Huawei releases connectivity report, No. 1 is still the US China ranks within the top 30.
Huawei today released the Global Connectivity Index (GCI), which comprehensively and objectively quantifies the process of digital economy transformation for 79 countries around the world, based on four major economic factors and five enabling technologies,*** 40 indicators.The GCI index country rankings, the U.S. is No. 1, and China is No. 27.
Huawei has released, for five years in a row, the Global Connectivity Index ( GCI) report for the fifth consecutive year, continuing to explore the correlation between ICT infrastructure maturity and GDP growth. This report has the following highlights: The United States is ranked first in the GCI country rankings, and China is ranked 27th (****79 countries).
In the past fifteen years, the growth rate of the digital economy has been 2.5 times the growth rate of global GDP; Artificial Intelligence (AI) will upgrade smart connectivity, which pries up a $23 trillion opportunity. The Huawei Global Connectivity Index (GCI) is based on four major economic factors (supply, demand, experience, and potential) and five enabling technologies (broadband, data centers, cloud computing, big data, and the Internet of Things),**** 40 indicators to assess, analyze, and forecast the economies studied, aiming to comprehensively and objectively quantify the process of their digital economy transformation. There are 79 countries in this year's report. Below are the key points of the GCI report. COUNTRY RANKINGS: U.S. No. 1, China one of this year's fastest-improving countries The U.S. ranked No. 1 in the 2018 GCI rankings, having been in sole possession of the top spot since 2015. As the global leader, the U.S. has an absolute advantage in all GCI indicators.
In 2018, supply and demand metrics remained stable in the U.S., but with surging data volumes, there is greater demand for big data and IoT analytics for a better user experience.In 2017, the largest U.S. wireless carriers have initiated out-of-home testing of 5G technology and are on track for some commercial deployments, well ahead of most countries. This is the first step in the telecom industry's transformation of wireless services through significant increases in network speeds and responsiveness, and will help drive the further development of other enabling technologies in the U.S., particularly those that can support massive amounts of data and high-speed transmission. In addition to the U.S., the top ten are Singapore, Sweden, Switzerland, the U.K., Finland, Denmark, the Netherlands, Norway, and Japan, in that order. China ranked 27th in the 2018 GCI ranking, up three places from last year. China's fiber optic and 4G network coverage has increased significantly from last year.
Related indicators such as the number of fixed broadband subscribers, mobile broadband subscribers, cloudiness rate, smartphone penetration rate, and e-commerce transactions have also improved as more users have access to high-quality and well-priced internet services. In addition, the government plans to increase broadband coverage in rural areas to 98% by 2020. China currently has a population of 1.4 billion, with around 20 million students entering higher education institutions each year. in 2015, the percentage of the population receiving higher education increased sharply year-on-year to 20%. In addition, the country is encouraging high-tech courses. These factors have helped China enhance its research strength and optimize its talent structure at all levels. Compared to other countries, China's online shopping boom continues to fester and the mobile payment market is growing dramatically. All this makes China one of the fastest rising countries in the ranking. This year, Huawei expanded the scope of the study from 50 to 79 countries, hoping to provide a more comprehensive picture of the progress of the digital economy in different countries around the world.
By analyzing the relationship between the GCI score and GDP per capita, the following Digital Economy Heat Map visualizes the development of the digital economy in the 79 countries studied. These countries are categorized into three main types, ranging from light to dark: Starters, Accelerators, and Frontrunners. 79 countries account for 95% of the world's GDP. Starter countries are in the early stages of ICT infrastructure development, focusing on expanding connectivity and integrating more people into the digital economy. Accelerator countries are the fastest growing GDP countries. Accelerator countries focus on stimulating demand for high-speed connectivity, driving digital transformation of industries and economic growth. The frontrunners, mostly developed countries, focus on how to enhance the ICT user experience and leverage big data and IoT technologies to build more efficient and smarter societies.The 2018 GCI study found that the frontrunner countries, which are at the top of the GCI-S curve, are utilizing smart connectivity to accelerate the development of the digital economy and tap into new growth opportunities.
The digital economy has emerged strongly in recent years, with the global digital economy growing at 2.5 times the rate of global GDP over the past 15 years. The frontrunners are financially strong and can boost their countries' GCI scores and reap greater economic rewards through the continued development of ICT infrastructure and artificial intelligence. In this case, the starters and accelerators need to invest more in ICT to improve their competitiveness. Overall, the GCI scores of all countries improved this year, but the growth was uneven, and the gap between developed and developing countries on the GCI-S curve continued to widen, with inequality still on the rise. The development of the global ICT industry also continues to show the "Matthew effect". Leaders that continue to invest in and deploy ICT infrastructure reap far greater benefits than those that lack it, and over time the former can capitalize on their initial advantages to further accelerate their development, leaving the starters and accelerators far behind. But there is no cause for discouragement in the countries of the starters and accelerators.
The report shows that regardless of their stage of development, countries can improve their GCI scores by deploying ICT applications in key sectors. gCI2018 shows that the Philippines and Egypt are particularly strong performers. These two countries have vigorously pursued ICT infrastructure development, allowing more people to access the internet at favorable rates and participate more broadly in the development of the digital economy. between 2014 and 2017, smartphone usage in the Philippines increased from 30% to 67%, further popularizing internet services while also creating more new business opportunities. The Philippines' GCI score improved from 34 to 35, successfully transforming itself from a starter to an accelerator. Meanwhile, thanks to the tireless efforts of the Ministry of Communications and Information Technology (MCIT), Egypt's mobile subscriber share of the total population increased from 38% to 62%. Egypt also improved its GCI score by one point this year, making it the leading country among starters.
As a next-generation general-purpose technology that will drive a radical transformation of the economy and industry, AI is now also permeating our daily lives, such as smart terminal assistants, smart investment advisors, multilingual customer service chatbots, and national defense construction. With the penetration and integration of AI technology and the five enabling technologies in various industries, basic connectivity will evolve into intelligent connectivity, bringing unprecedented opportunities for innovation and economic development. Smart connectivity will give rise to new business models, products, processes, and services, unlocking a new model of economic growth that is expected to create $23 trillion in digital economic value by 2025. Regardless of where countries are on the GCI-S curve, policymakers should be aware of the fact that every one-point increase in GCI score pushes up national competitiveness, innovation, and productivity by 2.1%, 2.2%, and 2.3%, respectively, which is a testament to the strategic importance of ICT infrastructure.
In addition, the return on investment for digital technologies is significant, almost 6.7 times that of non-digital technologies. Today, countries are poised for the next wave of economic growth. Regardless of the stage of development, national policymakers in both starters and accelerators should actively explore the value of AI and capitalize on the multiplier effect of smart connectivity to fuel their countries' development. Countries should also incorporate the application and popularization of AI into their national economic development plans. To help national policymakers seize the $23 trillion opportunity, the 2018 GCI report proposes an AI Readiness Scale, which assesses countries' AI capabilities in three dimensions: algorithms, arithmetic, and arithmetic evidence. As it stands, the frontrunners have the most developed ICT infrastructures, outperforming the starters and accelerators on all three metrics. But even the most developed economies are not yet able to realize the full potential of AI.
Countries in all three GCI categories face a shortage of AI talent. As AI evolves, the future of talent will be redefined. Therefore, governments must reimagine their current education systems and begin to build a healthy, open, and collaborative AI ecosystem to attract and retain competitive AI talent. Starters and accelerators need not be discouraged, even though they are late to the ICT infrastructure building game and do not yet have access to affordable AI applications. Cloud computing offers possibilities for developing AI in these countries. Organizations of all shapes and sizes can leverage the cloud's computing and storage capabilities to digitally transform their internal IT systems and data centers, saving significant hardware and software investments.
First movers can take AI innovation to new heights by utilizing ultra-high speed, ultra-low latency 5G networks. Starters and accelerators can further increase broadband coverage, and when connectivity reaches a certain level utilize AI cloud services to tap into their competitive advantage and achieve sustainable growth. While the frontrunners face many new opportunities, the starters and accelerators are methodically focusing on building ICT in their countries to lay the foundation for leapfrogging growth. While the GCI frontrunners are nearing the ceiling in terms of boosting return on ICT investment, AI will upgrade smart connectivity and open the door to a new cycle of economic growth for these countries. While no one can accurately predict where AI will eventually take us, it is certain that AI has unlimited potential and will certainly impact our lives, entertainment, work, and even thought patterns.
Source: finance.com