Do you think emerging economies are lagging behind in 5G adoption?
We can see where the misconception comes from. But while historically, 3G and 4G deployments might have seen slower uptake in developing countries, 5G is a whole different ball game. In fact, ABI Research has announced in its 5G in Emerging Markets report that the Compound Annual Growth Rate (CAGR) of 5G subscriptions in emerging markets is estimated to be 26% between 2020 and 2030. This is even more impressive when you consider that the global CAGR of 5G subscriptions altogether, is only a slightly higher 28% in the same period.
“The pace of the 5G rollout in emerging markets will be expedited by a combination of regulatory enablement, enabling technologies, such as edge computing and OpenRAN (ORAN), and the broader use cases that 5G brings forward,” explains Miguel Castaneda, Industry Analyst at ABI Research.
Why Will 5G Reach Emerging Economies Faster?
5G deployments will allow any country to rapidly speed up deployment of digital initiatives, in any vertical from healthcare or education, to manufacturing and public services. Think about a school child in Nigeria who can suddenly utilize video conferencing to learn from teachers in any location, or a telemedicine application that can send vital signs and medical insight directly to remote doctors and medical facilities. Manufacturing and agriculture can benefit from low-cost IoT devices, powered by 5G deployments that connect not only people, but for the first time, machines, systems and things.
This roadmap has been accelerated by the COVID-19 pandemic. As the impact of the Coronavirus moves previously face to face offerings online, the strain on 4G operators is immense. Verizon for example mentioned a 75% increase in bandwidth demand due to the onset of the pandemic. Quickening the journey to 5G is essential globally, to manage the growing demands of the work from home reality we find ourselves in, not set to go anywhere fast. For emerging economies, the access to join this online revolution can be unlocked with 5G, levelling the playing field for the first time.
Our white paper on 5G in emerging economies looks at these issues in detail, taking a deep dive into the projected investment in CAPEX and OPEX by emerging economies over the next five years, and outlining where 5G is poised to show true value globally. We also look at the reasons why we believe 5G will hit the ground running in locations such as India, Africa and Asia, and how you can make sure you sidestep legacy challenges to embrace the onslaught of innovation.
Download the white paper right here.