Investments in ICT infrastructure, such as networks, is key to driving the digital economy forward. A 10% increase in mobile adoption, for example, can result in a GDP increase of 1%. 5G alone is expected to generate an additional global GDP value-add of US$960 billion (which translates to about 0.7% of global GDP), according to GSMA Intelligence.
This should not come as a surprise as the transformative technologies – including artificial intelligence (AI), machine learning, cloud and edge computing – that the digital economy relies on requires high-speed, reliable network connectivity such as 5G and beyond.
“5G can enable and improve productivity a lot [for businesses]. For example, Siam Cement Group (SCG) in Thailand used a private 5G network to deploy autonomous electric trucks at its remote industrial locations. This has greatly improved efficiency, productivity [and employees’ safety in risky situations],” Abel Deng, president of the carrier business group for Asia Pacific at Huawei, shares at a media briefing on the side of Mobile World Congress 2023 on March 1.
As more businesses across industries look to further automate and digitalise their operations, there is a need for telcos to ensure they provide networks with stronger capabilities. “5.5G (or advanced 5G connectivity) is the undercurrent enabling technology adoption and its benefits. Without investment in networks [for telcos], the gains from technological developments [especially for enterprises] will be stunted,” states the Driving development: the impact of ICT investments on the digital economy white paper supported by GSMA Intelligence and Huawei, and produced by EI Studios, a custom division of Economist Impact.
According to Huawei, 5.5G will be faster, more automated, and more intelligent than 5G, and support more frequency bands. It is expected to bring operators a ten-fold increase in network performance over 5G, which can translate to 100 times more business opportunities. This is because Huawei foresees:
- Immersive and interactive experiences – such as 3D online malls, glasses-free 3D video and 24K virtual reality gaming – are to become commonplace. As such, the number of online users for such services may exceed 1 billion
- The number of 5G private networks deployed to increase from 10,000 today to 1 million by 2030. Fibre connections are extending from homes and enterprises to production lines and even production equipment.
- Cloud applications entering a new era, creating new opportunities for network connectivity
- Cellular networks to cover all IoT applications, and passive IoT to enable 100 billion connections. Passive IoT tags can transmit data, and can also be used for positioning and on temperature sensors. They can be used for automated inventory of warehouse items, agriculture and livestock development, and positioning of personal items, and more. There are currently more than 30 billion passive IoT tags (based on technologies like RFID) being used annually. This number is expected to reach 100 billion as more industries becomes connected and digital.
- The rise of 5.5G networks with the sensing capability. This will be useful in scenarios like smart city road traffic services and perimeter sensing to make urban infrastructure more efficient and intelligent. For example, 5.5G networks can automatically detect obstacles or abnormalities on the road and notify drivers through the maps in their cars one kilometre in advance in rainy or foggy weather, making transportation safer.
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So how can telcos transform and prepare for 5.5G and beyond to become the engine room of the digital economy? Deng shares that Huawei’s GUIDE blueprint could help them do so.
He explains that this includes looking at ways to bring the Gigaverse experience (i.e., Gigabit per second data) everywhere and to everyone, and leveraging advanced automation technologies to extend service capabilities and enhance the value propositions.
Telcos should also use all computing (public cloud, edge cloud, private cloud, and more) and connectivity resources to develop a resource-orchestrated solution to serve enterprise customers.
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Additionally, telcos should utilise technologies – such as network slicing, edge computing, uplink enhancement, and indoor positioning – to offer enterprise customers differentiated experiences on demand.
Besides that, they can play an active role in reducing their customers’ carbon emissions by improving energy efficiency and using renewable energy.
