5G will transform the U.S. economy
Businesses in the coming era will only be as strong as the connectivity powering them. It is vital for the US to accelerate the build out of nation-wide 5G infrastructure as a foundation of economic growth. With access to mid-band spectrum, a streamlined permitting process for building 5G cell sites, and a trained workforce to build and maintain 5G networks, the US will be able to accelerate 5G deployment across the country.
America is a country of firsts. Especially when it comes to technology, the country has always been on the cutting edge, from the light bulb, to the airplane, to the personal computer. That’s certainly true of the country’s early embrace of mobile phones and mobile wireless Internet – and the benefits from the innovation they have powered.
Ericsson is also a company of firsts. From producing some of the first mobile phones, to developing a programming language used by some of the biggest names in the digital world, to leading the way on developing standards for the 1st generation of mobile wireless technology (and for all the generations since), we have always been a telecommunications innovator. And this innovation has led to significant transformations.
The newest generation of wireless technology, 5G, is already transforming industries, kickstarting a 4th Industrial Revolution. Combined with IoT, AI, and Cloud computing, 5G has the potential to unlock 4.5 million new jobs in the U.S. and $1.5 trillion in economic growth, changing the way many companies do business through low latency, ultra-reliability and blazing fast speed.
Ericsson has a long and productive history in the United States. The U.S. is Ericsson’s largest market globally and we are increasing our investments to meet our customers’ 5G deployment plans. Ericsson is the largest radio access network supplier (RAN) in the U.S. with a market share of over 50%. Together, we can create prosperity for America.
The 5G revolution means economic advancement
5G’s growth will be rapid –subscription uptake is expected to be significantly faster than 4G’s according to Ericsson’s November 2020 Mobility Report. 5G commercialization is advancing at a rapid pace and U.S. service providers have already launched commercial 5G services, focused on fixed wireless access and mobile broadband.
In the U.S. there will be more than 195 million 5G subscriptions by 2026, and by 2029, 5G will account for about 71.5% of the entire U.S. mobile market.
This rapid growth will create a platform for a 5G economy in the U.S., driving $275 billion in investment, creating 3 million jobs and leading to $500 billion in economic growth, according to the CTIA.
These economic benefits aren’t always shared, however. Rural communities often lack reliable internet connectivity, and minority groups in urban areas are disproportionately affected -- 26% of Latinx, 30% of Black, and 35% of Native American student households lack adequate home internet. Building 5G infrastructure will open up economic benefits, but we must work to bridge the digital divide to ensure access.
5G requires action to gain U.S. competitive advantage
The pieces are in place to make 5G a major driver of American prosperity, growth and ingenuity – but that won’t happen without action. Now is the time to make the right policy decisions to ensure 5G’s potential comes to fruition.
To reap the economic benefits the U.S. needs to have a 5G infrastructure in place or runs the risk of falling behind other countries. Here are several things the U.S. needs to do to gain the competitive advantage and keep it:
Allocate more spectrum: Increasing mid-band spectrum availability is crucial to the success of 5G. In order to realize the full potential of digitalization, including use cases for security, IoT, and industrial automation, additional suitable spectrum bands are needed for 5G (and eventually 6G) systems. Mid-band spectrum’s wide coverage and low latency is particularly critical to 5G use cases like IoT.
We applaud the FCC for recognizing this need for spectrum, and for the CBRS priority access license auctions and C Band auction. This is a good start, but more mid-band spectrum is needed.
Expedite zoning and permitting: The government must continue to take action supporting streamlined zoning and permitting to reduce 5G deployment timelines.
Ericsson investment in the U.S.
Ericsson is not only committed to helping the U.S. build 5G infrastructure, but to do it while bringing U.S. jobs and economic growth.
We recognized early on that the scale of 5G meant we needed to locate a 5G factory in the U.S. to speed 5G deployments. We’ve invested over $100 million dollars in our 5G smart factory in Texas and started shipping the first 5G radios built there in May 2020. Our factory showcases 5G-connectivity innovation, with capabilities such as autonomous robots, augmented reality training, and more.
