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14 Dec 2022

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According to a report from Ericsson, 5G Has Substantial Economic Benefits in Emerging Markets

Ericsson recently commissioned a report that studies the economic benefits of 5G in emerging markets.

Analysis Mason conducted the study, which examines the potential impact of 5G in 15 emerging markets: Nigeria, Pakistan, Columbia, Egypt, India, Indonesia, Malaysia, Mexico, Morocco, South Africa, Thailand, Bangladesh, Brazil, Chile, and Turkey.

5G is predicted to increase GDP growth in all countries by 0.3 and 0.46 percent with appropriate government and regulatory support.

Andrew Lloyd, who is in charge of government and policy advocacy for 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 reduce climate impact, increase social inclusion and well-being, and tackle the digital divide in areas where fixed infrastructure availability is poor." He added.

At first, it was projected to cost between $3 billion and $8 billion to deploy in a given country. A second 20-35 percent investment would allow 5G to cover the greater territory. The report claims that by extending coverage, each market will experience additional GDP boosts, outweighing the costs of the coverage extension three to seven times over.

One emerging economy study found that 10% of the country's GDP can be attributed to agricultural investments. IIoT technologies are expected to deliver the vast majority (85-90%) of total economic benefits in each market.

According to Janette Stewart, A Partner at Analysys Manson, "the study highlights the benefits of 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."

Up to 80% of the economic benefits may be delivered by expanding mid-band 5G coverage.

As a result of the report, regulators, governments, and policymakers can become more proficient at supporting the 5G ecosystem to benefit their economies. The recommendations include the following:

  • 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.

To download a copy of the 'Future Value of Mobile in Emerging Markets report from Ericsson, click here.

Also, Read Experts Predict that the Internet of Things Will Make up for some Economic Declines

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