Three ways to accelerate innovation in the digital economy, at the time of the 5G

The 5G will be the basic element for innovation and the Fourth Industrial Revolution. This is a great statement. And I believe with all my heart.

Although we know that the 5G will bring a significant change, we still do not know how, we can not predict what they will do with the innovators of the world. It was the same with the 4G. The innovation is superimposed on the network. No one had imagined that streaming and social media would be the killer app of 4G. And the pioneers of 4G - for the most part in the United States and China - have become the big winners of the app economy. The same dynamic will happen with the 5G, but on a large scale, massive and in the industrial field.

Let's take a look at three ways in which 5G will change the world, and that which will develop their potential: 1. Break the trend of the energy curve In the past, every new generation of mobile networks has increased the energy consumption and carbon emissions. From the point of view of energy, the 5G is the standard most efficient ever developed and will help to break this trend in the mobile industry.
in Addition, by 2030, the ICT solutions can enable reductions of 15% in other industrial sectors. This is more of the emissions of the European Union and the United States put together. Emerging technologies - enabled by 5G - will be essential to allow the industries, cities and Countries to reduce their carbon footprint exponentially, and then put us on the road to a future 1.5 °C. 2. Use mobile broadband to foster economic development connectivity is the backbone of the digital transformation. The investment in digital technologies is an investment in the new era of economic growth, development and competitiveness, sustainable and inclusive growth of the nations.
With a research carried out together with Imperial College London, we have demonstrated for the first time that the spread of mobile networks stimulates economic development. The results show that, on average, a 10% increase in the adoption of mobile broadband equates to an increase of 0.8% of gross domestic product. According to the Mobility Report from Ericsson, by 2024, the mobile broadband will provide network coverage to approximately 92% of the world population. 3. Create jobs and profits throughout the digital economy, networks, 5G will be so important for the companies as well as the 4G for smartphone users. By 2030, two-thirds of the global labor force will use the platform 5G. For industries, the first that will adopt the 5G will enjoy leadership in the industry. This is already becoming a reality in the manufacturing and in the production, in electronics and in the automotive sector. We expect that in 2030, the digitization of industries will generate us $ 700 billion of new market opportunities for mobile operators. And this is only 47% of the total value of the enabled at 5G. 3. To create the conditions for the success of 5G, The 5G will be a compulsory basis to compete on the world stage. With this in mind, the regulators must ensure a rapid development of 5G. However, we can already see the deep inequalities and the Countries are in danger of being left behind.

The networks are important for Countries as the roads, electricity grids and airports. And governments can support their development with a series of policies, ranging from funding of experiments 5G of the mechanisms of auctions to assign the spectrum.

governments and regulators must align the prices of the spectrum with the policy objectives and allow as much spectrum as possible as quickly as possible. This means keeping consideazione the value of the network in the long term, rather than the income immediate from the sale of licenses. We need the transformation of the sector, There must be structural changes in our industry, if all of the operators will benefit from the 5G. Especially in Europe, many are barely the cost of capital, which makes it very difficult to justify investment in new technologies.
There are two changes that will make operators more competitive. The first is the consolidation, once again, in particular in Europe. There are simply too many operators in the same markets, particularly when compared with Countries such as the United States. Market fragmentation limits investments.

the second is The price. In most markets, a monthly subscription to mobile broadband costs less than some cups of coffee. Also this is not a sustainable business model in the long term. In the end, most Countries are likely to increase the inequality of social and economic and, potentially, develop years of delay with respect to the superpowers of the 5G, such as Korea, the United States and China. The 5G will change our lives for The promise of 5G and the Fourth Industrial Revolution includes both the creation of jobs, both the improvement and extension of access to health care. Will also help to reduce carbon emissions, improve education and increase the quality of life in the city.

With Countries around the world that are already implementing the first services 5G, this is a window important for an alignment. We cannot afford to close this window and slow down the social and economic benefits of 5G on a global scale.

We need to work together with the ambition to aim for a more sustainable world. We'll be there. And you?

*Börje Ekholm is president and CEO of Ericsson. He is a member of the board of directors of Telefonaktiebolaget LM Ericsson and Alibaba, Inc. Ekholm is also a member of the board of trustees of Choate Rosemary Hall. From 2017, is a member of the Stering Committee of the World Economic Forum's Digital Communication Governors and a member of the Commission for sustainable development of broadband. Received an honorary Doctorate at the Royal Institute of Technology, Sweden.

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