How 5G is driving infrastructure investment and digital inclusion in Africa
The advent of 5G is one of the most important technological developments for the global economy in the last few years. High-speed mobile connectivity is catalysing dramatic digital transformations around the world, bringing to life exciting new applications in the realm of spatial computing, the Internet of Things (IoT), and more.
For Africa, underserved as it is by high-speed fixed-line broadband, 5G is an especially important opportunity. It promises to allow people and small businesses throughout the region to become more active participants in the global digital economy. From entertainment to education and from business to medicine, 5G could be a game changer.
By opening wider doors to digital commerce and triggering massive infrastructure investment, 5G is expected to make a significant contribution to Africa’s growth and prosperity. According to the GSMA, 5G is forecast to benefit the Sub-Saharan Africa economy by $11 billion in 2030, accounting for 6%-plus of the economic impact of mobile.
Paving the way for Africa’s digital future
Already, regulators and operators are laying down the foundation for the 5G economy. As of September 2023, 27 operators in 16 markets across Africa had launched commercial 5G services. More markets are expected to follow soon, with operators in an additional 10 countries making a commitment to launch 5G in the coming years.
Yet as this process of modernising Africa’s mobile networks accelerates, it’s important that the average subscriber doesn’t get left behind. Regulators and operators are working closely together to find pathways for investment into 5G that ensure services can reach mainstream customers.
In addition, chipset manufacturers and handset makers have a critical role to play in democratising 5G. In Sub Saharan Africa, where GDP per capita is around $1,700, handset costs pose a major barrier in bringing affordable, high-speed mobile connectivity to everyone.
Given the economic constraints faced by many African consumers, lower-priced 5G smartphones are essential for widespread adoption. Thus, one of the keys to democratising 5G lies in bringing smartphone costs down, and that, in turn, relies on chip manufacturers bringing affordable chipsets to market.
5G smartphones under $150
The technology sector has already made some dramatic progress in lowering the production cost of 5G smartphones, with devices that cost below $100-$150 starting to reach the market. At MediaTek, we are committed to providing affordable hardware platforms that make 5G accessible e to all.
The MediaTek Dimensity 6020 system on a chip, or SOC, for example, enables smartphone manufacturers to create devices with multi-gigabit speeds, brilliant cameras, advanced gaming technologies, and faster displays for the mass market.
As 5G smartphones become more affordable and penetration increases, mobile network operators are incentivised to invest in and expand their 5G infrastructure. This increased infrastructure, boosts the availability and coverage of 5G networks, facilitating a virtuous circle of higher investment and deeper market penetration across urban and rural areas.
Over time, affordable 5G smartphones can help bridge the digital divide by providing low-income communities with access to high-speed internet. This access enables greater participation in the digital economy, improved educational and business opportunities, and enhanced access to digital services, including telemedicine and e-government services.
Perhaps as importantly, 5G will enable Africa to leapfrog legacy technologies into next-generation offerings. This could help a larger portion of the population to experience the benefits of advanced technologies, such as IoT, augmented reality, and artificial intelligence. This promotes technological literacy and drives overall societal progress.