European Commission: Benefits From 5G Deployment in Europe Estimated to Reach €113.1bn Annually by 2025
September 28 2016 - 1:16PM
Findings from a new study completed for the European Commission has
identified a potential annual benefit to its member states of
€113.1 billion annually as early as 2025 from deploying 5G, with
trickle-down benefits from 5G investment totaling as much as €141
billion. The findings come from a major new study entitled
“Identification and quantification of key socio-economic data to
support strategic planning for the introduction of 5G in Europe,”
prepared for the European Commission by InterDigital Europe, Real
Wireless, Tech4i2 and CONNECT (Trinity College Dublin).
The primary aim of the study was to forecast the benefits,
impacts and technical requirements to assist strategic planning for
the introduction of 5G across Europe. In addition to the economic
benefits resulting from 5G deployment, it is also expected to
create 2.3 million jobs in EU28 Member States. The study estimates
that in EU28 Member States the total cost of 5G deployment will be
approximately €56 billion by 2020.
The report is the result of more than a year of research by team
leads from InterDigital Europe and the study’s other contributors,
punctuated by two group working sessions held in Brussels during
2016. Those group workshops brought together more than 80 experts
from four main vertical industries: automotive, healthcare,
transportation and energy.
While 5G benefits and capabilities are extremely broad and
varied, the study identified three main capabilities that will
bring beneficial changes and development. These were:
- 50Mbps everywhere - Truly ubiquitous coverage
is expected to help overcome the “digital divide” caused by poor
broadband coverage
- Scalable solutions for sensor networks -
Support for large scale M2M/IoT networks is a priority for all
verticals and environments, in particular, automotive, healthcare,
transport and utilities
- Ultra-tactile Internet - A step-change
capability that has the potential to unlock futuristic applications
and services including real-time sense-respond-actuation cycles
that enable human-device and device-device interactions.
The combined annual benefit of €113.1 billion by 2025 identified
in the study comes from two main groupings, first order benefits
across four vertical industries, totalling €62.5 billion, and
second order benefits across four “environments”, totalling €50.6
billion. In further findings from the report, 63 percent of these
total benefits will arise for business and 37 percent will be
provided for both consumers and society.
In vertical industries, the automotive, healthcare, transport
and utilities sectors are expected to experience major benefit.
From an economic perspective, strategic benefits of 5G are forecast
as follows:
- Automotive €13.8 billion
- Healthcare: €1.1 billion
- Transport: €5.1 billion
- Utilities: €775 million
In the four environments of Smart Cities, Non-Urban, Smart Homes
and Workplace, the total economic, social and environmental
benefits of 5G are forecast as follows:
- Smart City: €8.1 billion
- Non-Urban: €10.6 billion
- Smart Home: €1.3 billion
- Workplace: €30.6 billion
On the findings, Alan Carlton, Vice President, InterDigital
Europe, stated: “Many people are excited about 5G technology, but
the goal of this study was to investigate what 5G might actually
mean for industries, including the mobile industry, as well as
various other stakeholders. This study should provide a basis for
regulators, other public authorities and various stakeholders to
plan future policy in areas such as spectrum allocation planning
and future market regulation. The key in all this is to attain
maximum benefit, both socially and economically.”
You can also view InterDigital’s recent work aligned to 5G-PPP
activities here.
About InterDigital®
InterDigital develops mobile technologies that are at the core
of devices, networks, and services worldwide. We solve many of the
industry's most critical and complex technical challenges,
inventing solutions for more efficient broadband networks and a
richer multimedia experience years ahead of market deployment.
InterDigital has licenses and strategic relationships with many of
the world's leading wireless companies. Founded in 1972,
InterDigital is listed on NASDAQ and is included in the S&P
MidCap 400® index.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit: www.interdigital.com.
InterDigital Contact:
Patrick Van de Wille
Email: patrick.vandewille@interdigital.com
+1 (858) 210-4814
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