A new report commissioned by Ericsson highlights the economic benefits of 5G in emerging markets.
The report was conducted by Analysys Mason and examines the potential impact of 5G across 15 emerging markets: Bangladesh, Brazil, Chile, Columbia, Egypt, India, Indonesia, Malaysia, Mexico, Morocco, Nigeria, Pakistan, South Africa, Thailand, and Turkey.
With appropriate government and regulatory support, all the countries are predicted to experience additional GDP growth of between 0.3 and 0.46 percent from 5G.
Andrew Lloyd, Head of Government and Policy Advocacy, Ericsson, said:
”This Analysys Mason Future Value of Mobile in Emerging Markets report provides a detailed breakdown, based on comprehensive research into realistic and achievable scenarios in each of the 15 countries, of the potential economic, social, environmental, and national benefits of 5G in these markets.
With the backing of governments, regulators, and policymakers, each of these 15 countries – and their citizens – stand to benefit significantly from 5G connectivity.
In addition to economic benefits, 5G can also reduce climate impact, increase social inclusion, wellbeing, and tackle the digital divide in areas where fixed infrastructure availability is poor.”
5G is estimated to cost between $3 billion and $8 billion to deploy per country. A further 20-35 percent investment will extend coverage.
The report claims that each market will experience additional GDP boosts from industrial adoption by extending coverage. The benefits are predicted to outweigh the coverage extension costs by three to seven times.
Agriculture is a key sector in all of the emerging markets, accounting for up to 10 percent of their GDP. 5G will deliver efficiency improvements by supporting the increased adoption of IoT technologies. IIoT technologies will deliver the majority (85-90%) of the total economic benefits in each market.
Janette Stewart, Partner at Analysys Mason, comments:
”The study highlights the benefits from having the right spectrum available for 5G deployment, both for geographic coverage – for which the low-bands are very suitable – and in the 3.5GHz band where most of the high-capacity 5G deployments in other markets are already taking place.”
Expanded mid-band 5G coverage was identified as critical to success, potentially delivering up to 80 percent of the economic benefits.
The report gives advice to governments, regulators, and policymakers on how they can support the 5G ecosystem to unlock its full potential for their respective economies.
Among the recommendations include:
- Treating 5G as a national infrastructure with a respective strategy and roadmap.
- Implementing 5G spectrum policies that facilitate speedier and widespread deployment.
- Making infrastructure deployment and site upgrades simpler.
- Working with communications services providers to enhance coverage in areas where commercially-led solutions are not viable.
- Supporting the adoption of 5G in industry and manufacturing.
- Promoting 5G in the public sector and promoting the environmental benefits of 5G solutions.
A full copy of the ‘Future Value of Mobile in Emerging Markets’ report can be found here.
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