To understand the importance of the spectrum auction scheduled for next month, and the significance of possible delays in the process, it is necessary to unpack just how spectrum can change the country.
In a study on the economic impact of 5G, "Powering Your Tomorrow", released this week by PwC, it was forecast that productivity and efficiency gains enabled by 5G will add $1.3-trillion (R19-trillion) to global GDP by 2030, from changes in business, skills and services.
More than half of this economic impact - $530bn - will be driven by the transformation of health and social care, with another quarter driven by smart utilities, by savings in energy, water and waste management.
"Large manufacturing-based economies are likely to gain the most, including the US, China and Japan, but gains are projected globally as 5G integrates as a critical part of societal infrastructure," PwC reported.
Specific uses for 5G mapped out by the GMS Association, representing mobile network operators worldwide, include high-speed broadband in the home and office; quick deployment of temporary connectivity; industrial automation; remote object manipulation; virtual reality and meetings; and next-generation transport connectivity.
$1.3-trillion
What the forecast productivity and efficiency gains enabled by 5G will add to global GDP by 2030, according to a PwC study.
In a study last year by World Wide Worx, "5G prospects for SA in 2021", mobile network operators were unanimous that the allocation of new spectrum is an opportunity to use communications technology for the economic development of SA as a whole.
The study concluded that the spectrum allocation would be a foundation for the rollout of technologies underlying the fourth industrial revolution, such as artificial intelligence, the Internet of Things, autonomous technologies and cloud computing.
These findings, however, represent an ideal. To unpack the significance of spectrum for SA, we posed the most frequently asked questions on the topic to two of the country's leading telecommunications analysts, Sabelo Dlamini, senior analyst at the International Data Corporation, and telecoms consultant Lisa Thornton.
On the Go with Mobile Tools in Precision Agriculture
Why is spectrum important?
Lisa Thornton: Spectrum is a valuable limited resource. It is used by a number of industries, including telecommunications and broadcasting, to provide services to customers, and by the government to provide services to constituents, like public safety, utilities, and air traffic control. Increasingly, the mobile telecommunications industry has . an outsized importance to socioeconomic development all over the world.
Sabelo Dlamini: In a country like SA, where we do not have sufficient fixed infrastructure for back-haul and last-mile access, the cost of deploying it is very high, considering the terrain.
Spectrum is an important ingredient in enabling wireless and mobile communications technologies, which we need in order to provide communications, especially in the rural parts of the country.
In tangible terms, what will spectrum allocation do for SA?
Thornton: Spectrum is an input to the provision of services. And it is scarce. The government manages who gets it. And who gets it is based on, among other things, the government's policies and the objectives of those policies. The relevant policies . include the 2019 policy on high-demand spectrum and policy direction on the licensing of the Wireless Open Access Network (WOAN). The policy objectives include ensuring the WOAN's sustainability, promoting universal services including to rural and under-served areas, promoting competition with an emphasis on service-based competition through the WOAN, and promoting historically disadvantaged persons and SMMEs.
Dlamini: As most economies are moving to digital processes, as a country we do not want to be left behind. Improved connectivity and access to digital platforms for government departments, businesses and consumers can hugely impact economic activities in the country and positively impact economic growth.
What does a delay in allocation mean?
Thornton: [It] will mean a delay in the furtherance of the aims of the policies of the government. But - and this is a big but - if the policies are not implemented effectively, then the objectives may never be met. That is what is alleged by Telkom, among others, in its court challenge to the current invitations to apply (ITAs) - that the ITAs are designed to give the current virtual duopoly access to more spectrum and entrench their market power for the foreseeable future. Telkom doesn't like this because it wants to be able to compete. But, more importantly for SA, if Telkom is right, the objectives of the policies of the government may be delayed or denied indefinitely.
Dlamini: It is widening the digital divide. The ones who are already connected are getting more advantages from digital technologies, but those who are not are being left behind. This means, as a country, we are missing the opportunity to participate in the early activities of the digital economy. Businesses may be left behind and lose competitiveness because of the limitation of technologies available to them.
According to Elmo Hildebrand, who leads the Telecommunications, Media and Entertainment grouping at PwC Africa: "The advent of 5G networks will impact the entire technology, media and telecommunications value chain over the next decade."
He said consumers will use high-speed mobile data to access more content and services, "thereby opening up revenue opportunities in the entertainment and media sector, including gaming, video games, high-definition streaming of sporting events, music and over-the-top video".
That is, of course, if the spectrum to enable 5G networks is made available.
5G will facilitate geo-location services and real-time connectivity to communicate the animals' health, fertility, and food intake to farmers. It will also help farm-owners reduce the overall cost of livestock management solutions and livestock performance.
Agriculture is evolving, and quickly. With the advent of 5G technologies and an acceleration in digital transformation across the industry, there are new opportunities for farm management systems to operate with greater accuracy and less waste. These improvements are needed to sustainably feed the planet’s growing population, predicted to reach 9.7 billion in 2050. 5G-enabled precision farming could help optimise resources, reduce water consumption, and enhance productivity.
Fifth-generation wireless or 5G is expected to generate $12.3 trillion in revenue and support 22 million jobs worldwide by 2035. So how will it transform the wider agriculture industry? With the potential for 5G to create new revenue models across a multitude of sectors including automotive and manufacturing, use cases in agriculture offer many exciting prospects for the future of smart farms and their capabilities to harness the value of data.
How 5G improves farming
Today’s farms are leveraging a wide range of Internet of Things (IoT) devices to help growers minimise operation costs, increase yields and provide better visibility in an unpredictable environment. In fact, nearly 12 million agricultural sensors are forecasted to be installed globally by 2023. 5G is expected to kick things up a notch by supporting significantly faster internet speeds (as much as 100 times faster than 4G), enabling machine learning and near real-time communication between devices and the cloud. Agricultural original equipment manufacturers (OEMs) can benefit from automated farming processes enabled by next-generation 5G solutions, remotely collecting and analysing rich data from their machines and terrain.
By utilising 5G, a wide range of enhanced technologies will open up to farmers. Field conditions can be more accurately monitored through a larger network of data-collecting sensors. Autonomous drones can scan crops using AI to identify weeds and apply pesticides with precision. More crucially, farmers can better understand their water consumption and apply adjustments to irrigation systems based on accurate data. Progress is picking up speed around the world, with projects like the 5G Open Innovation Lab in the US testing and developing use cases on the ground.
Future of agriculture
According to a U.N. agency report, 38 per cent of the Earth’s land was used for agricultural purposes including for cropland and grazing livestock. While much of today’s 5G infrastructure is being deployed in dense urban environments, coverage in rural areas is growing. 5G will enable opportunities for OEMs and actors across the agricultural sector to capture more value.
To improve the effectiveness of farming practises, innovations across the farming sector will be needed to meet the global food demand for a rising population. 5G-enabled solutions will help facilitate the digital transformation of agriculture, and while the industry has been slower to adopt new technologies, the prospects of smarter farming methods are understandably exciting. By delivering innovation in modern agriculture, Cubic Telecom’s connected software solutions enable OEMs and industry players to optimise their farm management systems. With the global smart agriculture market expected to be worth $15.3 billion by 2025, the opportunities for stakeholders are vast.
