By Dr. Ghassan Abdul-Hussein Bilal, Assistant Professor at University of Technology-Iraq
Information and communication technology (ICT) is a key driver of economic and social development in the modern world. It enables various sectors and industries to innovate and grow and supports the transition to the Fourth Industrial Revolution (4IR). One of the most essential ICT innovations is 5G— the new generation of mobile networks that offers unprecedented speed, reliability, and connectivity. 5G can transform every aspect of life; from education, health, and public services to manufacturing, transportation, and energy.
Iraq is a country that recognizes the potential of 5G to boost its economy and improve its citizens' well-being. A solid ICT base can help Iraq achieve its economic and social goals— as it can increase its GDP per capita by up to 60% if it reaches the levels of private sector participation, investment, human capital, and productivity of upper-middle-income countries (UMICs), according to a World Bank report. 5G can also enhance the efficiency and quality of various sectors in Iraq, such as energy, transportation, healthcare, and power supply.
The Middle Eastern nation has relied mainly on its energy resources but is now looking to diversify and digitize its economy. Iraq plans to introduce 5G technology soon and stands to gain from the experience of other Middle Eastern countries that were part of the first global wave of 5G implementation. These countries created an open and collaborative ecosystem that enabled leading 5G vendors from the west and the east to introduce advanced technology in line with global standards and best practices that enabled the public and industry to reap good quality service and multi-fold benefits.
Iraq rolled out 4G for commercial use in 2021, and there is still a lot of scope needed to strength our current 4G network. This year, Iraq's 4G network coverage is estimated to cover 97.45% of our population. From an industry standpoint, the generational cycle of telecommunications technology development is six to ten years. Therefore, before the commercial use of 5G is commenced, the construction of 4G network infrastructure must be increased, which will help achieve the optimal return on investment (ROI) of 5G.
As the implementation of 5G networks nears, we must embrace a systematic deployment approach. 5G development in Iraq can be divided into three stages. In the first stage, the country should research global best practices and set standards of deployment. The government can conduct spectrum allocation in the second stage and initiate a pilot phase. Lastly, the final phase includes improving network construction and perfecting policies. In the future, by focusing on developing 5G business-to-consumer (B2C) and business-to-business (B2B) applications and building a converged application industry ecosystem, Iraq’s deployment of 5G can help us reap numerous benefits.
Prior to the development of 5G, investing in 4G infrastructure is still worthwhile and wise for mobile network operators (MNO). On the one hand, there is still the marketing potential for enhancing the 4G network since people demand faster and more stable services. On the other hand, in the early 5G commercial use stage, operators' network competitiveness can start with 4G+5G; which means key 5G technologies can be applied to 4G networks in advance to improve network performance, to realize a smooth evolution of 5G in the future, and to protect operators' investment.
Based on the experiences from leading markets in 5G, Iraq should evaluate 5G vendors based on their technical performance, quality, security, and adherence to international standards. For example, China specifically has invested heavily in 5G research and development, becoming a global leader in 5G technology. China accounts for nearly 40% of international 5G standard essential patents, while the US accounts for around 35%. The Chinese giant, Huawei, is the top 5G patent family holder with 14% of the global share, and it has spent 25.1% of its total revenue on R&D in 2022, worth USD22.1 billion. This company has not only helped leading global operators— including in the GCC— to launch 5G and utilize its advantages to create new growth horizons in many business scenarios but has also made rapid progress in offering new waves of 5G capabilities to telecom operators and all other sectors and industries through its next generation 5G-Advanced (5.5G) capabilities.
Iraq’s 5G launch can also take advantage of the well-researched industry standards such as GSMA NESAS, 3GPP, and OIC-CERT (Organization of the Islamic Cooperation — Computer Emergency Response) 5G Security Framework. The OIC-CERT 5G Security Framework systematically and comprehensively provides a common assurance mechanism for the individually-certified cybersecurity outcomes of 5G networks and services among the OIC member states.
Iraq’s telecom operators should collaborate with telecom regulators to ensure they base their investments on business growth and the value they can create for other sectors and the national economy. Our country’s growing tech-savvy population and smartphone penetration offer huge market potential for the communications industry. As the demand for digitalization increases, the demand for communication services and internet access will continuously grow. Since 2020, the information and communications industry has steadily developed. In 2022, the revenue of the communications industry reached USD2.19 billion. It is estimated that the revenue will reach USD3.27 billion in 2023.
One more key factor in accelerating the digital transformation across all sectors and industries in Iraq is narrowing down the ICT talent gap and arming the Iraqi new-tech generation with the required advanced skills. This can be done by creating the anticipated ICT talent ecosystem in Iraq in collaboration with all possible partners from the private and public sectors. We, as universities, should also hold an open mind in cooperating with industry contributors to nurture more young people with ICT skills, which will enable the students to be more competitive in securing job opportunities and help develop them into future industry leaders.
Iraq has an excellent opportunity to leverage 4G and 5G technology to advance its economic and social development. Undoubtedly, national Investment in the ICT industry needs to be increased. ICT technologies will shape our future digital economy, and strengthening our current telecom infrastructure will go a long way in building a solid foundation for our bright future. Therefore, developing telecom networks is critical to our economic growth and is an important cornerstone for national industrial upgrading and enterprise development.
