Nokia said that 5G-enabled industries have the potential to add USD 8 trillion to global GDP by 2030, as Covid-19 accelerates medium and long-term digital investment and value creation. The ‘5G Business Readiness Report’ by Nokia and Nokia Bell Labs finds that 5G-mature companies are growing faster and are the only ones with a net increase in productivity following the pandemic. It said 71 percent of companies will invest in 5G over the next five years, with Saudi Arabia and the US leading adoption.
The report commissioned from Sapio surveys 5G adoption among businesses around the world, providing a cross-sector view. It said companies at an advanced level of 5G take-up were the only group to experience a net increase in productivity, of 10 percent, following Covid-19, and the only group able to maintain or increase customer engagement during the pandemic.
Nokia said 49 percent of companies in the 5G expansion phase and 37 percent in the implementation phase achieved rapid growth last year, compared with 20 percent in the planning, 11 percent in discovery and 5 percent in passive phases.
It said 72 percent of large companies will invest in 5G over the next five years. Half of companies in Australia, Germany, Finland, Japan, Saudi Arabia, South Korea, the UK and the US are at the midpoint in 5G readiness, between initial planning, trials and deployment, compared with 7 percent classed as 5G-mature. While 13 percent of organisations in Saudi Arabia and 12 percent in the US are 5G-mature, fewer than one in 20 were classed as such in Germany (3%), Finland (2%) and the UK (4%).
Many organisations are at the implementation stage but 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 realise the true breadth, depth and potential of 5G, said Nokia.
Nokia said 86 percent of decision-makers have a strategy for 5G and over a third fear being outpaced by the competition if they do not invest in 5G in the next three years, yet only 15 percent are currently investing in implementation, and 29 percent of businesses are not planning any 5G investment in the next five years.
The research identified five principal barriers to 5G adoption. One is ecosystem availability, especially outside urban centres. This was a reason give by 28 percent of respondents. Education and understanding are an issue for 17 percent. The third barrier is awareness, with 22 percent of technology buyers saying 5G implementation is not a priority. Cost and complexity were an issue for 15 percent of respondents. Finally, 34 percent were concerned about security.
The report identifies three key catalysts for change, namely improved regulation, collaboration, and will to innovate. One third of technology buyers said government investment in infrastructure or subsidies would encourage them to invest more in 5G.
