5G could add €113.1bn to EU economy by 2025
EC-backed study claims it will cost €56 billion to deploy 5G across 28 European Union countries but ROI could be double
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 Commission.
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 EC.
“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.”
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 both Nokia and Ericsson, while Samsung and SK Telecom successfully trialled a 5G handover.