At the Ericsson Imagine Live event held recently in Makati, industry leaders highlighted the crucial role 5G will play in transforming sectors like healthcare, education, and manufacturing, while emphasizing its potential as the backbone of the nation’s digital economy.
“Today, digital infrastructure is as critical as the highways were 40 or 50 years ago. The countries that invest now in 5G will be those leading the global digital economy in the coming years,” said Andres Vicente, SVP and head of Ericsson Southeast Asia, Oceania, and India.
According to Vicente, the Philippines’ GDP stands to benefit from the digital economy, which currently accounts for about 15% of the country’s overall output. He emphasized that this figure is considerably lower compared to the world’s most developed digital ecosystems, where the digital economy makes up 30% of GDP.
“The development of 5G can increase a country’s GDP by 0.8% for every 10% increase in adoption,” he noted.
5G’s potential for revolutionizing industries cannot be more pronounced. Vicente explained that, with 5G, industries such as manufacturing, utilities, automotive, and media would undergo significant transformations.
Latency
He cited manufacturing as an example where the technology would allow for more efficient and flexible operations. Sectors like energy would see improvements in monitoring and management. The automotive sector would also experience a shift, with 5G enabling autonomous vehicles that rely on real-time communication with the network to ensure safety and efficiency.
“Latency, or the time it takes for a network to respond, is critical for autonomous vehicles and many other key use cases. Networks must react faster than humans to make this a reality,” Vicente said.
He pointed out that 5G’s low latency capabilities will pave the way for innovations such as remote surgeries, smart cities, and advanced transportation systems.
The impact of 5G has already been felt in countries like India and Malaysia, which Vicente presented as models of success. In India, the rapid deployment of 5G has helped push the country’s digital infrastructure ranking from 86th to 16th in the world, within just 19 months. This surge in connectivity is expected to add $455 billion to the Indian economy by 2040.
Malaysia, another key example, has managed to achieve 80% 5G coverage of its population within two years, pushing the country to third place globally in terms of digital infrastructure and experience.
Innovation
Ericsson underscored how these examples illustrate the power of 5G, particularly in attracting foreign investments and boosting domestic innovation.
“India and Malaysia are proof that rapid 5G deployment can not only improve digital infrastructure but also drive substantial economic benefits,” said Vicente. “For the Philippines, this means that now is the time to invest in 5G, to ensure the country remains competitive on a global scale.”
In the Philippines, there are currently around 13 million 5G subscribers, representing just 9% of the nation’s mobile traffic. In comparison, 45% of Malaysia’s population enjoys full-speed 5G, highlighting the gap that the Philippines must address if it hopes to compete with its neighbors.
Vicente stressed the urgency of closing this gap, pointing out that traffic growth rates indicate a consistent 20% annual increase in demand, meaning the need for 5G infrastructure will continue to rise in the years ahead.
While the deployment of 5G networks is underway, there are challenges that need to be addressed.
Government
“The role of any government is to ensure that there is a sufficient level of digital infrastructure to make the country competitive,” Vicente said.
He added that the decisions made now will have long-lasting effects on the country’s competitiveness and its position in the global digital economy.
Vicente emphasized that the Philippines’ vast rural areas stand to benefit greatly from 5G. The technology, through innovations like Fixed Wireless Access (FWA), can deliver high-speed internet to households and businesses in rural locations where traditional fiber deployment may be too slow or expensive.
“5G deployment is much faster and can provide the same services as fiber,” said Vicente, citing how FWA is already proving successful in the United States and other markets.
5G is also expected to enable industries to build private networks tailored to their specific needs. These networks, whether physical or virtual, will provide enterprises with the security and low latency required for sensitive operations like autonomous vehicles or industrial automation.
The presence of 5G infrastructure could determine whether businesses decide to invest in a country or relocate elsewhere.
“Companies will look to where the infrastructure can meet their needs. If that’s not available, they may choose to invest in other regions,” Vicente said.
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