- Comprehensive Analysys Mason study spans 15 countries in
Asia, Africa and Latin
America
- Potential GDP economic benefits vastly outweigh investment
costs
- Governments, regulators and policy makers play a key enabling
role
- Countries also set to benefit from environmental and social
inclusion capabilities
STOCKHOLM, Nov. 25, 2022 /PRNewswire/ -- A major new
Ericsson (NASDAQ: ERIC) commissioned study 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 between 0.3 and 0.46
percent through 2035, with an estimated three-to-seven-fold
cost-to-benefit ratio.
Called the Future Value of Mobile in Emerging Markets, the
report examines 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 are based on the starting assumption of
having 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 is identified as the key success
factor - with the potential to deliver about 80 percent of the
economic benefits. Benefits from the Smart Industry and Smart Rural
clusters account for 85-90 percent of the total economic benefits
in each 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 enhanced rural 5G coverage could deliver up to 1.8
percent uplift in long-term GDP from agriculture. 5G will also
promote sustainable farming methods, increase efficiency and reduce
agricultural waste.
Study findings include:
- Baseline 5G deployment cost is estimated between USD 3-8 billion per country. An additional 20-35
percent investment is required to extend coverage
- Extending coverage beyond the baseline can generate significant
GDP benefits from industrial adoption, especially from mid-band
coverage extension
- Most countries are expected to generate overall economic
benefits (GDP) three-to-seven times higher than the incremental
cost of extending coverage
- Results suggest 5G mobile broadband can generate consumer
surplus between USD 1-10 billion per
country, with coverage extension giving 20-30 percent extra
consumer surplus
- The social benefits enabled by 5G will be greatest from
5G-based FWA, smart factories, freight and logistics, agriculture
and healthcare use cases
- Adopting 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 policy
makers can support the 5G ecosystem to deliver the benefits.
These include treating 5G as a national infrastructure with a 5G
national strategy and roadmap; implementing 5G spectrum policies
that facilitate speedier and widespread deployment, including
trading off spectrum fees for deployment targets that meet
connectivity policy objectives; implementing policies and
procedures to make infrastructure deployment and site upgrades
easier; working with communications services providers to enhance
coverage in areas where commercially-led solutions are not viable;
incentivizing the use and prominence of 5G in industry and
manufacturing; promoting 5G in the public sector and promoting the
environmental benefits of 5G solutions.
Andrew Lloyd, Head of Government
and Policy Advocacy, Ericsson, says: "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
policy makers, each of these 15 countries, and their citizens,
stand 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."
Janette Stewart, Partner,
Analysys Mason, says: "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."
The countries addressed in the report research are Bangladesh, Brazil, Chile, Columbia, Egypt, India,
Indonesia, Malaysia, Mexico, Morocco, Nigeria, Pakistan, South
Africa, Thailand and
Turkey.
Access the Future Value of Mobile in Emerging Markets report
here.
Related links:
Ericsson 5G
Ericsson Public Policy and Government Affairs
Ericsson Sustainability and Corporate Responsibility
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ABOUT ERICSSON:
Ericsson enables communications service providers to capture the
full value of connectivity. The company's portfolio spans the
business areas Networks, Cloud Software and Services, Enterprise
Wireless Solutions, and Technologies and New Businesses. It is
designed to help our customers go digital, increase efficiency and
find new revenue streams. Ericsson's innovation investments have
delivered the benefits of mobility and mobile broadband to billions
of people globally. Ericsson stock is listed on Nasdaq Stockholm
and on 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 deliver bespoke consultancy on strategy,
transaction support, transformation, regulation and policy, further
strengthened by globally respected research. Our clients value our
advice which 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 communities
- contributing to a world where technology delivers for all.
The following files are available for download:
https://mb.cision.com/Main/15448/3671918/1695672.pdf
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