There is no doubt that more widespread 5G technology is becoming a reality. Major analysts such as Gartner, CCS Insight, and Counterpoint predict that by 2021, 5G devices will account for about one-third of smartphone shipments. The common factor that has enabled these predictions to reach the expected 30-35% is the more aggressive consumer price point, which mobile phone manufacturers themselves are keen to promote in order to recover from the black swan event of 2020.
Virtual CES 2021 set the tone for this, with many 5G smartphone launches, such as the Motorola One 5G Ace and TCL 205G, focusing primarily on "low-cost" frequency bands. Coupled with Qualcomm's announcement of its new Snapdragon 480 processor (which has the potential to develop 5G devices as low as $150), industry commentators believe that low-cost 5G devices will truly begin to attract attention this year. However, affordability is a subjective factor; currently, 5G devices are priced over $300, and 5G access will vary significantly depending on the market.
The vast disparities in global communications infrastructure have become apparent, as has the gap between countries leading the 5G rollout curve and those yet to achieve widespread 4G access. When we combine these global disparities with the real economic consequences of the pandemic and ongoing geopolitical instability, it is worth considering whether these devices will truly penetrate the market as their proponents suggest—within the projected timeframe, of course.
2020 will be remembered for a long time in the tech world, as it compressed five years of global digital transformation into a mere 12 chaotic months. For families around the world, accessing everyday resources like education, finance, and healthcare online has gone from a convenience to a chore, a necessity. In many countries, mobile broadband access has surpassed fixed-line access, and high-speed internet access is no longer a "nice-to-have." It has become a lifeline for hundreds of millions of people working or studying from home, maintaining social relationships, and for many other reasons. Once the pandemic ends, our newly transformed lives will not return to their pre-COVID-19 state. We are opening up new digital territories, and 5G promises to further transform how we live and work. The problem here is that countries lacking fixed-line broadband are often the ones that would benefit most from 5G access. In countries with low affordability, people often need affordable 5G devices, so we do risk exacerbating the currently unacceptable digital divide.
Global access issues
On the positive side, global internet access is improving, although it's still not fast enough for most people. Surveys by the United Nations and the International Telecommunication Union show that the percentage of the world's population with internet access has increased significantly over the past 15 years, from about 17% to over 50%. However, the problem is that inequalities persist between different regions. For example, in Europe, the proportion of internet users exceeds 80%, but in Africa, this figure has fallen to less than 30%. Furthermore, there are significant gender imbalances in access to services within many countries and between different socioeconomic groups. This is true in all countries, whether low- or middle-income or developed.
Furthermore, it is widely believed that internet access availability and broadband speed are directly related to GDP. This is why many governments around the world invest in and prioritize high-speed broadband. However, for densely populated countries living in remote or rural areas, building high-speed fixed broadband infrastructure is challenging, so they rely on mobile internet to achieve the same goals. In this context, the transformative power of 5G is even more evident, and the importance of making 5G devices accessible is even greater.
In terms of affordability, we need to make 5G accessible to the entire society, not just the wealthy, so that everyone can benefit. If the upfront cost of 5G mobile devices remains a barrier to these markets for some time, then we need to turn our attention to alternatives, such as smart finance and credit instruments specifically designed for the unbanked population who have never experienced credit. The costs of managing overdue bills and credit risk cost the telecom industry $14 billion annually. Furthermore, the increasing value of smartphones means they are becoming targets for fraud and supply chain theft—the latter costing the industry approximately $3.5 billion annually. Both of these issues are receiving increasing attention and are problems we, as an industry, must address.
Solve this problem through better financing.
As mentioned earlier, one way to increase the purchasing power of equipment is to empower operators to provide more convenient financing arrangements through smart financing and credit tools. By lowering the risk threshold for equipment financing and offering credit solutions for the first time in some markets, low-income groups can also benefit from the power of 5G. Mobile operators can increase digital business revenue and offer new services to customers without increasing business risk.
For example, using a "per smartphone-based" device financing platform, operators can choose to set up payment reminders for customers and provide control mechanisms to remotely restrict or lock customers' smartphones (if they do not pay outstanding amounts), which helps reduce mobile bill payment delinquency rates, which are around 15% globally and can be as high as 40% in some markets.
Following the pandemic, some market governments and regulators banned the harsh tactic of halting mobile service usage due to non-payment, with reputational damage also playing a role. However, the end result is increased pressure on operators to remain profitable. Therefore, a balance must be struck between supporting customers through difficult financial times and protecting revenue. Device financing and revenue protection are sensitive ways to help operators mitigate overall customer risk. They can attract more new customers while retaining existing ones, ensuring everyone has access to 5G devices and 5G services.
Traditional credit ratings, a straightforward tool, are now largely outdated for consumers searching for new devices around the world—many of whom may have no credit history or are finding themselves in financial distress for the first time. We also need to help those who would never be considered financially or high-risk. Phone manufacturers will seek to sell devices and achieve their goals, while mobile operators must balance this business risk from a cost perspective. However, both can achieve their objectives by strengthening control over devices and expanding financing channels, and importantly, all consumers will benefit from 5G access.
Make theft a thing of the past
Beyond making devices cheaper, mobile operators need to further protect consumers and their smartphones by making devices less susceptible to theft and easier to reuse. Regardless of where a smartphone is stolen in the world (including countries that don't use IMEI blacklists), operators must employ technology that can completely lock the device, rendering it unusable and thus reducing its resale value.
Everyone has equal digital opportunities
With 2021 hailed as the year 5G went mainstream, and a series of product announcements following, rapid 5G adoption is now imperative. But in an industry frequently accused of widening societal disparities, wouldn't it be wonderful if we could seize the opportunity to level the playing field and make 5G devices available to everyone, regardless of their social standing or the amount of money in their bank accounts?
Article Link: Smart Manufacturing Network https://www.gkzhan.com/news/detail/135626.html Introduction: With 2021 hailed as the year 5G becomes mainstream, and a series of product announcements released, the rapid adoption of 5G has become an inevitable trend.
There is no doubt that more widespread 5G technology is becoming a reality. Major analysts such as Gartner, CCS Insight, and Counterpoint predict that by 2021, 5G devices will account for about one-third of smartphone shipments. The common factor that has enabled these predictions to reach the expected 30-35% is the more aggressive consumer price point, which mobile phone manufacturers themselves are keen to promote in order to recover from the black swan event of 2020.
Virtual CES 2021 set the tone for this, with many 5G smartphone launches, such as the Motorola One 5G Ace and TCL 205G, focusing primarily on "low-cost" frequency bands. Coupled with Qualcomm's announcement of its new Snapdragon 480 processor (which has the potential to develop 5G devices as low as $150), industry commentators believe that low-cost 5G devices will truly begin to attract attention this year. However, affordability is a subjective factor; currently, 5G devices are priced over $300, and 5G access will vary significantly depending on the market.
The vast disparities in global communications infrastructure have become apparent, as has the gap between countries leading the 5G rollout curve and those yet to achieve widespread 4G access. When we combine these global disparities with the real economic consequences of the pandemic and ongoing geopolitical instability, it is worth considering whether these devices will truly penetrate the market as their proponents suggest—within the projected timeframe, of course.
2020 will be remembered for a long time in the tech world, as it compressed five years of global digital transformation into a mere 12 chaotic months. For families around the world, accessing everyday resources like education, finance, and healthcare online has gone from a convenience to a chore, a necessity. In many countries, mobile broadband access has surpassed fixed-line access, and high-speed internet access is no longer a "nice-to-have." It has become a lifeline for hundreds of millions of people working or studying from home, maintaining social relationships, and for many other reasons. Once the pandemic ends, our newly transformed lives will not return to their pre-COVID-19 state. We are opening up new digital territories, and 5G promises to further transform how we live and work. The problem here is that countries lacking fixed-line broadband are often the ones that would benefit most from 5G access. In countries with low affordability, people often need affordable 5G devices, so we do risk exacerbating the currently unacceptable digital divide.
Global access issues
On the positive side, global internet access is improving, although it's still not fast enough for most people. Surveys by the United Nations and the International Telecommunication Union show that the percentage of the world's population with internet access has increased significantly over the past 15 years, from about 17% to over 50%. However, the problem is that inequalities persist between different regions. For example, in Europe, the proportion of internet users exceeds 80%, but in Africa, this figure has fallen to less than 30%. Furthermore, there are significant gender imbalances in access to services within many countries and between different socioeconomic groups. This is true in all countries, whether low- or middle-income or developed.
Furthermore, it is widely believed that internet access availability and broadband speed are directly related to GDP. This is why many governments around the world invest in and prioritize high-speed broadband. However, for densely populated countries living in remote or rural areas, building high-speed fixed broadband infrastructure is challenging, so they rely on mobile internet to achieve the same goals. In this context, the transformative power of 5G is even more evident, and the importance of making 5G devices accessible is even greater.
In terms of affordability, we need to make 5G accessible to the entire society, not just the wealthy, so that everyone can benefit. If the upfront cost of 5G mobile devices remains a barrier to these markets for some time, then we need to turn our attention to alternatives, such as smart finance and credit instruments specifically designed for the unbanked population who have never experienced credit. The costs of managing overdue bills and credit risk cost the telecom industry $14 billion annually. Furthermore, the increasing value of smartphones means they are becoming targets for fraud and supply chain theft—the latter costing the industry approximately $3.5 billion annually. Both of these issues are receiving increasing attention and are problems we, as an industry, must address.
Solve this problem through better financing.
As mentioned earlier, one way to increase the purchasing power of equipment is to empower operators to provide more convenient financing arrangements through smart financing and credit tools. By lowering the risk threshold for equipment financing and offering credit solutions for the first time in some markets, low-income groups can also benefit from the power of 5G. Mobile operators can increase digital business revenue and offer new services to customers without increasing business risk.
For example, using a "per smartphone-based" device financing platform, operators can choose to set up payment reminders for customers and provide control mechanisms to remotely restrict or lock customers' smartphones (if they do not pay outstanding amounts), which helps reduce mobile bill payment delinquency rates, which are around 15% globally and can be as high as 40% in some markets.
Following the pandemic, some market governments and regulators banned the harsh tactic of halting mobile service usage due to non-payment, with reputational damage also playing a role. However, the end result is increased pressure on operators to remain profitable. Therefore, a balance must be struck between supporting customers through difficult financial times and protecting revenue. Device financing and revenue protection are sensitive ways to help operators mitigate overall customer risk. They can attract more new customers while retaining existing ones, ensuring everyone has access to 5G devices and 5G services.
Traditional credit ratings, a straightforward tool, are now largely outdated for consumers searching for new devices around the world—many of whom may have no credit history or are finding themselves in financial distress for the first time. We also need to help those who would never be considered financially or high-risk. Phone manufacturers will seek to sell devices and achieve their goals, while mobile operators must balance this business risk from a cost perspective. However, both can achieve their objectives by strengthening control over devices and expanding financing channels, and importantly, all consumers will benefit from 5G access.
Make theft a thing of the past
Beyond making devices cheaper, mobile operators need to further protect consumers and their smartphones by making devices less susceptible to theft and easier to reuse. Regardless of where a smartphone is stolen in the world (including countries that don't use IMEI blacklists), operators must employ technology that can completely lock the device, rendering it unusable and thus reducing its resale value.
Everyone has equal digital opportunities
With 2021 hailed as the year 5G went mainstream, and a series of product announcements following, rapid 5G adoption is now imperative. But in an industry frequently accused of widening societal disparities, wouldn't it be wonderful if we could seize the opportunity to level the playing field and make 5G devices available to everyone, regardless of their social standing or the amount of money in their bank accounts?
