Potential Economic Benefits of 5G in Nigeria, Others—Ericsson

December 15, 2022
potential economic benefits of 5G

By Modupe Gbadeyanka

A new study released by a management consulting firm, Analysys Mason, for Ericsson has highlighted the potential economic benefits of 5G in emerging markets.

The comprehensive research shed its light on 15 countries in Asia, Africa and Latin America, looking into how the governments, regulators and policymakers can play a key enabling role in using the latest technology to improve their gross domestic products (GDPs) and internet penetration.

The study also looked into how 5G can impact the lives of consumers and the environment in these countries, which are Bangladesh, Brazil, Chile, Colombia, Egypt, India, Indonesia, Malaysia, Mexico, Morocco, Nigeria, Pakistan, South Africa, Thailand and Turkey.

It was observed that all these nations could benefit from GDP growth between 0.3 and 0.46 per cent through 2035, with an estimated three-to-seven-fold cost-to-benefit ratio.

Called the Future Value of Mobile in Emerging Markets, the report examined the impact of multiple 5G spectrum deployment options to facilitate enhanced mobile broadband and fixed wireless access (FWA) across consumer, industry, logistics, rural and public services clusters, and spanning several business case options, including verticals.

The detailed methodology included using national government statistics and reports, Ericsson network insights and innovative mapping techniques – 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 the different deployment options.

Deployment options were based on the starting assumption of having a 5G baseline rollout added to existing mobile radio network sites. Additional options explore the extra benefits of adding Low-Band 5G spectrum coverage beyond the baseline (delivering wider geographical coverage at the lower end of 5G capabilities and suited to agriculture or logistics deployments) or Mid-Band 5G spectrum coverage – delivering smaller geographical coverage per site, but with higher capacity and speed, suitable for manufacturing, automation, industry and advanced services.

Expanded Mid-Band 5G coverage was identified as the key success factor – with the potential to deliver about 80 per cent of the economic benefits. Benefits from the Smart Industry and Smart Rural clusters account for 85-90 per cent of the total economic benefits in each emerging market.

Agriculture was a significant sector in all 15 countries – accounting for up to 10 per cent of GDP in some markets. The report estimates that enhanced rural 5G coverage could deliver up to a 1.8 per cent uplift in long-term GDP from agriculture. 5G will also promote sustainable farming methods, increase efficiency and reduce agricultural waste.

“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 stands 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,” the Head of Government and Policy Advocacy at Ericsson, Mr Andrew Lloyd, stated.

On her part, a Partner at Analysys Mason, Ms Janette Stewart, said, “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.”

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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