The next generation of mobile technology (5G) could benefit
the European economy by more than €113.1 billion annually
by 2025, according to a study backed by the European
The report, titled Identification and quantification of
key socio-economic data to support strategic planning for the
introduction of 5G in Europe, claims it will cost around
€56 billion to deploy 5G across the 28 European Union
member states by 2020. But five years on, the return on the
investment could be more than double.
It will also lead to the creation of more than two million
jobs across Europe across sectors including automotive,
healthcare, transport and utilities. By 2025, €62.5
billion will arise from first order benefits in the four
verticals mentioned, with an estimated €50.6 billion
arising from the 'knock-on’ impacts from the use
of goods and services.
The year-long study was prepared by InterDigital, a wireless
technology supplier; analysts Real Wireless; tech consultancy
Tech4i2; and Trinity College Dublin. It was also backed by the
"Many people are excited about 5G technology, but the goal
of this study was to investigate what 5G might mean for
industries, including the mobile industry, as well as various
other stakeholders," said InterDigital vice-president of
Europe, Alan Carlton.
"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."
European Commission president Jean-Claude Juncker last month
called for a
Europe-wide launch of the new connectivity.
The study identified three core capabilities which will
drive the economic boost from 5G: ubiquitous mobile broadband
coverage capable of delivering at least 50Mbps downloads;
scalable products for the Internet of Things; and ultra-tactile
internet for future, hypothetical applications.
The study concluded that the predicted €113.1 billion
could be even higher, rising to as much as €140 billion if
other indirect benefits are considered.
It comes as a number of operators have hit landmarks in the
development of 5G. US operator T-Mobile announced tests with
Ericsson, while Samsung and SK Telecom successfully
trialled a 5G handover.