The real cost of rolling out and implementing 5G telecommunications technology across all sectors of the economy worldwide is expected to reach at least $2.7 trillion by the end of 2020, according to research by Greensill, a provider of working capital finance.
The telecommunications sector requires an estimated $1 trillion of investment for infrastructure upgrades to accommodate 5G, a number widely accepted across the industry.
Greensill’s research shows, however, that the implementation of 5G across the global economy will cost far more — as much as $1.7 trillion more by the end of 2020 alone — as companies rush to assimilate the new technology into everyday products, industrials processes and infrastructure — otherwise known as “The Internet of Things.”
Tony Wonfor, Greensill managing director and telecoms finance specialist, said, “Spending on 5G roll-out is just the thin end of the wedge. This project is actually about funding the growth of the Internet of Things and industrial connection to that. In the automotive industry, for instance, 5G will be important for tracking components through the supply chain and in to the manufacturing process, then right through to an end product that has connectivity beyond anything we have seen so far.”
Many companies are facing significant challenges in meeting these huge funding requirements as traditional banks alone cannot provide all the necessary funding. Greensill is filling the funding gap with innovations such as Supply Chain Finance, Accounts Receivable Finance and other working capital solutions.
