A study by the EIB (European Investment Bank) released recently, explains that Europe needs to invest a lot more into its 5G network, in order to gain some of the ground that it has lost to Asia and the U.S. in the field. Otherwise, European countries will miss out on the significant benefits the 5G networks will bring to various economic actors. Here is why.
Need for Larger Funding
The internet has become one of the most important cogs in the worldwide economic machine. Those without access to it suffer greatly, as they are refused part of the information being provided on it, while also not being able to benefit from the services it offers. It is why some companies have specialized in Wi-fi as a service, in order to provide fully managed solutions that go well beyond the primary use of the network. The arrival of the 5G network will help those companies and the ones they provide their services to. But to make sure this happens, the EU needs to land a hand and invest more money into the development of the network.
The problem is simple: At this point in time, the difference in the investment made by Europe, compared to the U.S. and Asia, is too big. If it does not react quickly and inject important sums of money into projects that will help the rapid growth of the 5G, it will lose any chance it has to compete with these two continents, in the leadership of this industry. The larger implication is to lose the race in the intensified digitalisation that was triggered by the pandemic. The current investment gap between Europe and the U.S. is said to be between 4.6 and 6.5 billion euros, annually.
What will happen if Investments don’t happen quickly
The world has become a small place. Today, regional markets are not protected as they used to be. If the 5G networks are not rolled out quickly enough in the EU, it will mean a massive loss in terms of competitiveness, innovation and economic growth. This could mean uncertain times, regarding the security of Europe’s strategic digital autonomy.
There is a need for investment in every type of venture business that has to do with 5G. That goes from early and grown-up start-ups, as well as in established companies in the sector. The digital innovation ecosystem of the 5G needs to become a central part of the economic strategy for the EU, in order to stay near the top of the global technological race.