Ericsson(US:ERIC) Feng Huang Wang·2025-12-25 03:44Core Insights - Ericsson's latest reports highlight the transition from a "sell data" to a "sell services" business model, emphasizing the importance of service reliability and customer experience in the 5G landscape [2] - The global 5G user base is projected to reach 2.9 billion by the end of 2025, with China leading in adoption rates [3] - Key technological trends identified include Agentic AI, Integrated Sensing and Communication (ISAC), the fusion of optical and wireless technologies, and the emergence of quantum computing [6] Group 1: Business Model Transformation - Ericsson introduced the concept of "differentiated connectivity" in 2024, marking a shift from selling data to selling services, which involves three fundamental differences: value proposition, customer perception, and pricing logic [2] - The company emphasizes that operators must evolve from "pipeline providers" to "capability enablers," requiring collaboration with developers and application providers [2] - Currently, 118 operators globally are offering differentiated connectivity services, with 65 having commercialized these offerings [2] Group 2: 5G Development and Market Trends - By the end of 2025, the global 5G subscriber base is expected to account for one-third of all mobile users, with projections indicating this will rise to two-thirds by 2031 [3] - China has a leading position in 5G adoption, with nearly 70% of mobile users signed up for 5G, significantly higher than the global average of 43% [3] - The report indicates that 80% of Ericsson's 5G customers are expected to upgrade to Standalone (SA) networks within the next two to three years [3] Group 3: Key Technological Trends - The four key technology trends identified by Ericsson include: - Agentic AI, which will create a new value chain for "network for AI" and accelerate network intelligence [6] - Integrated Sensing and Communication (ISAC), which will enable networks to function as sensors, applicable in various scenarios [6] - The fusion of optical and wireless technologies to meet the extreme demands of AI applications [6] - The advent of quantum computing for telecom optimization, currently in the NISQ stage [6] Group 4: Case Studies - Singapore Telecommunications (Singtel) is transitioning to a service model based on slicing services, with over one-third of postpaid users opting for the highest tier of slicing services by Q3 2025 [4] - T-Mobile has pioneered 5G SA and innovative slicing services, integrating them with Starlink for enterprise packages, leading to significant stock price growth compared to peers [4]