How Is A 5G-Based Economy Being Achieved? Research on 5G Potential Business Capacities
5G Is The Biggest Technological Advancement Of Today, Which Is Important For The Economies Of Different Countries, Especially Industrial Ones.
There is a lot of publicity surrounding 5G-based networks, mainly around faster data transmission, low latency, and the emergence of new businesses. 5G has the potential to transform the economies of different countries and bring economic prosperity to the post-Corona era.
This economic boom is broader and deeper than confined to a particular industry or region. Research by various institutions shows that the full deployment of this technology will contribute between $ 1.4 billion and $ 1.7 trillion to US GDP and create 3.8 to 4.6 million jobs in the country in the next decade. First, we must complete the process of deploying 5G infrastructure.
As the 5G network expands and improves, we will see a massive wave of economic opportunities as these networks improve industry performance and increase labor productivity. 5G will bring significant social and economic benefits through improved productivity, service quality, health, and safety.
Researchers at the Accenture Institute, which has looked at the impact of 5G on the US economy from 2021 to 2025, have come up with interesting data that show what purposeful investment in this technology will bring to the country.
This report addresses several essential points; For example, 5G can make fundamental changes in various jobs and make countries’ economies bigger. Of course, economic prosperity is achieved only if the investments are made at the right time and in a targeted manner. More importantly, the cost that end users pay to benefit from these services is reasonable.
The fifth generation of wireless technologies promises to accelerate the development of mobile digital solutions that will change the way people interact with each other and create a booming economy and business. 5G networks will play an undeniable role in all industries in the next decade.
However, the point to consider in this regard is the view of some countries and policymakers on this technology. They see the full deployment of the technology as a global race and only seek to achieve it by leading the way in limited metrics such as the number of 5G subscribers and the installation of mobile towers. These numbers may be interesting, but they paint a small and often misleading picture.
The fundamental importance of 5G lies in promoting economic growth, new jobs, and real change.
It is why telecommunications experts believe that legislators should look at 5G from the perspective of transformative technology. Instead of focusing on the 5G global competition, focus on the five critical success factors that lead to a significant economic transformation. It can and will allow countries to move forward in the coming decades. These five factors are as follows:
1. Spectrum availability
To achieve the potential benefits of 5G networks, we must allow wireless service providers to have access to a good combination of low, medium, and high bandwidth. Each operator has its block spectrum, a range of electromagnetic radio frequencies for audio, data, and video transmission. These spectrums join together to form the overall capacity of the network. This capacity indicates how fast the network is transmitting data. One of the most significant changes made by the 5G generation is the increase in the amount of spectrum offered to operators. This increase in network capacity allows data to be transmitted instantly at higher speeds and minimizes network latency. The latency in the fourth generation network is about 20 to 30 milliseconds, but in a 5G network delay value is below ten milliseconds. Of course, this amount can even reach one millisecond in certain circumstances. Such an improvement may not work for ordinary network users, but it allows data transfer with very little speed or delay for industries that require remote machine control. Spectrum availability is the foundation of the entire mobile communication system. For this reason, governments need to promptly provide a good range of mobile service providers.
2. Networks
A network needs infrastructure, but the real value comes when consumers and businesses can connect faster and more securely. Investment by mobile service operators has been and will continue to be critical to the deployment of 5G network infrastructure. To this end, some rules need to be amended so that operators can more easily complete deploying the infrastructure to increase the number of subscribers to the network and access to the web with ease and less speed. One of the most critical factors accelerating the impact of 5G on the economy is the widespread deployment of 5G networks. It is following the plans and quick access to them. In the United States, mobile service providers quickly established 4G networks across the country, which significantly increased the rate of 4G penetration in the country. In terms of infrastructure, the US government in the 4G era established a regulatory framework that encouraged investment and helped promote a competitive wireless market. The same is true for 5G networks, requiring more compact wireless infrastructure. As networks are designed and implemented, it is essential to measure their penetration rate and the number of subscribers that connect to them. As we will see, the 5G economy will not go from phase one to phase two unless many users use the network.
3. Innovation ecosystem
The government and government officials must bear the costs of private-sector research and development so that top talent in the field can focus on the research and development process without financial worries. It allows us to have a network based on indigenous innovations. One of the most important factors that give rise to innovative projects in the field of 5G is the cooperation of different industries. A robust innovation ecosystem allows us to register many inventions in the name of Iran in the world. Just like the pattern that made the number of US patents in the early days of 4G two and a half times greater than in Europe.
4. More active presence of companies
While operators and legal entities are implementing infrastructure, on the other hand, there are companies importing consumer equipment that must invest in importing products needed by end-users. These companies need financial support and incentives to bring the necessary equipment to take advantage of this new technology to the country and allow users to use 5G -enabled equipment at a lower cost. Adopting appropriate business support policies creates an environment conducive to growth and innovation. In addition, the presence of startups and companies that work in the field of application software for mobile devices helps a lot in this field.
5. Talent
To ensure that we have the skills needed for future technological change, we need to train talent interested in entering the field. The specialized training of these people through higher institutions and their support prevents them from leaving the country. A workforce with technological change management skills provides governments with the expertise to build advanced cellular networks and develop new applications. The presence of top talent and a conducive environment for entrepreneurship enables both innovation and the cost-effective supply of 5G infrastructure. If we have a say in the 5G economy, we must pay special attention to retaining a skilled workforce. As a crew specialized in installing 5G network infrastructure from people who know telecommunications to be motivated to stay. If we look at the performance of the Persian Gulf countries, we can see that these countries have made significant investments in the key factors that lead to success in this area. Despite the many economic problems, the country’s innovation ecosystem and business environment are still in good condition, and operators have invested well in implementing 5G networks.
Three phases of 5G growth
The 5G economy is likely to grow in three distinct stages.
Phase 1: Strong 5G networks, which transmit data faster, increase device density, and reduce latency, form Phase 1. These networks will serve as the backbone of future economic growth.
Phase 2: In this phase, we are witnessing an increase in 5G penetration, 5G -based transformational innovations, and improved application services. Let’s consider 2020 as the official entry of this telecommunication standard into information technology. It will take at least five years for 5G to reach the stage of economic efficiency and use this technology for every citizen and business through improving competitive productivity advantage and improvement. Health services show their benefits. So that some services will enhance thanks to the construction of 5G networks. 5G economic evolution will be similar to 4G. For example, the first 4G network in the United States launched in 2010, and by the end of 2014, its penetration rate had reached 50%. At the same time, companies defined or developed various devices and services designed to take advantage of higher network speeds. By the end of the decade, 81% of American adults owned a smartphone. According to the App Society Business Group, the app-centric economy grew, contributing nearly $ 570 million to US gross domestic product by 2018. Thanks to 4G, the share of the wireless industry in the US economy more than tripled during the same period. Probably a 5 G-based economy In the coming years will have a more significant impact on people’s daily lives and businesses. Therefore, if we analyze the investment process, legislation, and experiences that countries have gained in the past, with a bit of change, we will be able to use it natively for the purposeful development of 5G. This step involves building strong 5G networks that pave the way for economic growth. It speeds up data transmission much faster than today and allows more devices in a specific area to connect to the network, known as connection densities. At this point, 5G service providers are trying to minimize latency. Currently, operators like Irancell are implementing 5G sites and providing services in different cities. With the expansion of networks and the growth of the subscriber base, the consumer and business experience will improve. At this stage, the targets are based on case studies and the development of 5G capabilities. Increasing the 5G penetration rate enhances the performance of wireless applications and paves the way for the emergence of new applications. These new applications form the basis of the 5G -based economy.
Phase 3: In the third and final stage, we will benefit from the comprehensive benefits of this network in the best way. As 5G networks get better at every step, new digital services will be available so that everyone will see the tangible benefits of 5G in the best possible way. At this stage, 5G -based services will transform almost every primary industry in Iran and improve labor productivity. For example, companies will be able to use sensors connected to 5G networks to enhance their ability to track shipments status and supply chain performance. The above approach helps employees who want to collaborate remotely and video conferencing to get the job done better. In general, 5G networks will revolutionize the performance of factories and manufacturing units, as employees who wear augmented reality glasses can analyze the condition of machines, receive expert advice in real-time, and update operational parameters. Stay safe at the same time. Very low latency sensors ensure that robots and employees can work together and communicate instantly to optimize their actions. The cost reductions resulting from these processes may be significant enough to persuade manufacturing units and businesses to use these hybrid technologies to reduce costs and provide the best service. Equipped with another field such as telemedicine5G With augmented reality (AR) applications, people can use medical services entirely differently.
Uses of 5G
Future uses of 5G can be broadly divided into four types:
Extreme Mobile Broadband: Provides mobile video conferencing without delay and high-quality mobile streaming in crowded areas, and more stable connectivity.
Fixed Wireless Access: This concept refers to implementing networks to provide broadband services to homes and businesses. While increasing the penetration rate, the above approach offers more options for consumers.
Massive Internet of Things: The IoT is created by sensors and devices connected to a network. One of the most significant benefits of 5G for the IoT ecosystem is the minimal power consumption of 5G networks, which increases the battery life of the sensors and minimizes the need for replacement, especially in difficult areas.
The evolution of 5G networks and the investment costs of building them in a country like Iran make achieving short-term, medium-term, and long-term goals different. At the time of writing, we can comment on the short-term goals of 5G in Iran. Extreme Mobile Broadband and Fixed Wireless Access will be widely available in the short term. The critical point here is to focus on FWA 5G. FWA stands for Fixed Wireless Internet. The same thing that several companies in Iran offer these days. Ministry of Communications officials says they use fifth-generation technology to develop FWA and bring high-speed Internet to homes. We will still have home modems, different from ADSL modems. This example is just the beginning, but with the move to build 5G networksStrong for widespread use cases, eMBB and FWA will probably increase coverage. The IoT ecosystem perspective shows that this technology has had little impact on industries and domestic consumer sub-sectors at writing. We will have to wait until the end of this decade to take full advantage of this technology. However, outside of Iran, the realization of self-driving cars requires minimal delay and additional 5G networks in any area that the vehicle can enter. The medium-term goal of the companies will be for semi-automotive driving technologies to help truckers on major transportation routes and urban commuters in cities with high-bandwidth 5G networks. In the long run, 5G interacting with the Internet of Things will completely transform the transportation industry, significantly impacting the economy.
