The growth of 5G adoption in the United States has faced slow down in 2023, despite record-breaking increase in wireless data consumption, CTIA survey shows.
There were 216 million active 5G devices – including smartphones, smartwatches, and IoT devices – at the end of 2023. This indicates that 5G represents 39 percent of total wireless connections. This means that majority of Americans rely on 4G network. The survey shows that the investment by US operators to convert all smartphone users to their 5G network did not work.
The number of active 5G devices in the United States was 162 million in 2022, 86 million in 2021, and 14 million in 2020, accounting for 31 percent, 17 percent and 3 percent of total wireless connections, respectively.
According to a recent CTIA survey, Americans used over 100 trillion megabytes (MB) of wireless data in 2023 — nearly doubling the data usage from two years prior. This surge in data demand underscores the growing reliance on mobile internet services, yet 5G adoption, while expanding, still faces hurdles.
In 2023, nearly 40 percent of all wireless devices were connected to 5G networks, marking a 34 percent increase over the previous year. Despite this progress, it falls short of the rapid, widespread adoption many industry leaders anticipated when 5G technology launched in 2018.
Analysts point to challenges such as infrastructure deployment delays, spectrum allocation issues, and the cost of building out networks as key factors tempering 5G’s broader integration.
Wireless carriers, including major players like Verizon, AT&T, and T-Mobile, have invested heavily in 5G infrastructure, pouring a total of $705 billion into the wireless ecosystem to date. Last year alone, $30 billion was spent on expanding networks, with $190 billion invested since the rollout of 5G five years ago. However, progress has been slow in translating these investments into a seamless nationwide 5G experience.
The total number of wireless connections grew by 6 percent in 2023, reaching 558 million, while the number of operational cell sites increased to 432,469. Yet, despite these gains, many consumers remain on 4G networks due to inconsistent 5G coverage and limited access to 5G-compatible devices.
Last year, Americans exchanged over 2.1 trillion SMS and MMS messages, or more than 67,000 messages every second. Americans also collectively spent more than 2.4 trillion minutes talking on the phone.
One positive outcome of the 5G push has been its impact on broadband connectivity. Over the last two years, 95 percent of net new broadband subscribers opted for 5G home services, and one in five of these were new to home broadband altogether. This suggests that 5G is playing a critical role in expanding internet access, particularly in underserved areas.
At the same time, the cost per MB of wireless data continues to decline sharply, falling 50 percent since 2020. In 2023, data costs were just $0.002 per MB — 97 percent lower than a decade ago. This drop bucks the trend of rising consumer costs in other sectors, providing some relief to data-hungry users.
However, as the U.S. wireless industry looks to the future, 5G’s growth will likely hinge on further infrastructure investments and efforts to address coverage gaps. While demand for wireless services is soaring, the 5G revolution is progressing slower than anticipated, leaving much room for improvement in the years ahead.
Baburajan Kizhakedath
