Page 113 - Are You Future Ready?

Chapter One - To Know the Present
Through the Past

Sideline

/ 5G: Money talk /

Why have so many countries competed to launch
5G? It is expected that 5G will drive China's total
economic output to RMB10 trillion (about HK$11
trillion) for the period of 2020-2025, and the total
indirect economic output will reach RMB24 trillion
(about HK$27 trillion), creating over 3 million jobs
by 2025. A British research institute IHS Markit
estimated that by 2035, the global economic benefits
created by 5G will reach USD12 trillion (about HK$93
trillion), exceeding the combined consumption of 111
China, Japan, Germany, the U.K. and France in 2016,
and will create up to 22 million jobs.

Investment for 5G is huge, operators need to
increase the number of existing base stations by
nearly 10 times to build a high-speed and well-
covered network. According to The Economist, the
telecom industry organisation GSMA interviewed
the top management of 750 telecom companies
regarding “the biggest obstacle to 5G”. More than
half of the respondents said that 5G lacked a clear
business model for earning profit. GSMA therefore
expected that 62% of Asia's mobile traffic will remain
as 4G by 2025, only 14% will be 5G.