5G-enabled industries have the potential to deliver $8 trillion in value to the global economy by 2030 according to new research from Nokia and Nokia Bell Labs.
The 5G Business Readiness Report surveys 5G adoption among businesses around the world, providing a cross-sector view of the path to full 5G deployment.
This landmark report from Nokia underlines the potential for 5G to drive sustainable economic growth and define the next decade of innovation.
The COVID-19 pandemic is forecast to further increase the value creation potential of 5G in the medium and long-term by accelerating digitization, particularly among the least digitally advanced industries.
The report also highlights a clear correlation between 5G deployment and business performance. Companies at an advanced level of 5G adoption were the only group to experience a net increase in productivity (+10%) following COVID-19, and the only group able to maintain or increase customer engagement during the pandemic.
5G mature companies are also growing considerably faster than their peers: 49% of companies in the expansion phase and 37% in the implementation phase – representing the two most advanced stages of 5G maturity – achieved rapid growth last year, compared with 20% in the planning, 11% in discovery and 5% in passive phases.
These findings show that the companies who are most 5G mature, and therefore likely also the most advanced in their overall digital transformation, are showing the highest impact in business performance.
Despite the economic challenges of COVID-19, a global boom in 5G investment will see 72% of large companies invest in 5G over the next 5 years. The report forecasts a rapid uptick in investment over the next three years as enterprises seek to expedite digitalization.
A third of companies across all regions fear being outpaced by the competition should they not invest in 5G within the next 3 years.
Nokia’s 5G Business Readiness Model reveals that across 8 economies – Australia, Germany, Finland, Japan, Saudi Arabia, South Korea, the UK and the US – 50% of companies are at the midway level on 5G readiness, between initial planning, trials and deployment, compared to just 7% that are classed as 5G mature.
But significant geographic variations exist; while 13% of organizations in Saudi Arabia and 12% in the United States rated as 5G mature, fewer than one in 20 were classed as such in Germany (3%), Finland (2%) and the UK (4%).
While many organizations are at the Implementation stage, for most this still means trials, pilots or early stage deployments such as 5G mobile phones or limited 5G connectivity for fleet services or rural locations. Few have yet to realize the true breadth, depth and potential of 5G.
On average, whilst the importance of 5G adoption is well understood, a significant investment gap remains. 86% of decision makers said they have some kind of strategy for 5G, and over a third fear being outpaced by the competition should they not invest in 5G in the next 3 years. However, only 15% are currently investing in its implementation, and over a quarter (29%) of businesses are not planning any 5G investment in the next 5 years.
Gabriela Styf Sjöman, Chief Strategy Officer at Nokia, said: “As organizations across the world move faster towards deployment of 5G enabled technologies, those who wish to be the first to leverage its potential cannot afford to lose more time. To capture the tremendous opportunities of 5G, organizations must start or intensify their planning now and accelerate business model innovation to remain competitive in a rapidly digitalizing global economy. Beyond investment in the technology itself, this will require digitalizing operations, processes and ways of working to capture the full potential of 5G.”
“5G adoption is categorically shown to fuel business success. Organizations that have integrated 5G stand to benefit from advantages that go way beyond faster, more efficient and reliable network services. As 5G enables businesses to transform, it will also accelerate wider technological and economic trends, with unimaginable possibilities for global economies and societies. The cities, hospitals and factories of the future depend on 5G and the unparalleled ability it offers to move, process and store vast volumes of data. Moreover, the biggest challenges we face as a society – from climate change to the pandemic – can be better tackled through at-scale use of the data and technologies that 5G will unleash.”
Barriers to adoption
The gap between enterprise awareness of 5G’s benefits and current levels of adoption suggests there are notable barriers to implementation. The research identified five principal barriers to 5G adoption for:
- Ecosystem availability: Limited availability of key infrastructure outside urban centers was cited by 28% of decision-makers.
- Education and understanding: 17% said a key barrier is that decision-makers within their business do not understand 5G, while 14% said they don’t know enough about it themselves.
- Awareness: Over a fifth of technology buyers (22%) said that 5G implementation is not a current priority for their business.
- Cost and complexity: 15% said they were not confident their company would be able to implement the necessary technologies.
- Security: Over a third (34%) said that they are concerned about the security of 5G.
A call to action
The report identifies three key catalysts for change in order to bring about improved understanding, confidence and ultimately adoption of 5G. These are: improved regulation, collaboration and willingness to innovate.
- A third of technology buyers said that government investment in infrastructure or subsidies to drive down costs would encourage them to invest more in 5G. Enterprises will not adopt 5G unless the supply from network operators is presented and priced appropriately, which in turn relies on governments and regulators making 5G spectrum in low, mid and high bands available and affordable.
- The lack of understanding that exists within some businesses around 5G must be directly addressed. Companies and consumers alike need more information about the technology and how it can both improve operations and solve real world problems, ranging from enterprise use cases to telehealth to green technology.
- As companies better understand 5G, they must boldly move to overhaul their operations to accommodate it, for example, exploring how they could use 5G to streamline and more effectively monitor their mobile workforce, fleet or supply chain.
US Moves To Tightens Noose On Virtual Currencies Transfers
The Federal Reserve, the U.S.’ central bank, published a proposed rule change Friday asking about the recording requirements for money transfers involving virtual currencies.
According to the rule change proposal, the Fed and the Financial Crimes Enforcement Network propose modifying the thresholds at which banks must collect and store fund transfer information, reducing it from $3,000 to $250 for any transfers that go outside the U.S. The proposal would also widen the agencies’ definition of “money” to explicitly include cryptocurrencies.
The Fed is seeking public comment, due within 30 days of the proposal being published in the Federal Register, the formal logbook for the U.S. government. Individuals can provide feedback online or via email.
According to the proposal, since the recordkeeping and travel rules were first introduced by the agencies, convertible virtual currencies (or CVC, an umbrella term that includes cryptocurrencies) have been introduced to the world. While they lack legal tender status, they can still be used to conduct value transfers.
“Generally, CVCs can be exchanged instantaneously anywhere in the world through peer-to-peer payment systems (a distributed ledger) that allow any two parties to transact directly with each other without the need for an intermediary financial institution,” the document said. “However, in practice, many persons hold and transmit CVC using a third-party financial institution such as a ‘hosted wallet’ or an exchange.”
The document pointed to illicit transactions conducted using cryptocurrencies, such as North Korean hacking team Lazarus Group’s efforts to steal crypto, as examples of poor behavior using these new tools.
Recently, a large number of Suspicious Activity Reports (SARs), which banks file to report potentially illegal or suspicious financial transactions, were leaked, revealing that while the federal agency might store this data for years or decades, it doesn’t always take action against banks or entities that might be violating U.S. law.
Danbatta Visits Emir Of Kano, Sues For Peace
The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof Umar Garba Danbatta, has yesterday paid a courtesy visit to the Emir of Kano, Alhaji Aminu Ado Bayero, where he urged the people of the state to continue to support the federal government’s initiatives toward ensuring peace and stability in the country.
Danbatta, an indigene of Kano, who commended the Emirate and the entire people of Kano for their unwavering support to the government, said Nigeria deserves a long period of peace and stability in order to achieve sustainable growth and development.
He said the federal government has come up with various initiatives on youth empowerment, especially through provision of digital skills and literacy.
In his remark, Bayero, who thanked the NCC boss and his entourage for the visit, commended President Muhammadu Buhari, Minister of Communications and Digital Economy, Dr. Ali Isa Ibrahim Pantami and the EVC for the excellent performance of the Information and Communications Technology (ICT) industry.
Speaking further, the monarch pledged to continue to support the Federal Government on its developmental initiatives, urging all leaders to continue to promote peaceful coexistence in the country.
It would be recalled that, like Danbatta, various eminent leaders in Nigeria, including the Emir of Sokoto, Sultan Sa’adu Abubakar III and the Ooni of Ife, Oba Adeyeye Enitan Ogunwusi, Ojaja II, have made similar calls on the need to maintain peace for the sustenance of socioeconomic development of Nigeria.
Nigerian Telcos Explain Poor Network Services, Appeals For Calm
The Association of Licensed Telecom Operators of Nigeria (ALTON), has appealed to operators and subscriber for network outage experience by operators on Tuesday which affected the quality of services provided to subscribers, saying none of it was intentional.
According to a release made available to the press on Wednesday, the association said, “the outages have been compounded by power and other operations-related issues that have occurred across some major routes in Lagos metropolis and other states resulting in congestion of networks and impact on quality of services.
The release also stated that, “Further movement restrictions and the volatility on the streets has compounded the restoration of outages because engineers have not been able to move about to fix the problems.”
“At the moment, affected member operators are exploiting all avenues to remedy the situation. Engineers are making relentless effort round the clock to resolve issues, while in the interim, efforts are being made to optimize coverage utilising alternative solutions as a stop-gap solution to the most impacted locations.”
“We appeal to subscribers to please bear with us and be patient. Let us remember that we need both voice and data communication especially at this critical time.”
“We therefore appeal to our brothers and sisters who are still at the barricades, to please grant access to our member operator engineers to be able to access the affected locations to restore telecom services.”
ALTON also expressed his regrets on the reports of recent incidents of violence across the country, said that, “The wanton destruction of lives and properties is disheartening. As service providers and employers of labour our immediate priority is the safety of our staff across the country.
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