Rollout of 5G could benefit Scotland’s economy by more than £1bn a year

● Best-case scenario possible, but action needed to realise potential, report finds

Scotland’s economy could be boosted by more than £1 billion a year with the rollout of 5G,accordingtonewresearch, but the “huge” opportunity could be missed, with firms currently lacking enough clarity about how they will benefit in the long run.

The study from Barclays Corporate Banking has examined potential scenarios that businesses across the UK could face when implementing 5G.

Benefits of the technology include peak data rates 20 times faster than 4G and simultaneous connections for a million devices per square kilometre, paving the way for innovations in artificial intelligence, for example.

Under an “optimistic scenario”, involving an accelerated rollout of 5G and an enhanced uptake amongst UK businesses and consumers, Scotland will see a £1.12bn boost to business revenue a year by 2025.

In such a scenario, the areas set to see the largest revenue increases across the UK are distribution (£3.6bn), manufacturing (£2bn), professional services (£1.1bn) and business services (£1bn).

Barclays Corporate Banking added that this best case scenario could be a reality, as mobile providers are starting to introduce 5G capabilities on a large scale this year, with BT’S mobile network EE aiming for an Edinburgh launch later this year, for example.

Meanwhile, a slower-thananticipated rollout and limited use would deliver around £563 million of added revenue north of the Border, and the expected pace of development added revenue would reach £904m.

But the study also found that fewer than four in ten “business decision-makers” in Scotland know how their firm can make the most of 5G. Also, when it comes to preparing for 5G, only 18 per cent of Scottish businesses are actively considering how they will harness the new technology.

Furthermore, only 22 per cent of businesses north of the Border are already benefiting from fast communications technology like 4G and ultrafast broadband.

Jamie Grant, MD of Barclays Corporate Banking Scotland, said: “The rollout of 5G offers a huge opportunity for Scotland. We are seeing massive potential for business growth, which ultimately delivers a positive knock-on effect for the whole region…

“To ensure Scotland can realise the full potential of an accelerated rollout, government, mobile operators and other corporate partners – including financial institutions – have a job to do in order to raise awareness amongst businesses so they can harness 5G.”