Tag: 5G

Ookla Research™ Articles
| December 16, 2024

DIGI makes a splash as fourth MNO in Belgium, leans on convergence

5G

Belgium’s new entrant jolts the market with aggressive pricing, eyes Wi-Fi 7 in bid for QoE advantage

Romania’s DIGI has taken another bold step in its ambitious multi-country expansion strategy—the largest in Europe in over a decade—by launching fixed and mobile services in Belgium. It is replicating its signature disruptor strategy to swiftly capture market share, introducing a cut-price mobile tariff priced at €5 per month for 15 GB of data, alongside a fixed broadband offering at €10 per month for a 500 Mbps full-fibre connection.

The long-anticipated commercial launch is founded on a rebranded joint venture between Citymesh (51%), a subsidiary of IT services group Cegeka specialising in the B2B segment, and RCS & RDS, a subsidiary of the DIGI group. A five-year national roaming agreement with Proximus, Belgium’s largest mobile operator, has enabled DIGI’s market entry while it works to deploy its own greenfield radio infrastructure. DIGI aims to achieve 30% 5G population coverage by the end of 2025 and establish a network of 4,500 sites by the end of this decade.

As part of this roaming agreement, Proximus proposed to decommission and transfer around 400 of its own mobile sites to InSky, the company responsible for deploying the infrastructure for DIGI and Citymesh. With extensive spectrum holdings, including assets in the 700, 900, 1800 and 2100 MHz bands, along with a valuable 50 MHz of unpaired 3.6 GHz spectrum and 2.6 GHz frequencies it secured from neutral host operator Dense Air, it is fully equipped to execute its mobile network rollout. 

DIGI subscribers rely on Proximus’ 4G network as it races to deploy its own 5G Standalone (SA) infrastructure

Subscribers to the new operator may initially be surprised by the limited availability of 5G services. DIGI’s roaming agreement with Proximus is restricted to its 4G network, with 5G access reliant on the progress of DIGI’s own greenfield site deployment. Whether this rollout will enhance Belgium’s international standing in 5G coverage remains to be seen, as the country continues to lag behind most of its developed peers due to delays in network deployment caused by conflicts between regional governments at the start of the 5G cycle. 

Belgium continues to lag its neighbours in 5G Availability
Speedtest Intelligence® | Q3 2023 – Q3 2024

Analysis of Speedtest Intelligence® data from Q3 2024 reveals that Proximus, DIGI’s roaming partner, led the market in 4G download speed performance. Proximus’ subscribers enjoyed median 4G download speeds of 55.68 Mbps in the period, outperforming Telenet (47.91 Mbps) and Orange (36.22 Mbps). 

DIGI subscribers will roam on Proximus' 4G network, which leads the Belgian market in 4G download speed performance
Speedtest Intelligence® | Q3 2023 – Q3 2024

However, this performance advantage does not extend to network reach. In Q3 2024, Proximus lagged behind its competitors in 4G Availability. Telenet led the market with 93.74% 4G Availability, followed by Orange at 86.02% and Proximus at 81.07%. Proximus’ comparatively lower 4G Availability has also contributed to its subscribers spending more time on 3G than those of other operators. On Proximus’ network, 11.21% of devices spent the majority of their time on 3G, compared to 7.92% on Orange’s network and just 3.41% on Telenet’s network. 

Proximus' subscribers spend more time on 2G and 3G compared to competitors, primarily due to lower 4G Availability
Speedtest Intelligence® | Q3 2024

Fibre ambitions put convergence and Wi-Fi 7 in the spotlight

DIGI’s ambitions in Belgium extend beyond disrupting the mobile market—it is taking aim at fixed broadband too. The operator has introduced ‘DIGI Fiber’, bringing its signature aggressive pricing to the FTTH market. Launching with a limited footprint in select Brussels suburbs, DIGI Fiber offers download speeds of up to 10 Gbps for as little as €20 per month. It plans to scale this fibre footprint rapidly, as it has done in Spain, targeting 2 million households within two years.

DIGI’s fibre offering is highly competitive in the Belgian market context, promising speeds that are many multiples of the country-wide median of 101.97 Mbps observed across fixed networks in Belgium in Q3 2024. While Proximus’ fibre service led the market during this period with median download speeds of 303.25 Mbps, DIGI’s entry may disrupt the market order. 

Proximus Fiber leads in fixed download speed performance across Belgium's largest cities
Speedtest Intelligence® | Q3 2024

The operator is placing significant emphasis on Wi-Fi performance as part of its foray into the home, providing Wi-Fi 6-capable CPE as standard and preparing to introduce Wi-Fi 7 solutions “soon” for customers subscribing to its 10 Gbps service. This follows the playbook of other leading fixed operators seeking to differentiate fibre services through an enhanced focus on quality of experience (QoE) in the home, with BT’s EE in the UK and Iliad’s Free in France also debuting Wi-Fi 7 solutions in a bid to sell premium fibre experiences.

DIGI aims to leverage converged bundling of fixed and mobile tariffs to maximise customer retention and minimise churn, as it seeks to position itself as a leader in both price and network quality in Belgium. However, this convergence strategy is far from novel in the Belgian market, where competitors have successfully offered triple- and quad-play bundles for years. Notably, DIGI has yet to introduce a TV service in Belgium, leaving a gap in its bundling proposition at launch. 

Has DIGI precipitated a race to the bottom in Belgium?

DIGI’s arrival disrupts a market long known for generating some of the highest average revenue per user (ARPU) levels in Western and Central Europe, coupled with a higher degree of market concentration compared to other countries in the region, based on analysis of GSMA Intelligence data. In Q3 2024, Belgian operators reported a monthly ARPU of €18.26, significantly outpacing neighbouring markets such as the Netherlands (€13.15) and Germany (€11.03).

Belgian operators maintain higher ARPU levels compared to many other European markets
Analysis of GSMA Intelligence data | Q3 2024

Market incumbents have been bracing for an intense price war for some time. Earlier this year, Proximus cut its dividend, increased debt and struck agreements with alt-nets to accelerate its fibre rollout in Flanders. In a strategic counter move, Orange responded to DIGI’s aggressive mobile pricing by launching an equivalently priced tariff through its budget-focused ‘Hey!’ sub-brand, setting the stage for a race to the bottom in Belgium’s telecoms market.

This development shifts the Belgian market from a three- to four-player structure, marking a notable countertrend at a time when regulators in Brussels are signalling a softer stance on merger reviews and competition policy. It also follows closely on the heels of the Vodafone-Three merger approval in the UK, highlighting the increasingly diverse regulatory dynamics at play across Europe. 

DIGI's success in Spain has been a cornerstone of its revenue growth, fueling its expansion ambitions in Belgium
Analysis of DIGI Group financial accounts | 2018 – 2024

Regardless of the outcome in the Belgian market, this marks a critical litmus test for DIGI’s growth ambition in Western Europe. Over the past decade, the Bucharest-based group has nearly tripled its annual revenues, growing from €624 million in 2013 to over €1.69 billion in 2023. It continues to distinguish itself through an obsessive strategic focus on operational efficiency—a model that has been similarly instrumental to Iliad’s success in Europe and its ability to achieve economies of scale. 

This emphasis on a lean organisational structure has not dampened its long-term investment commitments. Last year alone, DIGI splurged €729.7 million on network spending and sold part of its fixed network in Spain to unlock additional funds for reinvestment, as it navigates a period of record capital intensity across its markets. 

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.

5G
Europe
Convergence
Wi-Fi 7
DIGI

About the Author

Luke Kehoe

Ookla Research™ Articles
| November 6, 2024

The Path to "Full" 5G: Challenges and Opportunities in Standalone 5G Deployment

5G

5G technology has been making headlines for years, but the transition to standalone 5G (5G SA) has been slower than many expected. While non-standalone 5G (NSA) uses 5G radio technology alongside existing 4G core networks, 5G SA represents a complete transition to an independent 5G network with its own core. Think of SA 5G as “pure” or “real” 5G, with 4G LTE removed entirely from the equation. This evolution promises notable improvements in network performance and capabilities, yet its deployment has faced obstacles.

Our recent webinar, “The Slow Road to 5G Standalone: What’s Delaying Deployment?” explored the challenges and opportunities in 5G SA deployment and implementation. Featuring experts from Ookla and T-Mobile, the discussion provided comprehensive insights into the current state and future potential of this technology.

In this article, we’ll explore key takeaways from the webinar, including the benefits, challenges, emerging use cases of 5G SA, and we’ll also take a look at T-Mobile’s aggressive approach to 5G SA. For a deeper look at these topics, including expert analysis and detailed performance data, watch the full webinar! 

Key benefits and technical improvements of 5G SA

5G Standalone (SA) technology promises to deliver significant advantages over its predecessors, opening new possibilities for consumers and industries alike. But the transition to 5G SA involves more than just upgrading cell towers—it requires the implementation of an entirely new core network. This core acts as the “brain” of the system, managing data connections, handling security, and enabling advanced features.

To fully realize the potential of 5G SA, several technological innovations have been introduced to enhance network performance and user experiences. These include better management of network resources and more efficient data transmission. A standalone 5G core is essential to unleash these developments, setting 5G SA apart as “real” 5G and enabling capabilities that were impossible with 4G-dependent networks.

The result is better use of available spectrum, faster data speeds, and extended coverage in challenging environments like indoor spaces or rural regions. Key benefits for users include:

  • Improved upload speeds: Faster upload speeds for activities like social media sharing, file uploads, and cloud services.
  • Better coverage in more places: Improved connectivity in areas previously underserved by mobile networks, enhancing user experiences in more locations.
  • Lower latency: Near-real-time responsiveness for applications like gaming and augmented reality.
  • Increased network efficiency: Operators can serve more users with improved quality of service, leading to a smoother and more reliable mobile experience.

Beyond these immediate improvements, 5G SA also paves the way for transformative technologies like network slicing, which we’ll explore in later sections.

Challenges to 5G standalone deployment

While 5G SA promises significant advancements in mobile technology, our webinar discussed a perhaps surprising reality: the deployment of 5G SA has been slower than many industry experts anticipated, with only about 12% of 5G networks worldwide utilizing SA technology. This gap between the technology’s potential and its current adoption raises important questions about the obstacles facing network operators and the future trajectory of 5G technology. Several challenges have contributed to this slow adoption:

  • Technical complexity and core network upgrades: Transitioning to a fully independent 5G core network presents significant hurdles, requiring extensive and costly upgrades to the core infrastructure, which is both technically challenging and time-consuming.
  • Transition hurdles: Operators must carefully manage the transition from NSA to 5G SA to minimize disruptions to existing services while gradually introducing SA capabilities. This process requires coordinating changes across the network infrastructure, device ecosystem, and service offerings simultaneously.
  • Unclear ROI: Some operators are hesitant to invest heavily in 5G SA without a clear return on investment.
  • Lack of a widely recognized “killer use case”: While applications like network slicing and enhanced Fixed Wireless Access (FWA) show promise, some operators are still waiting for more compelling use cases that clearly demonstrate the need for SA capabilities before making the leap.
  • 5G SA ecosystem compatibility and availability: Ensuring all network components, devices, and applications are SA 5G-compatible presents a significant challenge, and the limited availability of SA-compatible devices in the market can slow down adoption.

Despite these industry-wide challenges, some carriers have chosen to forge ahead with 5G SA deployment, recognizing its long-term potential. T-Mobile, in particular, has taken a bold approach to 5G SA implementation.

T-Mobile’s aggressive approach to 5G SA

While many mobile carriers have been cautious in their approach to 5G SA, T-Mobile has taken a decidedly different path. The company recognized early on that to truly differentiate its 5G offerings and introduce new features, a full transition to 5G SA was necessary. T-Mobile has since positioned itself as a leader in 5G SA, providing valuable insights for the industry into both the challenges and benefits of this technology.

T-Mobile viewed 5G SA as a pathway to improved network performance, advanced features, and more efficient use of its spectrum assets. Central to this vision was T-Mobile’s recognition that a dedicated 5G core network was essential to achieve superior performance beyond what NSA 5G could offer. The carrier’s approach has thus far yielded promising results:

  • Enhanced coverage and capacity: Broader network reach and ability to serve more users, especially in densely populated urban areas
  • Advanced features: Early implementation of network slicing and Voice over New Radio (VoNR), enabling new service possibilities
  • Improved uplink performance: Faster upload speeds and better coverage, benefiting applications like live streaming and large file transfers

While T-Mobile and its users have clearly benefited from this technology, the carrier’s journey hasn’t been without challenges. T-Mobile had to navigate issues such as ensuring device compatibility across its customer base, optimizing network performance during the transition, and educating customers about the benefits of 5G SA.

Emerging use cases for 5G SA

The true measure of SA 5G’s value lies in the new applications and services it enables. While many mobile operators are still cautious about immediate 5G SA deployment, this technology represents the future of 5G. As carriers inevitably move in this direction, they’re looking to both enhance existing services and enable entirely new possibilities. 

Our webinar delved into three key areas where 5G SA is already making an impact and showing its transformative potential: Network Slicing, Fixed Wireless Access (FWA), and Voice over New Radio (VoNR). 

Network slicing is a capability unique to 5G SA that allows operators to create virtual network segments tailored to specific use cases or customers. This enables the allocation of dedicated network resources to ensure optimal performance for critical services. T-Mobile has leveraged this capability to launch T-Priority, the world’s first network slice for first responders. Key benefits of network slicing include:

  • Better prioritization: Up to 5x higher network resource prioritization for critical services
  • Customized performance: Ability to optimize network parameters for specific applications or user groups
  • Improved reliability: Dedicated resources to ensure consistent performance for essential services

Fixed Wireless Access (FWA) uses 5G technology to provide home internet services, competing directly with traditional broadband options. 5G SA’s expanded capacity and performance make it particularly well-suited for this application. T-Mobile has identified FWA as a major growth opportunity, setting an ambitious target of 12 million FWA customers by 2027-2028. Key advantages of 5G SA for FWA include:

  • Expanded wireless capacity: Ability to serve more home internet customers in a given area compared to previous wireless technologies
  • Competitive performance: Offers speeds and latency that can rival or exceed traditional home broadband options in many areas, providing consumers with more choices
  • Simplified and cost-effective deployment: Implementation is faster and more cost-effective than laying traditional broadband infrastructure

Voice over New Radio (VoNR) represents the next evolution in mobile voice technology. By enabling voice calls to be carried entirely over a 5G network, VoNR promises improved call quality and lower latency compared to existing voice services. (We’ll explore VoNR in more detail in the next section.)

With T-Mobile’s T-Priority in use, we’re already seeing the real-world impact of 5G SA. As other applications continue to develop and mature, we can expect 5G SA’s influence to expand across various industries and services.

Voice over New Radio (VoNR): the next evolution in mobile voice

As 5G SA networks mature, they’re not just improving data services—they’re also revolutionizing voice communications. Voice over New Radio (VoNR) represents a significant leap forward from its predecessor, Voice over LTE (VoLTE). This technology enables voice calls to be carried entirely over a 5G network, potentially offering superior call quality and reduced call setup times. 

T-Mobile has been at the forefront of VoNR deployment, providing valuable insights into its real-world performance and benefits. Key aspects of T-Mobile’s VoNR deployment and performance include

  • Nationwide reach: VoNR is now enabled for over 300 million people in the U.S.
  • Controlled rollout: T-Mobile implemented VoNR market-by-market, ensuring performance met specific metrics before enabling the service.
  • Device compatibility: A large portion of T-Mobile’s device base is either VoNR-capable or can be enabled for VoNR.
  • Promising performance: Call failure rates for VoNR are comparable to, and in some cases better than, VoLTE.
  • Rapid adoption: VoNR’s share of calls has increased threefold from the second half of 2023 to the first half of 2024.

As more devices become VoNR-capable and coverage expands, more and more users should enjoy a seamless voice experience that fully leverages the capabilities of 5G technology.

Measuring 5G SA performance: Complementary datasets from Speedtest and RootMetrics

As mobile operators deploy 5G SA, measuring its real-world impact is crucial for understanding the technology’s true benefits and challenges. Ookla’s complementary datasets—combining RootMetrics’ controlled testing methodology with Speedtest’s crowdsourced data—provide a comprehensive view of network performance from both controlled and real-world environments. 

Data from RootMetrics testing across 125 of the largest metropolitan markets in the U.S. revealed several notable findings about 5G SA performance:

  • Network usage patterns vary significantly between operators: While T-Mobile extensively uses 5G SA when available, other carriers often default to LTE for lighter data tasks such as loading apps or webpages.
  • Latency improvements are task-dependent: RootMetrics testing showed that latency benefits become more pronounced with complex tasks like video streaming, which requires multiple network interactions.
  • Urban deployment focus: 5G SA availability and usage is currently more prevalent in metropolitan areas than in more rural areas. 

RootMetrics’ real-world performance data provides quantitative evidence of 5G SA’s benefits across various network scenarios and use cases, offering valuable insights for mobile operators as they plan their 5G SA deployments.

 If you’d like to see Ookla’s tools in action yourself, reach out to our team! 

The Road Ahead: 5G Advanced and Beyond

As 5G SA networks continue to evolve, the industry is already looking toward the next phase of development. Our webinar provided insight into the future of 5G technology, including the upcoming 5G Advanced standard and early considerations for 6G. These developments promise to further optimize network capabilities and open up new possibilities for innovation. Some key points about the future of 5G include: 

  • 5G Advanced: The next evolution of 5G, focusing on improving network efficiency and user experiences. 
  • 6G planning: Initial discussions and research into 6G technology have begun, with a focus on creating new value and revenue streams beyond enhanced mobile broadband. 
  • Spectrum refarming: Carriers are actively shifting spectrum from LTE to 5G, aiming to improve network efficiency and overall 5G performance.
  • Industry applications: The industry is expanding Fixed Wireless Access (FWA) capabilities and exploring new use cases for network slicing across various sectors, aiming to harness the full potential of mature 5G networks.

The evolution from 5G SA to 5G Advanced and early 6G research signals the industry’s commitment to continuous innovation. These developments aim to refine existing capabilities and create entirely new value propositions, potentially reshaping various aspects of technology and society in the coming years.

Conclusion

The journey to widespread 5G SA adoption is complex, but the potential benefits are immense. As we’ve seen, early adopters like T-Mobile (and its users) are already reaping the rewards of their investment, from improved network performance to innovative services like network slicing and enhanced FWA offerings.

To dive deeper into the intricacies of 5G SA deployment, including expert insights and real-world examples, watch our full webinar on demand!

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.

5G
Webinar

About the Author

Dave Andersen

Ookla Research™ Articles
| September 3, 2023

South Korea's 5G Performance Gap Under Scrutiny

5G

Key takeaways

  • Exaggerated 5G network speed claims led South Korean operators to a 33.6 billion won ($25.06 million) fine. 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, as well as user location and device capability significantly affect actual performance.
  • Recorded speeds of the top 10% of users fall well short of operators’ advertised speed. Reviewing the top 10% and lower 10% of Ookla® Speedtest Intelligence® Q2 2023 samples reveals significant performance disparity among South Korea’s 5G users, with 5G speeds peaking at over 900 Mbps for the top 10% of users, while the lower 10% recorded speeds below 135 Mbps.
  • South Korean operators have delivered consistent 5G performance over the past year. SK Telecom leads the market with a median download speed of 531.89 Mbps, while LG U+ and KT reported speeds of 489.35 Mbps and 470.28 Mbps respectively. 

Reality check for South Korea’s 5G operators

Despite having one of the fastest 5G networks globally, South Korea’s antitrust regulator recently fined three 5G operators in South Korea a total of 33.6 billion won ($25.06 million) for making exaggerated claims about their network speeds. According to the Korea Fair Trade Commission (KFTC), the operators had exaggerated their achievable 5G service speeds and unfairly advertised that they were the fastest relative to their competitors.

In a statement by KFTC, it said, “The three mobile carriers have delivered false or exaggerated information on their services’ speeds by deceiving consumers that they can experience 20 Gbps speed, which is only a target in theory for the 5G technology.”

Based on many marketing messages around 5G, it is unsurprising that consumer expectations are for 5G to deliver a notable increase in performance. However, operators cannot guarantee 5G performance as factors such as the spectrum used, the level of network densification operators have pursued in their markets, network congestion, and the distance and any obstacles between the user device and the cell site can all impact observed network performance.

South Korea’s 5G speeds vary greatly

Speedtest Intelligence® data provides insights into real-world performance based on consumer-initiated tests. While median 5G download speed is a useful metric to benchmark performance, it falls short of providing a complete picture of what users are experiencing. Speedtest Intelligence data from Q2 2023 reveals a substantial variance in performance between the top and bottom 10% of users on 5G networks in South Korea. The top 10% of users in South Korea recorded speeds of at least 968.83 Mbps on average, while the lowest 10% of users experienced speeds of 132.02 Mbps or slower on average. Even if we focus on the top 10% of users experiencing the highest 5G performance, this still lags far behind the 20 Gbps advertised by the operators.

Chart of South Korea 5G Performance - Top 10% of samples versus Median and Lower 10%

South Korean operators have delivered consistent performance every quarter for the past year. During that time frame, SK Telecom has outperformed its competitors on 5G performance, reporting a median download speed of 531.89 Mbps for Q2 2023, while LG U+ and KT reported speeds of 489.35 Mbps and 470.28 Mbps respectively during the same period.

Chart of 5G Performance in South Korea

Using real-world performance to manage consumer expectations

Operators must establish clear expectations regarding 5G performance to avoid disappointing customers. Part of the solution to manage this gap is for the operators to rely on data from consumer-initiated tests to understand the real-world performance as experienced by their customers. We will keep a close eye on South Korea’s progress in 5G performance as it competes with other major markets on the global stage while managing domestic consumer expectations. To find out more about Speedtest Intelligence, 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.

5G

About the Author

Affandy Johan

Ookla Research™ Articles
| September 21, 2023

Mobile gaming in the Gulf region: 5G improves the experience, but latency remains an issue

5G

In this article, we look at the performance of mobile networks in the six countries of the Gulf Cooperation Council (GCC) during the first half of 2023 for their ability to support gaming services. To this end, we introduce Ookla’s Game Score™ to quantify the gaming experience and analyze four network metrics that typically impact mobile gaming: download speed, upload speed, latency, and jitter.

Key takeaways

  • The Gulf region offers strong growth potential for mobile gaming. The region benefits from a large youth demographic, a growing casual gaming base, widespread smartphone adoption, and high-speed internet access. Operators and governments are also helping to increase public engagement in gaming.
  • The U.A.E., Bahrain, and Qatar had the highest Game Scores in the Middle East (83.49, 83.24, and 82.81, respectively, on a 100-point scale). These countries have superior mobile network performance that helps to deliver a good gaming experience. Their Game Scores were also higher for 5G compared to 4G, highlighting the importance of network upgrades and migrating customers to 5G.
  • Relatively high latency in some markets can make some games glitchy. Most casual gamers should be able to enjoy a smooth experience over 5G thanks to fast download and upload speeds, but some latency-sensitive games (like multiplayer shooters) may have noticeable lags. Mobile operators can explore different approaches (such as deploying edge computing infrastructure) to improve game responsiveness and prepare their networks for more data-intensive games.

Ookla’s Game Score™ helps quantify the gaming experience

Game Score™ compares the performance of operators’ networks in terms of their ability to offer the best gaming experiences to consumers. The score is composed of different components, each measuring a different aspect of a consumer’s gaming experience based on multiple network key performance indicators. Game Score™ is based on Ookla’s consumer-initiated Speedtest Intelligence® results for download and upload speeds, as well as Consumer QoE’s™ latency and jitter measurements taken on real-world game servers. 

Each component is evaluated and scored on a scale of 0-100 for each eligible operator. Finally, scored components are combined in a weighted average to produce a Game Score for each operator. For this article, we aggregated the scores of eligible operators to obtain a country-level Game Score. More details about our Game Score methodology can be downloaded from this link.

The Gulf region offers strong growth potential for mobile gaming

According to BCG, the Middle East region has the highest gaming penetration: more than 60% of the population are game enthusiasts. The audience for live-streaming games is expected to exceed 200 million in 2025, making the Middle East one of the fastest-growing regions for gaming.

The GCC region, in particular, has strong growth potential in terms of active gamers and e-sports participants thanks to its large youth demographic, sizable disposable income, access to high-speed connectivity, and the ongoing development of gaming infrastructure (such as hosting local gaming servers and setting up gaming arenas and e-sports facilities). The market will expand as gaming becomes more mainstream and more female users and older demographics engage in gaming.

5G is also helping to increase mobile gaming adoption as it enables smoother gameplay than 4G. According to the GSMA, around half of surveyed 5G users (or those intending to upgrade to 5G) in eight developed markets game frequently compared to around 30% among non-5G users. More operators are also bundling gaming services into their 5G plans, making mobile gaming more mainstream. Operators consider gaming as a growth area and a means to increase customer engagement and differentiate their connectivity propositions (see table below).

Local governments have also implemented strategies to develop a local gaming ecosystem to diversify their economies. For example, Saudi Arabia has a national gaming and e-sports strategy while the U.A.E. aims to encourage global gaming producers to establish a local presence.

Recent gaming-related propositions and initiatives

Bahrain Batelco introduced a mobile gaming portal in 2022
stc offers stc play app and organizes e-sports tournaments. It partnered with gaming infrastructure provider Subspace in 2019 to improve the multi-player experience in the region
Zain offers a mobile game pass with a dedicated data allowance for popular games
Kuwait Zain has a dedicated e-sports division that hosts tournaments. It partnered with PLAYHERA to establish a gaming and e-sports platform in 2022
Ooredoo offers gamer-dedicated 5G and fiber plans with reduced latency. It also organizes e-sports competitions
stc offers a 5G plan add-on that promises to reduce latency, jitter, and packet loss
Oman Omantel launched ‘GeForce NOW’ cloud gaming service in partnership with NVIDIA. It also offers an add-on to get 100 Mbps extra speed on fiber and a dedicated mobile add-on for game data traffic
Ooredoo organizes local e-sports tournaments
Qatar Ooredoo launched the first e-sports tournament in Qatar, part of its e-sports brand, Ooredoo Nation – Gamers’ Land, in 2021. In 2023, it launched Ooredoo Nation League as a hub for Qatari gamers
Vodafone commercialized the Vive Cosmos headset with a subscription to VIVEPORT Infinity, a repository of VR games, apps, and videos
Saudi Arabia stc launched ‘stc play’ e-sports and game distribution platform and rolled out the Blacknut cloud gaming platform. It also offers a mobile data add-on tailored for gamers
Mobily launched an e-sports platform for gamers powered by D11 Gaming. It also offers Game Mode, an add-on for unlimited use of PUBG Mobile and League of Legends: Wild Rift games
Zain launched ‘GeForce NOW’ cloud gaming service. It also offers a fiber package dedicated to gaming that includes a low-latency router, up to 500 Mbps for download and 200 Mbps for upload speeds
U.A.E. Etisalat by e& launched ‘Arena Play’ mobile add-ons to enable customers to play without incurring data charges. It also introduced ‘Arena eLife’ fixed broadband add-on to access many games online from home
du launched Games Instant Play as part of its ‘My World’ mobile portal

Bahrain, Qatar, and the U.A.E. had the highest Game Scores in the Middle East

The U.A.E., Bahrain, and Qatar had the highest Game Scores during the first half of 2023 in the Middle East. That means that users in these countries get the best mobile gaming experience in the region. The U.A.E. is home to the fastest 5G operator globally in Q2 2023, according to Ookla Speedtest Intelligence™ data. The U.A.E. comes first with a Game Score of 83.49 on a 100-point scale (considering all mobile technologies). The U.A.E.  was closely followed by Bahrain with a score of 83.24 and Qatar with a score of 82.81. These results reflect the superior mobile network performance in these three markets which helps to deliver a good gaming experience. Kuwait, Saudi Arabia, and Oman were further down the Game Score ranking, achieving scores of 80.41, 78.74, and 75.40, respectively. 

Chart of Overall Game Score™, per Country

Game Scores were consistently higher for 5G than 4G users in all Gulf countries. The gaming experience benefits from the larger bandwidth and lower latency offered by 5G, contributing to smoother and more responsive gameplay. Game Scores on 4G lagged those on 5G by a range from 5.37% in Oman to 8.26% in Saudi Arabia. Gulf operators have the potential to improve the gaming experience by continuing to improve their 5G infrastructure, migrating more customers to 5G, and establishing local gaming servers.

Chart of Game Score™ for 4G and 5G, per Country

In the following sections, we break down the Game Score into its components to understand how being on a 4G or 5G network can affect the everyday gaming experiences of Gulf-based mobile users.

Gaming download and upload speeds are markedly higher on 5G than on 4G, making mobile gaming more enjoyable

Download speed is essential in creating a smooth gaming experience without interruptions or degradations in streaming quality. High download speeds are also important for downloading digitally distributed games and updates. Download speed requirements for online mobile gaming vary depending on the game type (for example, cloud gaming needs higher bandwidth than a game played on a smartphone), gamer profile (for example, competitive gamers will need higher bandwidth than casual players) and use cases (for example, downloading game updates compared to playing preload games). 

For the purpose of this analysis, we assume that 25 Mbps is the minimum download speed to enjoy a good gaming experience for casual gamers (who represent the majority of gamers). According to Ookla’s data, all Gulf markets comfortably exceed that requirement on 4G and surpass it significantly on 5G. Kuwait had the lowest download speed over 4G in the first half of 2023 at 35.12 Mbps. In contrast, Oman had the lowest 5G download speed at 176.79 Mbps. 

U.A.E. offers the fastest median download speeds for both 4G and 5G at 69.17 Mbps and 566.10 Mbps, respectively, ahead of Qatar and Bahrain which rounded out the top 3 in the region. 5G offers significantly better performance than 4G in all markets. The median 5G speed across Gulf countries was 6.8X faster than the median 4G speed (345.53 Mbps vs. 43.9 Mbps).

Chart of Median Download over 4G and 5G, per Country

Upload speed also plays an essential role in creating a smooth gaming experience without interruptions or quality degradation, particularly in multiplayer games. We use 3 Mbps as a reference point based on the recommended minimum upload speed for a good gaming experience for casual gamers.

Ookla’s data shows that Gulf markets are crushing it when it comes to exceeding upload requirements for both 4G and 5G. The lowest median upload speed recorded on 4G was in Saudi Arabia at 10.87 Mbps; For 5G, it was in Oman at 17.28 Mbps. Median upload speeds on 5G were 1.27X faster than those on a 4G network in the region. The gap between 4G and 5G upload speeds is larger in Bahrain, Saudi Arabia, and the U.A.E., which means that gamers in these countries could see the most significant improvement in gameplay and streaming quality when switching from 4G to 5G. In absolute terms, Qatar, Bahrain, and the U.A.E. offer the fastest upload speeds, reaching a maximum of 38.48 Mbps for the latter.

Chart of Median Upload over 4G and 5G, per Country

Relatively high latency in some markets can make some multiplayer games glitchy on 5G

Game Latency is a measure of latency to popular gaming server locations. Latency affects how quickly a gamer’s response is reflected in gameplay and is of particular interest to those who prefer games where reaction time is crucial. Low latency can provide smooth and lag-free gaming. For this analysis, we consider a sub-100 ms latency to be good for many games and most casual gamers.

Ookla’s data shows that most countries, except Oman, recorded latency below 100 ms on 5G. Bahrain had the lowest latency on 5G at 72.01 ms, and Oman had the highest latency at 115.46 ms. Saudi Arabia and Kuwait also had a relatively high 5G latency at 93.2 ms and 90.31 ms, respectively, which means that some multiplayer shooters, racing, fighting, and multiplayer online battle arena (MOBA) games might have a noticeable lag. Operators have room to improve the conditions for multiplayer games, especially for competitive gamers. 

Users saw more modest differences in latency between 4G and 5G than for download and upload speeds. That means that multiplayer gamers can still get decent gameplay on either network technology and may not perceive an improvement in response time when switching to 5G. However, enhancements in 5G infrastructure will widen 5G’s advantage over 4G and provide a stronger incentive for gamers to migrate over time.

Chart of Gaming Latency over 4G and 5G, per Country

The variation in latency to popular gaming servers, known as Game Jitter, can also cause laggy gameplay or distorted audio if it is too high. For smoother gameplay, latency should be consistently low. A jitter below 30 ms is considered good for casual mobile gamers.

Results show that the Gulf region has low jitter, especially on 5G. Jitter ranged from 8.26 ms in Bahrain to 13.43 ms in Oman during Q1-Q2 2023. Jitter on 4G was slightly higher than 5G in all countries except in Oman where it was surprisingly lower at 11.55 ms – both Ooredoo and Omantel recorded lower jitter on their 4G network than on 5G during the first half of 2023. 

Chart of Gaming Jitter over 4G and 5G, per Country

The localization of gaming servers, the rollout of 5G Standalone (SA), and edge computing can push mobile gaming performance to new heights

Mobile operators can explore different approaches to improve connectivity consistency, speeds, and latency compared to current 5G in order to support more data-intensive games, enhance the multi-player gaming experience on smartphones, and cater to competitive gamers. 

  • Shorten the distance between the users and the game servers. According to data published by the Saudi’s telecoms regulator, users can save, on average, 60 ms in latency when playing popular games with servers located in the GCC compared to servers in Europe. We expect more Gulf-based operators will host game servers in their data centers as more publishers strive to offer the best experience to local gamers.
  • Deploy 5G Standalone (SA) to increase bandwidth and speed and enable ultra-low latency. Most of the 5G networks deployed in the Gulf region use the Non-Standalone (NSA) model, where the radio antennas (part of the radio access network) are based on 5G but the core uses a 4G infrastructure. As of July 2023, the GSA reported that seven operators in the Gulf region were evaluating 5G SA, while six have either deployed or launched the service. The migration to 5G SA is expected to reduce latency to sub-5 ms, which should help the multiplayer and cloud gaming experience.
  • Deploy edge computing infrastructure to make gaming experiences more immersive. Edge computing enables new use cases with stringent bandwidth, latency, and availability requirements. Some local operators, such as Etisalat by e& and stc, have partnered with vendors and hyperscalers to develop edge computing capabilities to target enterprise customers. Operators should explore how to exploit these resources to support their own gaming and entertainment initiatives and support those of their partners.

The GCC region has a vibrant and untapped gaming market poised for tremendous growth. This potential hinges on the robustness of the telecoms infrastructure. Gulf operators’ investments in 5G infrastructure helped them climb Ookla’s Game Score leaderboard and demonstrated their commitment to putting their countries on the gaming map. Operators can continue to improve the gaming experience and further minimize latency by deploying local gaming servers, edge computing infrastructure, and 5G SA to make games more responsive and smooth. These improvements will put the region in an even better position to lead game development and foster the local gaming ecosystem.

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.

5G
Tech Insights

About the Author

Karim Yaici

Ookla Research™ Articles
| October 12, 2023

Transforming Connectivity with 5G in The Greater Bay Area

5G

The Greater Bay Area (GBA) in China refers to the integrated city cluster in the Pearl River Delta of South China. Sometimes considered China’s Silicon Valley, it has emerged as one of the most economically developed regions in China, and as such has been at the forefront of its 5G rollout plans.

In this report, we will examine the 5G performance across the Greater Bay Area. We benchmark the results among the eleven cities in the area, focusing in particular on the four major cities of Guangzhou, Hong Kong, Macau, and Shenzhen. 

Key takeaways

  • The Greater Bay Area’s 5G growth is supported by policies and initiatives promoting 5G technology. The Greater Bay Area 5G Industry Alliance and network-sharing agreements are initiatives that foster collaboration among industry stakeholders, while also boosting deployment efficiency. Additionally, subsidy programs further encourage 5G expansion in the GBA. 
  • It is still early days for Macau, but the city’s 5G network has the fastest median download speed in the Greater Bay Area at 383.59 Mbps, while early adopter Hong Kong lags behind with a median download speed of 136.65 Mbps.
  • Improved integration between cities in the Greater Bay Area. Efforts to improve 5G infrastructure and connectivity between cities in the Greater Bay Area result in better coverage in highly populated areas and increased coverage along major connecting roads. Coverage plots show significantly more SS-RSRP samples of better than -92 dBm in Q2 2023 as compared to the previous year.
  • Operators have made strides in expanding 5G coverage within indoor settings. In under a year, over half (51.8%) of Macau’s buildings have reported indoor 5G coverage. Shenzhen (81.5%), Guangzhou (68.2%), and Hong Kong (63.2%) have also seen an increase in the number of buildings with 5G coverage in Q2 2023 compared to the previous year.

Coordinated initiatives and policies driving 5G deployment

The Greater Bay Area encompasses nine cities, including Guangzhou, Shenzhen, Zhuhai, Foshan, Dongguan, Huizhou, Zhongshan, Jiangmen, and Zhaoqing, as well as two Special Administrative Regions, Hong Kong, and Macau. With a population of 87 million, the region’s combined gross domestic product (GDP) was nearly US$2 trillion in 2022, accounting for almost 11% of China’s GDP.

5G technology is integral to China’s government vision and technology policies. The technology is a big part of the country’s development policy and goals for 2021 – 2025, as detailed in its 14th Five-Year Plan for National Plan. Benefiting from the central government policy, the Greater Bay Area has emerged as a thriving hub for established and emerging tech companies and startups. 

Given this dynamic, federal, and local governments are actively promoting 5G technology within the Greater Bay Area. One example is the establishment of the Greater Bay Area 5G Industry Alliance in 2019 by China Mobile Hong Kong, China Mobile Guangdong, CTM, and the Guangdong Communication Industry Association. The alliance members consist of operators, leading companies in the industry, social organizations, academic researchers, and enterprises involved in 5G technology. Their primary goal is to enhance and encourage the development of 5G industries among stakeholders and operators in the GBA region.

The Ministry of Industry and Information Technology (MIIT) in China also facilitated sharing of 5G networks and encouraged commercial partnerships among 5G operators. As a result, China Unicom and China Telecom have signed a cooperation agreement to share their 5G infrastructure. Providing subsidies is also a common tactic regulators and governments use to encourage 5G deployment. In Hong Kong, for example, from May 2020 till the end of December 2022, the Office of the Communications Authority (OFCA) ran a subsidy scheme to encourage various sectors, through financial incentives, to deploy 5G technology.

As a result, the GBA has witnessed significant investments and a rapid rollout of 5G infrastructure. By 2021, all cities in the region have launched 5G networks, with Guangzhou, Shenzhen, and Hong Kong leading the way.

Macau’s early 5G performance impresses

Chart of 5G Performance for All Operators Combined for Greater Bay Area

According to Speedtest Intelligence® Q2 2023 data, Macau outpaced all the other cities in the Greater Bay Area on median download speed, being the only city that topped 300 Mbps at 383.59 Mbps. Despite being the most recent city in GBA to launch its 5G network, operators in Macau began deploying as early as 2020, ahead of being granted their 5G licenses in November of 2022. CTM, one of the providers, stated that their 5G network has been fully operational since June 2021. Macau’s regulatory body, the Macau Post and Telecommunications Bureau (CTT), also mandated as part of the 5G license award that operators must cover 50% of the territory within the first year and provide full coverage within 18 months.

Within Guangdong Province, the nine cities have reported median download speeds ranging from 188 Mbps to 255 Mbps in Q2 2023. The cities of Zhaoqing and Zhongshan are the only cities in the province to report speeds of over 250 Mbps. Zhaoqing has a speed of 254.17 Mbps, while Zhongshan reports a speed of 251.13 Mbps.

Despite being an early adopter of 5G, Hong Kong’s median download speed of 136.65 Mbps in Q2 2023 falls behind the other cities in the GBA. One factor contributing to the lower median download speed is a preference for low bands to fulfill coverage obligations. CMHK, for example, has been deploying its 700 MHz 5G spectrum, enabling better indoor penetration and broader 5G coverage at the expense of median download speed.

Macau operators rank highest for 5G performance in the Greater Bay Area

Chart of 5G Performance Among Providers in Guangzhou, Hong Kong, Macau, and Shenzhen

In this section, we drill down into the operators’ 5G performance in the major cities of Guangzhou, Shenzhen, Hong Kong, and Macau to understand which operators are driving 5G performance in these cities. Speedtest Intelligence data shows considerable variation in the median 5G download speeds across these four cities.

As with any new launches, it is not surprising that the operators in Macau rank higher in terms of performance than those in the other three cities. During Q2 2023, China Telecom in Macau reported a median download performance of 418.13 Mbps, while CTM Macau achieved 374.51 Mbps during the same period. While operators in Macau 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.

On the other end of the chart, SmarTone, csl, and Hutchinson in Hong Kong reported speeds of 153.62 Mbps, 122.15 Mbps, and 105.34 Mbps respectively. CMHK tops the 5G operators in Hong Kong with a recorded median download speed of 166.41 Mbps in Q2 2023. Although reporting comparatively slower speeds than its neighboring cities, the number of 5G users in Hong Kong exceeded four million in April 2023, representing over 60% of the population. 

Low latency comes to the fore with 5G

China remains one of the biggest gaming markets globally, with three in ten (29%) Chinese consumers claiming to spend most of their time gaming each week. 5G technology is expected to revolutionize how gamers connect to the internet by providing a much more reliable connection as more casual and serious gamers adopt mobile gaming. This has created a demand for low-latency network connections so gamers can enjoy seamless and lag-free mobile gameplay. Latency, or the reaction time of a connection, is a crucial metric for achieving optimal performance in technologies like gaming, video conferencing, and AR/VR. Aiming for a latency of 59 ms or less is recommended for the best gaming experience.

Chart of 5G Multi-server Latency in the Greater Bay Area

During Q2 2023, gamers in Macau and Hong Kong experienced significantly lower median latency on 5G, with both cities registering latency below 30 ms. Macau emerged ahead with a median latency of 18.22 ms, whereas Hong Kong reported a median latency of 25.97 ms. 

On the other hand, GBA cities in Guangdong Province reported a 5G median latency of over 60 ms during the same time frame. It’s worth noting that approximately 80% of tests conducted in Guangdong Province utilized servers based in Hong Kong and Macau, which influenced the higher latency results in these cities.

While gaming is usually top of mind when we talk about latency, having a low-latency network also plays a crucial role in driving digital transformation and achieving high levels of automation and responsiveness in key industries, such as manufacturing, logistics, and healthcare. The Chinese University of Hong Kong Hospital (CUHK) has partnered with Huawei Hong Kong to establish a 5G smart hospital. CUHKMC is utilizing the high throughput and low latency capabilities of 5G technology to facilitate innovative medical digital transformation. These include remote consultations and collaboration, telemedicine, and other applications to enhance patient treatment experience.

Boosting Cross-Border Connectivity

The Chinese government has implemented several measures to enhance the integration of Hong Kong, Guangzhou, Shenzhen, and Macau, along with the seven other cities in Guangdong Province. To encourage greater mobility across the Greater Bay Area, operators in the region are enhancing infrastructure by building more 5G sites and creating data plans that can be used while roaming within the GBA, reducing cross-border roaming expenses.

Comparing the 5G signal strength using the SS-RSRP metric from Ookla® Cell Analytics™ between Q2 2022 and Q2 2023, shows improvements in terms of 5G coverage in heavily populated areas of the region. The plot indicates significantly more samples along arterial routes connecting the main cities in Q2 2023, with more recorded samples with SS-RSRP of more than -92 dBm.

Image of Ookla® Cell Analytics™, Greater Bay Area 5G Signal Strength (SS-RSRP) comparison between Q2 2022 and Q2 2023
Image of Ookla® Cell Analytics™, Greater Bay Area 5G Signal Strength (SS-RSRP) comparison between Q2 2022 and Q2 2023

Similar effort on expanding 5G indoor coverage

With 70 to 80 percent of data traffic projected to be generated indoors, improving indoor coverage and user experience has become a priority, especially in highly dense cities such as those within the Greater Bay Area. China’s Ministry of Industry and Information Technology (MIIT) issued a 5G spectrum license to China Unicom, China Telecom, and China Broadnet to share the 3.3–3.4 GHz band as part of an effort to prioritize 5G indoor coverage. There has also been a significant drive by mobile operators in the GBA to extend 5G coverage to be readily available in public transport infrastructures. In Hong Kong, csl provides 5G network coverage along the MTR lines, with dedicated 5G spectrum on some routes.

Chart of Percentage of Buildings with 5G Coverage in Greater Bay Area

We analyzed data from Ookla® Cell Analytics™ to compare the percentage of buildings in Hong Kong, Macau, Shenzhen, and Guangzhou with reported 5G coverage in Q2 2022 and Q2 2023. Deployment of 5G primarily uses high-frequency spectrums, which poses challenges for indoor penetration. In this analysis, we have only considered buildings taller than 10 meters as they are more likely to be high-rise buildings with in-building solutions such as distributed antenna systems (DAS) or served by sites nearby.

Macau, which did not have any commercial 5G network a year prior, undeniably has the most significant increase in the percentage of buildings with 5G coverage over the past year. The operators in the city have managed to provide 5G coverage to more than 50% (51.8%) of the city’s buildings in less than a year.

Shenzhen, Guangzhou, and Hong Kong also saw increased buildings with reported 5G coverage. Shenzhen and Guangzhou had 81.5% and 68.2% of buildings with reported 5G coverage in Q2 2023, respectively, equating to an 18.2% and 17.4% increase from the previous year. Hong Kong, one of the most densely populated cities in the world, reported a total of 63.2 % of buildings with 5G indoor coverage in Q 2023, an increase from 55.5 % a year before. Operators’ use of sub-1 GHz frequencies in 5G deployment is one of the contributing factors to the reported increase in in-building 5G coverage. 

The outlook for the Greater Bay Area

The Greater Bay Area has embraced 5G technology, unlocking its potential to revolutionize various industries and drive automation and digitalization, and will continue to be a key driver of China’s economic growth. The region’s 5G network infrastructure has brought transformative opportunities across diverse sectors. However, there are still improvements to be made in terms of in-building coverage and implementation of more advanced 5G use cases. We will closely monitor the progress and implementation of 5G technology within the Greater Bay Area. If you are interested in benchmarking your performance or want to learn more about internet speeds and performance in other markets worldwide, visit the Speedtest Intelligence®.

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.

5G
Greater Bay Area

About the Author

Affandy Johan

Ookla Research™ Articles
| October 30, 2023

5G Performance Shines in Malaysia, but There Is Room for Greater Adoption

Network Performance

Malaysia launched its nationwide 5G network less than two years ago, adopting a distinctive 5G deployment approach. Ookla® data shows that the country’s 5G performance has been impressive, ranking as one of the top performers globally. In this article, we will compare Malaysia’s 5G performance with 5G in select countries, and we will also look at Malaysia’s 5G utilization based on the devices running Ookla Speedtest®.  

Key takeaways

  • Malaysia continues to improve its Speedtest Global Index ranking. Malaysia’s overall mobile speed performance has steadily increased since the introduction of 5G at the end of 2021. In September 2023, the country’s median download speed was 61.50 Mbps, 2.9 times faster than its pre-5G speeds in September 2021. This led to a 45-place climb on the Speedtest Global Index™, from 86th place in September 2021 to 41st place in September 2023 after 5G had been deployed in Malaysia.
  • Malaysia is one of the top performing 5G markets globally. Malaysia ranks third globally for 5G download speed, with a reported speed of 485.25 Mbps, according to Speedtest Intelligence® data for Q3 2023. This puts Malaysia not only ahead of its Southeast Asian neighbors but also some developed markets, including the United Kingdom, Japan, and Germany.
  • A proportion of 5G-capable devices have yet to utilize the 5G network. Over 55% of all nationwide tests were conducted on 5G-capable devices in Q3 2023. However, only 25.1% of those tests were conducted on a 5G network. Operators with a lower subscriber base in the country reported a better percentage of Speedtests conducted on Malaysia’s 5G network.
  • 4G LTE performance sees continued improvement alongside 5G rollout. Median download speeds on 4G have increased from 24.04 Mbps to 36.95 Mbps from Q3 2022 to Q3 2023. 5G network offers much stronger performance than 4G, with 5G providing thirteen times faster download speeds and five times faster upload speeds than 4G. 

Unique deployment strategy utilizing a Single Wholesale Network

In 2021, the government of Malaysia established Digital Nasional Berhad (DNB), responsible for rolling out a nationwide single wholesale network (SWN) to deliver 5G coverage. According to DNB, the 5G SWN model aimed to centralize infrastructure rollout, promoting efficient resource use, cost savings, and equitable 5G access across urban and rural landscapes. 

The Malaysian Communications and Multimedia Commission (MCMC) assigned 5G spectrum to DNB in the 700 MHz, 3.5 GHz, and 26-28 GHz bands. DNB is currently utilizing 3.5 GHz spectrum across selected deployment areas. As discussed in our recent spectrum analysis, the upper mid-band (otherwise known as C-band) offers the best of both worlds in terms of coverage and capacity, which is important for DNB as they aim to reach 80% of populated areas by 2024. As of the end of September 2023, DNB has achieved 70.2% coverage of populated areas (COPA), with more than 5,800 sites deployed.

Yes was the first operator to enter into the Access Agreement with DNB and launch 5G services in Malaysia in Q4 2021. Following Yes, other operators such as Celcom, Digi, Unifi (Telekom Malaysia), and U Mobile launched their 5G services in early November 2022. In August 2023, Maxis became the latest operator to launch 5G services in Malaysia.

5G helped Malaysia climb 45 places in Speedtest’s mobile rankings

Ookla’s Speedtest Intelligence® data reveals that Malaysia has experienced a noteworthy increase in mobile median download speeds for all technologies since the launch of Malaysia’s first 5G network. In September 2023, Malaysia’s median mobile download speed increased to 61.50 Mbps, 2.9 times faster than the country’s 21.27 Mbps median download speed recorded in September 2021, before the launch of 5G in the country. As a result, Malaysia has improved its position on the Speedtest Global Index™, climbing 45 places from 86th in September 2021 to 41st in September 2023. This development places Malaysia ahead of some of its Southeast Asia neighboring countries, such as Indonesia, Thailand, Philippines, and Vietnam, as well as some developed markets, including the United Kingdom, Japan, and Germany.

Global Index Ranking Among Select Countries

Malaysia leads on 5G performance in Southeast Asia

In our recent report discussing 5G in the Asia Pacific region, we discussed how the region is on track to become the largest 5G market globally, with some markets in the region outpacing major European markets in terms of 5G performance. Comparing global 5G performance, Malaysia has emerged as one of the top performers in 5G connectivity. According to Speedtest Intelligence data in Q3 2023, Malaysia ranked third globally for 5G download speed, with a reported speed of 485.25 Mbps. This puts Malaysia ahead of its Southeast Asian neighbors, such as Singapore (338.36 Mbps), Thailand (141.65 Mbps), and the Philippines (124.58 Mbps).

4G performance continues to see improvements in the 5G era

4G Performance in Malaysia

5G rollout has also propelled an increase in 4G LTE speeds thanks to the modernization of the underlying infrastructure. Improvements in 4G LTE speeds are also partly from offloading 4G traffic to the 5G network, reducing 4G network congestion. 

Speedtest Intelligence data shows that, at a country level, the median download speeds for 4G between Q3 2022 and Q3 2023 have increased from 24.04 Mbps to 36.95 Mbps. Upload speeds on 4G also continued to improve over the same period, albeit slightly. 

As part of the 12th Malaysia Plan (2021–2025), the government is implementing the Jalinan Digital Negara (Jendela) initiative to address the need and demand for better quality fixed and mobile broadband coverage. Operators across Malaysia continue to roll out 4G to adhere to Jendela rollout targets. According to Jendela’s Phase 1 concluding report, 4G Coverage in Populated Areas achieved its target of providing 96.9% coverage by the end of 2022.

While current 4G network performance may meet the needs of most users for everyday tasks, such as browsing, streaming, and online communication, it is still far from the uplift in performance offered by 5G.

Chart of 4G and 5G Performance Comparison in Malaysia

When we compare 5G and 4G performance in Malaysia for Q3 2023, Ookla’s data show that the median 5G download speed (485.25 Mbps) was 13 times faster than that of 4G (36.95 Mbps), while the country’s median 5G upload speed (54.62 Mbps) was 5 times faster than that of 4G LTE (10.61 Mbps).

Customers residing in areas outside of urban areas or in lower-income states may be reluctant to adopt 5G technology, as it may lead to higher subscription and upfront costs compared to previous mobile technologies. To that end, convincing consumers of the transformative advantages offered by 5G becomes pivotal in this context. 

Potential to increase the adoption and usage of 5G technology

Apart from looking at the 5G performance in Malaysia, we also examined the percentage of devices utilizing the 5G network. This was done to gauge consumer uptake of 5G in the country. Using Speedtest Intelligence Q3 2023 data, we compared the proportion of unique devices that conducted consumer-initiated Speedtest using a 5G network to the total number of devices running Speedtest, regardless of network technology.

Chart of Proportion of 5G Connected Devices in Selected Countries

According to our analysis, in Q3 2023, out of all the mobile tests initiated by consumers in Malaysia across all technologies, 30.1% of them were carried out on the 5G network. This suggests that the adoption and usage of 5G technology among the general population in Malaysia still needs to improve. Although Malaysia launched its 5G network later than most neighboring countries in the region, its percentage of 5G users, while lower, is still noteworthy. In comparison, early 5G adopters such as Thailand and Taiwan, which launched their 5G network almost two years ahead of Malaysia, have a slightly higher percentage of devices connected to 5G, at less than 10 percentage points more.

Single wholesale network model levels the playing field 

Unlike Malaysia’s previous 4G era, which followed a conventional approach to network rollout where individual operators owned the spectrum and were responsible for establishing their networks separately, Malaysia’s 5G SWN initiative takes a different approach from the traditional method adopted by most countries.

As stated by DNB, adopting the 5G SWN model can bring about several benefits, one of which is eliminating the duplication of infrastructure. Other advantages include ensuring uniform national coverage and encouraging operators to move towards a more service-oriented business model. While the long-term benefits remain to be seen, upon launch, operators with smaller 4G network footprints can immediately benefit from 5G coverage areas similar to those of larger and more established operators.

Proportion of 5G Connected Devices in Malaysia

Ookla’s data shows that operators with smaller subscriber bases in the country reported a higher percentage of Speedtests performed on 5G-capable devices on the 5G network. Yes, the first operator to enter into an Access Agreement with DNB and the first to launch 5G in Malaysia in Q4 2021 reported the highest percentage at 53.3% in Q3 2023. U Mobile and Unifi, which launched their 5G networks in Q4 2022, reported 40.7% and 38.9% respectively. 

Maxis, one of the larger mobile operators in Malaysia, had 33.0% of tests carried out on 5G. This is a notable uptake considering that Maxis only launched its 5G services in August 2023 after delays in its decision to enter into the Access Agreement with DNB. Both Celcom and Digi reported percentages below 22%.

One of the reasons for the variation in the number of 5G users is that the implementation of the 5G SWN model has enabled relatively smaller mobile players to offer more competitive plans, creating a more equitable playing field in the market. At the time of this report, Yes, U Mobile, and Unifi automatically included 5G services to their current and new customers. In contrast, Maxis, Digi, and Celcom, depending on which current plan their customers are on, imposed an additional surcharge between MYR 10 to MYR 20 (USD 2.20 to USD 4.40) per month for customers on lower-tiered plans to upgrade to a 5G plan.

Proportion of 5G-capable devices shows opportunities for better adoption

As DNB continues to expand its 5G network access to all populated areas across the country, motivating consumers to subscribe to the newer technology is critical. Operators already have a base of consumers who own 5G-capable devices, and we expect to see more consumers investing in 5G-capable devices going forward.

Proportion of Devices taking Speedtest in Malaysia

According to Speedtest Intelligence data, in Q3 2023, over 55% of all tests conducted in Malaysia were carried out on unique 5G-capable devices. Of these devices, 30.1% of the tests were conducted on 5G networks, while the remaining 21.5% were on non-5G networks.

Around 50% of Celcom’s and Digi’s customer bases own 5G-capable devices, but only 16.7% of Celcom’s and 21.6% of Digi’s customers conducted tests on 5G in Q3 2023. Maxis, which has the highest percentage of 5G-capable devices (62.8%), saw only 33% of its customers perform tests on 5G. For these operators, approximately 30% of their customer base that own 5G-capable devices have yet to initiate a Speedtest on the 5G network. There is an opportunity to transition these customers to adopt 5G as they likely have not yet subscribed or reside in areas without 5G coverage. Again, it is important to note that Maxis launched 5G services in August.

Unifi and U Mobile had 18.9% and 12.5%, respectively, of users that own 5G-capable devices yet to take advantage of the 5G network. On the other hand, Yes customers with 5G-capable devices are already benefiting from 5G, with less than 8% of them yet to subscribe to 5G or reside in areas without 5G coverage.

The government’s active participation is instrumental in achieving the national 5G connectivity agenda 

Over the years, Malaysia has consistently invested in enhancing its digital infrastructure. With its National Fiberisation and Connectivity Plan (NFCP) and the MyDIGITAL initiative, it is already ahead of some of its neighbors in terms of connectivity. This groundwork creates a conducive environment for 5G and the readiness to embrace next-gen technology into its digital infrastructure.

Malaysia has adopted a distinctive strategy by implementing a single wholesale 5G model. DNB serves as a neutral party responsible for deploying 5G infrastructure and network across the country. By the end of 2022, the country has achieved its target of providing 40% coverage of populated areas. The performance of 5G technology has been impressive so far, making Malaysia one of the top performers globally. However, DNB has an obligation to expand its coverage to 80% of populated areas by 2024. 5G performance is also expected to decrease over time as network traffic grows and more and more users switch to 5Gs. 

A few pieces of the puzzle still need to fall into place before 5G can be widely adopted in Malaysia. Apart from encouraging users with 5G-capable devices to adopt 5G services, around 45% of tests were carried out on non-5G devices, leaving a significant portion of users in the country still reliant on 4G. To further encourage the adoption of 5G, The Communications and Digital Ministry recently kicked off the 5G Rahmah initiative, where participating operators will now offer more affordable 5G data and device bundle plans to Malaysians, with additional incentives for low-income groups and civil servants.

It is evident that the government and regulatory authorities have a vital role in making 5G accessible to consumers. Now that all operators have agreed to provide 5G services, they also have the responsibility to keep the service’s cost affordable and educate consumers about its benefits. Earlier this year, the Malaysian government announced its plan to transition to a dual network model once the current rollout under DNB has reached the targeted 80% coverage of populated areas. However, the impact of this transition and factors such as the speed of the rollout, 5G adoption, and infrastructure management by operators remains to be determined and requires further assessment.

We will keep a close eye on the progress and effectiveness of 5G implementation in Malaysia. If you are interested in benchmarking your performance or if you’d like to learn more about internet speeds and performance in other markets around the world, visit the Speedtest Global IndexTM.

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.

Network Performance
5G

About the Author

Affandy Johan

Ookla Research™ Articles
| January 12, 2024

Bahrain’s 5G Gaming Performance and Investments are Aligned with its Aspirations to Become a Regional Hub

5G

Bahrain took the lead in 5G gaming performance across the Gulf Cooperation Council (GCC) and the Middle East during the first half of 2023, based on Ookla Speedtest Intelligence® data. This article examines the gaming performance on Bahrain’s 5G networks, evaluates their suitability for multi-player on-device and cloud gaming services, and discusses local initiatives to position Bahrain as the regional gaming hub.

Key takeaways

  • Bahrain’s 5G Game Score™ was the highest in the Middle East at 87.64 out of 100 during Q1-Q2 2023. This exceptional network performance helps to deliver a good gaming experience. With ultra-fast 5G speeds (413.69 Mbps) and low latency (72 ms), most casual gamers can expect a top-notch multi-player gaming experience.
  • Bahrain’s pro-gaming policies and initiatives helped to attract international companies and foster a burgeoning local gaming ecosystem. The vibrant start-up landscape, bolstered by supportive business-friendly policies, funding, and access to tech-savvy talent, helped to attract international gaming studios and emerge local ones.
  • Bahrain faces competition from its neighbors to become a regional gaming hub. However, it can leverage its advanced networking infrastructure and reputation as a technology incubator to attract companies and entrepreneurs who want to trial new ideas and technologies for gaming and transform them into ventures that serve the region.

Bahrain leads the Middle East in terms of 5G Game Score and latency

The cellular infrastructure is critical for the growth of mobile gaming. Advanced network systems that offer speed, reliability, and low latency are pivotal to seamless gaming experiences and thus, the gaming industry. The growing popularity of mobile devices and portable gaming also pushes the boundaries of what mobile games can do. 

Recognizing this, Ookla has devised a new metric, Game Score, to measure the gaming experience. This score considers various network parameters that impact gaming, including download and upload speeds, latency, and jitter. Game Score is based on Ookla’s consumer-initiated Speedtest Intelligence results for download and upload speeds, as well as Consumer QoE’s™ latency and jitter measurements taken on actual game servers. 

Each component is scored on a scale of 0-100 and then combined in a weighted average to produce a Game Score. A higher score signifies a better gaming experience for the user. You can find more details about the Game Score methodology here.

In a recent article, we presented the Game Scores for the six GCC countries. Bahrain led the Middle East region during the first half of 2023 with the highest 5G Game Score at 87.64. The U.A.E. and Qatar trailed closely with scores of 85.59 and 85.23, respectively, reflecting the high-quality mobile network performance in these markets that provides excellent gaming experiences. Saudi Arabia, Kuwait, and Oman received lower Game Scores.

Chart of 5G Game Score, Gulf Countries

Gamers in Bahrain can enjoy a great multi-player gaming experience over 5G

Looking more closely at two main components of the Game Score – download speed and game latency – we can assess how well Bahrain’s 5G network supports multi-player gaming services.

  • Download speed is crucial for ensuring uninterrupted gameplay and maintaining high-quality streaming. High download speeds are also important for downloading digitally distributed games and updates. Download speed requirements for online mobile gaming vary depending on the game type (for example, cloud gaming needs higher bandwidth than a game played on a smartphone) and the gamer profile (for example, competitive gamers will require higher bandwidth than casual players)
  • Game latency is a measure of latency to popular gaming server locations. It impacts the speed at which a gamer’s response is reflected in gameplay and is particularly important for games where quick reactions are crucial. Low latency also means smoother and lag-free gaming.

For this analysis, we consider two types of multi-player games to account for variations in network requirements and user expectations. The table below outlines the minimum requirements for casual gamers (who make up the majority of gamers) for download speed and latency for on-device and cloud games.

List of Network Requirements for Mobile Games

Ookla’s data shows that Bahrain significantly exceeds the speed requirement for both game types, with a median download speed of 413.69 Mbps during Q1-Q2 2023. This implies that gamers should not face delays in downloading games, loading games, or applying patches.

Bahrain has also the lowest latency in the Gulf region at 72 ms and should provide smooth gameplay for most casual games. Yet, some multiplayer shooters, racing, fighting, and multiplayer online battle arena (MOBA) games might experience some lag, particularly if streamed from a cloud server outside the country. There’s room for operators to enhance conditions for multiplayer games, especially for competitive gamers.

It should be noted that the gaming experience can be affected by other factors besides 5G network quality. The location of the game server, for example, can influence latency. If the game server is outside the country or region then the quality of international connectivity matters more. Since Bahrain has a small land mass and a high population density, game servers, and international gateways are likely to be close to gamers. This partially explains why its game-related metrics are better than those of other countries in the region.

Chart of Median Download Speed and Latency in Bahrain vs. Minimum Requirements for Games

Bahrain made the digital sector, including gaming, central to its economic expansion. The government and various regulatory authorities have fostered a favorable business environment to attract investments from global technology companies. Operators have also supported the country’s ambition to become the regional ICT hub by developing advanced digital infrastructure and nurturing local talent.

Following the COVID-19 pandemic, Bahrain prioritized ICT as a key sector for economic growth and diversification, setting targets to achieve 100% broadband coverage and increase the number of start-ups by 20% by the end of 2026. According to the Telecommunications Regulatory Authority (TRA), mobile broadband penetration of the population reached 146.0%, and fixed broadband penetration of households reached 69% in Q3 2023. 

Bahrain was among the first countries in the Middle East to launch 5G in 2019. The three mobile operators, Batelco, stc, and Zain, have invested in its expansion, achieving 100% 5G commercial network coverage. Operators are also upgrading their 5G infrastructure to improve throughput and reduce latency by deploying 5G Standalone (SA) and 5G Advanced (5.5G). For example, stc tested 5G SA in May 2022 and 5G network slicing in October 2023. Batelco deployed a cloud-native 5G core and tested 5G SA in April 2022. Zain trialed 5G SA in 2022 and implemented 5G carrier aggregation using a mid-band frequency.

Furthermore, Batelco’s parent company, Beyon, announced an investment of over $250 million to support the country’s digital transformation. This includes the development of the country’s biggest data center. In 2022, stc announced that it plans the region’s largest technology park, which includes a new data center. These new facilities will supplement existing data centers and strengthen the country’s position as a regional digital infrastructure center.

The country’s extensive and high-quality network infrastructure underpinned its ‘Cloud First Policy’ which encouraged public and private organizations to migrate to the cloud. This strategy has proven successful in attracting major hyperscalers like AWS which established three ‘regional availability zones’ in 2019 in Bahrain.

Pro-graming policies and initiatives helped attract international companies and develop a local gaming ecosystem

This influx of international cloud service providers has caught the attention of game publishers eager to cater to their fans in the region. Take Epic Games, the publisher of Fortnite, as an example. They set up a local server over AWS infrastructure to boost game response times and stimulate interest in e-sports. They expected latency to improve between 20% and 50% for players in the Gulf region and India. Similarly, Riot Games set up a local server in Bahrain for its game Valorant.

Bahrain has a vibrant start-up landscape in the Middle East region bolstered by supportive government policies, funding schemes, and a pool of young, tech-savvy talent. As part of the Bahrain Economic Vision 2030, the government established Tamkeen, an agency designed to promote private sector development and digital services adoption. Tamkeen has been involved in initiatives such as setting up a training program for video game development and the creation of the ‘D11 Gaming Hub’, designed to strengthen the e-sports ecosystem in Bahrain.

Thanks to these efforts, Bahrain attracted foreign gaming studios, like The Stories Studio, to establish a local office. It has also nurtured a burgeoning local game production industry, with award-winning gaming studios, such as Juego Studios and Regnum Studio, and a host of start-ups offering a range of products, solutions, and services for the gaming industry. Bahrain also aspires to be a leading e-sports competition destination in the Middle East, having already hosted global events like the BLAST Pro Series Global Final, NVTC Tournament, and GIRLGAMER Festival.

Operators have also taken proactive steps to capitalize on the growing demand for gaming in recognition of its potential to diversify revenue, increase customer engagement, and differentiate their services. For example:

  • Batelco introduced a mobile gaming portal in 2022.
  • stc launched the ‘stc play’ app, hosted multiple e-sport tournaments, and bundled gaming packages with its mobile data and home services.
  • Zain introduced a mobile game pass with a dedicated data allowance for popular games. It also partnered with the Bahraini Esports Federation and gaming platform provider Playhera to organize e-sports tournaments. Most recently, it launched the ‘Zain Esports Lab’ in collaboration with Tamkeen to host e-sports leagues, provide training to gamers, and offer professional opportunities for e-sports enthusiasts.

Bahrain harbors grand ambitions to strengthen its standing as a regional gaming hub

As part of the Telecommunications, ICT, and Digital Economy Sector Strategy 2022-2026, the Bahraini government aims to consolidate its reputation as a regional innovation center while continuing to lure large technology companies. Part of this strategy revolves around making the country an even more attractive destination for gaming companies to cater to the rapidly expanding base of casual gamers, e-sports enthusiasts, and professional players across the Middle East.

In November 2023, the TRA also unveiled the Sixth National Telecommunication Plan (NTP6). The plan outlines the government’s strategic three-year approach and general policies for the telecommunications sector. Bahrain’s objective is to continue to lead the way in ICT and telecommunications infrastructure development within the GCC region and aspire to be among the global top 10 in this sector.

BCG reported that the Middle East boasts the highest gaming penetration in the world, with over 60% of the population identifying as gaming enthusiasts. The audience for live-streaming games is projected to surpass 200 million in 2025, making the Middle East one of the fastest-growing regions for gaming, outpacing even China.

The GCC region is particularly ripe for growth in terms of active gamers and e-sports participants, thanks to its youthful demographic, substantial disposable income, access to affordable high-speed connectivity, and the ongoing development of gaming infrastructure. The market is bound to expand as gaming becomes more mainstream and as more female users and older demographics engage in gaming.

Statista predicts that the gaming industry in Bahrain (including in-game ads and live streaming) will generate over $38 million in 2023 and grow to over $53 million by 2027. Mobile games constitute the largest segment, with a market value nearing $12 million in 2023, expected to grow to more than $18 million by 2027. This is driven by the increasing number of players, expected to reach nearly 400,000 users by 2027. 

These figures show that the domestic gaming market in Bahrain is relatively small because of the limited population. That is why the opportunity lies in serving the larger and growing gaming audience in the Middle East and fostering a local gaming ecosystem that can scale up to serve the region.

However, Bahrain faces stiff competition from its neighbors seeking to diversify their economies through digital services. For example, Saudi Arabia invested in major gaming studios such as Capcom and Activision Blizzard via the Public Investment Fund (PIF), its sovereign fund, and has a national gaming and e-sports strategy. U.A.E. encourages global gaming producers to establish a local presence and hosts major game tournaments and events.

Bahrain should leverage its unique advantages, such as its advanced connectivity infrastructure, skilled workforce, and favorable business environment. Its track record as a technology incubator can also position it as an ideal place to test new ideas, technologies, monetization models, and regulations to support innovative gaming services.

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.

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About the Author

Karim Yaici