- Analysys Mason’s comprehensive study covers 15 countries in Asia, Africa and Latin America
- The potential economic benefits of GDP clearly outweigh the investment costs
- Governments, regulators and policy makers have an important supporting role to play
- Countries will also benefit from environmental and social inclusion skills
STOCKHOLM , Nov. 25, 2022 /PRNewswire/ — A major new study from Ericsson (NASDAQ: ERIC), commissioned by management consultancy Analysys Mason, highlights the potential economic, consumer and environmental benefits of 5G connectivity in 15 national emerging markets out. With regulatory and government support, all fifteen countries could benefit from GDP growth of between 0.3 and 0.46 percent by 2035, at an estimated cost-benefit ratio of three to seven.
The report, titled Future Value of Mobile in Emerging Markets, examines the impact of multiple 5G spectrum deployment options to deliver improved mobile broadband and fixed wireless access (FWA) in consumer, industrial, logistics, rural and public clusters enable, and includes several companies. Case options including verticals.
The detailed methodology involved the use of national government statistics and reports, Ericsson network overviews and innovative mapping techniques – based on population density distribution and existing national infrastructure such as road and rail networks and agriculture – to derive a cost-benefit model for the entire region create country. various deployment options.
Deployment options are based on the initial assumption of adding a 5G baseline to existing cellular network sites. Other options are exploring the additional benefits of adding low-band 5G spectrum coverage beyond baseline (providing broader geographic coverage at the lower end of 5G capabilities and suitable for agricultural or logistic deployments) or mid-band 5G spectrum coverage – with less geographic coverage per site but with higher capacity and speed, suitable for manufacturing, automation, industry and advanced services.
Extended 5G mid-band coverage is identified as a key success factor – with the potential to achieve around 80 percent of the economic benefit. The benefits from the Smart Industry and Smart Rural clusters account for 85-90 percent of the total economic benefits in any developing 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 increase long-term agricultural GDP by up to 1.8 percent. 5G will also promote sustainable farming practices that increase efficiency and reduce agricultural waste.
The results of the study include:
- The base cost of 5G deployment is estimated at $3 billion to $8 billion per country. An additional investment of 20-35 percent is required to expand coverage
- Extending coverage beyond the baseline can bring significant GDP benefits from industrial adoption, particularly by expanding mid-range coverage
- Most countries are expected to generate aggregate economic benefits (GDP) three to seven times greater than the incremental costs of extending coverage.
- The results suggest that 5G mobile broadband can generate between $1 billion and $10 billion in consumer surplus per country, with coverage expansion bringing an additional 20 to 30 percent of consumer surplus
- The societal benefits of 5G will be greatest in 5G-based FWA, smart factories, freight transport and logistics, agriculture and healthcare.
- The rollout of 5G can help reduce emissions by supporting digital transformation in agriculture, freight transport and logistics, smart factories and construction
The study highlights how governments, regulators and policymakers can support the 5G ecosystem to reap benefits.
These include treating 5G as a national infrastructure with a national 5G strategy and plan; Implementing 5G spectrum policies that enable faster and broader deployment, including spectrum fee exchanges for deployment targets that match connectivity policy objectives; Implementing policies and procedures to facilitate infrastructure deployment and site updates; Working with communications service providers to increase coverage in areas where commercially managed solutions are not viable; Promoting the use and further development of 5G in industry and manufacturing; Support for 5G in the public sector and support for the environmental benefits of 5G solutions.
Andrew Lloyd, Head of Government and Policy, Ericsson, says: “This Analysys Mason Future Value of Mobile in Emerging Markets report provides a detailed breakdown based on extensive research into realistic and achievable scenarios in each of the 15 countries. the economic, social, environmental and national benefits of 5G in these markets. With the support of governments, regulators and policymakers, each of these 15 countries and their citizens can greatly benefit from 5G connectivity. In addition to the economic benefits, 5G can also reduce climate impact, increase social inclusion and well-being, and close the digital divide in areas with poor availability of fixed infrastructure.”
Janette Stewart, Partner at Analysys Mason, says: “The study underscores the benefits of having the right spectrum available for 5G deployment, both for geographic coverage, where the lower bands are well suited, and for the 3.5GHz band where the highest capacity 5G deployment is in other markets is already underway.”
The countries covered in the report survey are Bangladesh, Brazil, Chile, Colombia, Egypt, India, Indonesia, Malaysia, Mexico, Morocco, Nigeria, Pakistan, South Africa, Thailand and Turkey.
Here’s an overview of the future value of mobile devices in emerging markets.
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Ericsson enables communications service providers to realize the full value of connectivity. The company’s portfolio includes the Networks, Cloud Software and Services, Enterprise Wireless Solutions and Technologies and New Businesses divisions. It aims to help our customers go digital, increase efficiency and find new revenue streams. Ericsson’s investment in innovation has brought the benefits of mobility and mobile broadband to billions of people around the world. Ericsson shares are listed on Nasdaq Stockholm and Nasdaq New York. www.ericsson.com
ABOUT ANALYSYS MASON: www.analysysmason.com
Analysys Mason is a leading global management consulting firm focused on TMT, a critical enabler of economic, environmental and social transformation. We combine unmatched business and technical understanding to deliver tailored strategy, transaction support, transformation, regulatory and policy advice. world-renowned research. Our clients value our advice, which combines deep domain expertise with global reach and local market knowledge to help them achieve meaningful business outcomes. We are committed to our customers, employees and communities and contribute to a world where technology benefits everyone.
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