5G is Pivotal for Ongoing Transformation Efforts in Eurasia

"The early stages of 5G development are underway in Eurasia," according to the GSMA's latest report on the state of Eurasia's mobile economy. Governments in the region, which for the purposes of this report include Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Turkmenistan and Uzbekistan, "are prioritizing the technology's integration into national development plans, and operators are investing in 5G infrastructure and applications to meet the growing demand for enhanced connectivity."

What is more, "The Eurasia region is expected to experience a significant increase in 5G adoption in the next few years, based on a return to stable conditions, with projections rising from less than 1% currently to just over 40% by 2030. Although 4G will remain the dominant technology for the foreseeable future, 4G adoption levels will begin to decline from 2026 as 5G gathers momentum because of the availability of more affordable 5G smartphones."

Available in English and Russian, the report's other findings include:

• 5G will add almost $23 billion to the Eurasian economy by 2030, with 5G adoption rising from less than 1% in 2023 to 41% by 2030. 
• The mobile industry added $200 billion of economic value to the Eurasian economy in 2023 – equivalent to 7.9% of GDP – and supported 770,000 jobs, highlighting the importance of mobile to the digital economy.
• However, there is a significant Usage Gap in Eurasia which is widest in Turkmenistan (51%) and Tajikistan (48%), compared to a global average of 37%.
• Operators are rallying behind the GSMA Open Gateway initiative and integrating AI to enhance customer services and optimize networks.

Addressing artificial intelligence (AI) opportunities for operators, the GSMA says "Mobile operators in the region are integrating AI, particularly generative AI (genAI), to enhance customer services, sales, marketing and network management." For example, "Operators such as MTS and Veon, are increasingly developing use cases, including climate-action solutions and platforms that support local languages to improve the customer experience. Furthermore, operators are prioritizing the ethical use of AI and developing partnerships, such as the collaboration between the GSMA and IBM." The report adds that "Although interest is growing in Eurasia, AI adoption remains limited in the region."

Regarding the financial technology sector, this growing sector "has experienced remarkable growth in Eurasia as digital payments continue to be a dominant service. Kazakhstan and Uzbekistan in particular possess thriving fintech landscapes thanks to initiatives such as open banking and the introduction of digital currencies. Diverse payment methods, including mobile payments, QR code transactions and buy now, pay later (BNPL) services cater to individuals and businesses, fostering financial integration." The report adds that "Operators in both countries have introduced mobile payment options to explore opportunities to generate revenues beyond core services and to enhance the customer experience. The further expansion of fintech in Eurasia will offer opportunities for operators, particularly with growing 4G and 5G adoption."

Infographic: GSMA Intelligence

As for the mobile industry's impact on the United Nations Sustainable Development Goals (SDGs) in Eurasia, the GSMA explains that "driven by the increased reach of mobile networks and growing take-up of mobile internet services, the mobile industry continues to achieve its impact on SDGs. "In Eurasia, between 2016 and 2022, the mobile industry had the highest impact on SDG 4: Quality Education, which also improved the most compared to the previous year, along with SDG 6: Clean Water and Sanitation and SDG 7: Affordable and Clean Energy. Growing smartphone and mobile internet adoption is contributing to mobile's impact on SDGs."

What are your thoughts about the report's findings? What are your recommendations for accelerating AI adoption in Eurasian region?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.