Public-Private Partnerships Shaping the Future of Global Connectivity

The second edition of Raisina Down Under was hosted by the Observer Research Foundation (ORF) and the Australian Strategic Policy Institute (ASPI), in partnership with the Ministry of External Affairs, India and the Department of Foreign Affairs and Trade, Australia. The panel focused on the issues that define the future of the dynamic region that stretches from the Indian Ocean to the South Pacific. Here, Magnus Ewerbring, Chief Technology Officer, Asia-Pacific, Ericsson shares how private-public collaboration is vital in establishing a globally connected telecommunication network.

How can the public and private sectors collaborate to fully realize the potential of 5G for societal benefit?

Public-private collaboration is crucial for leveraging 5G in ways that extend beyond consumer applications, reaching industries like manufacturing, government services, peacekeeping, defense, and healthcare. Historically, mobile networks primarily served consumers, but 5G opens a new frontier of connectivity and capabilities suited to the needs of industries and enterprises. For these collaborations to succeed, regulatory policies need to support infrastructure expansion and private investment. Public policy can enable private sector innovation by providing incentives and a stable framework that encourages investment, making it easier for operators to invest in networks that meet new, enterprise-level demands.

For instance, Australia has been a leader in adapting mobile technology to industrial needs, with sectors like mining benefiting significantly. The mining industry has adopted 5G to operate heavy machinery like dump trucks and front loaders remotely from office settings, making work safer and more efficient. By regulating to support private infrastructure investments, Australia has created an environment where such innovative applications of 5G can thrive.

Could you share examples of how different countries are implementing 5G to drive progress in unique ways?

Several countries are leading the way in 5G deployment, each with distinct strategies that highlight the importance of regulatory support and private sector participation:

Singapore’s government set ambitious conditions for 5G deployment, requiring full-scale implementation from the outset. This forward-thinking policy helped local operators create an advanced network that serves high-tech applications, especially in healthcare. For example, Singapore’s University Hospital uses 5G to assist in surgeries, overlaying real-time patient data with digital imaging to improve precision. Singapore’s regulatory foresight has enabled these cutting-edge applications, positioning the country as a leader in healthcare technology.

India’s rapid 5G deployment is a testament to the role of private investment in achieving connectivity goals. Over the past two years, private operators have set up more than 455,000 base stations, covering all major cities. The government’s initiative to provide 100 universities with 5G networks aims to spark technological innovation and develop new applications. With widespread 5G infrastructure in place, India is poised to drive innovation not only for consumer markets but for industries as well, marking an important milestone in the country’s tech-driven growth.

For countries with limited infrastructure, what advice would you offer to leverage 5G and other new technologies effectively?

The key is to act decisively and start investing now, as technology is advancing quickly. Innovation is ongoing, and countries that invest in 5G early will gain a competitive edge, particularly in industries that stand to benefit the most, like manufacturing, transportation, and healthcare. Those that delay will likely struggle to keep pace with advancements in connected devices, automation, and data-driven processes. Engaging in international partnerships and collaborating with global tech leaders can help countries overcome infrastructure challenges and implement technologies efficiently.

How can governments incentivize private sector investments in costly infrastructure, such as undersea cables and 5G networks?

Successfully incentivizing private investment in infrastructure projects like undersea cables and 5G networks involves creating a balanced environment where companies can see long-term benefits. High entry costs, such as expensive radio spectrum licenses, can hinder investment in essential infrastructure by reducing the funds available for building comprehensive coverage. Overly low entry costs, on the other hand, may lead to perceptions of favoritism or inefficient use of taxpayer money.

Offering shared subsidies can help, but they should encourage private companies to take on projects willingly rather than feeling forced into participation. When companies feel that their investment in infrastructure will be beneficial long-term, they are more likely to commit fully to development.

Spectrum licensing is a prime example of how pricing can affect private investment. Setting spectrum prices too high may discourage companies from expanding networks into rural or less profitable areas, while setting them too low may attract criticism and limit funding for other public initiatives. Each country needs a tailored approach based on its unique needs, but the principle remains that if the private sector sees a clear business incentive, it is far more likely to invest in meaningful, long-term infrastructure projects.

In essence, governments that prioritize creating a supportive regulatory environment will set the stage for sustained, impactful investments by the private sector. This collaboration between public and private entities has proven effective in sectors like transportation and telecommunications and can guide the future of infrastructure development.