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5G to kickoff in US, China, EU with deploying cost of $900bn by 2030—Report

Latest report of leading global digital intelligence and research group, McKinsey, has disclosed that whereas global efforts are on to deploy 5G networks, the exorbitant cost will only allow its takeoff in wealthy regions of the world by 2030. These regions include the United States, European Union (EU) and China.

In its revised prediction, McKinsey said the first round of 5G deployment will cost $700-900billion, covering 25 per cent of the global population within the rollout period.

However, only people living in the rich and developed regions of the United States, China, and Europe will enjoy the 5G network possibly in specific areas in the foreseeable future.

The report however, revealed that there are chances of having two grades of 5G network; the 5G network with download speed of 10 times faster than the existing 4G network, and another 5G network that is slower and lower in cost.

The report was quick to note that just as the 5G with supersonic speed will further deepen overall growth and development in areas of rollout, the lower 5G, which uses the same radio frequency band as 4G, will by 2030, cover 80 per cent of the world’s population and the construction cost is about $400-500billion.

McKinsey made it clear that the speed of this 5G (slower) network is only a little faster than the existing 4G network as the base station can connect more devices, and the delay time when transmitting data is shortened, it will still provides room for the development of new applications.

The report added that different industries have different economic impacts of 5G. Just looking at the four areas of mobile, medical health, manufacturing, and retail, global GDP can increase by $1.5-2trillion by 2030. For example, it said that car accidents will decrease, telemedicine will become popular, and supply chain management will be optimised. The four major industries mentioned above account for 30 per cent of global GDP.

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