Warsaw, 23rd August 2018
The development of innovative enterprises possible thanks to the implementation of the 5G network
Polish economy can benefit greatly from the development of wireless communication and 5G technology. The revolution in this field will be possible thanks to the harmonisation of power density limits in Poland with the standards accepted as safe by the World Health Organization and the International Commission on Non-Ionizing Radiation Protection (ICNIRP), as well as thanks to th execution of new investments and infrastructure modernisation.
On August 22nd, the daily paper “Gazeta Polska Codziennie” organised a debate to which representatives of government administration and business environment were invited. They talked about the need to create an ecosystem necessary for technological development in Poland, as well as what should be done to make telecommunications investments take place faster while at the same time, state control is maintained over them.
The guests who discussed the role of modern technologies in the execution of “Plan Morawieckiego” (an economic framework created by Prime Minister Mateusz Morawiecki) were Jadwiga Emilewicz – Minister of Entrepreneurship and Technology, Jerzy Kwieciński – Minister of Investment and Development, Marek Zagórski – Minister of Digital Affairs, Cezary Kaźmierczak – President of the Union of Entrepreneurs and Employers, and Mirosław Godlewski of Boston Consulting Group Poland.
Mirosław Godlewski, Senior Advisor at BCG Poland, pointed out that one of the key barriers affecting the technological revolution, understood as the development of the 5G network, are currently the lowest and most restrictive in Europe PDLs (power density limits). The expert pointed to the constantly growing demand for data transmission. In his opinion, the surplus of demand over supply in this respect will amount to over 30% in two years.
“Without raising and harmonising the power density limits in Poland to the standards in force in other European Union countries, we will not be able to develop the 5G network,” said Mirosław Godlewski.
According to the BCG Report “The impact of PDL (Power Density Limits) on wireless connectivity: is there a threat of delays in 5G development in Poland?”, already today, restrictive power density limits have a negative impact on the mobile Internet service in Poland. None of the largest European countries, such as Germany, the United Kingdom or France, imposes such stringent restrictions on their mobile Internet sector.
Do we want to benefit from transformation?
“4G technology led to digitisation. 5G can lead to smartisation, both in the public and private sectors,” claims the Minister of Entrepreneurship and Technology Jadwiga Emilewicz. “Many analyses indicate that the implementation of new communication technologies, such as 5G, will significantly translate into dynamic economic development of a given country and, consequently, will positively affect the situation on the labour market.”
The Minister pointed out that the creation of a basic infrastructure for the development of the 5G network is crucial for the development of smart cities, telemedicine, transportation and other sectors, such as the financial services sector. “By 2020, we should have several urban centres Poland that stimulate the development of 5G networks,” she added.
“5G technology is one of the most ground-breaking that have appeared in recent years. We see many branches of the economy in which its use will be crucial: transportation, telemedicine, industry,” said Jerzy Kwieciński, head of the Ministry of Investment and Development. “Europe is lagging behind the rest of the world, especially Asia and the United States, in term of 5G networks’ development. One of the developmental barriers is the legal environment. The already mentioned most restrictive power density limits are another. Baltic countries also have a bandwidth problem. Even half of Poland is covered by ‘interferences from the East’.”
The Minister stressed that the Strategy for Responsible Development assumes financing for the development of the 5G network and this is one of the high priority tasks. “We have to systematically introduce changes in the legal environment, but also have to make the requirements related to the investment process more business-friendly, while taking into account social conditions,” he summarised his opinion.
The Minister of Digital Affairs Marek Zagórski, who also took part in the debate, discussed the importance of modern technology which translates into the improvement of people’s quality of life, as well as the infrastructure necessary for its development.
“5G technology consists of several elements: base stations, investments by telecommunications operators, construction of a fibre-optic network. Currently, at the Ministry we are working on a IT system that will support the expansion of a 5G network. Another issue is related to the development of the implementation program in terms of simplifying and shortening the investment process. It is also necessary to reduce local fees introduced by local governments, which make it difficult, for example, to build fibre-optic networks,” said Marek Zagórski.
Cezary Kaźmierczak, President of the Union of Entrepreneurs and Employers, pointed out that Europe is losing to Asia and America through numerous and complicated regulations: “Unless we get rid of the shackles of bureaucracy, not only in this field but also in others, our domestic business will be far behind our competitors from abroad. I appeal to the government for prudence in implementing new regulations.”
What needs to be done first in order for the 5G network to be implemented in Poland?
“Good infrastructure, broadband network covering, if possible, the entire territory of Poland, shortening the construction and modernisation period for broadband stations, full implementation of the European Electronic Communication Code and implementation of the pilot program for 5G network development are challenges that we have to face,” summarised Minister Jadwiga Emilewicz.
Minister Jerzy Kwieciński assured that when it comes to economic experts, the conviction about the importance of this technology seems to be a fact. He also mentioned the need to create a friendly legal environment for the implementation of investments in this area and to convince the public that 5G technology is really safe.
“Finance is the subject concerning the development of 5G networks most often addressed at the Ministry of Investment and Development. It seems that this will not be a big problem – a good legal framework will translate into the fact that business will want to invest in this type of undertakings. 5G technology will be an additional drive for the development of the entire economy,” assured Minister Kwieciński.
Marek Zagórski from the Ministry of Digital Affairs pointed out that quick administrative decisions will have a significant impact on the construction of the network. He also said that the changes would primarily benefit business. In his opinion, it is of key importance to educate this group about the benefits of developing a 5G network.
Cezary Kaźmierczak representing the Union of Entrepreneurs and Employers highlighted the fact that the most important aspects of implementing such changes are political leadership, courage, and determination.