year-end 2025. The EU is showing progress in terms of achieving that target. According to Broadband Coverage in Europe 2022, 86.6% of EU households were within 100 Mbps + coverage, meaning they had access to broadband services capable of providing at least 100 Mbps download speeds.
While having networks available does not automatically equate to real penetration or adoption rates, it is an important prerequisite. Physical accessibility to network services is a vital first step before actual usage, which is influenced by factors such as affordability, awareness, and the perceived need for the service.
According to the Digital Economy and Society Index DESI 2023 dashboard for the Digital Decade, 55.08% of EU households had already subscribed to fixed broadband services with internet speeds of at least 100 Mbps. While this rate of subscribers is significant and an indicator of the EC’s ongoing progress, the region is still far from achieving its goal of universal, 100 Mbps coverage by 2025. Some countries like Spain, Sweden, and Romania, where over 80% of households subscribe to broadband exceeding 100 Mbps, have already made significant progress in terms of fiber coverage.
However, in those countries, there is a significant gap between what households subscribe to and what we see from Ookla® data in terms of users actually experiencing speeds above 100 Mbps. Netherlands, France, and Germany are the outliers where we see more users having “high internet speeds” compared to the speeds advertised in their broadband subscription package. This is particularly interesting because Germany still heavily relies on VDSL for high-speed access technologies. Still, there is a significant amount of work to be done before countries can deliver on their strategies to achieve the 100 Mbps target.
The EC’s goal of gigabit connectivity is certainly one of the driving forces behind the rollout of fiber networks in the region. So far, progress is mixed across the region in terms of fiber network rollouts and adoption. As we have discussed, regulatory incentives propel the move to fiber. For example, Romania has one of the highest Fiber to the Home/ Building (FTTP/B) penetration rates across the region — nearly 97.7% of households — which is partially driven by government-backed fixed infrastructure projects such as RoNet, and the special attention given to rural and disadvantaged areas. Portugal, which already scored high on fiber coverage, plans to launch an international public tender by the end of 2023 for a project to cover all underserved areas with fiber-optic networks to boost fiber penetration further.
The reality of gigabit speeds
The European Commission’s Digital Decade 2030 strategy seeks to extend gigabit (1 Gbps) connectivity to every European Union household by 2030. To track the progress of these objectives, the DESI plays a crucial role in tracking EC’s progress. Only 56% of households in the EU have access to the necessary fiber networks for gigabit connectivity, and the take-up rate (proportion of households that subscribe to fiber) is even lower. According to the DESI 2023 dashboard for the Digital Decade, 13.76% of households in the European Union have subscribed to fixed broadband with at least 1 Gbps as of 2022. Nevertheless, there is a significant disparity in these percentages across different EU nations. For instance, only five countries surpassed the EU value – France leading with 39.94%, Hungary second at 29.81%, followed by Romania at 23.35%, Denmark at 18.66%, and Spain at 14.57%.
Looking at this data one might believe that many European households have access to Gigabit internet speeds. However, the reality is different as not all of them genuinely experience such high speeds. In fact, the proportion of Speedtest® users registering median download speeds of at least 1 Gbps in many countries is quite low. For example, France only had 1.42%, Hungary at 0.54%, Romania at 0.1%, Denmark at 0.03%, and Spain at 0.27%.
The significant gap between expectations and reality underscores the importance of not only rolling out gigabit-capable networks but also stimulating demand for those services. Service providers also need to pay attention to home networking equipment. Our research has shown that in markets where legacy broadband technology (such as DSL or coax cable) is being replaced by advanced cable and fiber connections, Wi-Fi performance can lag behind ethernet. Wi-Fi speeds typically range from 30-40% of ethernet, indicating a need to accelerate the adoption of more advanced Wi-Fi technologies and optimize the home network environment.
Median download and upload disparities
Median speeds are a standard metric for measuring performance, but there’s more to the story for the end-user experience. Access technology, be it DSL, cable, or fiber, as well as customer premises equipment and end-user devices, significantly influence the user experience. In our recent article, we highlighted how the persistent use of legacy and underperforming Wi-Fi standards in home networks can hamper efforts to provide the best network experience to customers despite progress in terms of fiber rollout and adoption.
According to Speedtest Intelligence® in Q3 2023, across Europe, Denmark had the fastest median download speed for fixed broadband (196.43 Mbps), followed by Spain (176.08 Mbps), France (170.51 Mbps), and Romania (166.39 Mbps). Notably, several of those countries have a substantial gap between median download and upload speeds. The type of broadband technology implemented can heavily influence the divergence between download and upload performance. Nations still reliant on DSL and cable often exhibit lower median upload speeds and a wider gap between upload and download speeds. On one hand, the UK and Germany lag behind other countries in broadband infrastructure upgrades due to their reliance on copper-based technologies and cable networks and are at the tail end of the ranking.
On the other hand, Sweden, with a 63% Fiber-to-the-Home (FTTH) penetration rate in 2022, has the narrowest gap between download and upload speeds. Forward-thinking broadband infrastructure and significant municipal involvement have positioned Sweden to reach the EC’s goals in the coming years. France, Spain, Denmark, Romania, and Portugal are also making significant progress toward achieving full-fiber coverage, with France expecting a full-fiber rollout by 2025. As fiber broadband adoption increases, the gap between download and upload speeds will narrow, mainly because fiber subscriptions are typically offered with symmetrical speeds, where users would experience the same level of speed for both download and upload usage.
However, even when we look at “the best-connected” Speedtest users (those seeing speeds in the top 10th percentile of our results), there’s a wide range of performance. Download speeds ranged between 417.23 Mbps and 844.04 Mbps, while the range for upload speeds was even wider, with median upload speeds ranging from 57.11 Mbps to 599.39 Mbps.
When looking at speeds at the 10th percentile, only four countries topped 700 Mbps. France led with a top speed of 844.08 Mbps, followed by Hungary at 765.85 Mbps, Denmark at 734.91 Mbps, and Romania at 704.04 Mbps. Notably, three of these countries (Romania, France, and Denmark) also lead in the top 10% of upload speeds, with all three exceeding 500 Mbps.
While for most countries included in this analysis, top speeds are at least a few hundred Mbps apart, there are a few exceptions. Spain shined bright, with the top 10% of its download and upload speeds closely matched at 611.17 Mbps and 609.17 Mbps, respectively.
Beyond median speeds
To delve deeper into the performance and reliability of internet services across different countries, it can be helpful to look at the expected speed range, i.e., the range of speeds that the majority of users experience. This middle 50% of speeds are captured by the interquartile range, with the lower value of the range, or lower quartile, indicating the bottom 25% of speeds and the upper value of the range, or upper quartile, indicating the top 25% of speeds. Examining Speedtest Intelligence data from Q3 2023, the lower quartile download speed across European countries ranged from 28.15 Mbps to 81.48 Mbps (in other words,, 25% of downloads were below that speed), while upper quartile speeds clocked in between 166.16 Mbps and 441.38 Mbps (i.e., 25% of downloads were above this speed).
Role of AltNets
According to the FTTH Council Europe, alternative operators (AltNets) are playing a significant role in the adoption of fiber in the EU39 region. The EU39 region comprises the EU27, the UK, Iceland, Israel, North Macedonia, Norway, Serbia, Switzerland, Turkey, and 4 CIS other countries. In 2021, around 56% of FTTH/B initiatives were led by AltNets, which marks a shift from 2011 when alternative ISPs had a 71% share, and incumbents accounted for only 21% of initiatives.
We looked at data from Omdia to determine whether there is a correlation between the number of active ISPs and the speed of the transition to fiber networks measured by FTTH share of all connections. The relationship is not straightforward and varies significantly depending on each country’s competitive landscape and government initiatives.
Across a number of countries fiber accounts for the majority of subscriptions – Spain comes on top with 81.8%, followed by Romania (81.7%), Sweden (77.5%), and Portugal (62.4%). Spain is a good example of a market that has been migrating to fiber away from copper ahead of the incumbent Telefonica turning off its legacy fixed network in 2024. Furthermore, Spain’s National Commission for Markets and Competition (CNMC) has simplified its ‘MARCo offer’, making it easier for alternative operators to access Telefonica’s infrastructure to launch their own fiber optic services.
It is worth noting that countries like the UK and Poland, which have many ISPs, are also leading the way in AltNet-driven fiber initiatives. In our previous article looking at the impact of AltNets in the UK, we concluded that AltNets played an important role. In fact, AltNets provided the top speeds in London, Glasgow, Liverpool, and Manchester, as well as across a number of counties. Public funding has helped facilitate the emergence of fiber ISPs in rural areas where fiber deployment is not commercially viable. Other AltNets like Hyperoptic are already well established, deploying and operating an FTTP network in high-density areas, which connects existing and new multi-dwelling buildings.
Take-up rates come with challenges
As fiber rollout nears completion in some countries, the focus shifts to selling fiber subscriptions to households that are within fiber network coverage. Sweden leads with an 80.1% consumer take-up rate (proportion of households that subscribed to and are actively using fiber-optic broadband services), but Spain, Norway, and France also boast high rates above 70%.
Sweden was the country that pioneered the open access model for fiber networks to drive competition and contributed to the country’s high fiber broadband penetration rates. Fiberhost, a Polish open-access network provider, is a significant beneficiary of EU funds, with 99% of funding for building the country’s fiber network in white spot areas (areas with limited or no access to high-speed internet).
There also has been notable progress in the wholesale networks market in Europe, some of which look to connect remote and rural areas. The Italian wholesale operator, Open Fiber, is partially funded by the country’s National Recovery and Resilience Plan (PNRR), with the goal of connecting the grey areas (where no other operator has plans to develop an NGA network) to gigabit speeds.
However, challenges persist in convincing consumers to switch to full fiber, even in countries with high take-up rates. For instance, a joint venture by Orange conducted a survey in rural areas of France to understand why households with FTTH access hadn’t upgraded to fiber services. The study revealed that 42% found their current internet sufficient, while 37% said incentives would encourage them to upgrade. Incentives and other initiatives are being implemented to migrate customers onto fiber networks in many countries in the region and across the world.
Future Initiatives and Investments
Fiber offers superior internet speeds, lower latency, enhanced security, and environmental sustainability – a noteworthy upgrade from copper networks and also a path forward for some cable operators (instead of DOCSIS 4.0). AltNets are making strides in driving fiber deployment across Europe, pushing toward the EC’s ambitious goals of achieving a gigabit society.
Despite progress, obstacles remain in convincing consumers to fully transition to fiber services. Comprehending consumer behavior, promoting fiber benefits, and inspiring initiatives will all play significant roles in this endeavor. Likewise, continued investments must be made to keep Europe on track to attain its connectivity targets
For more insightful updates on Europe’s fiber connectivity status, look forward to the Network X event in October 2023. It’ll offer a live pulse on the latest developments in fiber connectivity. We will continue to follow European countries’ progress toward Gigabit society and monitor its impact on fixed broadband speeds. If you’d like to learn more about internet speeds and speed performance in other markets around the world, visit the Speedtest Global Index™.
You can also register for our upcoming webinar, “Accelerating Europe’s Gigabit Revolution” on Wednesday, November 8 at 9 a.m. CET (GMT+1). A panel of industry experts will come together to discuss how Gigabit Society fits into Europe’s digital transformation strategy and propose strategies to ensure digital access for all. A recording will be provided for registrants who can’t join the live presentation. Register now.
Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.
Ookla® data shows that in India over the past year, mobile download speeds in the country have seen significant improvement. In fact, India jumped 72 places on the Speedtest Global Index™ over the past year, with India’s 5G launch largely responsible for boosting the country’s ranking.
Key messages
India ranked 47 in August 2023. The country’s speed performance has seen a 3.59 times increase since the introduction 5G, with median download speeds improving from 13.87 Mbps in September 2022 to 50.21 Mbps in August 2023. This improvement has led to India’s rise in the Speedtest Global Index, moving up 72 places, from 119th place to the 47th position.
5G benefits extend to all telecom circles. 5G deployments have led to an improved overall user experience across all telecom circles thanks to operators investing in backhaul infrastructure. The launch of 5G technology by operators like Jio and Airtel has led to a substantial increase in 5G subscribers, and operators still have ambitious rollout plans, with the deployment of a significant number of 5G base stations across the country.
Not only faster speeds. 5G has not only brought faster speeds but also higher customer satisfaction, as indicated by the Net Promoter Score (NPS), which shows that 5G users in India consistently rate their network operators more positively compared to 4G users. Additionally, 5G Fixed Wireless Access (FWA) services have been introduced to provide broadband connectivity in areas where laying fiber is costly or impractical.
India climbed by 72 places on Speedtests’s mobile rankings thanks to 5G rollouts
Speedtest Intelligence® data shows that median download speeds across India increased by 259% since before 5G launched, jumping from 13.87 Mbps in September 2022 to a median download speed of 50.21 Mbps in August 2023. As a result, India’s position on the Speedtest Global Index™ improved by 72 places, from 119th in September 2022 to 47th in August 2023. This puts India ahead of its neighbors, Indonesia, Bangladesh, Sri Lanka, and Pakistan, but also some G20 countries, such as Mexico (90th), Turkey (68th), the UK (62nd), Japan (58th), Brazil (50th place), and South Africa (48th place).
Mobile performance improved in all telecom circles
Mobile users in India are among the most data-intensive consumers in the world. However, India’s 4G networks have been unable to keep up with consumer expectations, primarily due to network congestion caused by population density, lack of cellular infrastructure, backhaul, as well as spectrum constraints. Following the 5G spectrum auction, operators have been able to addres some of those issues and help to offload 4G traffic onto 5G networks, thus reducing 4G network congestion – the strategy has proven successful already, as 25% to 35% of traffic is already getting offloaded on 5G from 4G.
According to Speedtest data, India’s median download speed has improved remarkably, increasing by 3.59 times since 5G was launched in the country. Back in October 2022, for example, India’s median download speed ranged from 10.37 Mbps in North East to 21.49 Mbps in Jammu and Kashmir. However, by August 2023, the range of median download speeds had widened significantly, with each circle clocking a speed of more than 28 Mbps. The North East saw a median download speed of 28.02 Mbps, while Jammu and Kashmir recorded a high of 150.95 Mbps.
In August 2023, Jammu and Kashmir, located in the northernmost part of India, emerged as the leader in mobile median download speeds at 150.96 Mbps, surpassing Bihar (73.00 Mbps) and Kolkata (66.47 Mbps). Jammu and Kashmir was one of the last states to launch a mobile network in 2003, and due to security concerns and internet shutdowns, there were occasional disruptions in mobile network services. However, the local administration has been focusing on developing infrastructure in various tourist places, particularly in Kashmir.
Fast-paced 5G adoption
Jio and Airtel have been implementing 5G technology since October 2022, following the acquisition of 5G spectrum licenses. At first, they concentrated on launching in major cities, but their coverage has expanded significantly, and 5G performance has improved across all telecom circles. In October 2022, there was a noticeable difference in the performance of 5G networks on 5G-compatible devices. Median download speeds ranged from 512.57 Mbps in Gujarat to 19.23 Mbps in Uttar Pradesh West as the networks were under development. In fact, in nine telecom circles: Andhra Pradesh, Kolkata, North East, Haryana, Rajasthan, Bihar, Punjab, Kerala, and Uttar Pradesh West, median 5G download speeds were below 100 Mbps because networks were in early testing stages. However, by August 2023, median 5G download speeds exceeded 240 Mbps across all telecom areas, with Kolkata leading the pack with a median download speed of 385.50 Mbps.
Jio also has ambitious rollout targets – it aims to deploy nearly 1 million base stations by December 2023 to address growing data consumption on its network. According to The Department of Telecommunications (DoT), the country had 338,572 5G base stations (BTS) as of August 28, 2023, a significant increase from the 53,590 reported at the beginning of the year. The three most populous states in India – Uttar Pradesh, Maharashtra, and Bihar – account for 25% of all wireless subscribers in the country and also hold a 25% share of 5G BTS.
5G speeds in India are particularly impressive compared to those on 4G; in August 2023, for example, median download speeds on 5G were 2,003% faster than those on 4G, with 5G showing a median download speed of 316.24 Mbps compared to 14.97 Mbps on 4G. The speed increase has been heavily propelled by operators investing in fiber technology to improve backhaul.
5G has a positive impact on Net Promoter Scores
The Net Promoter Score (NPS) is a tool that gauges customer loyalty and satisfaction. NPS is a key performance indicator of customer experience, categorizing users into Detractors (those that score 0-6), Passives (scores between 7 and 8), and Promoters (score of 9-10), with the NPS representing the percentage of Promoters minus the percent of Detractors, displayed in the range from -100 to 100.
In our recent article, we found that 5G users, on average, rated their network operator with NPS scores that were universally higher than those for 4G LTE users. The story is similar in India, where in Q2 2023, 5G scored 15.80 compared to -29.65 for 4G. In most telecom regions, except for the North East, the 5G NPS consistently outperforms that of 4G/LTE.
Ookla understands real-life consumer experience
Median 5G performance allows us to understand the midpoint of the user experience on 5G networks, but it doesn’t paint the complete picture. Speedtest® is designed to thoroughly saturate a user’s connection, uniquely allowing us to accurately measure the maximum speeds available. This is especially important for 5G connections, which can be capable of tremendous speeds, such as those we observed in India. Using Speedtest data, we can see that operators in India have already achieved maximum download speeds exceeding 1.7 Gbps. Speedtest simultaneously measures download speeds from multiple servers to ensure a fully utilized connection.
Early days for 5G FWA
In addition, operators have introduced 5G Fixed Wireless Access (FWA) services to complement their existing 5G offerings. FWA offers an excellent opportunity to cover areas that are too costly to lay fiber and is an alternative to fixed networks. 5G FWA offers an opportunity in India because it will use 5G as the last-mile technology to provide broadband connectivity.
5G FWA has already been very successful in the United States, South Africa, and the Philippines. Bharti Airtel launched ‘Airtel Xstream AirFiber’ in Delhi and Mumbai in August 2023, extending their services beyond their fiber footprint. Their plans start at Rs 799 ($9.64) per month and offer download speeds of up to 100 Mbps. Jio also launched ‘JioAirFiber,’ in September, initially available in eight cities, including Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Pune. There are several plan options available for ‘AirFiber’ and ‘AirFiber Max’ with download speeds ranging from 30 Mbps to 1 Gbps. Pricing starts at INR 599 ($7.22) per month and goes up to INR 3,999 ($48.23).
We will continue to monitor 5G performance in India, see how operators scale networks, and assess the real-world performance as more consumers will connect with 5G devices and use 5G FWA. If you want to learn more, subscribe to Ookla Research™ to be the first to read our analyses.
Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.
Late 5G Spectrum Allocation in Poland: While Poland was the last country in the region to allocate dedicated 5G spectrum, it has now initiated an auction for the crucial C band (3400-3800 MHz) to catch up with its neighbors.
Spectrum Refarming to aid 5G rollout: Many countries in the region are repurposing mid-band spectrum and shutting down 3G networks to allocate spectrum for 4G and 5G services.
North Macedonia leads on 5G Performance: North Macedonia had the highest median 5G download speed in the region, and its capital city (Skopje) was not only the fastest in the country, but it also ranked high in our global city speed rankings (25th).
Poland finally auctions 5G spectrum
When we last discussed the state of 5G across Europe, Poland was the only country in the region without dedicated 5G spectrum. At that time, all neighboring countries had already assigned C-band, and all bar Bulgaria were assigned low-band frequencies for 5G. There was limited interest in high-band (mmWave) frequencies, as we’ve witnessed in other parts of the world.
However, a notable shift occurred in May 2023 when Hungary’s National Media & Infocommunications Authority (NMHH) conducted an auction for 32 GHz frequency band spectrum because mmWave (24.5-26.5 GHz) is primarily used for fixed point-to-point and point-to-multipoint systems with some licenses set to expire in 2024 and the majority in 2027. NMHH intends for current users of the 26 GHz band to migrate to the 32 GHz band, making the 26 GHz band available for 5G use.
Below is an overview of the 5G spectrum status across select Central and Eastern European countries:
After a number of delays, Polish telecom regulator, the Office of Electronic Communications (UKE), began its auction for C-band spectrum (3400-3800 MHz). This is one of the crucial pioneer bands for 5G. All four Polish operators have submitted bids for 100 MHz blocks within the 3400-3800 MHz band at auction, which is expected to end by 11 November. Access to at least 100 MHz contiguous spectrum in C-band, the ITU’s minimum technical requirement to meet 5G performance requirements, will help Polish operators achieve faster speeds, lower latency, and improved spectral efficiency.
Furthermore, our research shows that countries using C-band spectrum (3 GHz – 6 GHz) for 5G experience faster download speeds than those on other bands. The chart below illustrates that this is the case in Central Eastern Europe as well. A higher proportion of scans on the C-band spectrum correlates with faster median 5G download speeds, as seen in countries like Bulgaria and Croatia. It’s worth noting that North Macedonia deviates from this pattern, which can be attributed to multiple factors, including Dynamic Spectrum Sharing (DSS), the country’s size, and the concentration of coverage in its capital, Skopje.
Spectrum refarming to aid 5G deployment
According to our data, a significant amount of bandwidth used for 5G is through lower mid-band (1000 MHz to 2600 MHz). We have observed that most 5G services in Poland utilize lower mid-band spectrum, given that the country’s spectrum auction has not finished yet. Additionally, more than 40% of tests conducted in Czechia, North Macedonia, Slovakia, and Romania were on mid-band. In contrast, 70% of tests in Hungary were performed on low-band spectrum, which helps enhance coverage (but often at the tradeoff of slower speeds). For example, in May 2023, Magyar Telekom announced that it had increased its outdoor 5G coverage to 60% of the population by this summer as part of its mobile network modernization program, carried out over multiple years. Magyar Telekom provides 5G networks over 700 MHz, 2100 MHz, and 3600 MHz spectrum bands, with the current development typically switching on 5G at 700 MHz.
Mobile network operators are refarming mid-band spectrum to provide faster and more advanced 4G and 5G services. To make this happen, several operators across four countries have already shut down their 3G networks, with seven more operators in five countries planning to do the same. A1 Slovenija decided to switch off 3G mobile network services on June 30, following Telekom Slovenije, which ended its 3G services last autumn. Slovak Telekom also plans to shut down its 3G network this year and use the freed-up 3G bands for 5G services (it already uses some of its 2,100 MHz spectrum for 5G). Orange Slovakia announced in December 2022 that it plans to disconnect its 3G network within a year. In Poland, Orange will start sunsetting 3G in late September and complete the process in 2025. T-Mobile already began dismantling its 3G network in Poland in Q2 2022 and will shut down by year-end 2023. The operator plans to use the 900 MHz band released from its 3G sunset for LTE and 5G.
North Macedonia scores high on 5G performance
Our data shows that in Q2 2023, North Macedonia achieved the highest median 5G download speed in Central and Eastern Europe at 317.91 Mbps. Bulgaria was the only other country in the region that topped 200 Mbps (233.63 Mbps). It’s worth noting that North Macedonia not only excels in terms of median 5G speed but also when looking at 90th and 10th percentile results. For example, 5G download speeds in the 90th percentile reached 788.30 Mbps, while speeds in the 10th percentile clocked in at 90.90 Mbps. Makedonski Telekom and A1 Macedonia launched their 5G services with a combination of 4G frequencies using DSS before the 5G spectrum auction, with the regulator, AEK, awarding the licenses for frequencies in the 700 MHz and 3.6 GHz bands for 5G in July 2022. Makedonski Telekom invested over EUR 70 million in 2022 for network development. While countries in the region continue to invest in 5G solutions, it’s worth noting that users could see 5G speeds decline after more and more users join and congestion ticks up.
Another factor contributing to the decrease is the need to adhere to coverage obligations, for which low band is better suited, resulting in lower median speeds.
A1 Bulgaria and Yettel Hungary head to head
According to Speedtest Intelligence data, median 5G download speeds in different parts of the region can vary greatly. For instance, Vodafone Hungary had a speed of 44.68 Mbps, while A1 Bulgaria boasted a speed of 433.35 Mbps in Q2 2023. In most markets, our results show a clear 5G leader when it comes to speed, and A1 Bulgaria has emerged as that leader in Bulgaria.
In May 2023, Nokia announced a successful trial of Nokia 5G Standalone (SA) Cloud RAN in A1 Bulgaria’s commercial 5G network. This trial followed A1 Bulgaria’s 5G SA network integration in October 2022. The 5G SA network consists of a Radio Access Network (RAN) built with Nokia equipment and Ericsson’s dual-mode 5G Core backbone network. Meanwhile, the second fastest operator, Yettel Hungary has improved its 5G performance as well, with its median 5G download speed increasing from 349.61 Mbps in Q2 2022 to 403.73 Mbps in Q2 2023, while at the same time, Yettel Hungary reported that its 5G network coverage increased from 5% of the population in 2022 to 16% in 2023.
Skopje leads the pack
Given that North Macedonia had the fastest 5G among its peers, it isn’t surprising that its capital ranked first among regional capitals, with Skopje boasting a 475.92 Mbps median 5G download speed and a 59.94 5G upload speed in Q2 2023.
The conditions of 5G licenses for Macedonian operators state that by the end of 2023, at least one Macedonian city should be covered with a 5G signal. But it is not only 5G that is achieving good performance. Skopje also ranked 25th on our Global Index City Speeds in July 2023, with a median mobile download speed of 96.79 Mbps, placing the city just behind Sofia in our rankings but ahead of some Western European capitals like Paris, Amsterdam, Lisbon, Berlin, Rome, and London.
The Road Ahead for 5G in CEE
In Central and Eastern Europe, the progress and hurdles of 5G development are becoming more apparent. Poland’s decision to allocate C-band spectrum is a positive step forward. Other countries are still transitioning their networks and reallocating spectrum. The sunsetting of 3G networks is a global trend. Leading mobile operators are sunsetting 3G to free up spectrum for newer technologies and move their customers onto faster technology. Ookla recently hosted a webinar sharing lessons learned on how to use crowdsourced network intelligence to address those challenges and the impact of repurposing 3G spectrum to more advanced technology. Some of the ways Ookla data can help is by identifying areas where either 2G or 3G signals are strong and where 4G LTE networks can be improved with network planning and optimization.
Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.
Ookla® hosted its inaugural Telecommunications Regulatory Summit for policymakers across Asia Pacific on July 16, 2023, in Kuala Lumpur, Malaysia. The Summit event brought together over 40 regulatory participants from ten countries in the region, to examine how crowdsourced data can support more effective policy-making. The Summit also reflected on the regional telecommunication landscape, its challenges, opportunities, ways to bridge the digital divide, and ensuring consumers have a good quality of experience (QoE).
Key takeaways
Data-driven regulation to drive connectivity. The summit emphasized that crowdsourced data plays a crucial role in measuring progress, identifying connectivity gaps, and making informed decisions to bridge the digital divide, ensuring that high-quality broadband is accessible to everyone, including rural and remote areas.
Diverse technology solutions for connectivity. While 5G technology can replace fixed broadband access in certain scenarios, satellite and 5G FWA technology are effective solutions for remote areas. Adopting these technologies, combined with digital literacy initiatives, can help address challenges related to device accessibility, affordability, and usage gaps.
Regulation and collaboration as catalysts for digital transformation. Effective regulatory policies, collaboration with various stakeholders, and implementing programs like Malaysia’s Jendela initiative are instrumental in promoting digital infrastructure, improving customer experience, and ensuring widespread access to telecommunications services. When internet providers, governments, and regulators work together (like in the Malaysia example), internet service and coverage will continue to improve and expand, including in rural areas.
Data-driven regulation to increase connectivity
Many governments in Asia Pacific see improvements to broadband connectivity as a means to drive digital transformation of their economies. However, this requires that high-quality broadband be accessible nationwide.
Speedtest Intelligence data shows that fixed network performance varies across the region, while mobile networks are catching up in performance and are often the primary means of connection. 5G performance has already exceeded fixed network performance in Malaysia and Indonesia – Speedtest Intelligence data shows that Malaysia recorded a median 5G download speed of 511.79 Mbps versus 93.19 Mbps for fixed, while in the Philippines, our results showed median download speeds of 133.47 Mbps on 5G versus 93.19 Mbps over fixed broadband.
Although connectivity continues to improve, connecting rural and remote areas remains a challenge. To tackle this issue, some countries have established programs like Malaysia’s Universal Service Provision and Indonesia’s Universal Service Obligation fund. These programs aim to provide basic telephony and internet services to individuals and communities. Operators contribute to the fund, which is then used to deploy networks in rural areas that may not be financially viable otherwise. Mr. Sam Majid, CTIO of the Malaysian Communications and Multimedia Commission (MCMC), emphasized the importance of making informed decisions, driving tangible improvements, and revolutionizing the approach to strengthen internet connectivity in the country. He added, “Crowdsourced data has become critical for us to understand where the demand for connectivity is, where we need to improve, and where we need to deploy. These insights help us manage regulatory policy to address the digital divide, support consumer protections, and increase competition within the market.”
A mix of technologies is required to advance connectivity
5G technology can potentially replace fixed internet access in situations where the cost of fiber deployments is high and rolling out traditional fixed broadband networks isn’t commercially viable. However, in countries like Indonesia, satellite technology may be a more effective solution for providing connectivity to remote areas. While 5G Fixed Wireless Access (FWA) and satellite technology can complement each other, the adoption of satellite technology is currently limited by factors such as coverage, device affordability, and cost of service (Starlink modems cost around $800) in comparison to existing fixed or mobile broadband options. On the other hand, based on our data from the U.S.A., we can see that in the best-case scenario, 5G-based FWA can compete with fiber in terms of median download speeds.
Malaysia has taken a proactive approach to address the growing demand for better quality fixed and mobile broadband coverage. The government’s 12th Malaysia Plan (2021-2025) includes the Jalinan Digital Negara (Jendela) initiative, which utilizes various technology solutions for different sub-areas. To achieve its objectives, Jendela uses Ookla’s crowdsourced data to monitor mobile broadband speeds and identify coverage gaps. In contrast to other countries, Malaysia has adopted a nationwide single wholesale network (SWN) approach for its 5G rollout. The Digital Nasional Berhad (DNB) was established in 2021 to construct and operate the 5G network infrastructure and provide 5G services to mobile network operators at wholesale prices. With 5G DNB coverage reaching 64.75% as of June 2023, Jendela is making significant progress in expanding internet access and achieving its goals of digital transformation.
Regulators play a role in advancing digital transformation
In a panel discussion about the impact of regulation on digital transformation, MTC Laos’ Ms. Phavanhna Douangboupha and Indonesia’s DG SDPPI, Mr. Adis Alifiawan, shared their strategies for increasing broadband connectivity and narrowing the digital divide. Ms. Douangboupha revealed that Laos is collaborating with the private sector and government agencies towards Digital Transformation and Digital Economy development. As part of this it recently launched the National Digital Transformation Committee, chaired by the Prime Minister, in order to reduce redundancy to improve efficiency. Laos also launched the 20-year Vision for Digital Economy Development (2021-2040), 10-year Strategy (2021-2030), and 5-year National Digital Development Plan for 2021-2025. The Ministry of Technology and Communications of Laos is also raising awareness for digital transformation by visiting each province and educating on its benefits.
Meanwhile, Indonesia has taken a targeted approach to accelerate the development of digital infrastructure and provide internet access in villages and public service locations as part of the “Connected Indonesia: the more digital, the more advanced” initiative.
The government has developed all three layers of digital infrastructure, including its Fiber Optic Backbone Network “Palapa Ring,” high throughput satellite (SATRIA-1) for middle-mile connectivity, and last mile connectivity through 4G base stations and WiFi internet access deployed solely by the government in rural areas. Sharing telecom infrastructure is another supportive regulatory framework, which can reduce business costs, ensure faster rollouts and enhance a country’s connectivity, according to Ms. Syeda Shafaq Karim, a representative from the Pakistan’s Telecom Regulator. She also added that enabling Telecom Infrastructure Sharing brings multiple benefits for all stakeholders, from telecom consumers, operators, and regulatory perspective. Additionally, Mr. Tith, during his presentation, discussed how the Telecommunication Regulator of Cambodia intervened to address issues related to QoS and network coverage by setting a floor price for mobile data packages, ensuring they are not sold below the cost base.
While much progress has been made, in our recent article, we shared how several markets in the Asia Pacific region experienced faster median download performance compared to that in the top five European economies. For example, Malaysia, South Korea, Singapore, India, New Zealand, China, and Australia achieved a median 5G download speed exceeding 200 Mbps. In comparison, only France recorded speeds above 200 Mbps among the European countries mentioned, while Italy, Germany, United Kingdom, and Spain, recorded median download speeds below 150 Mbps. However, there is another important factor to consider when discussing expanding broadband adoption, and that is the usage gap, those people that live within the footprint of mobile broadband networks and not using them. According to GSMA, almost half of the population in Asia Pacific is connected to the mobile internet. The mobile internet usage gap – in the region has narrowed significantly from 60% in 2017 to 47% in 2022, reflecting the increasing affordability of devices and improving digital skills.
Mr. Kevin Henry, representing the GSMA, during Fireside Chat: Democratizing Broadband Through 5G Fixed Wireless Access Implementation, discussed the current challenges to expanding internet adoption across the region, such as device accessibility, affordability, coverage, and usage gaps. These challenges can be addressed through digital literacy, relevant content, and education. He also added that governments and mobile operators have a crucial role to play in driving internet adoption via subsidies or tax, as well as educating the citizens on the benefits of being connected.
Overall, the event emphasized the importance of digital transformation, partnerships, and regulation in shaping the future of the telecom ecosystem. The focus of the APAC Regulatory Summit was on improving customer experience, digital advancement, and closing the digital gap, all of which depend on reliable mobile networks. While progress is clearly being made, we will keep a close eye on 5G and network development across Asia going forward. In the meantime, if you want to learn more, subscribe to Ookla research to be the first to read our analyses.
Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.
Ookla® recently participated in the M360 Eurasia event held in Baku, Azerbaijan, on May 16-17. The conference brought together various players in the telecom industry to discuss important topics such as digital resilience, building stronger customer relationships, and the future of infrastructure, including 5G, IoT, AI, machine learning, fintech, and cybersecurity. The event also emphasized the importance of partnerships, and as such, Ookla shared its perspective on the progress of regional networks and customer experience.
Key takeaways
Digital transformation imperative. Addressing the digital divide, fostering digital resilience, and improving the quality of connectivity are critical priorities in Central Asia’s digital transformation journey.
Partnerships are key. Collaboration among stakeholders, including mobile operators, is crucial to overcome challenges and ensure inclusive and reliable digital access for all.
AI in customer experience. Leveraging technologies like AI, cloud computing, and biometrics to enhance digital services, improve customer experiences, and promote innovation will be vital to building stronger customer connections.
Early days for 5G. Although 5G is still in its early stages in the region, there is a need for both the government and private sector to collaborate and prioritize the deployment of 5G technology.
The digital transformation is no longer just an option
As Central Asian countries continue to embrace digital transformation, it’s becoming clear that partnerships are critical to closing the digital divide. Despite network coverage expansion, mobile internet adoption has yet to keep up, resulting in almost 50 million unconnected people in the region, per the latest GSMA Intelligence report.
Deputy Secretary General of the International Telecommunication Union (ITU) Tomas Lamanauskas highlighted the importance of digital resilience: “The coronavirus pandemic (COVID-19) has changed the way people live, increasing their access to online resources. After the pandemic, the use of computers by people has increased by 60%.” To ensure digital resistance building a robust and flexible digital infrastructure, implementing adequate security measures, and developing a culture of adaptability and innovation are paramount.
During her opening keynote, Azercell CEO Zarina Zeynalova stressed the importance of mobile operators’ role in enabling digital resilience. She also emphasized the need for investing in new security systems and upskilling efforts. Ms. Zeynalova highlighted, “As the providers of mobile connectivity and communication services, we are at the forefront of the complex digital ecosystem and have a unique perspective on opportunities as well as first-hand insight into the challenges of the rapidly evolving landscape.”
The quality of connectivity also matters. Across Central Asia, where close to half of the population lives in rural areas, it is crucial to make sure that those communities are not left behind when it comes to fast and reliable internet. The latest data from Speedtest Global Index™ shows that there is still room for improvement in the rankings of the “stans.” However, it is encouraging to see that their mobile rankings are on the rise. In Central Asia, where fixed-line broadband and mobile access are limited, access to reliable and high-quality mobile networks is critical; mobile technology is a key factor in digital inclusion and supports economic growth through mobile banking and remote education, among other things.
Partnerships are crucial to spurring the digital transformation
During the panel discussion titled, “Building Stronger Customer Connections: Partnerships in a Mobile-First World,” participants highlighted how digital has become the new normal. One of the speakers, Polina Chernikova, Head of Android Partnerships, The Commonwealth of Independent States (CIS), Google, explained how Google has always been a pioneer in digital innovation by developing platforms such as Android, Play, and Chrome, while providing cloud services to help businesses build better solutions. Additionally, Google supports telco partners in their digital transformation journey by assisting them in getting more smartphones on their networks. One notable example is the development and launch of a Device Locking Solution by Android, which has enabled operators to offer attractive installment plans.
With the rapid growth and changes in the digital world, many businesses and organizations are adopting cloud-based solutions to enhance their digital projects and streamline their operations. The Chairman of the Board of Directors at Azintelecom, Elkhan Azizov, highlighted the significance of dependable and secure cloud services in supporting digital transformation efforts.
AI will shape the future of customer experience
Leveraging technologies like AI, cloud computing, and biometrics to enhance digital services, improve customer experiences, and promote innovation will be vital to building stronger customer connections.
During his keynote speech, George Held, the AdTech CEO of VEON, discussed the company’s Digital Operator (DO1440) strategy that aims to reduce customer churn and increase loyalty by offering digital products and bundles. Mr. Held emphasized that “As telcos, we have more direct access to our customers than global tech. We can target customers with what they need when they need it and on the right device.”
VEON’s strategy is focused on creating locally relevant digital products and services, such as Beeline Kazakhstan’s AI linguistic model called Kaz-RoBERTA-conversational, or BeeBERT for short, which enhances the customer experience and promotes the development of AI-based solutions in the Kazakh language.
Google has been utilizing AI for over seven years to improve its products and make them more helpful to users. With its deep understanding of information and Generative AI capabilities, Google is transforming Search and all its products. Ms. Chernikova emphasized the importance of the developer community to unlock the vast opportunities ahead: “No one company can do this alone. Our developer community will be key to unlocking the enormous opportunities ahead”.
According to Mr. Azizov of Azintelecom, the company’s digital platform SIMA utilizes AI, cloud, and face recognition technologies through partnerships. SIMA has successfully digitalized processes in the country with its biometric-based mobile application for digital signature, which has been downloaded 400,000 times. Additionally, operators can now provide their customers with eSIM online and faster than ever due to the biometrical authentication possible with SIMA.
Still early days for 5G
Although 5G is still in its early stages in the region, there is a need for both the government and private sector to collaborate and prioritize the deployment of 5G technology. Mobile operators started to deploy and test 5G networks in 2020, although with limited geographic reach across Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. Companies across the region are working towards expanding 5G coverage, making devices more affordable, and optimizing network capabilities to make 5G more accessible and beneficial.
At the end of 2022, Kcell, which operates under two brands, Kcell and Activ, acquired 5G frequencies in the C-band. Aibek Nurkadyr, Strategic Development Director at Kcell, revealed that over 11% of devices using the mass-market Activ brand and 30% across the premium Kcell brand are connected to the 5G network. This shows that Kcell is making progress in expanding its 5G service, but the operator must continue to increase its 5G user base and deliver 5G use cases.
Google is also working to make affordable 5G devices a reality by collaborating with OEMs and SOCs. Additionally, Google is partnering with operators to enable traffic differentiation and improve network utilization through 5G slicing.
Overall, the event emphasized the importance of digital transformation, partnerships, and AI in shaping the future of the telecom ecosystem. The focus is on improving customer experience, digital resilience, and bridging the digital divide, all of which rely on reliable mobile networks. We will keep a close eye on 5G and network development across Central Asia going forward. In the meantime, if you want to learn more, subscribe to Ookla Research™ to be the first to read our analyses.
Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.
When we have commented on 5G performance across Europe, we noted that across most of Europe, median 5G speeds have actually decreased, while 5G Availability has increased. The story is very much the same in Switzerland, with additional pressures brought about by having to adhere to strict Electromagnetic Field (EMF) regulations.
Key takeways
5G Availability is up. Driven by regulatory obligations, 5G coverage is on the rise in Switzerland, improving 5G Availability and the country’s ranking amongst its peers, such as the Netherlands, France, and Spain. In Q1 2023, Switzerland’s 5G Availability was 54.9%, up from 33% in Q1 2022.
5G speeds decline. In terms of median 5G download speeds, Switzerland saw the most significant decrease amongst its neighbors, with the country’s median 5G download speed falling by around 40 Mbps, from 172.69 Mbps in Q1 2022 to 132.10 Mbps in Q1 2023. Sunrise’s 5G speeds dropped the most across all Swiss operators.
5G positively impacts QoE and NPS. Our QoE data shows that 5G delivers better results for video streaming and web browsing than 4G and Wi-Fi. Additionally, Net Promoter Scores (NPS) have been higher for users on 5G than those on 4G.
Switzerland leads its peers on 5G Availability
According to Speedtest Intelligence®, Switzerland has shown significant progress in expanding its 5G availability, with the percentage of users on 5G-capable devices accessing 5G networks most of the time increasing from 33% in Q1 2022 to 54.9% in Q1 2023. Despite operating with strict Electromagnetic Field (EMF) regulations, Switzerland has managed to implement 5G while still adhering to safety standards that protect the public from EMF exposure. The majority of European Union countries follow the International Commission on Non-Ionizing Radiation Protection (ICNIRP) recommendations, which are set at a level 50 times lower than the threshold where health damage has been proven. However, Switzerland’s regulations are even more stringent than those of the EU.
Swiss 5G performance trailing that of its neighbors
In our recent article, we analyzed Speedtest Intelligence® data to categorize 5G performance into four major groups: 5G Leaders ( > 300 Mbps), High Performers (200 – 300 Mbps), Improvers (< 200 Mbps), and 5G Outliers. Except for France, all countries on the chart above had median 5G download speeds below 200 Mbps, placing them in the “5G Improvers” category. While 5G speeds in Austria and Italy improved slightly, most countries we looked at experienced year-on-year decreases in median 5G download speeds. Switzerland had the most significant decline, dropping from 172.69 Mbps in Q1 2022 to 132.10 Mbps in Q1 2023. There are several reasons for the decline in 5G performance, including increased adoption leading to higher network congestion, economic pressure on operators, higher energy costs, and reduced spending power for consumers.
Sunrise 5G speeds dropped the most as operators focus on extending coverage
Switzerland was the first European country to commercially launch 5G, doing so in April 2019. The country’s telecom regulator, ComCom, conducted a spectrum auction for bands including 700 MHz, 1400 MHz, and 3500 MHz. By the end of 2024, those with 700 MHz spectrum must make 5G available to at least 50% of the population, while those with the 1.4 and 3.5 GHz bands must make 5G accessible to at least 25% of the population by the same deadline.
In addition to acquiring new spectrum, operators can also refarm spectrum from existing legacy 2G/3G networks for 4G/5G. Swisscom switched off 2G in April 2021 and plans to shutter its 3G network by the end of 2025. This strategy allows Swisscom to refarm its legacy spectrum for 4G and 5G networks as “only 1.1% of mobile data traffic still runs on the 3G network, yet the technology occupies around 10% of the antenna capacity (ONIR)”.
Due to ONIR legal conditions, cell site transmit power is limited, and operators look to use it as efficiently as possible. They had previously complained that the Ordinance on Protection from Non-ionising Radiation (ONIR) is ten times as strict as European Union regulations. Despite these challenges, Swisscom achieved 61.7% 5G Availability in Q1 2023. Swisscom’s Q1 2023 results note that the operator covers 99% of the Swiss population with a basic version of 5G (using Dynamic Spectrum Sharing, which borrows capacity from its 4G LTE spectrum) and 75% with 5G + (delivered using mid-band spectrum). The operator aims for nationwide 5G+ coverage by 2025.
Salt, which shuttered its 2G service in early 2023, announced that it is covering 99.9% of the territory of Switzerland with 3G, 4G, and 5G.
Sunrise also discontinued 2G in early 2023 and plans to decommission its 3G networks to free up spectrum and improve network efficiency. According to the latest data from Sunrise, the company provides high-speed 5G to over 1,048 cities/towns and basic 5G to over 96.7% of the population. Our data shows that Sunrise prioritized 5G coverage over performance. Sunrise’s 5G Non-Standalone (NSA) network promotes ENDC (E-UTRAN New Radio – Dual Connectivity). In situations where a 5G NR layer is not present, 5G coverage is reported on user devices, but those users saw decreased performance as their devices were actually still on 4G.
Beyond bandwidth – all eyes on latency
Bandwidth alone isn’t everything when it comes to a good consumer experience. Latency is just as important, especially for services like gaming, AR/VR, the Metaverse, and other apps that require quick responses. Ookla has introduced a new measure called loaded latency, which helps identify the origin of latency problems. Loaded latency is measured during data-heavy download and upload portions of Speedtest, which can reveal issues when multiple applications are running on the same connection. For example, high download latency may occur when someone in the household is installing a large game, while high upload latency can happen when someone is uploading a video to the cloud.
Smooth gameplay without interruptions or buffering is crucial for gamers, which is why low latency is important. Indeed, high latency can cause gameplay to stop altogether. According to a study by Deloitte, 45% of people in Switzerland played video games at least once in the last six months, which is lower than the European average of 55%. Swiss gamers spend an average of 8 hours per week playing video games, compared to Europe’s average of 15 hours per week. While Swiss users may not game as much as their European counterparts, the door is wide open for operators to promote gaming and other immersive experiences such as AR/VR and the broader metaverse market. In early 2023, the Swiss Metaverse Association (Metassociation) was established as a private-public partnership to bring major industry players together, encourage innovation, and position Switzerland as a leading metaverse location. Sunrise and Swisscom are both founding members of the Metasssociation as they look for new avenues to generate revenue.
5G delivers better Quality of Experience (QoE) compared to 4G
The Ookla Consumer QoE™ platform provides valuable insights into the quality of the user experience across various services like web browsing, video streaming, gaming, and video conferencing. With digital services in Switzerland (e-banking, streaming, etc) seeing high usage, we looked at performance differences between 4G, 5G, and Wi-Fi technologies for a few services to see which generation of technology offered the best QoE
A survey by Moneyland.ch showed that 89% of Swiss people use at least one video streaming service, with Netflix being the most popular, watched by 58% of Swiss viewers in 2022. For those who stream videos, the time it takes for videos to start and/or buffer is a critical factor to consider. Ookla’s Consumer QoE data for March 2023 indicates a nearly 20% decrease in video start time when comparing 4G and 5G networks, with 5G users seeing much quicker video start times than those on 4G.
5G delivers comparable browsing results to Wi-Fi, making it a great option for web browsing (and quicker than 4G).
Video conferencing continues to be an integral part of everyday life. According to IGEM Digimonitor 2022 study, 4.0 million people (61% of the population) use a video conferencing tool at least occasionally, with 1.1 million (18%) continuing to video conference daily. Based on Ookla’s Consumer QoE data for March 2023, fixed networks deliver the best video conferencing experience – in terms of both latency and jitter – but 5G wasn’t far behind in either measure.
5G positively impacts NPS
Net Promoter Score (NPS) from Speedtest Intelligence paints a largely positive picture of current 5G networks in Switzerland. NPS is a key performance indicator of customer experience, categorizing users into Detractors (those that score 0-6), Passives (scores between 7 and 8), and Promoters (score of 9-10), with the NPS representing the percentage of Promoters minus the percent of Detractors, displayed in the range from -100 to 100.
In our recent article, we found that 5G users, on average, rated their network operator with NPS scores that were universally higher than those for 4G LTE users. The story is similar in Switzerland, where 5G NPS scores were almost ten times higher for 5G than 4G. What’s more, just over half of Swisscom 5G users are promoters (54%) compared to 33% for Salt and 32% for Sunrise.
We will continue to measure 5G performance in Switzerland. If you have access to 5G in Switzerland, take a Speedtest® on Android or iOS to report how your operator is performing.
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