What's Happening?
The Organization for Economic Co-operation and Development (OECD) has released a report highlighting the significant role of fiber and 5G technologies in driving digital transformation across its member countries. The report notes that fiber penetration
has surged to 47% of fixed broadband subscriptions, overtaking older DSL and cable connections. Additionally, 5G now accounts for 37% of mobile broadband subscriptions, with strong adoption in countries like Korea, Denmark, and Hungary. The report emphasizes the importance of these technologies in enhancing digital connectivity, which became particularly critical during the COVID-19 pandemic. Fixed Wireless Access (FWA) and satellite broadband are also noted for their roles in closing last-mile connectivity gaps, with FWA subscriptions tripling over five years.
Why It's Important?
The advancements in fiber and 5G technologies are crucial for the digital economy, impacting various sectors such as transport, energy, and manufacturing through the expansion of the Internet of Things (IoT). The report indicates that broadband services have become more affordable, with significant price reductions in mobile and fixed broadband services. This affordability, coupled with increased connectivity, supports economic growth and innovation. The shift towards high-quality, resilient, and affordable broadband services is essential for maintaining competitiveness in the global market. Countries with high fiber and 5G adoption are likely to experience enhanced economic performance and improved quality of life for their citizens.
What's Next?
The continued expansion of fiber and 5G networks is expected to further drive digital transformation. Emerging markets such as Chile, Colombia, Mexico, and Türkiye are likely to see continued growth in fiber deployment, replacing older networks. The report suggests that the focus will shift towards improving the quality and resilience of broadband services. Stakeholders, including governments and private sector players, may increase investments in these technologies to ensure widespread access and to capitalize on the economic benefits of a digitally connected society.
Beyond the Headlines
The report highlights the ethical and cultural implications of digital transformation, such as the need for equitable access to technology and the potential for digital divides. As connectivity improves, there is a risk that underserved communities may be left behind, emphasizing the importance of inclusive policies. Additionally, the environmental impact of expanding digital infrastructure, such as energy consumption and electronic waste, may become a growing concern, prompting discussions on sustainable practices in the tech industry.












