Comprehensive study by Analysys Mason spans 15 countries in Asia, Africa and Latin America
The potential economic benefits of GDP far outweigh the investment costs
Governments, regulators and policy makers play a key role
Countries will also benefit from environmental and social inclusion skills
STOCKHOLM, November 25, 2022 /PRNewswire/ — A major new study commissioned by Ericsson (NASDAQ:ERIC) by management consulting firm Analysys Mason highlights the potential economic, consumer and environmental benefits of 5G connectivity in 15 national emerging markets. 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 three to sevenfold cost-benefit ratio.
The report, titled Future Value of Mobile in Emerging Markets, examines the impact of multiple 5G spectrum deployment options to deliver enhanced mobile broadband and fixed wireless access (FWA) in consumer, industrial, logistics, rural and public service clusters as well as enable case options, including verticals, in several companies.
The detailed methodology involved 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-benefit model for the entire country various deployment options.
Deployment options are based on the assumption that a 5G baseline rollout will be added to existing cellular network sites. Additional options explore 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 – Offers smaller geographic coverage per site but with higher capacity and speed, suitable for manufacturing, automation, industry and advanced services.
Expanded mid-band 5G coverage is identified as a key enabler for success – with the potential to deliver around 80 percent of the economic benefits. The benefits from the Smart Industry and Smart Rural clusters account for 85-90 percent of the total economic benefit in any emerging market.
Agriculture is a significant 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 GDP from agriculture by up to 1.8 percent. 5G will also promote sustainable farming practices that increase efficiency and reduce agricultural waste.
Study results include:
The base cost for 5G deployment is estimated between $3-8 billion per country. An additional investment of 20-35 percent is required to expand coverage
Extending coverage beyond the baseline can generate significant GDP benefits from industrial adoption, particularly from expanding mid-band 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 value between consumers $1-10 billion per country, with extended coverage yielding 20-30 percent additional consumer surplus
The social benefits enabled by 5G will be greatest in use cases for 5G-based FWA, smart factories, freight and logistics, agriculture and healthcare
The rollout of 5G can help reduce emissions by supporting digital transformation in agriculture, freight and logistics, smart factories and construction
The study highlights how governments, regulators and policymakers can support the 5G ecosystem to reap the benefits.
These include treating 5G as a national infrastructure with a national 5G strategy and roadmap; Implementing 5G spectrum policies that enable faster and widespread deployment, including spectrum fee compensation for deployment targets that match connectivity policy objectives; Implementing policies and procedures to simplify infrastructure deployment and site upgrades; Working with communications service providers to improve coverage in areas where commercially-run solutions are not viable; Incentives for 5G adoption and awareness in industry and manufacturing; Promote 5G in the public sector and promote the environmental benefits of 5G solutions.
Andrew LloydHead of Government and Policy Advocacy, Ericsson, says: “This Analysys Mason Future Value of Mobile in Emerging Markets report provides a detailed breakdown of the potential 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 will benefit significantly from 5G connectivity. In addition to the economic benefits, 5G can also reduce climate impact, improve social inclusion and well-being, and bridge the digital divide in areas where fixed infrastructure availability is poor.”
Janette StewardPartner, Analysys Mason, says: “The study highlights the benefits of having the right spectrum available for 5G deployment, both in terms of geographic coverage, for which the low bands are very well suited, and in the 3, 5GHz band, where most of the high frequencies are -capacity 5G deployments in other markets are already happening.”
The countries addressed in the report research are Bangladesh, Brazil, ChileColombia, Egypt, India, Indonesia, Malaysia, Mexico, Morocco, Nigeria, Pakistan, South Africa, Thailand and Turkey.
Access the Future Value of Mobile in Emerging Markets report here.
Ericsson Public Policy and Government Affairs
Ericsson Sustainability and Corporate Responsibility
Subscribe to Ericsson press releases here. Subscribe to Ericsson’s blog posts here
https://twitter.com/ericsson https://www.facebook.com/ericsson https://www.linkedin.com/company/ericsson
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 investments in innovation have 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 the world’s leading management consultancy focused on TMT, a critical enabler of economic, environmental and social transformation. We bring together unparalleled commercial and technical understanding to offer tailored advice on strategy, transaction support, transformation, regulation and policy, further strengthened by globally recognized 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 to contributing to a world where technology works for everyone.
The following files are available for download: