In a new report entitled Why Telecoms Matters, Vodafone (NASDAQ: VOD) argues that restoring Europe’s competitiveness should be a critical priority for the EU and Member State governments. The report spells out how next-generation connectivity and the digitalization of industry can play a critical role in improving European competitiveness. It illustrates how digitalization driven by new 5G technologies is a trillion-euro opportunity to boost innovation and increase manufacturing efficiency along with improving public services across agricultural, environmental, and healthcare sectors.
Vodafone points out that a lack of private investment among the mobile network operators has put Europe “some way” from achieving its 5G Digital Decade targets, thus creating what the company calls “an alarming ‘connectivity chasm’” between Europe and competing regions, like the U.S. and China. The company believes that such disparity could leave EU citizens, businesses, and society at risk of further economic decline.
The company argues that this decline could be reversed if Europe prioritizes the deployment of technologies including 5G Standalone (5G SA) that upgrades the mobile network core, and high-performance antennas. Vodafone contends that an advanced 5G SA network delivering low latency applications and private ‘network slicing’ for industries of all sizes would revitalize Europe’s industrial base.
The report highlights that the digitalization of industry can be realized through advanced 5G connectivity that ties together machines and applications with cloud-based intelligent services. This digitalization represents what is referred to as the ‘fourth wave’ of the industrial revolution, worth an estimated $2 trillion annually for the European manufacturing sector alone.
Without such strategic technology investments, Vodafone believes that Europe is facing a multi-billion Euro funding gap that is giving the U.S. and China a wide lead in critical growth areas like artificial intelligence and cybersecurity.
“Europe is on the cusp of a major innovation and productivity boost through next generation 5G SA and the digitalization it enables for businesses and the economy,” comments Joakim Reiter, Vodafone Chief External & Corporate Affairs Officer. “Just as 4G unlocked the mobile internet for consumers, 5G SA can herald an industrial internet age and restore Europe to growth.”
Reiter adds that Europe has a trillion-euro opportunity to digitalize its industry and compete globally, but achieving this goal depends entirely on the speed of adoption.
“The five-year mandate of the next European Parliament and Commission must allow Europe to course correct, rebooting legacy telecoms regulation and creating a Single Market framework that attracts the investments needed to roll out 5G SA at pace,” he emphasizes.
By John Celentano, Inside Towers Business Editor
Reader Interactions