5G to Create $500 Billion in U.S GDP Over 7 Years?
5G networks could create up to three million jobs and add approximately $500 billion to U.S. GDP through direct and indirect potential benefits, while anchoring the development of smart cities initiatives, according to report authored by Accenture, commissioned by CTIA, predicts.
Anchoring those benefits are direct investment by mobile operators of perhaps $275 billion nationwide over seven years to create the networks, Accenture predicts.
Job impact includes 350,000 new construction jobs and 850,000 other jobs in the United States created by network suppliers and other partners over a seven-year period of network build-out.
The multiplier effects could lead to an additional 2.2 million jobs in communities across the country, creating approximately $420 billion in annual GDP.
Accenture believes 5G also will potentially supply high-speed internet access to about five percent of U.S. residents who currently do not have access. That assumption is directly based on 5G being a direct substitute for fixed network connections.
If faster Internet connections allow users to utilize video applications for telecommuting, or participate in e-learning courses that give them additional skill sets or certifications, creating a more competitive workforce in different localities, that would, in turn, attract higher-paying jobs to these communities.
So If localities embrace 5G, and citizens who are not already online become adopters, an additional $90 billion in GDP could result, with 870,000 new jobs..
Communities of all sizes are likely to see jobs created. Small to medium-sized cities with a population of 30,000 to 100,000 could see 300 to 1,000 jobs created. In larger cities like Chicago, we could see as many as 90,000 jobs created.
“5G-powered smart city solutions applied to the management of vehicle traffic and electrical grids alone could produce an estimate of $160 billion in benefits and savings for local communities and their residents,” These 5G attributes will enable cities to reduce commute times, improve public safety said Tejas Rao, Accenture North America practice managing director.
The attributes of 5G that will benefit smart cities include higher speeds, more connections, wireless connectivity in unprecedented locations (street lights to sewer holes) quicker, more adaptive response times that support time-sensitive applications.
Ultra-low-power connections, such as sensors for leak detection in water mains, also will e key, since the replacement cycle is directly related to battery life, Accenture argues..
Smart Grid. 5G technology will help unleash the next wave of smart grid innovations. Across the country, those benefits could be as high as $2 trillion dollars over 20 years By allowing many unconnected, energy-consuming devices to be integrated into the grid through low-cost 5G connections, 5G enables these devices to be more accurately monitored to support better forecasting of energy needs.
Also, by connecting these energy-consuming devices using a smart grid, demand-side management will be further enhanced to support load balancing, helping reduce electricity peaks and ultimately reduce energy costs.
By automatically dimming public lighting when no pedestrians or vehicles are present, smart lighting can save power and reduce light pollution while still keeping neighborhoods safe. For example, San Diego believes it will save an estimated $1.9 million annually through the installation of smart street lights. Across the U.S., the potential savings from this approach are estimated to be more than $1 billion per year, Accenture says.
Reduced traffic congestion of 40 percent, enabled by vehicle-to-vehicle communications, could save drivers and enterprises in medium-sized cities approximately $100 million annually. Smart parking could boost urban parking revenue by 27 percent.