The 5G technology can deliver up to $3.3 trillion of economic and social value in Latin America by 2035. 5G is essential to Latin America to facilitate digital transformation, GDP growth and a $9 trillion revolution in productivity, according to Omdia and Nokia’s “Why 5G in Latin America” report released here on Saturday.
The 5G will come to Latin America, sooner rather than later. Now, the region lags its peers in productivity and economic growth, both of which will be enhanced by digital transformation. This requires significantly enhanced broadband communications, and that leads to 5G which could add $3.3 trillion of value by 2035 and a $9 trillion improvement in productivity. Now, 50 per cent of Latin Americans are not connected to any broadband service. Network coverage today misses 100 million inhabitants. There are also an estimated 211 million inhabitants who do not subscribe to either mobile or fixed broadband, despite having coverage.
Brazil will be the largest gainer with $1.216 trillion of 5G economic impact and an increase in productivity of $3,084 trillion. The ICT industry will be most affected in the country with a $241 billion Economic impact.
Wally Swain, Principal Consultant for Omdia Latin America said: “Latin American countries must diversify their sources of income and jobs into higher value-added activities. Activities including mining and manufacturing must become more productive and 5G will play an important role on this”.
Osvaldo Di Campli, Head of Latin America for Nokia, said: with 5G, the security of telecommunications networks will be even more crucial since we’ll have millions of sensors connected per square kilometers. When we develop equipment in Nokia, we are addressing network security right on the architecture.