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5G the great opportunity of the global economy and markets

If there was a set of companies in which one could invest and trade in any of the relevant financial instruments considering it as a great opportunity, this would be the 5G technology companies as well as any other company or country that is inextricably linked to this technology. Investment and trade in this technology will reach unprecedented levels not only because it is cutting-edge technology, but mainly because it concerns the very existence and prospect of the Fourth Industrial Revolution whose applications will dominate the economy and markets in the coming decades.

In the coming years even decades fast, smart internet connection with 5G technology is expected to create huge global economic value. According to a report released by IHS Markit, by 2035, 5G could provide a global economic value estimated at $ 12.3 trillion. While the European Commission considers that the 5G investment will help create millions of jobs in Europe over the coming years. The crucial point for this technology is to be activated with the right combination of infrastructure and devices, as in this case, it could create significant benefits for both governments and businesses.

5G brings with it the possibility of fundamental changes, which will allow the development of a completely new set of services. The sectors that are expected to benefit first will be the manufacturing, utilities, and financial services. Revenue from 5G digitization in information and communications companies may exceed $ 1.2 trillion by 2026. Developing global networks will require trillions of dollars in infrastructure investment. In fact, 5G will require an intensive capital investment of up to $ 1 trillion worldwide by 2025.

However, the practical impact of 5G must be extremely significant to justify the ubiquitous construction and infrastructure of high-performance 5G network investments. Also, in order to achieve these investments, governments need to allay public concerns about the impact of 5G emissions on health. National authorities should also be able to limit the ability of cities to regulate local 5G infrastructure and set strict deadlines for approving equipment installations.

What needs to be understood is that the goal of this technology is not to be limited to smartphones and tablets, as it extends to a wider variety of form factors to support different uses, including "machine type communication". In other words, 5G is likely to change the game, as it is no longer just about communication between contacts. Some of the services of 5G will include the technology of creating a digital mirror of a physical object in order to predict its performance, augmented and virtual reality, and forecast maintenance in factories. It will also support vehicle remote control, driver health monitoring, and intelligent traffic control. The energy sector could use 5G for real-time monitoring of utility networks with drones, hazard detection and maintenance needs, and smart home meters.

5G is designed to connect billions of devices and provide better ways to do things. Although the COVID-19 pandemic has halted base station construction and delayed related spectrum auctions in some countries, the total number of 5G subscriptions is expected to reach 2.6 billion by 2025. Most likely, the countries that will take the lead in 5G growth are those that will enjoy higher economic growth, while 5G is expected to benefit significantly the poorest countries, such as those in sub-Saharan Africa.

The implications of this technology will be enormous and will obviously include potential social implications, such as those related to health and equal access, enhanced protection of consumers' personal data, cross-border revenue and data taxation rules, etc. In any case, it seems that 5G is a technology that comes to remain and affect the whole range of business, economic and human activities, as it will enhance the holistic approach to the perception of everything around the world. Indeed, 5G will bring huge changes to the whole range of global operations. And this will not happen because of the technology it introduces. But because 5G serves the "heart" of the fourth industrial revolution that is the correlation of everyone, everywhere.

All that remains is to see if everything, everyone and everywhere can come to an agreement, that is, if they can be found in a common ground of values, as when this happens will mark the new upward cycle of the economy and markets.

Author

Nikolaos Akkizidis

Mr Nikolaos Akkizidis is an economist, with 20+ years of experience in multiple roles in the financial sector.

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