The Comprehensive Analysys Mason study covers 15 countries in the Asia, Africa and Latin America
The potential economic benefits of GDP far outweigh the investment costs
Governments, regulators and policy makers have an important enabling role
Countries are also set to benefit from environmental and social inclusion capabilities
STOCKHOLM, Nov. 25, 2022 /PRNewswire/ — A major new Ericsson (NASDAQ: ERIC) study commissioned by management consulting firm Analysys Mason highlights the potential economic, consumer and environmental benefits of 5G connectivity in 15 national emerging markets. . With regulation and government support, all fifteen countries could benefit from GDP growth between 0.3 and 0.46 percent until 2035, with an estimated three to seven times the welfare cost ratio.
Called the Future Value of Mobile in Emerging Markets, the report examines the impact of several 5G spectrum deployment options to facilitate improved mobile broadband and fixed wireless access (FWA) across consumer, industry, logistics, rural and public services clusters. , and covers many businesses. case options, including vertical ones.
The detailed methodology includes the use of national government statistics and reports, Ericsson network views and innovative mapping methods – based on population density distribution and existing national infrastructure such as, road and rail networks, and agriculture – to create a cost-to-benefit model across different deployment options.
The deployment options are based on the initial assumption that a 5G baseline rollout will be added to existing mobile radio network sites. Additional options explore the additional benefits of increasing Low-Band 5G spectrum coverage beyond the baseline (delivering wider geographical coverage at the low end of 5G capabilities and suitable for agriculture or logistics deployments) or Mid -Band 5G spectrum coverage – delivering less geographical coverage per site, but with higher capacity and speed, suitable for manufacturing, automation, industry and advanced services.
The extended coverage of Mid-Band 5G has been identified as a key success factor – with the potential to deliver around 80 percent of the economic benefits. Benefits from Smart Industry and Smart Rural clusters account for 85-90 percent of the total economic benefits of 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 5G coverage in rural areas could provide up to a 1.8 percent increase in long-term GDP from agriculture. 5G will also promote sustainable farming practices, increasing efficiency and reducing agricultural waste.
The study’s findings include:
Baseline 5G deployment costs are estimated between USD 3-8 billion per country. An additional 20-35 percent investment is required to extend coverage
Extending coverage beyond the baseline will generate significant GDP benefits from industrial adoption, particularly from mid-band coverage extension.
Most countries are expected to generate gross economic benefits (GDP) three to seven times higher than the additional costs of extending coverage.
The results suggest that 5G mobile broadband will generate a consumer surplus between USD 1-10 billion per country, with coverage extension providing 20-30 percent of consumer surplus
The social benefits that 5G can bring will be greatest from 5G-based FWA, smart factories, freight and logistics, agriculture and healthcare use cases.
The adoption of 5G will help reduce emissions by supporting the digital transformation of agriculture, freight and logistics, smart factories and construction.
The study highlights how governments, regulators and policy makers can support the 5G ecosystem to deliver the benefits.
This includes treating 5G as a national infrastructure with a 5G national strategy and roadmap; implementation of 5G spectrum policies that facilitate faster and widespread deployment, including the sale of spectrum fees for deployment targets that meet connectivity policy goals; implementing policies and procedures to facilitate infrastructure deployment and site upgrades; partnering with communications service providers to improve coverage in areas where commercially-led solutions are not feasible; encouraging the use and prominence of 5G in industry and manufacturing; promotes 5G in the public sector and highlights the environmental benefits of 5G solutions.
Andrew LloydHead 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 of realistic and achievable scenarios in each of the 15 countries, the potential economic, social, environmental and national benefits of 5G in these markets. With the support of governments, regulators and policy makers, each of these 15 countries , and their citizens, will benefit greatly from 5G connectivity. In addition to economic benefits, 5G can also reduce the impact on the climate, increase social inclusion, well-being and address the digital divide in areas where the fixed infrastructure availability is not good.”
Janette StewartPartner, Analysys Mason, said: “The study highlights the benefits from having the right spectrum available for 5G deployment, both for geographic coverage, where low-bands are well suited, and at 3.5GHz band where most of the high-capacity 5G deployments in other markets are already happening.”
The countries targeted in the research of the report are Bangladesh, Brazil, ChileColumbia, Egypt, India, Indonesia, Malaysia, Mexico, Morocco, Nigeria, Pakistan, South Africa, Thailand and Turkey.
Access the Future Value of Mobile in Emerging Markets report here.
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Ericsson enables communication service providers to capture the full value of connectivity. The company’s portfolio covers the business areas Networks, Cloud Software and Services, Enterprise Wireless Solutions, and Technologies and New Business. It is designed to help our customers go digital, increase efficiency and find new revenue streams. Ericsson’s innovative investments have brought the benefits of mobility and mobile broadband to billions of people around the world. Ericsson stock is listed on Nasdaq Stockholm and Nasdaq New York. www.ericsson.com
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Analysys Mason is the world’s leading management consultancy focused on TMT, a critical enabler of economic, environmental and social change. We combine unrivaled commercial and technical understanding to provide bespoke strategy consulting, transaction support, innovation, regulation and policy, further underpinned by globally respected research. Our clients value our advice that combines deep domain knowledge with global reach and local insight into markets to help them achieve meaningful business results. We are committed to our clients, employees and community – contributing to a world where technology provides for all.
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