Page 12 - Connecting the Future How Connectivity and AI Unlock New Potential

Connecting the Future: How Connectivity and AI Unlock New Potential

use mobile Internet due to cost, digital literacy, and device limitations. While 3G remains a reli-
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able option for Internet access to much of the world, it lacks the speed and capacity necessary to
employ many AI applications.
Time and cost remain the biggest barriers to rural cellular coverage development, as single micro-
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wave towers (tower using high-frequency radio waves) can cost USD 100,000-250,000. As with
fixed fiber, networks of these transmission sites fail to provide attractive returns on investment for
telecoms companies, leaving rural neighborhoods disconnected.
1�2�4 Wi-Fi and other Unlicensed Networks

Regardless of the underlying connectivity to the premises, Wi-Fi will almost certainly carry that
traffic within the building. Wi-Fi is not only the dominant form of indoor wireless connectivity but
also carries most of the traffic originating on mobile networks in many countries. The latest Wi-Fi
standards, enabled by large channel sizes, provide high throughputs and low latency needed to
support applications that require cloud-based AI for enhanced processing and storage. For exam-
ple, Wi-Fi plays a key role in integrating AI with sensor networks, enhancing capabilities like home
healthcare through efficient data transmission and processing. 24

One of the major challenges facing unlicensed operations, however, is the lack of spectrum. As the
number of connected devices in homes and businesses has exploded, existing spectrum in the 2.4
and 5 GHz bands has become congested in many countries, affecting performance. While some
countries have made as much as 1200 megahertz of new spectrum in the 6 GHz band available,
many other countries, particularly in Europe and the developing world, have split the 6 GHz band
between unlicensed and mobile use or deferred a decision till 2027 or beyond. Such countries may
face limits on their ability to realize the full benefits of AI over the next 10 years compared to their
counterparts. In addition, because of related regulatory approval delays, 6 GHz-capable equipment
may be costly or not widely available in many developing countries.

1�2�5 Satellite Networks

Last-mile satellite connectivity can help address the rural connectivity challenge. With increasing
public and private investment in non-terrestrial communications networks, satellites play a growing
role in enabling digital connectivity worldwide. Based on current trends, the number of people
connected to the Internet via satellite is projected to reach 500 million by 2030, with associated
economic benefits growing to over USD 250 billion by the end of the decade. 25
Still, power requirements, meteorological impacts, and spectrum deconfliction measures (such
as frequency coordination and power control) limit the capacity and reliability of satellite-based
communications. Such systems offer sufficient capabilities for lower-demand digital communication
methods, but they remain limited relative to other long-haul networks like subsea cables.

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