World Economic Forum Identifies 5G as Foundation for Intelligent Economy

Kathmandu. The World Economic Forum has identified '5G' technology as the foundation of an 'Intelligent Economy'. The organization stated that 5G technology is essential for the digital revolution in industry, education, health, agriculture, and public services. The Forum's conclusion is that 5G can take artificial intelligence, smart cities, automated industries, and digital trade to new heights due to its high-speed internet, 'low latency', and ability to connect numerous devices simultaneously.

5G can act as a powerful catalyst, accelerating productivity, employment, innovation, and economic growth, moving the nation towards becoming a hub for the Fourth Industrial Revolution. Currently, 5G networks worldwide are not just seen as high-speed internet services but also as fundamental infrastructure for transforming a country's economy. Experts say that in the context of a developing country like Nepal, this can bring about significant changes in many sectors of the economy.

As 5G expands, it can accelerate digital transactions, mobile banking, e-commerce, and cashless payment systems. In the industrial sector, the use of smart machines, automation, and real-time data is expected to increase production capacity and efficiency. In the agricultural sector, increased production and cost control are likely to be possible through drones, smart sensors, and digital irrigation systems.

In the tourism sector, Nepal can be presented more effectively in the international market through virtual reality, smart travel services, and digital promotion. In the health sector, with the expansion of telemedicine, video consultations, and remote health monitoring systems, citizens in remote areas can receive specialist services. In the education sector, online classes, digital labs, and AI-based learning systems are expected to help reduce the gap between rural and urban education.

Looking at global practices, this technology is moving towards widespread digital transformation by connecting machines and devices through high-speed data services. Preparations for an even newer technology, '6G', have already begun.

It is believed that 5G will also accelerate the IT, startup, cloud computing, and data center industries in Nepal. It will create new employment opportunities for youth and increase the potential for digital service exports. Smart traffic, digital security, and public service management in cities like Kathmandu will become more effective. In the energy sector, electricity distribution can be organized through smart grids and real-time monitoring systems.

Where are we?

Minister of Communications and Information Technology, Dr. Vikram Timilsina, states that although there is no ambiguity about moving to 5G, the government plans to improve the quality of 4G and utilize it to the maximum while entering the 5G service, as it is not yet possible to shut down 4G and switch to 5G immediately.

He said that the government has recently paved the way for opening the 3300-3700 MHz band for 5G expansion, and the process of providing frequency has been initiated. Minister Dr. Timilsina mentioned that the Radio Frequency Policy Determination Committee meeting set the base price at NPR 4 million per megahertz.

According to the Nepal Telecommunications Authority, preparations are underway to provide frequency for 5G to telecom service providers. According to Deputy Director Dr. Pradip Poudyal of the Authority, preparations are being made to provide frequency for 5G, and the base price for the frequency has also been set. He stated that the process will be moved forward to provide the necessary frequency to telecommunication companies through auction in the coming time.

Deputy Director Poudyal said that since there is no need to test 5G anymore, frequency is being provided directly. "Nepal Telecom has already tested 5G in Sundhara and Babar Mahal in Kathmandu, and in Pokhara and Birgunj. Those tests have shown that it is possible to expand 5G service in Nepal at an international level. Therefore, there is no need for further testing; telecom service providers can obtain frequency for 5G if they wish," he said.

Private sector telecom service provider Ncell has stated that it applied for permission to test 5G some time ago. Ncell CEO Michael Foley mentioned at a recent event that this is the third time an application has been submitted for 5G testing. "If we receive the necessary approvals, we are ready to accelerate technological development by investing heavily in this sector. We plan to expand 5G networks, data centers, and gigabit fiber services to every home," he said.

Nepal Telecom's Deputy Spokesperson Prakshat Thapa Chhetri also said that companies are preparing to operate 5G services. According to him, Nepal Telecom plans to operate 5G services in major cities after obtaining frequency from the regulatory body. "Since purchasing 5G services requires a large investment, and there are high taxes, fees such as annual frequency charges, license and renewal fees, rural telecommunications development fund, and royalties in the telecommunications sector, some policy arrangements are also needed to achieve expected returns in the current situation," Chhetri said.

What is 5G?

5G is the fifth-generation communication service. It is the modern and fast communication technology following the currently used 4G. 5G is considered important for artificial intelligence, smart cities, digital education, telemedicine, cloud computing, virtual reality, and automated industries.

According to experts, while downloading a two-hour movie takes an average of 26 hours on a 3G network and six minutes on a 4G network, it can be downloaded in just a few seconds on 5G. Once 5G is operational, the use of ultra-HD video, AR-VR services, smart industries, digital health, smart education, and modern technologies will become easier in Nepal.

The speed of 5G is up to about 10 times faster than 4G, and its capacity is considered up to 100 times higher. It can provide internet speeds of up to 10 Gbps. Additionally, the very low response time makes 'real-time' services possible. This means not just watching videos faster, but also enabling remote surgery, driverless vehicles, smart agriculture, automated industries, smart traffic management, digital banking, online education, and AI-based services to be operated smoothly through 5G.

The government has begun to consider digital infrastructure as the main basis for economic development. Finance Minister Dr. Swarnim Wagle has stated that the government is focused on making Nepal investment-friendly and moving towards a digital economy. Smartphone users are increasing in Nepal. The import of mobile phones supporting 5G is also on the rise, and data usage is increasing every year. Many countries worldwide are currently shutting down 2G and 3G services. As the world moves towards 6G, Nepal has also started taking steps towards 5G.

Many Challenges Too

The expansion of 5G is not easy. It requires a large investment. An investment of approximately NPR 40 billion is estimated to be required for just one service provider. Nepal's telecommunications industry has been under pressure in recent years. The growth of OTT services, competition with internet service providers, high taxes, and policy instability have affected the industry's revenue and profits.

Nepal Telecom's Deputy Spokesperson Chhetri stated that policy facilitation is necessary before launching 5G services. "A large investment is required for 5G, but the declining revenue graph of telecom companies makes it clear that policy reforms are necessary for 5G," he said.

Ncell CEO Foley said that rapid investment in telecommunications infrastructure is necessary to take Nepal to a new phase of prosperity through a digital economy. According to him, digital connectivity is no longer an optional service; it has become a basic necessity. "There has not been enough investment in Nepal in areas like telecommunications and AI, due to which we are lagging behind global progress," Foley said.

According to experts, to make 5G successful, network construction alone is not enough; long-term policy stability, facilitation in spectrum fees, tax exemptions on equipment imports, digital security laws, and stable business models are also necessary.