(MENAFN- Gulf Times) A 10% average increase in mobile adoption has the potential to increase the world GDP or gross domestic product by 1% in the long term and the digital economy will account for more than a half of global GDP by this year, according to a report, released by Huawei, together with EI Studios, an Economist Impact division, and GSMA Intelligence.
The report – which was released at the World Mobile Congress (WMC), currently being held at Barcelona, Spain – said Southeast Asia will experience the fastest digital economy growth over the next 10 years, followed by North America and Western Europe.
In December 2022, a survey was conducted involving 500 individuals worldwide, of whom 400 were corporate executives, 50 were decision makers, and 50 were institutional investors. EI Studios also invited executives of top international strategic consulting firms, world-renowned operators, and industry organizations to participate in detailed interviews, through which it obtained a large amount of key information.
Elaborating on the relation between mobile adoption and its effect on world GDP; the report 'Driving Development: The Impact of ICT Investments on the Digital Economy', said the economic benefits increased by about 15% when connections (are) upgraded from one mobile network technology to a more advance one (2G to 3G, and 3G to 4G).
'This is a clear indicator of how the intergenerational evolution of networks from 4G to 5G, and even to 5.5G, will be a key contributor to GDP growth,' it said, adding 5G technology can boost the digital economy.
Finding that there is intense focus on technology adoption and implementation, such as the increased use of AI (artificial intelligence), machine learning, and cloud and edge computing; it however said the base requirement for all of these advances is the availability of high-speed, reliable 5G network connectivity and even the more advanced 5.5G.
'Ultimately, without sustained investment in networks, the gains from technological developments will be limited,' it cautioned.
The report found that ICT (information, communication and technology) infrastructure and industry digitalisation that it enables are set to drive the fourth industrial revolution, similar to how steam power and mechanisation drove the first industrial revolution three centuries ago.
According to GSMA Intelligence research, 5G mobile technology is now clearly a global trend. Worldwide, it is predicted that there will be 9.8bn mobile connections in 2030, 5.3bn of which will be 5G.
Meanwhile, the proportion of 2G, 3G, and 4G mobile connections will all decline, and 5G will become the mainstream. According to a GSMA Intelligence survey of global operators in 2022, 91% of operators surveyed said 5G connectivity services (mobile and fixed wireless access) are now their top priority.
The ICT investments traditionally focus on connectivity and computing. However, green ICT has developed into a third key area in this respect. A combination of efforts across these three key areas will continuously stimulate the digital economy and facilitate sustainable development, the report said.
'The 5G prosperity worldwide is driving the digital economy...The key data and conclusions in the report prove the contributions of ICT infrastructure to the digital economy, while also reflecting global operators' expectations to build on the success of 5G to make the leap to 5.5G,' said Dr Philip Song, chief marketing officer of Huawei Carrier Business.
MENAFN27022023000067011011ID1105661871
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.