Company: GCTS
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0000929638-25-001279
Chunk: 32

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-03-26
Form: 424B3
Chunk 32
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                 |     | 6Gbps         |

5G is now growing in all regions around the world. According to the Ericsson Mobility Report published in June 2024, at the end of 2023, 5G subscribers accounted for 59% of the total communication subscribers in North America and 10% in India. During the first quarter of 2024, total 5G subscriptions exceeded 1.7 billion worldwide. Further, it is anticipated that 5G subscriptions will continue to increase, reaching 5.6 billion globally by end of 2029. 3 Expanding Fixed Wireless Access Fixed Wireless Access (“FWA”) service provides data and voice (“VoLTE” or “VoNR”) connectivity by connecting data terminals through indoor or outdoor fixed CPE to mobile communication networks, offering services comparable to traditional wired line networks such as xDSL, cable, or fiber optics. The wireless network connection approach is advantageous for quick installation in areas with existing mobile communication infrastructure, especially in regions where installing conventional wired networks is challenging or economically impractical. However, traditional wireless networks face limitations, such as lower speed when multiple devices are connected simultaneously, and the performance of user devices that vary based on the environment or location of such user devices relative to the base station, diminishing their competitiveness compared to wired line networks. However, recently introduced FWA technologies, including gigabit-speed 4G LTE Advanced or 5G NR, offer speeds faster than DSL or cable networks, addressing the shortcomings of traditional wireless connections. Especially in frequency bands above 3 GHz, 5G FWA can deliver service with 100 MHz or more of bandwidth, or in the millimeter-wave spectrum above 20 GHz, 5G FWA can utilize 800 MHz or more of bandwidth, achieving performance comparable to optical fiber communications. This makes FWA an attractive alternative technology that can overcome the significant installation costs associated with fiber optics for new installation areas. According to the Ericsson Mobility Report, as of the end of 2023, FWA services based on 4G and 5G have already exceeded 130 million subscriptions. FWA services are projected to grow at an annual rate of 17% (2023-2029 CAGR), reaching over 330 million subscriptions by 2029, which is 2.5 times the number of subscriptions at the end of 2023. 5G-based FWA services are expected to grow even faster, surpassing 4G-based FWA subscriptions by 2025 and