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5G Could Become the Next Big Economic Driver in Brazil

Brazil opened up a 5G tender with a view of $9 billion investment

For a commoner, the meaning of 5G would be to increase the speed of data sent from one party to another. By 2021, we all know that everything is on the internet, right from buying groceries to completing an educational degree. The advent of 5G also touches upon the transformation of Industry 3.0 to 4.0 and AI, Blockchain and IoT in most economies. Industry 4.0 is transforming the way businesses function and 5G could be the next significant factor determining the success of developing countries. Speaking about developing countries and the 5G network, Brazil opened up a 5G tender with a view of $9 billion investment. One of the agendas in pumping $9 billion in Brazil was to accelerate the development of agriculture, businesses, and industries to compete with the developed nations.

The result of agriculture and industries also diverts our minds to a less-discussed aspect of 5G being an economic growth driver than just an internet speed enhancer. PriceWaterCooperhouse predicts that by 2030, 5G would add $330 billion to the global gross domestic product and $15 billion to the manufacturing sector.

Why will 5G Be the Next Big Economic Driver?
Infrastructure plays an essential role in an economy to uplift the gross domestic product (GDP), and the introduction to Industry 4.0 means the use of digitisation in every industry possible. A white paper published by Nokia claims that in Latin America, there is only one broadband service for five families, making it difficult for them to reach out for new sources. The 5G network spectrum will thus play a crucial role in supporting the deep-tech services for digitisation to work efficiently in the face of the scarcity of broadband services.

5G spectrum will improve the telecom sector by a colossal margin and will be helpful in the overall infrastructural development of the country. Infrastructure includes development in logistics, transportation, network connections, public services, etc. By economic law, with the rise in infrastructure, there would be more jobs and thus rising gross domestic product in the global market. A $50 billion infrastructure investment in Brazil is the right step toward developing livelihoods and disposable income. A significant challenge in this segment would be 5G spectrum deployment at the right time at the right place.

In Brazil, 5G would be more focused on the mining and agriculture sector. 5G would bring more digitalisation in the primary industry of the economy like the agriculture and manufacturing sector. It would help to be an integrated ecosystem between the technology partners and agribusinesses. Industry leaders understand the disadvantages of operating without technology and the internet in today’s competitive world. Industry 4.0 focuses on the use of 5G-powered smart farming and agriculture practices. The 5G-powered farm includes machine-to-machine data transferring, proper rainwater and crop harvesting, livestock tracking and management, adequate water irrigation and drone sprayers giving real-time data to the farmers or companies.

Countries like Brazil are primarily based on agriculture, and thus, having precision agriculture practices is necessary to increase productivity. 5G in the industrial sector enhances the use of machine learning and data monitoring. Gone are the days when employees collected data and analyzed it. Today, AI machines and IoT have taken over these roles. Due to intense competition and a shorter product life cycle, deep-tech is necessary for the manufacturing sector. High-end technologies are entirely dependent on high bandwidth internet and network connection. In Brazil, industry leaders are adopting foreign manufacturing techniques like cellular IoT, augmented reality and virtual reality. Brazil has been a supplier of automobiles, manufacturing 2 million vehicles per year. Automotive being the core manufacturing sector of Brazil, the companies are trying to adopt the 5G spectrum for efficiency and effectiveness to extend the market share.

It is believed that 5G will offer 10 Gbps speed for businesses to transfer and simulate data in real-time quickly. The introduction of 5G will benefit the manufacturing sector in various ways. It integrates more machines to gather a single stream of data, followed by companies using 5G networks for advanced predictive maintenance. It can establish a better assembly line at the production unit and efficiently manage resources. All these practices will lead to better production and reflect on the growth of the country’s economy.

The telecom industry of Brazil could see a change in paradigm after setting up 5G spectrum on a pan-country basis. Stretching out the use of 5G to the secondary sector would solve problems from the roots. For example, retailers and wholesalers should be given 5G cards by the telecom providers in Brazil for better connectivity. Brazil is the 9th largest economy and a contender for being the largest economy in the world. Implementing 5G in the country means more job creation, faster payment methods, less margin of error, digitalization of all government activities, including tax payments and customs payments.

One of the backbones of any country is the logistics and supply chain industry. Logistics acts as a bridge between the supplier and the customer. Introducing 5G in transportation and logistics would increase the process by 5 times. We all are aware of the data and paperwork required for each shipment. The 5G spectrum will ensure that all the operations are transparent and with no delay in lead times.

Brazil’s tertiary and service sector contributes 65 percent to the total GDP. The 5G telecom network in health, financial, retail sales, e-commerce would lift the economy. 5G in the health sector means an advanced tool for the management and doctors to make apt decisions at the right time, tracking patients’ movement inside the facility, identifying hotspots when there’s an outbreak, etc. Speaking about 5G in the financial sector boils down to better monetary analysis, better financial decisions, improved cash management techniques, faster and better transfer of financial data, and better investments.

Last but not least, 5G telecom networking will play a massive role in transforming the e-commerce industry. Since 2010, we have seen a rise in last-mile delivery and e-commerce platforms like Amazon. Hyper data mining is possible due to 5G technology, allowing companies and governments to understand consumer behavior better. The companies can sit on a heap of data and analyze it within seconds. Brazil is a country with a majority working-age population; 5G telecom networking would mean better service for the younger generation, more spending, and a rise in the country’s GDP. The open 5G telecom network development will create a competitive and secure ecosystem in Brazil, helping them be in the ambitious game of globalization.

Implementation of 5G telecom network in Brazil
In a developing democratic country, the superiors and democrats vest most of the power, leaving the commoners with old/scarce resources. This approach shouldn’t be the case while implementing Brazil’s 5G network spectrum. $9 billion is a considerable investment for any developing nation, and that investment shouldn’t be debt in the future. 5G is expected to be available in Brazil by July 2022, making these nine months crucial for proper planning and implementation of 5G spectrum deployment.

Deploying 5G to more than 200 million active mobile connections will be an enormous task for the Brazilian Government. The main job for the government would be to assign the 5G contract to the right company carefully. According to an interview with the superintendent of Anatel, telecommunication and technologies are directly related to the country’s success because they move the most diverse sectors of the economy.

Rolling Out the 5G Telecom Network in Government Offices
Government offices and providers are the locus point for all the citizens. The government carries out most of the public services, and implementing the 5G spectrum in these services would improve the overall living index of the country. For example, in South Korea, the government has set up 5G telecom network dongles that are less costlier than broadband for visitors to use whenever necessary. When measuring the growth of an economy, we have to consider factors like the happiness index, living standard index, and security index. With the introduction of 5G, all of the mentioned factors could see a positive marginal change.

Along with government ownership, the private players should also get the 5G spectrum allotment depending on the auction basis. For example, there is enormous competition between Airtel, Reliance, and Vodafone Idea to win India’s 5G telecom spectrum bid. The private players have a hierarchy that is beneficial for developing the system, resulting in the economy’s growth. Privatization will also enable huge companies like Petronas in Brazil to collect data and store them faster, increase communication speed, rely less on other networks, and make better use of Internet of Things technology like RFID chips and Navigators.

One of the significant challenges for Brazil would be to eradicate the difference between urban and rural society concerning the arrival of 5G. Thus, the responsibility falls on the private players to enter the local markets with 5G technology in Brazil. Due to globalization, privacy is being affected on a large scale. Recently, we have seen many legal cases concerning data breaches and cyber security. With the advent of 5G, companies and individuals could develop better software systems requiring high bandwidth.

The introduction of 5G in Brazil will improve its status at the global level. But it could still encounter a few issues. Firstly it would be the involvement of the US and Huawei in Brazil concerning the 5G spectrum, followed by the announcement of the 5G network in only developed parts of the cities. Such bias development could be a hindrance for development. The next issue would be disagreements concerning the auction notice between the technical areas of the federal audit court. Last but not least, placement of antennas all over Brazil.

Industry 4.0 started in Germany using Drones, AI-powered machines, blockchain technology, and the Internet of Things. Due to globalization, Industry 4.0 is spreading like fire, and we can already see the effects in Brazil with the introduction of data-driven technology. The major industries of Brazil are iron and steel production, automobile assembly, petroleum processing, chemicals production, and cement making. The leaders of these companies should make an effort to implement 5G as much as possible and reduce the reliance on 4G and slower broadband services.

What lies ahead
All the technology and software in Industry 4.0 will require high-speed internet, and thus 5G will play an essential role in deciding the future of Brazil’s economy. Implementing the 5G telecom network in Brazil would be a tough challenge for the government, especially when determining the providers and handling the barriers within a democratic society. But with a $9 billion investment of 5G telecom spectrum, the government and businesses can surely increase job opportunities for Brazilians. The government could focus on improving the standard of living for the citizens and visitors, thus attracting more tourists and increasing the tourism revenue. Being a primarily agrarian country, using 5G in agricultural practices will surely enhance the entire pipeline of the secondary and tertiary markets. The 5G implementation would be like a domino effect, improving from the primary to the tertiary sector. Yet, an addition to this chain would be wholly integrating the data collected and information shared.

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