- Greensill research shows magnitude of funds needed by end of 2020
- $1tn for telecoms infrastructure plus $1.7tn for "Internet of Things"
- Alternative finance needed to meet funding requirements
The real cost of rolling out and implementing 5G telecoms technology across all sectors of the economies worldwide is expected to reach at least $2.7 trillion by the end of 2020, this is according to research by Greensill, the provider of working capital finance.
The telecoms sector requires an estimated $1 trillion of investment for infrastructure upgrades to accommodate 5G, a number widely accepted across the industry. Greensill's research shows, however, that the implementation of 5G across the global economy will cost far more – as much as $1.7 trillion more by the end of 2020 alone - as companies rush to assimilate the new technology into everyday products, industrials processes and infrastructure – otherwise known as "The Internet of Things."
Tony Wonfor, Greensill managing director and telecoms finance specialist says: "Spending on 5G roll out is just the thin end of the wedge. This project is actually about funding the growth of the Internet of Things and industrial connection to that." "In the automotive industry, for instance, 5G will be important for tracking components through the supply chain and in to the manufacturing process, then right through to an end product that has connectivity beyond anything we have seen so far," Wonfor adds.
Many companies are facing significant challenges in meeting these huge funding requirements as traditional banks alone cannot provide all the necessary funding. Greensill is filling the funding gap with innovations such as Supply Chain Finance, Accounts Receivable Finance and other working capital solutions.
Lex Greensill, Greensill founder and CEO, says: "Greensill counts many of the world's leading telecoms and industrial companies as clients primarily because of our success in innovating financial solutions across this space. We see our products such as handset financing and other working capital solutions as crucial to the successful roll out of 5G globally."
Greensill is the world's leading non-bank provider of working capital finance to companies globally. Founded in 2011 by Lex Greensill, the company provides businesses with alternative sources of funding, allowing them to provide suppliers with the opportunity for faster payment while at the same time preserving their own capital position.