5G deployment worth $127 billion per year to EU countries
A new European Commission-supported study details the expected costs and benefits of 5G deployment in the European Union’s 28 member states.
The cost of 5G deployment in the European Union’s (EU) 28 member states could reach €56 billion ($63 billion) in 2020, according to a new study supported by the European Commission (EC) and conducted by InterDigital Europe, Real Wireless, Tech4i2 and Connect (Trinity College Dublin). The researchers also expect member states to benefit hugely from 5G deployment. The potential annual benefit to EU member states could indeed reach €113.1 billion ($127 billion) annually as early as 2025, with trickle-down benefits from 5G investment totaling as much as €141 billion ($158 billion). Additionally, 5G deployment is expected to lead to the creation of 2.4 million jobs across the EU.
Of the combined annual benefit of €113.1 billion by 2025, 63 percent are expected to arise for business and 37 percent for both consumers and society. Furthermore, the study expects €62.5 billion ($70 billion), or over 55 percent of this total, to benefit vertical industries. Four vertical industries are set to benefit the most: automotive (€13.8 billion), transport (€5.1 billion), healthcare (€1.1 billion), and utilities (€775 million). Until a complete version of the study is published, there is however little information on which use cases will drive these benefits.
The remaining €50.6 billion ($57 billion) should benefit what the study calls four “environments”. Among these environments, Workplace is expected to benefit the most (€30.6 billion), followed by Non-Urban (€10.6 billion), Smart City (€8.1 billion) and Smart Home (€1.3 billion).
“Many people are excited about 5G technology, but the goal of this study was to investigate what 5G might actually mean for industries, including the mobile industry, as well as various other stakeholders. 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,” said Alan Carlton, Vice President, InterDigital Europe.
Benefits from three main 5G capabilities
Beneficial changes and development brought about by 5G deployment across EU member states will come from three main capabilities, the study found. The first capability is ubiquitous coverage, or 50 Mbps everywhere, which is expected to solve the existing digital divide. Then come scalable solutions for sensor networks, which will allow for massive Internet of Things (IoT) and machine-to-machine (M2M) deployments. Last but not least, the study identified ultra-tactile internet as a third key capability, bringing with it the potential to unlock futuristic applications and services such as real-time sense-respond-actuation cycles enabling human-device and device-device interactions.
IIoT News Recap: Google, Amazon, Facebook, IBM and Microsoft create AI think-tank – without Apple; Tele2 teams up with Microsoft, Libelium on end-to-end IoT developer kit; Vigilant Solutions reported to have presented $300 million intelligent traffic system to Ho Chi Minh City; One in four enterprises in APeJ has launched IoT solutions
AI: Google, Amazon, Facebook, IBM and Microsoft create AI think-tank – without Apple
Partnership on Artificial Intelligence to Benefit People and Society (Partnership on AI) is the name of a new non-profit organization created by Google, Amazon, Facebook, IBM and Microsoft to “advance public understanding of artificial intelligence technologies (AI) and formulate best practices on the challenges and opportunities within the field”. Apple, another tech giant working on AI, is noticeably missing from the list of founding members. So is Tesla. According to Business Insider, Apple was asked to join the consortium but declined the invitation at this point. The founding members will contribute financial and research resources to the partnership. The Partnership on AI has expressed its intention to have an equal representation of corporate and non-corporate members on the board and said it is in discussions with a number of professional and scientific organizations, including the Association for the Advancement of Artificial Intelligence (AAAI) and the Allen Institute for Artificial Intelligence (AI2).
Enterprise IoT: Tele2 teams up with Microsoft, Libelium on end-to-end IoT developer kit
Sweden-based operator Tele2 has partnered with Microsoft and Libelium to launch a plug & play developer start kit for faster IoT deployment in the enterprise. The kit will include Libelium’s hardware, Microsoft Azure IoT Platform and connectivity from Tele2. “The Internet of Things generates a lot of hype but the lack of integrated solutions from hardware to application level is a barrier for fast adoption. The new kit with Tele2 connectivity and Microsoft Azure cloud platform, joined to Libelium devices, is removing this barrier,” said Alicia Asín, CEO of Libelium.
Tele2 also announced today the extension of its partnership with CSL to bridge “the analogue to digital gap in communication devices across Europe”, offering customers IoT and M2M connectivity across Europe. There are more than 13 million analogue systems in Europe waiting to be upgraded to digital, according to CSL.
Smart cities: Vigilant Solutions reported to have presented $300 million intelligent traffic system to Ho Chi Minh City
Viet Nam News reports the U.S. license plate surveillance company Vigilant Solutions, a subsidiary of Digital Recognition Network, presented to Ho Chi Minh City administration a plan to deploy a $300 million intelligent transportation system to reduce traffic jams, improve transport safety and reduce emissions. The intelligent traffic system would include a network of 12,000 fixed and mobile cameras installed around the city. According to information from Ho Chi Minh City administration, relayed by Viet Nam News and other Vietnamese news outlets, it was proposed that the project be funded via loans from investment bank Morgan Stanley. IIoT 5G Insights has contacted Vigilant Solutions for a comment.
Today’s forecast: One in four enterprises in APeJ has launched IoT solutions
One in four organizations in Asia Pacific excluding Japan (APeJ), or 25.2 percent, have launched IoT solutions. An additional 46 percent are expected to do so in the coming 12 months, according to new research by IDC. Improving productivity, reducing costs, and automating internal processes are seen as main benefits of IoT solutions. In total, 62 percent of IoT decision-makers in the region view IoT as strategic. IDC adds lack of internal skills to the list of top concerns for organizations looking to deploy IoT solutions. The list already includes security/privacy and upfront/ongoing costs as top concerns. “This year we see confirmation that vendors who lead with an integrated cloud and analytics solution are the ones who will be considered as critical partners in an organization’s IoT investment,” said Shaily Shah, Research Manager, Internet of Things, at IDC. “We also note that network and traditional IT hardware vendors are slipping down the charts, as analytics and software vendors makes strides in customers’ minds.”