Kathy Gibson reports from the Ericsson Business Innovation Forum in Stockholm – ICT, and broadband penetration in particular, will have a massive social impact over the next five years – and governments that don’t adapt quickly will get left behind.
This is the word from Hans Vestberg, president and CEO of Ericsson, who believes that any 21st century infrastructure has to include ICT.
“Some of the data we have gathered in the last 10 years show clear correlation between broadband penetration and sustainable GDP growth,” he says. Research indicates that a 10% increase in broadband penetration equals a 1% increase in sustainable GDP. Even doubling broadband speed equates to a 0,3% GDP growth. In addition, a 1% increase in broadband penetration increases the number of start-ups in a country by 3,8%.
“But countries need broadband plans,” Vestberg says. “They need to have e-government, and then broadband will have an impact in the country.
“Broadband penetration is increasing over the next five years, but leaders also need to understand that it’s as important as roads, electricity and water. The digital platform will be important to transform countries.
“Some countries are getting that – but not all,” he adds. “I advocate this for any country and it is super important. People have phones, industries will start to transform – it’s time for governments to do the same.”
Vestberg talks about the rapid rate of change that the industry has experienced over the last 20 years – but warns that the next five to 10 years will move at an even more astounding rate.
“In the next five years we will see 9-billion mobile subscriptions – more than the population of the world. And 90% of people on the globe will have a connection. This means more than double the number of people as today will have mobile internet access.
“This means that the majority of people coming on to the network will start at the end of the development curve – they will start off with the connected device. just imagine the innovation and inclusion they will have. This will have a huge impact on people, businesses and society.”
The pillars that the future will be built on are mobility, broadband and the cloud Vestberg says.
“All networks were built for voice – it was everything we had in a network. In 2010 voice traffic was equal to data: in five years’ time there will be so much more data in the networks – voice will actually be noise in the network, nothing more. Data will be the majority of the network, and open up opportunities.
“These opportunities go from connecting places – there will be 1-billion in five years’ time, and 5-billion connected devices. Then, in five years more, there will be 50-billion connected devices.”
Vestberg says this represents the fifth technology revolution, and we are at the inflexion point now between infrastructure development and user deployment.
All industries will be impacted in the next phase of this revolution, he says. All products are becoming dematerialised and re-invented as services.
“As connectivity increases, organisations and industries need to come up with a new way of thinking and a new way of working with all stakeholders.”
