INTELLIGENT BRANDS // Mobile Technology
GSMA report demonstrates policy action is needed for EU to achieve Digital Decade goals
Mobile technologies and services contributed € 757 billion to European GDP in 2021 , but Europe ’ s ambitious Digital Decade goals remain threatened by slower 5G rollout compared to competitor markets , a report by GSMA revealed .
The 2022 Mobile Economy Report Europe shows that at the end of June 2022 , 108 operators in 34 markets across Europe had launched commercial 5G services , with consumer take-up continuing to grow steadily , now reaching 6 % of the mobile customer base . Norway leads in adoption of the technology , with 16 % now using 5G , but positive momentum is also evident in Switzerland ( 14 %), Finland ( 13 %), the UK ( 11 %) and Germany ( 10 %).
However , tough market conditions are leaving Europe trailing its global peers . The report predicts that by 2025 , the average adoption of 5G across Europe will hit 44 %, with the UK and Germany expected to have the highest 5G adoption rates in Europe at 61 % and 59 % respectively . However , that rapid growth is outpaced by other world economies , with South Korea expected to hit 73 % in the same time period , while Japan and the US are likely to achieve 68 % adoption .
The pace of 5G coverage expansion across Europe will be a key factor in the transition from 4G to 5G , an important step towards the achievement of Europe ’ s Digital Decade goals . Although 5G network coverage in Europe will rise to 70 % in 2025 ( from 47 % in 2021 ), nearly a third of the population will remain without 5G coverage . This compares to 2 % or less in South Korea and the US .
Meeting Digital Decade goals
In 2021 , the European Commission ( EC ) set out its vision for Europe ’ s Digital
Transformation by 2030 in the Digital Decade framework . The strategy promised to deliver tangible benefits for EU economies through the development of digital skills , Digital Transformation of business , sustainable digital infrastructures and the digitalisation of public services .
As economies digitalise , the lynchpin to ensuring success is the acceleration of 5G in Europe for traditional industry and manufacturing to remain competitive . To meet the EC ’ s 2030 goals , it is vital for policymakers to create the right conditions for private infrastructure investment , network modernisation and digital innovation .
“ Europe is adopting 5G faster than ever before , but greater focus on creating the right market conditions for infrastructure investment is needed to keep pace with other world markets . This should include the implementation of the principle of fair contribution to network costs ,” said Daniel Pataki , GSMA Vice President for Policy & Regulation and Head of Europe .
Industry impact
The report also examines how European operators are progressing with the rollout of stand-alone ( SA ) 5G networks , noting that 5G SA services in Europe are now available in Finland , Germany and Italy . Further deployments are expected in the next few years . The added functionality enabled by 5G SA is key to delivering on the 5G promise of fully supporting advanced 5G use cases . p
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