The complete Analysys Mason study covers 15 countries in Asia, Africa Y Latin America
The potential economic benefits of GDP far outweigh the investment costs
Governments, regulators and policymakers play a key facilitating role
Countries will also benefit from environmental and social inclusion capacities
STOCKHOLM, November 25, 2022 /PRNewswire/ — A major new study commissioned by Ericsson (NASDAQ: ERIC) from management consulting firm Analysys Mason highlights the potential consumer, environmental and economic benefits of 5G connectivity in 15 national emerging markets. With regulatory and government support, the fifteen countries could benefit from GDP growth of between 0.3 and 0.46 percent through 2035, with an estimated benefit-cost ratio of three to seven times.
The report, called Future Value of Mobile in Emerging Markets, examines the impact of multiple 5G spectrum deployment options to enable enhanced mobile broadband and fixed wireless access (FWA) across consumer service groups, industrial, logistic, rural and public, and covers various businesses. case options, including verticals.
The detailed methodology included the use of national government statistics and reports, knowledge of the Ericsson network and innovative mapping techniques, based on the distribution of population density and existing national infrastructure such as road and rail networks, and agriculture, to create a worldwide cost-benefit model. different deployment options.
Deployment options are based on the initial assumption of having a basic 5G deployment added to existing mobile radio network sites. Additional options explore the additional benefits of adding low-band 5G spectrum coverage beyond the baseline (providing broader geographic coverage at the lower end of 5G capabilities and accommodating agricultural or logistics deployments) or medium band 5G spectrum coverage, which provides a smaller geographical coverage per site, but with greater capacity and speed, suitable for manufacturing, automation, industry and advanced services.
Expanded mid-band 5G coverage is identified as the key success factor, with the potential to generate around 80 percent of the economic benefits. The benefits of the Smart Industry and Smart Rural clusters account for 85 to 90 percent of the total economic benefits in each emerging market.
Agriculture is an important sector in all 15 countries, accounting for up to 10 percent of GDP in some markets. The report estimates that improved rural 5G coverage could deliver up to a 1.8 percent increase in long-term GDP from agriculture. 5G will also promote sustainable farming methods, increase efficiency, and reduce farm waste.
Study findings include:
The baseline 5G deployment cost is estimated to be between $3-8 billion per country. An additional investment of 20 to 35 percent is required to extend the coverage
Extending coverage beyond the baseline can generate significant GDP benefits from industrial adoption, especially from extending mid-band coverage
Most countries are expected to generate overall economic benefits (GDP) three to seven times higher than the incremental cost of extending coverage
The results suggest that 5G mobile broadband may generate consumer surplus between $1-10,000 million per country, with an extension of the coverage that grants between 20% and 30% of additional surplus to the consumer
5G-enabled societal benefits will be greatest from 5G-based FWA use cases, smart factories, transportation and logistics, agriculture, and healthcare
5G adoption can help reduce emissions by supporting digital transformation in agriculture, transport and logistics, smart factories and construction
The study highlights how governments, regulators and policymakers can support the 5G ecosystem to deliver the benefits.
These include treating 5G as a national infrastructure with a national 5G strategy and roadmap; implement 5G spectrum policies that facilitate faster and more widespread deployment, including sharing spectrum fees for deployment targets that meet connectivity policy goals; implement policies and procedures to facilitate infrastructure deployment and site updates; work with communications service providers to improve coverage in areas where commercially driven solutions are not feasible; encourage the use and prominence of 5G in industry and manufacturing; promote 5G in the public sector and promote the environmental benefits of 5G solutions.
andres lloydEricsson’s Head of Government Advocacy and Policy, says: “This Analysys Mason Future Value of Mobile in Emerging Markets report provides a detailed breakdown, based on extensive research of realistic and achievable scenarios in each of the 15 countries, of the economic potential , social, environmental and national benefits of 5G in these markets. With the support of governments, regulators and legislators, each of these 15 countries, and their citizens, will benefit significantly from 5G connectivity. In addition to the economic benefits, 5G also it can reduce climate impact, increase social inclusion, well-being and address the digital divide in areas where the availability of fixed infrastructure is scarce.”
janette stewartPartner, Analysys Mason, says: “The study highlights the benefits of having adequate spectrum available for 5G deployment, both for geographic coverage, for which low bands are well suited, and in the 3.5GHz band. where most of the high-bands-capacity 5G deployments are already underway in other markets.”
The countries addressed in the report’s research are bangladeshi, Brazil, ChiliColumbia, Egypt, India, Indonesia, Malaysia, Mexico, Morocco, Nigeria, Pakistan, South Africa, thailand Y Turkey.
Access the Future Value of Mobile Devices in Emerging Markets report here.
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Analysys Mason is the world’s leading management consultancy focused on TMT, a critical enabler of economic, environmental and social transformation. We bring together unparalleled business and technical understanding to deliver tailored consulting on strategy, transaction support, transformation, regulation and policy, further strengthened by globally respected research. Our clients value our advice, which combines deep domain knowledge with global reach and local insight into markets to help them achieve meaningful business results. We are committed to our customers, employees and communities, contributing to a world where technology offers for everyone.
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