5G’s integration with AI and other advanced technologies will transform economies in Africa, driving sustainable growth and development throughout the continent.
This is according to Todd Ashton, VP and head of South and East Africa at Ericsson.
He cites the Ericsson Mobility Report for June 2024, which states that in the sub-Sahara African region, 5G is expected to hold the second-largest share of subscriptions, at 28%, by 2029.
The report continues: “4G is expected to grow steadily at 5% annually, adding the largest number of subscriptions and holding the largest subscription share at 38% in 2029. 3G subscriptions are declining as 4G becomes more available and is expected to make up 8% of all mobile subscriptions in 2029. 2G subscriptions are also expected to decline but will maintain a significant share of 27%.
“Beyond subscriptions, service providers are expanding offerings to include fintech services such as mobile money transactions, including banking, which caters to the high mobile penetration and unbanked population. Smartphones will rise from 460 million in 2023 to 790 million in 2029, driving more data usage.”
Use cases
Ashton points to 5G use cases in manufacturing and agriculture to corroborate his view.
“5G technology has the potential to revolutionise many economic sectors by enhancing efficiency, productivity and innovation. In manufacturing, for example, 5G will help optimise supply chains and support smart factories, driving productivity and cost reductions.
“Likewise in agriculture, strong broadband will enable precision farming through IOT devices, improving yields and reducing waste. Over time, this will evolve into predictive analytics and automated farming systems.”
He adds that on a macro level, it is already evident how 5G will enable smarter cities with more efficient public services.
“From real-time traffic management and energy-efficient utilities to enhanced public safety systems, the potential for improving living standards is vast. It is no exaggeration to state that these advancements will collectively contribute to a higher quality of life across Africa.”
MNO resilience
Ashton says despite difficult economic conditions for network operators, they remain ambitious – and there are pathways to ensuring infrastructure is deployed sustainably.
“We have also observed that large-scale expansions are often best supported through collaborations across the entire ecosystem, involving private and public sectors. Moreover, we believe it is very important that spectrum licences are long-term renewable and affordable, assuming the service provider has met the licence conditions.”
Africa has an opportunity to accelerate the roll-out of the latest technology, Ashton continues.
“This is because it can be operated at a lower cost and phase out technologies like 3G, which provide a substandard data experience and aren’t needed to support mobile money. Mobile operators will need the support of the national regulatory bodies to make this happen by ensuring spectrum licences are technology neutral.”
Ericsson did not want to be drawn into discussion about reported discord between MNOs over spectrum pooling arrangements.
According to an ITWeb report, Vodacom has taken on its rival MTN and its pooling partners – Cell C and Liquid Intelligent Technologies – in a bid to interdict them from using spectrum they obtained from alleged “secret” and “illegal” spectrum pooling arrangements.
The case is scheduled to be heard on 13 August.
While this plays out in the telecommunications industry, rural connectivity and access to infrastructure remain challenges.
Ashton explains: “Rural connectivity remains a challenge because the business case is either long tail or non-existent. However, we have developed technologies that can provide low-cost mobile broadband that can make the case work versus a traditional fibre deployment.
The next area to tackle is devices, suggests Ashton. “If we believe that increasing mobile broadband connectivity is critical for societal inclusion and economic growth, then it would be very important to address things like import duties on mobile devices to make them more affordable.”
Ashton adds that by streamlining regulations and ensuring a collaborative approach between the government and industry stakeholders, nations can effectively advance their broadband roll-outs and bridge the digital divide.
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