Report Explores the Impact of Mobile Communications Technologies on Carbon Emission Reductions

According to a report jointly produced by the GSMA, a trade association, and the Carbon Trust, a London-based climate advocacy organization, "Mobile communications technology has revolutionized how we live, with its influence rapidly extending to new markets and sectors at an ever-increasing rate."

The report, The Enablement Effect: The impact of mobile communications technologies on carbon emission reductions, further asserts: "With the high levels of connectivity and data sharing, mobile is having extensive spill over benefits, opening up possibilities for innovative forms of emissions reductions."

The Executive Summary notes that "[t]he report offers context and provides a high-level analysis of six categories of enabling mechanisms, along with case studies.

"The six different categories are:

• Smart Buildings
• Smart Energy
• Smart Living, Working, and Health
• Smart Transport and Cities
• Smart Agriculture
• Smart Manufacturing

What is more, "This is the first time a report has attempted to assess the enablement impact of mobile communications technology at a global scale. To quantify the total global avoided emissions, 14 countries (in six regions) were identified as a representative global sample from which to extrapolate. This sample consists of France, UK, Spain, Germany, Kenya, Egypt, South Africa, South Korea, China, India, Brazil, Mexico, US, and Australia."

In explaining its main findings, the report says "Two forms of enablement were assessed; smart technologies connecting one machine to another (M2M technologies), also known as the internet of things (IoT), and behavior changes from the personal use of smartphones.

"The majority of avoided emissions from M2M technologies are primarily in buildings, transport, manufacturing, and the energy sector:

• Savings in buildings are a result of technologies that improve energy efficiency and encourage behavior change, reducing gas and electricity consumption. Among these technologies are building management systems and smart meters.
• Mobile communication technology enables the reduction of transport emissions in various ways. It acts as a catalyst for the increase in electric vehicles by facilitating the use of charging points, and, through telematics, creates an improvement in route optimization and vehicle fuel efficiency.
• Within manufacturing, the use of mobile technology for storage and inventory management greatly reduces the overall level of inventory and area needed, increasing efficiency and decreasing energy use for lighting and cooling.
• Smart grids within the energy sector utilize mobile communications technology to help monitor and regulate electricity demand and transmission, to improve coordination and distribution efficiency. Additionally, small-scale renewable electricity generators are able to participate in the wider market by using M2M connections, increasing the amount of green and local energy in the national grid."

Moreover, "To analyse the use of smartphones to facilitate behavior change, the Carbon Trust commissioned a global survey study of more than 6,000 smartphone users in the UK, China, India, USA, Mexico, Brazil, and South Africa. From this research, significant avoided emissions were seen in the areas of:

• Reduced travel for commuting and for leisure
• Increased use of public transport by using apps providing real-time updates
• Accommodation sharing for short stays and holidays
• Reducing travel by use of mobile shopping and mobile banking apps"

The report adds that "[c]ategories of enablement such as agriculture and health are not currently showing a significant impact on avoided emissions. However, both are important as they hold significant future opportunities of enablement by mobile communications technology."

I found this report valuable in obtaining a better understanding on how the use of mobile communications technologies can lead to a reduction of carbon emissions.

Are there aspects of the report that you find valuable or informative?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of Solutions for a Sustainable World.

GSMA Report Says Mobile Technology Will Enable Access to Life-Enhancing Services in the Pacific Islands

A post that I published in this forum in 2008 focuses on a project my colleagues and I developed in utilizing information and communications technology (ICT) to implement social and economic development initiatives in the Federated States of Micronesia (FSM). One significant outcome of our proposal was to create a digital strategy to be incorporated into the FSM's national development strategy. Eleven years later, I read with great interest a report, The Mobile Economy Pacific Islands 2019, that says "[m]obile technology can play a pivotal role in the digital transformation of the Pacific Islands, enabling access to life-enhancing services in areas such as health and education, while proving a catalyst for innovation and economic growth, with the promise of new jobs and increased tax revenues."

Authored by GSMA Intelligence, the research arm of the UK-based GSMA, below are the report's findings:

• Mobile helping to boost financial inclusion: The Pacific Financial Inclusion Programme (PFIP) was launched in 2008 and has funded 44 projects with financial service providers helping more than 2 million Pacific Islanders access formal financial services;
• The ongoing shift to mobile broadband and digital transformation: at the end of 2018 mobile internet penetration in the region was the lowest of any region in the world at 18 per cent. However, 4G connections in the Pacific Islands are set to account for more than half of total connections by 2023, doubling the figure from the end of 2018 and increasing access to services;
• Infrastructure challenges: Many countries in the Pacific Islands region face issues around insufficient infrastructure. Several countries are yet to complete the digital switchover process, including Papua New Guinea, Tonga and Solomon Islands; and
• Unlocking the full potential of mobile: The upcoming World Radiocommunication Conference will be one of the best opportunities for governments and industry to identify a significant amount of harmonized millimeter wave spectrum, which will result in massive economies of scale for 5G in the future.

Infographic: GSMA
Intelligence

The report encouragingly explains: "Mobile phones are bringing internet access to previously unconnected populations across the world, particularly in developing regions such as the Pacific Islands where there is a lack of alternative access technologies."

However, "Countries across the Pacific Islands still face significant challenges around funding infrastructure to provide mobile and internet access to their populations, which in turn reduces the ability of governments and policy-makers to address social and economic challenges. Providing mobile coverage is a particular challenge in a region often described as 'sea locked,' with large segments of the population living in remote and often inaccessible areas."

Further on the topic of the challenges of mobile connectivity in the Pacific Islands, the report notes:

The GSMA Mobile Connectivity Index measures digital inclusion in 163 countries across the world, including six countries in the Pacific Islands. The index is built around four key enablers of mobile internet connectivity, critical to creating the right conditions of supply and demand for mobile internet connectivity to flourish:

• infrastructure: the availability of high-performance mobile internet network coverage
• affordability: the availability of mobile services and devices at price points that reflect the level of income across a national population
• consumer readiness: citizens with the awareness and skills needed to value and use the internet and a cultural environment that promotes gender equality
• content: the availability of online content and services that are accessible and relevant to the local population.

There are many aspects of our 2008 proposal remain relevant in 2019 of using mobile technology as a pivotal role in the digital transformation of the FSM and throughout the Pacific Islands. Specifically, with the expansion of mobile technology, Pacific Islanders will be able to access digital health (mHealth), education, and financial technology (fintech) services. This presents a great opportunity for technology developers and investors to collaborate and support local small businesses.

In addition, with an early roll out of 5G services in 2020 and a projected 19,000 5G connections in 2025 (see left chart), frontier technologies such as artificial intelligence, blockchain, IoT and advanced data analytics will become available. "The Pacific Islands region might not be one of the first to roll out 5G services but it can benefit from a mature ecosystem and global economies of scale to see 5G develop in the same way as LTE has done in the region. New submarine cables with improved capacity and other technical advancements are setting the stage for advanced broadband services, including 5G."

What online content and services are you developing that are accessible and relevant to Pacific Islanders?

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.

China Is Set to Become One of the World's Leading 5G Markets with 460 Million 5G Connections Forecast by 2025, Says a New GSMA Report

China's mobile ecosystem added RMB5.2 trillion ($750 billion) in value to the country's economy last year, according to a GSMA report, equivalent to 5.5 percent of China's gross domestic product (GDP) in 2018. The GDP contribution comprises mobile operators (1.0%); related industries (1.1%); indirect contribution (0.7%); and productivity improvements (2.7%).

Authored by GSMA Intelligence, the research arm of UK-based GSMA, the report explains that "China is a huge mobile market, nearly four times the size of North America, with 1.2 billion unique subscribers at the end of 2018. Over 97% of these come from mainland China, with the remainder spread across three other markets – Hong Kong, Macao and Taiwan." The Mobile Economy China 2019, available both in English and Chinese, reveals that:

• China is the largest mobile market in the world, home to almost 1.2 billion unique mobile subscribers at the end of 2018, representing 82 percent of the country's population (a unique mobile subscriber represents an individual that can account for multiple SIM connections;
• More than two-thirds (69 percent) of mobile connections in China are smartphones, with smartphone adoption expected to reach 88 percent of connections by 2025 (there were 1.5 billion SIM connections in China in 2018 ((excluding licensed cellular IoT), forecast to rise to 1.7 billion by 2025);
• 77 percent of China’s connections are currently running on 4G networks – 4G adoption will peak in the coming years before falling as consumers migrate to next-generation mobile services;
• China is set to become one of the world's leading 5G markets with 460 million 5G connections forecast by 2025, which would account for 28 percent of China's total connections by this point;
• The RMB5.2 trillion ($750 billion) economic contribution by China's mobile ecosystem in 2018 is forecast to grow to RMB6 trillion ($870 billion) by 2023;
• China's mobile ecosystem directly and indirectly supported 8.5 million jobs in 2018 and made a tax contribution to the public finances of government of RMB583 billion ($84 billion); and
• The number of licensed cellular IoT connections in China stood at 672 million at the end of 2018, supporting various industrial and smart cities applications.

The report's executive summary presents the following two points:

Mobile underpins rapid transition to a digital society

"China is the world's second largest economy," the report says, "accounting for close to a fifth of global gross domestic product (GDP). Through a combination of government policies and market forces, the economy has expanded massively since the late 1970s, with industries such as steel, automotive and telecoms developing rapidly. Today, China's broad and diverse mobile ecosystem underpins its digitization strategy and is having a profound impact on consumers, businesses and wider society."

In my experiences of working in the Middle Kingdom for the past several years, I can attest that "China's growing middle class are purchasing more goods online, amplifying the country's already huge e-commerce market and reducing the prevalence of cash transactions. China is home to many millions of tech-savvy consumers who are keen adopters of social media and users of a variety of apps, placing greater demands on operators for improved network performance."

The report further notes that "[d]espite trailing many developed markets in launching 4G, Chinese operators have invested heavily in their networks, recognizing the positive correlation between user experience and data consumed. This has resulted in improved mobile data speeds, while subscribers in China have migrated to 4G services at a faster pace than those in Australia and the US, creating a mass market and economies of scale in a short timeframe. Operators are now working to bring 5G to market and are set to lead much of the world in this space. China will host the 2022 Winter Olympic and Paralympic Games, which will serve as further motivation to accelerate 5G deployments."

Government and policymakers enable a platform for digital progression and pioneers

According to the report, "In a testing geopolitical climate, the government remains steadfast in pushing forward the country's digitization journey, considering traditional sectors such as retail and health as ripe for disruption. The state is also investing in a range of emerging technology industries such as AI, leading to a surge in external financing. Meanwhile, internet tech players and mobile operators alike are at the cutting edge of innovation, often partnering to develop and apply pioneering solutions, which can improve efficiency and realize cost savings, as well as expose new revenue streams.

"In parallel, Chinese policymakers have taken important steps to modernize the country's regulatory framework for telecoms, establishing a platform for further digital progression. Though further reforms should be considered, many technological advancements are on the horizon and more industries will adopt and commercialize digital solutions. Operators appear resolved to provide the superior connectivity required to power China in the 5G era, supporting the country's transition to a leading digital society and its presence on the international stage."

Infographic: GSMA Intelligence

Done carefully, companies worldwide will find China to be a lucrative market in artificial intelligence, cloud computing, connected devices, digital health, fintech, mobile applications and other digital services. What are your plans to capitalize on this opportunity?

Aaron Rose is an advisor to talented entrepreneurs and co-founder of great companies. He also serves as the editor of Solutions for a Sustainable World.

Mobile Significantly Advancing Economic and Development Goals in Tanzania

A report authored by GSMA Intelligence, the research arm of UK-based GSMA, says "Tanzania is undergoing a digital transformation, reflected by the growing number of people connected to communications and internet services. This is having a profound impact on the country's social, cultural and economic frameworks, through enhanced access to key services and improved productivity and efficiency across economic sectors."

Digital Transformation in Tanzania optimistically notes: "The mobile industry is contributing significantly to the realization of Tanzania's development goals through various activities and initiatives by mobile operators and other ecosystem players. This report highlights four important contributions the mobile industry is making to the development goals":

• Access to key services – Mobile operators provide affordable access to life-enhancing services for people in underserved communities. Inclusive and innovative business models have emerged from the convergence of various mobile services, particularly connectivity, mobile financial services, digital identity, and M2M and IoT.
• Productivity and efficiency – Mobile is driving productivity and efficiency gains in businesses and public institutions, especially in the agricultural sector where the technology is helping to address the knowledge and information gap for farmers and enabling efficient interactions and transactions between key players in the value chain.
• Contribution to economic growth and social development – In 2016 the total value added generated by the mobile operators alone (taking into account direct, indirect and productivity effects) was around $2.5 billion, equivalent to 5.2% of GDP. The mobile industry also employs more than 1.5 million people directly and indirectly, equivalent to 2.6% of the population.
• Good governance – Mobile is a key channel for Tanzania's e-government strategy, with public institutions now using mobile money, SMS and USSD platforms to deliver services, collect payments and engage with the general public.

On the topic of mobile money, "Tanzania is one of the most advanced mobile money markets in Sub-Saharan Africa," the report explains. The service has helped to:

• Reduce transaction costs and improve safety for individuals and businesses;
• Enhance the efficiency of the economy by reducing the need for users to travel long distances to bank branches to make transactions in person; and
• Create employment and additional income for tens of thousands of small and medium-sized enterprises (SMEs) acting as mobile money agents.

Lastly, the report presents the following conclusion:

Government leadership is a critical factor in establishing a conducive environment and developing the momentum for greater stakeholder collaboration. In addition to implementing key policy enablers to support the growth of the mobile industry, the government and its agencies need to become more involved in charting a holistic plan to leverage mobile technology to realize the development goals, and engage relevant stakeholders in every step of this process. Mobile operators and other key stakeholders in the digital ecosystem all have roles to play.

Mobile operators should find ways to develop economically viable rollout models to expand network coverage; use cost-optimizing technologies and geo-analysis to optimize deployment; leverage APIs, hackathons, own app stores and partners to develop language-specific, relevant content; and embrace interoperability of platforms, such as mobile money and IoT, to drive scale and sustainability. For their part, donors, development partners, private sector players and civil society organisations need to work with policymakers to develop and implement regulatory best practices and partner with governments to improve ICT infrastructure in public institutions.

Are there lessons learned from Tanzania's mobile sector that can be replicated in other countries in sub-Saharan Africa?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of Solutions for a Sustainable World.

Asia Set to Become World's Largest 5G Region by 2025, Says GSMA

Asia Pacific is on track to become the world's largest 5G region by 2025, led by pioneering 5G markets such as Australia, China, Japan and South Korea, according to the latest edition of the GSMA's Mobile Economy report. Authored by GSMA Intelligence, the research arm of the London, England-based GSMA, The Mobile Economy: Asia Pacific 2018 further says Asia's mobile industry added $1.5 trillion in economic value in 2017, equivalent to 5.4 percent of regional GDP, which includes direct ecosystem contribution (1.8%); indirect contribution (0.6%); and productivity improvements (3.0%).

The GSMA report presents the following five findings:

Mobile adoption growth slowing

According to the report, "Asia Pacific has been the biggest contributor to global subscriber growth in recent years and still has room for growth. As of the end of 2017, there were 2.7 billion unique mobile subscribers in Asia Pacific, accounting for two thirds of the region's population. More than half the world's mobile subscribers live in Asia Pacific – mostly in China and India."

In addition, the report explains that "growth has reached its peak and has started to taper out: between 2017 and 2025, the subscriber base is set to increase by a CAGR of 1.8%, down from 6.0% over the previous four years. Three key factors explain this slowdown:

• The region is home to some of the most penetrated markets in the world, with minimal opportunity for further subscriber growth;
• The region includes markets with very low penetration levels, where socioeconomic issues such as rapid population growth, poverty and inequality, unplanned urbanization and natural disasters create barriers to mobile adoption; and
• Some markets have seen their previously strong growth stagnate due to the challenges of connecting those still unconnected, particularly poorer and rural communities.

"Despite reaching its peak in terms of subscriber growth, Asia Pacific will account for just over half of new subscribers globally by 2025. We forecast 424 million new subscribers to be connected across the region by 2025, bringing the total to 3.2 billion, or 73% of the population."

4G takes the lead, while commercial 5G approaches

The report points out that 2017 saw the first year when 4G surpassed 2G in total share of mobile connections. "The region is home to some of the world's most advanced markets in terms of 4G adoption, such as South Korea, Japan and Australia. However, emerging markets (including India, Bangladesh and Indonesia) will be the key drivers of 4G growth over the next few years. Across the region as a whole, 4G is expected to surpass 50% of connections by 2019 and will then dominate to 2025."

What is more, "5G will gain a foothold in the region by the end of the decade. With launches expected from 2019, networks covering 37% of the population by 2025, and increasing availability of 5G-enabled devices, 5G connections will scale rapidly, particularly in markets such as China, South Korea, Australia and Japan. By 2025, we forecast 5G connections to reach 675 million across Asia Pacific, accounting for more than half of the global total for 5G."

Mobile contributing to economic growth and enabling innovation

In addition to the aforementioned GDP growth rate, "the mobile ecosystem supported more than 17 million jobs and made a substantial contribution to the funding of the public sector, with almost $170 billion raised in the form of general taxation. By 2022, the mobile economy in the region will generate more than $1.8 trillion of economic value added as countries continue to benefit from the improvements in productivity and efficiency brought about by increased take-up of mobile services."

Moreover, the Asia Pacific "region has become the world's largest retail e-commerce market, driven by the burgeoning economies in China, Japan and South Korea, where payment platforms such as Alipay, Apple Pay and Samsung Pay are fast becoming ubiquitous. More recently, however, a combination of market and demographic factors has resulted in countries in Southeast Asia, including Indonesia, Thailand and Vietnam, becoming the key drivers of growth. Mobile internet users in these markets are among the most engaged globally on e-commerce platforms such as Lazada, Shopee and Tokopedia, which provide scalable, readily accessible platforms for smaller retailers to transact online with their customers."

As a supporter of startups, I found particular value that "the startup ecosystem in Asia Pacific is growing rapidly, with the number of active tech hubs in the region's emerging markets doubling over the last year and venture funding into South/Southeast Asian countries tripling since 2016. Most emerging markets in the region are benefiting from big deal flows and growing interest from international investors, taking advantage of the optimism to improve their ecosystems and acting as alternative investment destinations to the more established markets."

 

Mobile essential to addressing social challenges

Having traveled to the Asia Pacific region on a number of occasions over the past few years, I have witnessed how the large-scale societal adoption and use of digital technologies has become "a key driver of measurable economic, social and cultural value, including increased productivity, a rise in employment rates, improved security and greater capacity to tackle social and environmental issues.

"Despite rapid growth in mobile internet penetration in recent years," the report claims "2.4 billion people in Asia Pacific remain offline, mostly in low- and middle-income countries, unable to benefit from the social and economic opportunities of the internet. As challenges around infrastructure, affordability, consumer readiness and content are addressed, an additional 1 billion people will gain access to the mobile internet across the region by 2025, bringing the total to 2.7 billion, or 63% of the population.

The GSMA report encouragingly notes that "[m]obile is also playing a key role in tackling various social and economic challenges as outlined by the UN’s Sustainable Development Goals (SDGs). While the mobile industry's contribution can be seen across all 17 SDGs, there are two areas of particular relevance in Asia Pacific: firstly, leveraging mobile operators' big data capabilities to address humanitarian crises, including epidemics and natural disasters; and secondly, supporting initiatives in low- and middle-income countries to reduce the gender gap in mobile internet and mobile money. Mobile technology provides access to tools and applications that help address these issues, and enables new technologies and innovations to build more efficient and environmentally sustainable societies."

Advancing digital societies in Asia Pacific

"As more countries continue to implement their strategies for digital transformation, proving identity online will become essential to participation and inclusion. To create digital societies, governments worldwide recognize the importance of a digital identity – being able to verify an individual's identity electronically. A digital identity acts as a gateway to enable faster and easier interaction with public institutions, and is essential for individuals to participate in a full digital lifestyle."

I strongly agree that "data privacy and the security of digital identities has assumed greater importance." The report adds: "While mobile operators apply high standards of privacy, data protection and security for their customers' data, the inadequacy of legal frameworks can worsen customer perceptions about operators' use of their data and potentially reduce their willingness to use mobile devices to access identity-linked services. A digital identity system must have a foundation of trust if it is to generate widespread acceptance among users."

Crucially, the report suggests "[c]oncerted action between governments and mobile operators can help reap the benefits that stem from digital identity and address the challenges presented by increasing cross-border data flows and cyber-attacks that affect digital commerce between countries and overall trade. When governments develop a national strategy underpinned by an enabling policy environment, the prospects are much better for mobile-enabled, digital identity services to accelerate a country's digital transformation, support digital and financial inclusion, and offer the benefits of convenience and reach."

What aspects of GSMA's report do you find valuable to your business?

Aaron Rose is an advisor to talented entrepreneurs and co-founder of great companies. He also serves as the editor of Solutions for a Sustainable World.

ROI3 and Entreprov to Join ITU's Focus Group on Machine Learning for Future Networks Including 5G

Image: http://ow.ly/4e7730gLyby

In a post on this blog dated Feb. 27, 2016, I write how 5G is a new wave of mobile technology that will bring drastic change. The flow of high volume of data with low latency will bring changes industrialized and developing countries alike will see in various sectors including connected devices (IoT), autonomous vehicles, virtual reality, artificial intelligence and machine learning. While the business model for some of these emerging technologies are still being crafted and tested, the research and development is happening now and I am regularly exploring opportunities to learn more about these technologies. Therefore, I am proud to announce that ROI3 has joined the International Telecommunication Union's Focus Group on Machine Learning for Future Networks including 5G.

In a press release, the Geneva, Switzerland-based ITU says the purpose of the focus group, which goes by FG-ML5G, is to "establish a basis for ITU standardization to assist machine learning in bringing more automation and intelligence to ICT network design and management." FG-ML5G "will lead an intensive one-year investigation into where technical standardization could support emerging applications of machine learning in fields such as big data analytics, network management and orchestration, and security and data protection."

In addition, FG-ML5G will draft technical reports and specifications for machine learning for future networks, including interfaces, network architectures, protocols, algorithms and data formats. The ITU's announcement further says,

The Focus Group will consider machine-learning methods' compatibility with a wide variety of fixed and mobile communication stacks, encouraging the development of methods attuned to the operational requirements of the networking industry.

Interoperability is high on the agenda. The Focus Group will propose means to train, adapt, compress and exchange machine-learning algorithms. This work will promote the emergence of an ecosystem able to support the interaction of multiple machine-learning algorithms.

Machine-learning algorithms are helping operators to make smarter use of network-generated data. These algorithms enable ICT networks and their components to adapt their behavior autonomously in the interests of efficiency, security and optimal user experience.

My colleagues and I at ROI3 will collaborate with Alex Brooks of AE Brooks, LLC (d/b/a Entreprov) in our participation of FG-ML5G. Entreprov is a Seattle, Wash.-based company that helps small and medium-sized businesses increase their customer base and extend lifetime value of current customers through machine learning and business strategy. In his blog post about joining FG-ML5G, Mr. Brooks said, with Entreprov and ROI3 joining forces we have the opportunity to provide a unique perspective on how Machine Learning can impact 5G technology.

ROI3 previously participated on ITU's focus group to identify the network standardization requirements for the 5G development of International Mobile Telecommunications (IMT) for 2020 and beyond. The Focus Group on network aspects of IMT-2020 was established in May 2015 to analyze how emerging 5G technologies will interact in future networks as a preliminary study into the networking innovations required to support the development of 5G systems. The group took an ecosystem view of 5G research of development and published the analysis in a report to its parent group, ITU-T Study Group 13, in December 2016.

I am excited to have the opportunity to learn more about machine learning. In collaborating with Mr. Brooks on FG-ML5G, it is my hope to better understand the role of machine learning in fields such as big data analytics, network management and orchestration, and security and data protection on global scale.

Aaron Rose is an advisor to talented entrepreneurs and co-founder of great companies. He also serves as the editor of Solutions for a Sustainable World.

GSMA Report Examines the Transformative Opportunities Presented by Mobile-Enabled Digital Services in Ghana

A report produced by the GSMA in partnership with the UK's Department for International Development (DFID) correctly notes, "Ghana has played a proactive role in the UN's Sustainable Development Goals (SDGs) which aim to end poverty, protect the planet and ensure that all people enjoy peace and prosperity." Furthermore, "Mobile – as a technology and as an industry – is uniquely placed to support the SDGs and development outcomes through the multiplier effect that comes from providing connectivity. In the 25 years since mobile was established in Ghana, the industry has connected 67% of the population, which amounts to 19 million individuals. To date, it has connected nearly half the population to the internet through their mobile phone." The report examines the transformative opportunities presented by mobile-enabled digital services in Ghana.

During my trips to Africa, I witness the development of innovative products and localized services as a result of an expanding mobile infrastructure. Therefore, I read with great interest that "beyond core connectivity to a network, mobile operators in Ghana have also created the means for citizens to access other core services, including the following:

• "Providing financial services via a mobile platform, particularly mobile money, which is relevant to 11 of the SDGs. Mobile money is one of the most dynamic innovations in the industry and has provided significant social and economic benefits for users. At the end of 2016, there were more than 8 million active mobile money accounts in Ghana.
• Facilitating the provision of digital forms of identity. The ability to prove identity is critical to accessing a wide range of services such as healthcare, education, employment, financial services and voting. In Ghana, birth registration is approaching 70%, having risen somewhat since the introduction of Tigo’s mBirth program in May 2016.
• Improving productivity for farmers. Mobile platforms provide farmers and agricultural firms with up-to-date information on market prices, production techniques and weather forecasts through services such as the Vodafone Farmers' Club.
• Expanding healthcare access. Programs such as the Mobile Technology for Community Health (MOTECH) have helped demonstrate the potential of mobile to increase demand for and access to health information and services among rural communities, while also providing data on health service delivery and outcomes to the Ghana Health Service.
• Increasing water and energy efficiency through the Internet of Things (IoT) and machine-to-machine (M2M) solutions. M2M and IoT solutions have the potential to impact many of the SDGs: for example, by monitoring air quality, climate change and water & energy efficiency; by improving the productivity of manufacturing and industrial processes; and by monitoring marine, coastal and forest ecosystems."

Despite the progress made," however, "significant challenges remain to realizing the potential of mobile to support socio-economic development. Many of these require collaboration between the public and private sectors." The report highlights several areas (i.e., closing infrastructure gaps, increasing financial inclusion, and closing the mobile gender gap) that would benefit from such interaction between mobile operators and government departments.

On the topic of supporting start-ups and entrepreneurship, I support the assertion that "for a healthy start-up ecosystem to develop in the digital era, it is crucial that start-ups can incorporate mobile services such as SMS or mobile money into their products. Without access to mobile solutions such as inclusive payment mechanisms, start-ups serving the masses struggle to scale." The report lists the following key action areas for mobile operators to consider:

OPEN UP Depending on their in-house capabilities and market coverage, operators have three main options for their API go-to-market and sales approach:

1. In-house API program
2. Partnerships with a third-party API management software provider such as Apigee or WSO2
3. Wholesale models with an API aggregator (local/regional, such as Africa's Talking, or global such as Twilio). This last option is probably more relevant for operators with smaller market shares and limited in-house resources to drive an API program.

HARMONIZE The heterogeneity of APIs remains a key pain-point for start-ups and developers. Mobile operators can harmonize at a group or industry level by adopting a common platform or standards for specific APIs (e.g. mobile money).

COLLABORATE APIs should not be seen as end products but as enablers of innovation. The competitive differentiation between mobile operators should not be the APIs themselves, but rather their efforts to engage with start-ups and support them.

OUTREACH TO DEVELOPERS This is crucial to a successful API program: developers will only use APIs if they know they are there and they are willing and able to use them.

Lastly, regarding the acceleration of digital identity, the report says,

Mobile is a powerful tool in enhancing people's lives by enabling them to access personalized, value-added services. As the Ghanaian government expands its National Identity rollout program, an increasing number of people will be able to register their mobile SIM cards in their own names. This will also enable mobile operators to offer robust, digital identities that unlock several life-enhancing services while at the same complying with mandatory SIM registration requirements. Tigo's mBirth program in Ghana is an example of a mobile-enabled digital identity service that highlights the potential benefits of the mobile industry and government collaborating to address the challenge of unlocking access to basic services for a significant number of Ghanaians. 

This blog contains a number of posts about Ghana, which the West African nation has demonstrated democratic rule and peaceful transition of power. I remain optimistic that mobile operators and government departments will provide the support necessary for Ghanaian entrepreneurs to develop mobile products and localized services, which will impact many of the SDGs.

Do you agree with the findings of the report?

Aaron Rose is an advisor to talented entrepreneurs and co-founder of great companies. He also serves as the editor of Solutions for a Sustainable World.

5G to Account for a Third of Europe's Mobile Market by 2025

As Europe's economy has improved in the past couple of years, I have taken an interest in identifying opportunities in the region's mobile industry with respect to artificial intelligence, financial technology (fintech), medical technology (medtech) and mobile applications (particularly in health and education). Therefore, I found interest in reading a new report, The Mobile Economy Europe 2017, by GSMA Intelligence, the research arm of London, England-based GSMA, estimating that "Europe will reach 214 million 5G connections in 2025, just over 30% of total connections."

The report further says, "Taking account of the anticipated European rollout, 5G adoption in Europe is expected to initially outstrip the equivalent rate of adoption for 4G in the years following launch. By 2025, 5G coverage is expected to reach almost three-quarters of the population in Europe, with Germany, the UK and France expected to lead in terms of number of 5G connections."

While we are a few years from seeing the wide adoption of 5G, the report notes, "Europe is seeing rapid adoption of 4G services. At the end of 2016, there were 226 million 4G connections in Europe (up 46% year on year), accounting for more than a third of total connections (excluding M2M). 4G connections will overtake 3G connections in the region in 2017 and reach 61% of the total by 2020."

What is more, "4G technology was designed to evolve, and there is plenty of room for future growth as operators focus their investments on network performance improvements, driven by advances in technology (e.g. MIMO and carrier aggregation). With the potential for speeds to reach above 1 Gbps, further evolution of 4G will provide considerable benefits to consumers who are increasingly demanding higher-speed, always-on connectivity."

On the topic of the mobile industry contributing to jobs and economic growth, the report explains that "mobile technologies and services generated 3.4% of GDP in Europe, a contribution that amounted to around €540 billion of economic value added. In the period to 2020, this figure will increase to around €670 billion (3.9% of GDP), as the region experiences strong growth in productivity brought about by continued adoption of M2M technology and the increased digitization of industry and services."

Importantly, "the mobile ecosystem supported 2.6 million jobs in 2016. This includes workers directly employed by mobile operators and the ecosystem, and jobs that are indirectly supported in the rest of the economy by the activity generated by the sector. The sector also makes an important contribution to the funding of the public sector, with €100 billion raised in 2016 mainly in the form of general taxation, including VAT, corporate taxes and employment taxes."

As for mobile driving engagement and innovation, "Europe continues to see innovation across all areas of the mobile ecosystem, spurred by the growth in new technologies, services and use cases. ... The application of artificial intelligence (AI) will also prove a fundamental enabler of the IoT ecosystem. While the AI industry continues to be dominated by established North American players in the internet ecosystem and enterprise space, European operators are now stepping up their efforts."

Having familiarity with Europe's mobile industry, I am encouraged to read the report's final chapter, "Looking to the Future of Mobile – Policies for a Digital Europe," which addresses the need for the European Commission to modernize its regulatory framework. The report accurately notes that Europe's "mobile industry continues to experience rapid change. The convergence of digital technologies is driving growth and innovation, enabling a steady flow of new services. Advanced applications and new ways of communicating are creating a truly connected society, radically impacting the way people use technology in daily life as well as how digital access is provisioned by network operators."

Moreover, I agree that "new thinking on telecoms sector regulation is required to achieve the vision of the 'Gigabit Society,' to encourage long-term growth and development, to create an environment that is conducive to investment and to ensure the expansion of next-generation digital networks and services. Only then will Europe be able to move quickly and capitalize on the tremendous opportunities a digitally vibrant economy can offer to its citizens and businesses."

Investment and business opportunities exist in Europe's mobile sector. What products or services are you developing for the European market?

Aaron Rose is an advisor to talented entrepreneurs and co-founder of great companies. He also serves as the editor of Solutions for a Sustainable World.

Mobile Contribution to North America's Economy Will Reach $1 Trillion by 2020

"North America will reach 300 million mobile subscribers in 2018, growing to 313 million or 84% penetration by 2020," according to a report published by the GSMA Intelligence, the research arm of London, England-based GSMA. The Mobile Economy North America 2017 continues to explain that "with many subscribers owning more than one connected device, and the cellular M2M market continuing to grow, the total number of connections will be higher, at 585 million by 2020."

Companies that are developing mobile hardware and services for the North American market should note that "US subscribers account for 90% of regional market, and the country is the largest market in the world in terms of mobile revenue. North America as a whole accounts for more than a fifth of total global mobile revenue at $250 billion in 2017."

With respect to 5G technology, "North America is expected to see the same rapid pace of adoption of 5G services as seen with 4G. The region will reach 100 million 5G connections in 2023, four years after launch, as it did for 4G." The report further says: "5G adoption will occur faster than in any other region – around half of connections will be on 5G networks by 2025, compared to around 30% in Europe and the leading Asian markets (China, Japan and South Korea in aggregate)." As represented in the infographic at the end of this post, by 2025, there will be 208 million 5G connections in North America representing 49% of all connections.

The mobile technology sector is becoming increasingly important to North America's economy as a whole. "In 2016, mobile technologies and services generated 3.9% of GDP in North America, a contribution that amounted to $790 billion of economic value added. By the end of the decade, this contribution will increase to just over $1 trillion (4.7% of GDP) as greater use of mobile technologies, including M2M and IoT solutions, drives improvements in productivity."

Furthermore, "The mobile ecosystem supported 2.5 million jobs in 2016. This includes workers directly employed by mobile operators and the wider mobile ecosystem, and jobs that are indirectly supported in the rest of the economy by the activity generated by the sector. The sector also makes an important contribution to the funding of the public sector, with $110 billion raised in 2016 in the form of general taxation, including sales taxes, corporate taxes and employment taxes."

As for investor financing to support technology developments and innovation in North America, "private equity companies, venture-capital firms and corporates have invested more than $0.5 trillion between 2012 and 2016 to finance tech start-ups and emerging companies across several sectors – TMT, energy/utilities, automotive/transportation, healthcare and banking/ finance." Importantly, "Digitization of industry is a fundamental catalyst for VC financing; it is expanding the value chain in many sectors and opening up new roles and opportunities."

The report correctly points out that AI "is the next frontier": "While the AI industry is currently dominated by six platform players – Google, Amazon, Apple, Facebook, Microsoft and IBM – US mobile operators are increasingly focusing on AI through venture-capital (VC) investments, technology and business ventures (e.g. Verizon's Exponent) and R&D (e.g. AT&T's Lab), with widespread recognition that AI is key to business transformation and IoT developments."

Moreover, "AI creates opportunities for US and Canadian mobile operators to optimize their networks and CRM systems, and increase operational efficiencies. Greater learning of customer behavior and preferences will also enhance B2C/B2B services within and beyond core businesses. Meanwhile, new challenges are emerging, such as the rise of voice-driven, Wi-Fi connected AI-based devices (e.g. Amazon Echo, Google Home), which are increasingly becoming a control point for the connected home."

Infographic: GSMA Intelligence

Are you developing mobile hardware or software services for the North American market? If so, what are the challenges you are encountering?

Aaron Rose is an advisor to talented entrepreneurs and co-founder of great companies. He also serves as the editor of Solutions for a Sustainable World.

Asia Pacific's Mobile Economy to Generate $1.6 Trillion of Economic Value in 2020

According to a report authored by GSMA Intelligence, the research arm of London, England-based GSMA, "More than half the world's mobile subscribers live in Asia Pacific – mostly in China and India." The Mobile Economy: Asia Pacific 2017 further says: "Although the region has reached its peak in terms of subscriber growth, Asia Pacific will account for almost two thirds of new subscribers globally by 2020, with most of the incremental growth coming from the two dominant markets, India and China. By 2020 there will be more than 3.1 billion mobile subscribers in the region, or three quarters of the population."

This year's report covers a variety of important topics pertaining to the mobile industry in Asia Pacific. Regarding 5G, for example, "Asian markets are driving the development of 5G mobile technologies, with commercial deployments planned in South Korea in 2019 and Japan and China in 2020. These early 5G networks will be deployed in dense urban areas as mobile operators look to offer increased performance and supplement existing mobile broadband capacity."

Furthermore, "In the early years following the initial launches, operators in 16 other countries across Asia Pacific are expected to deploy 5G services, covering a third of the region’s population by 2025. By this time, 5G connections (excluding IoT) are anticipated to reach 670 million across the region, accounting for just under 60% of global 5G connections."

The report, however, notes that "revenue growth in Asia Pacific has slowed sharply in recent years, reflecting declining subscriber growth (particularly in the region’s developed markets), increasing competition in certain markets, growing adoption of IP messaging services and a challenging macroeconomic environment."

Encouragingly, mobile technologies and services will generate $1.6 trillion of economic value or 5.4% of GDP in Asia-Pacific in the period to 2020 "as countries benefit from the improvements in productivity and efficiency brought about by increased take-up of mobile services and adoption of new mobile technologies such as M2M."

On the topic of how the mobile industry is contributing to jobs and economic growth in Asia Pacific, the mobile ecosystem "supported approximately 16 million jobs in 2016. This includes workers directly employed in the ecosystem and jobs that are indirectly supported by the economic activity generated by the sector. In addition to the mobile sector's impact on the economy and labor market, it makes a substantial contribution to the funding of the public sector, with approximately $166 billion raised in 2016 in the form of taxation."

The report correctly emphasizes the important role mobile is playing in driving engagement and innovation in the region:

As smartphone adoption continues to rise in the region (just over half of total connections were smartphones at the end of 2016) and as more users come online, an increasing range of mobile services are being consumed, including video, social media, e-commerce and financial services. Of all the regions, Asia Pacific as a whole will undergo the largest shift in consumer behavior by 2030 as multiple drivers take hold, including rising smartphone and mobile internet adoption, improved affordability and the regionalization of online content.

And the report importantly explains that "mobile is also playing a key role in tackling various social and economic challenges as outlined by the UN's Sustainable Development Goals (SDGs), including poverty, health, education, gender equality, employment, safer cities, climate change and identity." Furthermore, "Mobile technology provides access to tools and applications that help address these issues, and enables new technologies and innovations to build more efficient and environmentally sustainable societies."

Concluding with a discussion on regulation for the digital age, Asia Pacific is a "large and diverse region encompasses a wide array of countries at different stages of digital development. By developing national roadmaps that ask what the future looks like for them and how they get there, policymakers and regulators can more readily pinpoint the practical steps needed to enable the development of robust and progressive digital ecosystems. A coherent and feasible digital strategy is essential for enabling the three broad and interrelated components of a digital society: digital citizenship, digital lifestyle and digital commerce."

The report adds that "a central objective of regulatory policy should be to promote innovation in the digital ecosystem. Given that the digital economy is characterized by competition between new players and the traditional telecoms operators, legacy regulatory frameworks centered on the telecoms sector impose an uneven playing field where the telecoms operators are subject to rules and scrutiny that do not apply to their competitors.

Infographic: GSMA

While doing business in many of the nations within Asia Pacific carry a high degree of risk, the GSMA report furthers my enthusiasm about the future commercial and investment opportunities that exist in the region. Are there specific aspects of the report that you find valuable?

Aaron Rose is an advisor to talented entrepreneurs and co-founder of great companies. He also serves as the editor of Solutions for a Sustainable World.

7 Billion People Live in an Area Covered by a Mobile-Cellular Network

Mobile network coverage
and evolving technologies: ITU

"Seven billion people (95% of the global population) live in an area that is covered by a mobile-cellular network," according to a report titled ICT Facts and Figures 2016. Published annually since 2009 by the ITU, a United Nations specialized agency for information and communication technologies based in Geneva, Switzerland, this year's report provides statistical evidence of a digital divide that exists regarding access to affordable mobile broadband, as well as the widening gender gap of Internet penetration.

There is a common perception that people worldwide have access to the Internet, which is supported by the fact that 84 percent of the global population has access to mobile-broadband networks (3G or above). However, mobile-broadband networks reach just 67 percent of the global rural population. 

With respect to Long-Term Evolution, commonly marketed as 4G LTE, a standard for wireless communication of high-speed data for mobile phones and data terminals, "LTE networks have spread quickly over the last three years and reach almost 4 billion people today (53% of the global population), enhancing the quality of Internet use."

World's Offline
Population, 2016: ITU

The digital divide remains a significant problem in 2016. The ITU claims that "close to one out of two people (47%) in the world are using the Internet but only one out of seven people in the LDCs. Developed regions are home to one billion Internet users, compared to 2.5 billion users in the developing world."

It is encouraging, however, to read that "in developing countries, the number of mobile-broadband subscriptions continues to grow at double digit rates, reaching a penetration rate of close to 41%. The total number of mobile-broadband subscriptions is expected to reach 3.6 billion by end 2016."

Not surprisingly, lower costs to access ICT services via mobile devices is a key driver to smartphone and LTE adoption, particularly in developing countries. "The average price of a basic fixed-broadband plan is more than twice as high as the average price of a comparable mobile-broadband plan," says the ITU. The report further explains that 83 developing countries had achieved the Broadband Commission's affordability target by end 2015. While five LDCs achieved the Broadband Commission target, broadband, fixed or mobile, remains unaffordable in a majority of the world's poorest countries.

Internet Penetration Rate for
Men and Women, 2016: ITU

For the first time, the ITU report provides statistical data regarding the Internet penetration rate for men and women. Disappointingly, "Internet penetration rates are higher for men than for women in all regions of the world." The report continues: "The global Internet user gender gap grew from 11% in 2013 to 12% in 2016. The gap remains large in the world's Least Developed Countries (LDCs) - at 31%. In 2016, the regional gender gap is largest in Africa (23%) and smallest in the Americas (2%)."

Also for the first time, the report provides statistical data on machine-to-machine (M2M) subscriptions as the Internet of Things (IoT) economy is beginning to accelerate. The report notes that "the countries with the highest M2M penetration rates are highly industrialized, advanced economies, including the Northern European countries of Sweden, Norway, Finland and Denmark."

What are your impressions of the ITU report?

Aaron Rose serves as President and CEO of ROI3, Inc., a Seattle, Wash.-based company that empowers people in emerging economies through innovative, technology-based solutions. He is also the editor of Solutions for a Sustainable World.