5G will contribute nearly $900 billion to the Asian economy over the next 15 years

5G will contribute nearly $900 billion to the Asian economy over the next 15 years

tenco 2019-06-27

Asian operators plan to spend $370 billion to build new 5G networks between 2018 and 2025, according to the latest report of mobile economy Asia Pacific edition released by the GSMA at MWC 19 Shanghai today.The world's first national 5G network went online in South Korea earlier this year, with 5G expected to be rolled out in 24 asia-pacific markets by 2025.5G is forecast to contribute nearly $900 billion to the region's economy over the next 15 years.

China is currently carrying out 5G testing in all major cities and provinces, including Shanghai, ahead of its commercialization next year.It is predicted that by 2025, 28 per cent of China's mobile connections will run through 5G networks, accounting for about a third of all global 5G connections.

Mats Granryd, President of the GSMA, said: "while there is still considerable room for 4G growth in Asia, operators in the region have invested billions to build advanced 5G networks, providing consumers with a range of new services, improving industry and manufacturing, and driving economic growth.With 5G in place, we call on Asian governments and regulators to actively build a business environment that encourages investment in advanced networks and allows operators to expand next-generation digital services to benefit people across Asia."

The above report shows that:

Operators are expected to spend $574 billion (in capital spending) on new networks between 2018 and 2025, of which nearly two-thirds ($370 billion) will be spent on new 5G networks.China alone is expected to invest $184 billion in 5G by 2025.

4G became the dominant mobile technology in Asia in 2018 (52% of total connections) and will grow to more than two-thirds of total connections in the region by 2025.By then, about 18 percent of the connections will be running over 5G networks.

By 2025, more than four-fifths of mobile connections in Asia will be made with smartphones, up from 61 per cent in 2018.

By the end of 2018, the number of individual mobile users in Asia had reached 2.82 billion, or 67 percent of the region's population.The number of mobile users is expected to grow to 3.1 billion (72% of the population) by 2025, but growth will slow as many key markets become saturated.

Almost all of the new users in the region in 2018-2025 will come from six countries: China, India, Pakistan, Indonesia, Bangladesh and the Philippines.

Last year, mobile technology and services in the asia-pacific region generated $1.6 trillion in economic value, or 5.3 percent of the region's GDP.By 2023, the contribution is expected to exceed $1.9 trillion.

The region's mobile ecology directly and indirectly employs more than 18 million people and contributes $165 billion to the public sector through general taxation (excluding regulatory and spectrum fees).