Gci 2019 Whitepaper en

Powering Intelligent
Connectivity with
Global Collaboration
Mapping your transformation into
a digital economy with GCI 2019
Presented by Huawei
15
Contents
Intelligent Connectivity
Is Set to Drive Global
GDP Growth
Executive Summary 04
Country Rankings 07
Economic Impact 15
27 Intelligent Connectivity Is Set to Drive Global GDP Growth
New Opportunities Technology Impact 27

On the Horizon with New Opportunities On the Horizon with
Technology Convergence Technology Convergence
Social Impact 35
Intelligent Connectivity As a Force For All
Recommendations 41
How to Leverage the Power of
35
Intelligent Connectivity APPENDIX 45

Methodology & GCI Definitions
As a Force For All The Evolution of the GCI
Executive
GCI 2019 Findings Adequate investment in IoT and related
analytics capabilities are other contributing
GCI 2019 identifies several inflection points factors to boost a country’s AI capabilities.
Summary
where rising GCI scores can potentially trigger
higher economic growth.
AI’s upside potential
Intelligent Connectivity GCI 2019 finds that nations at every level of

digital development are discovering an upside
We expect that nations crossing the GCI 65 potential to AI that will boost GDP growth when
tipping point with a focus on AI will see more AI is deployed in industries and organizations.
than 1% of potential value added to their GDP
The economic success and productivity gains next stage of digital transformation. growth, marking a significant breakthrough
made possible by digital transformation Underpinned by the emergence of AI, Countries with the highest GCI scores can
for Frontrunner economies against a backdrop leverage Intelligent Connectivity to accelerate
depend on investment in ICT infrastructure, a Intelligent Connectivity is shaping a future of several years of sluggish growth after having
fact that’s not lost on policymakers or industry where everything is beginning to act, react, economic growth up to 2.4 times faster than
reached the maximum value-add of previous other nations for every point of GCI improvement.
leaders. However, it isn’t just a case of flexing and collaborate wirelessly and seamlessly ICT investment.
financial muscle and throwing investment at with human preferences, commands, and
tech projects – guided investment is necessary intentions. In this future, we believe that However, even GCI Frontrunners are relative
While many Starters and Adopters lack the ICT beginners in the Intelligent Connectivity arena, as
to forge a strong digital economy that reflects everything will be sensing, connected, and infrastructure to fully benefit from deploying AI, it
current economic and technological realities. intelligent. they’re still learning how to develop, deploy, and
should still be a focus of policymakers’ long-term train AI to solve real-world challenges. Cloud-
Investing effectively requires an understanding strategy. Broadband connectivity is more
of how ICT maturity influences productivity, GCI 2019 also considers what we call AI’s based AI is in fact creating more of a level-playing
important than ever, because distributed field for Adopters and even Starters to reap the
a knowledge of where the tipping points for Upside Potential – the potential growth that AI computing and the processing capabilities of
growth sit, and an insight into national ICT can realize for GDP, and one which has led us to benefits of Intelligent Connectivity, with AI’s
cloud intelligence reduce the need for local upside potential more evenly distributed across
development in the context of an evolving expand our scoring parameters for GCI. New to data centers and computing infrastructure,
global ecosystem that’s based on collaboration. this year’s report is Ecosystem Stakeholders. regions and industries.
instead requiring access to remote resources.
Reflecting the rise of the cross-border collabo- Governments and industry leaders in Starter and
Huawei’s Global Connectivity Index charts the ration that’s shaping the global economic Adopter nations should prioritize work on 5G’s rapid rollout will create
progress that 79 nations are making with ICT ecosystem, we’ve identified five stakeholder national-level Intelligent Connectivity and AI new economic growth
infrastructure in relation to previous years, roles that underpin the digital economy and initiatives to accelerate access to these If the introduction of 5G follows the patterns of
national growth, and each other. It offers a enable Intelligent Connectivity. technologies. previous wireless networks, we can expect a
strategic overview that can serve as a spike in global growth. With each new wireless
springboard for policymakers and industry The future is not guaranteed and change is GCI 2019 also finds that when a nation’s cloud generation, businesses worldwide have quickly
leaders to set national and business roadmaps never easy, especially when set against the readiness and IoT readiness scores cross the taken advantage of the improved broadband
for future social and economic development. sluggish economic outlook that’s predicted 50 and 45 mark respectively, AI’s impact on experience to launch new products and
for 2019 and 2020. It will take investment, their economy begins scaling up. Simply put, a services, optimize operations, and boost
This year’s report evolves the concept of infrastructure, data, and determination. country is required to achieve an IT spend of productivity. Typically, growth from a new-
Intelligent Connectivity – the powerful It will take forethought. And it will take between 3-4% of GDP to achieve the cloud and generation wireless network kicks in when
convergence of broadband connectivity, an understanding of how to plan ICT IoT readiness levels to reach the tipping point global market penetration reaches 10%.
cloud, IoT, and AI that represents the strategies based on the convergence of for AI to take off. However, while it took seven years for 3G to
emerging technologies. reach 10% of the global market and six years
As a touchstone of AI readiness, cloud provides for 4G, we expect 5G to reach the 10% tipping
the data storage and computational point in four years.
capabilities required by AI. Another
precondition for AI readiness is a strong 5G starts with a key advantage: more than 40
installed base of IoT, which collects and 5G-ready devices, mostly smartphones, will be
creates the massive datasets that AI systems on the market in 2019. 5G semiconductors and
need to develop insights and expand routers are also available today, well in advance
their capabilities for machine learning. of 5G’s network maturity and availability.
EXECUTIVE SUMMARY | 5
Country
Ecosystem stakeholders drive collaboration and certainly global ecosystems are
In an increasingly connected world, success will increasingly reliant on cross-industry and
depend on the ability to collaborate. Intelligent national collaboration to create value for all
Connectivity and other new technologies are participants; i.e., nations, enterprises, and the
public.
Rankings
making a global ecosystem possible that will
see millions of partners across industries and
nations collaborate to create sustainable Intelligent Connectivity as a force for all
socioeconomic development. This year’s report also covered social impact. We
realized that Intelligent Connectivity is not only
Intelligent Connectivity ecosystems employing being recognized as a force for economic growth
AI, cloud services, and IoT will thrive with the but may be the answer to many of society’s most
growth in volume and quality of the structured complicated and deeply rooted challenges,
and unstructured data that becomes available. including the wealth gap between rich and poor,
Intelligent Connectivity can then deliver high- inclusive development, environmental
quality personalized products and services conservation, and climate change. Technology is
that engage more users, and in turn increase an intrinsic part of today’s world. However, it
the quality and abundance of data, thus creating shouldn’t be available only to those who can
a virtuous cycle. afford it. We look forward to policy makers and
industry leaders increasing efforts to make
GCI 2019 identifies five stakeholder roles that technology, applications, and skills accessible
can collaborate across domains, break down to everyone, and bringing digital technology to
organizational silos, and deliver fast results to every individual, home and organization.
customers: Decision Makers, Data Scientists,
Data Collectors, ICT Companies, and End Users. The rise of Intelligent Connectivity marks a
Understanding how to participate and leverage critical point of acceleration in the global digital
the strengths of these collaborative transformation that the GCI has tracked for five
stakeholders is crucial for policymakers and years. ICT is already having a strong economic
industry leaders to deliver sustainable growth impact across countries and regions in every
for their country or organization, especially as stage of development. While still in its infancy,
the influence of Intelligent Connectivity expands. Intelligent Connectivity’s ability to boost
productivity, spur innovation, and accelerate the
GCI 2019 also finds that nations that closely development of new business models will affect
work with other trading country partners have virtually every aspect of socioeconomic
a higher chance to recap the greatest benefits development in ways yet to be imagined.
of Intelligent Connectivity, as local, regional,
6 | GLOBAL CONNECTIVITY INDEX 2019 COUNTRY RANKINGS | 7

Country
Rankings Country Rankings
FRONTRUNNERS ADOPTERS STARTERS

The GCI has expanded its research methodology in 2019 to provide policymakers
RANK COUNTRIES SCORE RANK COUNTRIES SCORE RANK COUNTRIES SCORE RANK COUNTRIES SCORE
with a comprehensive picture of AI’s growing influence on the global economy
1 United States 85 21 Estonia 62 38 Greece 50 56 Peru 38
2 Switzerland 83 22 Spain 60 39 Croatia 50 57 Vietnam 37
The Global Connectivity Index tracks the important for policymakers in advanced
3 Sweden 81 23 UAE 60 40 Bahrain 49 58 Egypt 37
relationship of ICT infrastructure investment economies who have seen growth slow as they
4 Singapore 81 24 Portugal 60 41 Russia 49 59 Philippines 37
and economic growth to provide policymakers have squeezed most of the available digital
5 Denmark 78 25 Czech Republic 58 42 Oman 48 60 Ecuador 37
with a view of the trends and information they dividends from their ICT investment in recent
6 Japan 75 26 China 57 43 Saudi Arabia 48 61 Morocco 36
need for sound decision-making. GCI 2019’s years. In the next chapter, “Economic Impact”,
7 Finland 75 27 Italy 57 44 Brazil 47 62 Indonesia 36
research methodology has been expanded to we will explain why the Frontrunner nations view
8 Norway 75 28 Lithuania 56 45 Turkey 46 63 Lebanon 34
better reflect the emergence of AI and Intelligent AI as a powerful driver enabling them to resume
United Kingdom 74 Slovenia 56 Kuwait 45 Jordan 34
Connectivity and to explain the technologies or accelerate economic growth. 9 29 46 64
Netherlands 74 Malaysia 54 Belarus 45 India 34

that we believe will drive economic growth in 10 30 47 65
Australia 74 Hungary 54 Argentina 45 Venezuela 33

the near future. GCI 2019 also identifies a surge in average GDP 11 31 48 66
New Zealand 72 Slovakia 53 Kazakhstan 44 Paraguay 33

per capita across all three country clusters. The 12 32 49 67
GCI 2019 follows the digital development of 79 averages of Frontrunners, Adopters, and Starters 13 South Korea 70 33 Chile 52 50 Ukraine 44 68 Algeria 31
countries, with each assigned a GCI score have increased to US$58,110, US$17,200 and 14 Canada 70 34 Bulgaria 51 51 Mexico 43 69 Bolivia 31
Germany 69 Uruguay 51 South Africa 43 Botswana 30
ranking it along an S-curve graph. Countries on US$3,800 respectively this year. Frontrunners 15 35 52 70
the S-curve are grouped into three clusters – enjoyed the largest 12-month expansion of 16 Luxembourg 69 36 Poland 51 53 Serbia 43 71 Ghana 29
Starters, Adopters and Frontrunners –according GDP per capita: US$4,000. Adopters and Starter 17 France 68 37 Romania 51 54 Thailand 43 72 Kenya 29
to their level of ICT investment, maturity, and nations also saw significant improvements in GDP 18 Ireland 67 55 Colombia 41 73 Bangladesh 28
economic development. Thanks to the expanded per capita of US$900 and US$100 respectively 19 Austria 65 74 Namibia 28
scope of the methodology, GCI 2019 showcases over the past 12 months. 20 Belgium 65 75 Nigeria 27
AI’s influence on GDP growth, which is particularly 76 Pakistan 27

77 Tanzania 24
78 Uganda 24
79 Ethiopia 23
GCI SCORE RANGE 65-85 40-64 23-39
GDP PER CAPITA US$58,100 US$17,200 US$3,800
CHARACTERISTICS These nations are mainly Nations in this cluster These are nations in the
developed economies. experience the largest GDP early stage of ICT
Their focus is on growth from investment in infrastructure build-out.
enhancing the user ICT infrastructure. Their Their focus is on expanding
experience. At this stage focus is on increasing connectivity coverage to
of development, the demand for high-speed give more people access to
priority shifts to connectivity to facilitate the digital economy.
investment in Big Data industry digitalization and
and IoT to develop a economic growth.
smarter and more
efficient society.

Contrasts grow as
Frontrunners pull further ahead
A quick comparison of how the digital economy
developed in the years between the GCI
reports from 2015 to 2019 demonstrates the
degree to which Frontrunners are pulling
ahead of less developed economies. In
2015, the gap in average GCI scores between SWITZERLAND BULGARIA VIETNAM
Frontrunners and Adopters was 21.7 GCI
points. That gap grew to 23.1 points in 2019.
During the same period, the gap separating The Swiss have aggressively invested in 4G Over the past year, Adopter country Bulgaria Vietnam is the rising star among Starter
the average scores of Frontrunners and to make mobile broadband services widely has seen a remarkable improvement in its GCI nations, improving its GCI score by two points
Starters grew from 37.5 points to 41.9 points. available and affordable for the country’s 8.5 scores, jumping four points to 51 thanks to to 37 in 2019. With a population of 94.6 million,
The GCI point spread between Frontrunners million people. Switzerland today enjoys one its National Broadband Infrastructure Plan the Southeast Asian country has significantly
and Starters has expanded on average by of the highest broadband penetration rates in and other favorable initiatives. The plan increased smartphone penetration and
3% annually from 2015 to 2018. Since the Europe and among OECD nations. In 2019, the prioritizes building broadband infrastructure mobile broadband subscriptions. According to
publication of GCI 2018, that gap grew by 4%, Swiss government auctioned frequencies on for next-generation access and the increased Vietnam’s Ministry of Information and
due in part to the influence of AI, which has the 5G mobile spectrum for 380 million Swiss use of the radio spectrum, with boosting Communications (MIC), the country’s base of
accelerated GDP growth for Frontrunners. francs (US$379 million) to boost the development access in remote and sparsely populated 4G subscribers grew to more than 13 million in
Since advanced digital economies are better of IoT, industrial automation, and autonomous areas a top priority. It also sets broadband 2018, which accounts for about 30% of the
positioned to fully leverage the capabilities of vehicles. In addition, Switzerland’s Federal targets in line with the Digital Agenda for total number of mobile phone subscribers.
Intelligent Connectivity to drive growth, the Office for National Economic Supply (FONES) Europe: at least 30 Mbps for 100% of the While still investing heavily in 4G, Vietnam is
Frontrunners of the GCI S-curve have taken published a new ICT minimum standard to population and 100 Mbps and above for already gearing up to become one of the first
a steeper trajectory this year, reflecting a protect against cybercrime in 2018. The ICT cyber at least 50% of households by 2020. Southeast Asian countries to roll out 5G. The
spurt in economic growth from deploying new risk standard aims to strengthen cybersecurity nation’s biggest carrier Viettel has announced
technologies. for all sectors of the economy and society and Aspiring to transform into Digital Bulgaria, plans to launch 5G services by 2021 and is
protect the operators of Switzerland’s critical the European nation solidified its roadmap for preparing to test a 5G broadcast station in
infrastructure. Reinforcing its ICT security achieving its targets. In just 12 months, the Hanoi with speeds of 600 to 700 Mbps.
Top movers in one year and installed base of secured servers was an nation has made outstanding improvements
important factor in Switzerland’s GCI score in mobile broadband access, affordability,
• Once again, the US claimed the top spot in the increase of five points from 2018 to 2019. and maturity, opening up enormous
GCI rankings in 2019, followed by Switzerland, opportunities for Bulgarian citizens and
which moved ahead of last year’s second- businesses due to enhanced broadband
ranked Singapore. infrastructure and new digital services.
• Among the 79 countries ranked in the GCI 2019

report, the Adopter nation Bulgaria enjoyed the
largest increase in GCI score, climbing eight
positions to reach number 34 in the rankings.
• Other rising stars among the Adopters include

Ukraine, which climbed four places from
2018 to rank 50. A few countries, including
Bangladesh, China, Japan, Lebanon, Norway,
and Vietnam, also rose three ranks in this
year’s GCI.

Top movers in four years
From the GCI’s first edition in 2015 to the 2019 report, we’ve witnessed remarkable growth in the global
digital economy. During that time, four countries stand out among Adopter and Starter nations for their
impressive improvement in GCI scores: Ukraine, South Africa, Bangladesh and Algeria.
UKRAINE SOUTH AFRICA BANGLADESH ALGERIA
Ukraine is a rising star among the Adopters – South Africa has moved up 10 GCI points since In less than five years, Starter nation Bangladesh Algeria’s GCI score has climbed eight points
its GCI score has climbed 12 points in just five 2015. The Adopter nation has invested boosted its GCI score by seven points. Since 2015, since 2015. During that time, the North African
years. The country’s mobile subscriptions significantly in ICT and has increased mobile mobile subscription penetration jumped from 5% Starter nation recorded strong growth in mobile
jumped from 8% to 95% penetration from 2015 broadband subscriptions from a penetration rate to 41% and smartphone penetration from 7% to broadband and smartphone subscriptions, the
to 2019, and government statistics record that of 51% to 103% over five years. Smartphone 34%. In addition to mobile subscriptions, the penetration of which increased from 21% to 78%
of Ukraine’s 26 million Internet users, more penetration also expanded from 33% to 96% over country’s fiber to the home (FTTH) coverage and and 14% to 55% respectively, due in part to the
than 25 million access the web via mobile the same period. While ICT availability and fixed broadband base also made significant introduction of 4G services in 2016. As market
broadband. GCI 2019 also found that Ukraine adoption are not widespread in South Africa, the progress. E-government services also grew competition intensifies in Algeria, 4G services
has significantly improved its cybersecurity government has proposed to use ICT to promote thanks to the Bangladeshi government’s support have improved and become more widely available
awareness and ICT laws. Alongside Tunisia, it efficiency and effectiveness, with the aim of for public-private dialogue and collaboration on for its 42 million citizens. Capitalizing on its 4G
was one of the first NATO partners to position making government services accessible on digitalization. A United Nations’i report described success, Algeria is also working today to become
cybersecurity training as part of the NATO digital platforms to more than 57 million citizens. the Bangladeshi government’s support for an early adopter of 5G network services. Algeria
Defense Education Enhancement Program last Notable e-government successes include the digitalization and ICT development as Telecom subsidiary Mobilis successfully tested
year. In 2017, HI-TECH OFFICE UKRAINE worked National Treasury’s eTender Publication Portal, “exemplary.” As part of Vision 2021, Digital 5G connections in Oran during the Smart Algeria
with various Ukrainian cities to launch the eHomeAffairs, and the South African Revenue Bangladesh aims to transform the country Forum. The Algerian government has updated its
Digital City – Digital Ukraine project, which Service’s eFiling system. into a modern, knowledge-based society that ICT legal framework and introduced a series of
aims to improve e-government services. The promotes digital inclusion by 2021. new regulations to support the sector’s growth,
program is designed to integrate efforts to sparking a surge in the number of software
create common approaches for the systematic developers and new business models in the
implementation of smart grid projects and country. For instance, more than 100 Algerian
initiatives in Ukrainian cities. startups have already contributed to the Algiers
Smart City project launched in 2017 as part of
the city’s’ strategic urban development plan.

Expanded GCI methodology reflects AI’s impact
The GCI has revised its methodology over time incorporating Big Data into the newly created
to better capture how technology evolves and AI parameter. The new AI parameter includes
Economic
provide actionable insights on the correlation Data creation, AI Investment, AI-enabled
between ICT investment and GDP growth. We robotics, and AI potential. While the research
did so again this year to highlight AI’s role in methodology expanded in 2019, we also did some
empowering Intelligent Connectivity. consolidation. Intelligent Connectivity’s five
enabling technologies were consolidated
Impact
The first change in methodology was to assign into four: Broadband, Cloud, IoT, and AI. The
AI indicators heavier weight in the model, as AI expanded methodology’s impact on the GCI
exercises a positive impact on the other is also notable as it clearly shows how AI
technology enablers as well as having its own has turned even the most advanced digital
direct impact. Each indicator has a scale based economies into “beginners” that are learning
on a realistic target value for beyond 2025, with
Intelligent Connectivity Is
how to apply the new technology. At the same
a score of 10 reflecting that the target value time, the new methodology highlights how
has been reached. Intelligent Connectivity, which includes AI, has
Two other notable changes in the research

opened a new cycle of economic growth for
countries on the GCI S-curve. The full score of
Set to Drive Global GDP Growth
methodology were made: merging the GCI 2019 has also increased from 100 to 120 to
Data Centers parameter into Cloud, and reflect ICT’s impact on future economic growth.
The new 40 indicators of GCI 2019
Four Pillars
SUPPLY DEMAND EXPERIENCE POTENTIAL
Measures current levels of Gauges demand for Comprises variables for Comprises a forward
supply for ICT products and connectivity in the context analyzing the experience of looking set of indicators
services used for digital of users and activities connectivity for end users that point towards the
transformation. relating to digital and organizations in today’s future development of the
transformation initiatives. digital economy. digital economy.
FOUNDATION ICT Investment App Downloads E-Government Services R&D Expenditure

Telecom Investment Smartphone Penetration Telecom Customer Services ICT Patents
ICT Laws eCommerce Transactions Internet Participation IT Workforce
International Internet Computer Households Broadband Download Software Developers
Bandwidth Speed
Secure Internet Servers ICT Influencing
Security Software Cybersecurity Awareness New Business Models
Investment
BROADBAND Fiber Optic Fixed Broadband Fixed Broadband Broadband Potential

Four Technology Enablers
Subscriptions Affordability
4G Connections Mobile Potential
Mobile Broadband Mobile Broadband
CLOUD Cloud Investment Cloud Migration Cloud Experience Cloud Potential
INTERNET OF IoT Investment IoT Installed Base IoT Analytics IoT Potential
THINGS
ARTIFICIAL AI Investment AI-enabled Robotics Data Creation AI Potential

INTELLIGENCE
14 | GLOBAL CONNECTIVITY INDEX 2019 ECONOMIC IMPACT | 15

Economic
Impact AI transforms connectivity into Intelligent Connectivity
Intelligent Connectivity Is Set to Drive Global GDP Growth
Comprises four technology enablers: Broadband, Cloud, IoT, and AI
Intelligent Connectivity’s ability to drive economic expansion will be a welcome
influence in 2019 at a time when the IMF’s World Economic Outlook sees global GDP
growth slowing due to a toxic cocktail of trade tensions and political uncertainty. Cloud Broadband IoT
Intelligent Connectivity’s ability to accelerate technology development to support Stores data and Provides connectivity Creates and
innovative business models and solutions may offer promising new options to help information while to feed data and collects data to
providing computing information to AI feed AI systems
keep GDP growth on track. capabilities to run and systems and carry while implementing
scale AI instructions to IoT and instructions from
decision makers AI systems
Growth prospects for countries in the GCI are seamlessly with human actions, preferences,
+
increasingly tied to their ability to improve ICT commands, and even intentions. But this change
infrastructure by making connectivity smarter. is not inevitable and will not be painless. It
Connectivity can be understood as a mix of requires investment, infrastructure, data, and
ICT infrastructure, including broadband, cloud, above all a willingness to take advantage of the
and IoT. But when AI is added to the mix, it is opportunities that the new technologies provide.
transformed into Intelligent Connectivity. With Artificial Intelligence
Intelligent Connectivity, AI plays a dual role: In GCI 2018, we forecasted that an additional AI improves accuracy and contextualization through machine learning
the first is to optimize how ICT infrastructure US$23 trillion in economic potential will be and continuously improves by discovering new patterns of data
functions together; the second is that AI can available by 2025 if each country featured in
help workers make faster and better decisions. the GCI increases its annual ICT infrastructure AI impacts AI impacts broadband by AI and edge computing
Both accelerate the digitalization of society investment by 8% (CAGR). Elevating ICT cloud services by minimizing network enable smart sensors
and economies, and help create new products infrastructure to the level of Intelligent optimizing resources congestion and speeding and actuators
and services. Intelligent Connectivity is shaping Connectivity is a crucial step for countries up critical data transfer
a future where increasingly all things will move, that aim to achieve sustainable growth.
act, react, and collaborate wirelessly and

Digital investment inflection a new economic growth cycle. Recently, many AI’s upside potential experience and find ways to adapt the technology
points accelerate GDP growth Frontrunners with a long history of aggressive
Another key finding in the GCI 2019 is that
to work in their own ICT environment. Developing
investment in ICT infrastructure saw growth economies accessing AI will play an important
In 2016, the GCI identified several inflection stagnate due to having exhausted much of the countries at every level of digital development role in spreading the technology’s benefits across
points where a nation’s investment in ICT value from existing ICT infrastructure. on the GCI S-curve are discovering an “AI regions and industries.
infrastructure jump-starts GDP growth. These upside potential” which, means that tapping
inflection points are ramps to the fast lane of the When these nations begin to tap the benefits of the full potential of AI could significantly The inflection point seems to be at the 65-point
digital highway. For developing nations working to Intelligent Connectivity, their enhanced digital increase GDP growth. GCI score, as this is where Frontrunners begin to
build basic broadband infrastructure, achieving a capabilities will potentially accelerate GDP efficiently apply AI solutions. From this point on,
GCI score of 35 points typically accelerates growth. As Intelligent Connectivity breathes Much of today’s economic benefits from AI still we expect AI’s impact to add more than 1% of
digital development and opens a range of new life into their economies, the US, go to the GCI’s most advanced nations, as they potential value to Frontrunners’ GDP growth.
Internet-driven business opportunities that Switzerland, Singapore, Japan, and other have the most developed ICT infrastructure, What does this 65-point score mean for ICT
boost GDP growth. GCI Starters prepared to take Frontrunners have set in motion a new cycle of research, and capabilities. However, even GCI adoption? We will explain more in later chapters.
advantage of this inflection point can find digital economic growth. While Starters and Frontrunners are relegated to beginner status The chart below also shows that countries with
themselves on a fast track to digital development Adopters may still lack the ICT infrastructure to with AI technology while they learn how to develop, a higher GCI in the top right quadrant can
and sustainable growth. leverage the value of AI solutions, the adopt, and train it to solve real-world challenges. leverage Intelligent Connectivity to grow their
technology should be a focal point in But, with AI algorithms and services readily economies 2.4X faster than other nations for
Digital economy inflection points are not policymakers’ long-term strategies. available on cloud platforms, Adopters, and even every point of GCI improvement.
limited to Starters, however. A major finding in Government and industries in the Starter and Starters will inevitably learn from Frontrunners’
GCI 2019 is that countries higher up the GCI Adopter nations need to prioritize work on
S-curve – in particular Frontrunners with the national Intelligent Connectivity and AI
most advanced digital infrastructure –also initiatives to speed up access to these
benefit from an inflection point that ignites technologies, which are set to play a growing
GDP growth, which will help them to enter role in building the global digital economy. AI’s upside potential
GCI 2019 – S-Curve 1.6%
United States
Ireland
Starters Adopters Frontrunners Frontrunners
1.4%
Denmark Switzerland Adopters
C²
Average GDP Average GDP Average GDP
Luxembourg I+ Starters
Per Capita: Per Capita: Per Capita: Sweden
GC
US$3,800 US$17,200 US$58,100
4m
GCI Score Range: GCI Score Range: GCI Score Range:
1.2%
2.
=
23–39 40–64 65–85 China P
120K Finland GD Potential additional
Argentina Austria
Luxembourg impact value
110K 1%
Turkey
100K
Brazil South Korea
0.8%
90K Vietnam
Italy 0.4 468
Estonia
Switzerland India
80K Norway Pakistan United Arab Emirates
Mexico
0.6% Malaysia
Ireland
70K
Singapore Uganda Colombia Note
Denmark
Kenya Regression analysis
60K Australia
United States Bulgaria using AI-GDP impact
Austria Nigeria
0.4% Egypt Kuwait
ratio versus GCI 2019
50K Belgium Finland Sweden Ghana
scores was used to
GCI + C ¹
Canada
40K United Arab Emirates
Japan
GDP = m develop the model
France for country clusters
AI-GDP impact %
Italy 0.2%
Normal GDP per Capita (US$)
30K South Korea at the 65 inflection

Kuwait point.
Slovenia
Greece
20K
Czech Republic
Oman Hungary 0%
Argentina
10K Botswana China
Namibia 20 30 40 50 60 70 80 90 100
Ethiopia Belarus 65
0
Peru Ukraine
GCI Score 2019
20 25 30 35 40 45 50 55 60 70 75 80 85 // 120
65
GCI Score 2019

For Frontrunners like the US and Japan that Moreover, higher numbers of engaged users Decision Makers: highest value element of an ecosystem due
possess the most advanced ICT infrastructure, means a greater volume of relevant data will to their high labor costs and focus on
AI upside potential today represents a huge become available. Ideally, this process • Function: The initiators of Intelligent creativity and services. They are in short
gap in untapped capabilities and economic continues as a virtuous cycle, fostering innovation Connectivity ecosystems. They launch the supply worldwide – currently there are only
growth. In the case of the US, AI’s current and generating additional value across the ecosystems that create value, improve an estimated 300,000 AI professionals in
impact on the country’s GDP is estimated to be stakeholders who comprise the Intelligent productivity, and expand the scope of their the world, of which only about 10,000 (3.3%)
300% to 400% lower than its potential value. Connectivity ecosystem. operations and opportunities. are qualified as ‘specialists’ according to
the World Economic Forumiii. Millions of
Adopter and Starter economies like China, These Ecosystem Stakeholders comprise five • Positioning: Typically, a large enterprise or Data Scientists will be needed as Intelligent
Malaysia, India, the Philippines, and Spain are roles: Decision Makers (countries, organizations government entity that identifies business Connectivity ecosystems expand around
determined not to be left behind, with each or enterprises), Data Scientists, ICT Companies, cases or social programs where AI can be the world. The demand for experienced
working to deploy AI. While still classed as an Data Collectors, and End Users. applied through an Intelligent Connectivity Data Scientists has made this group a
Adopter, China is among the world’s most ecosystem to improve operating efficiency. mobile workforce, moving to follow career
advanced nations in terms of AI development. Decision Makers in countries at every stage of The strategy for ecosystem-building often opportunities, and in some developing nations
Policymakers and business leaders in these economic and digital development will need to involves cross-industry players that causing a brain drain of these specialists.
nations have much to learn from AI use cases, realistically evaluate their economy’s strengths collaborate to enable innovation and expand
and will need to become better attuned at to determine the best opportunities to opportunities beyond the capabilities of any • Examples: Advanced economies, such as the
identifying niches or business opportunities participate and succeed in the Intelligent single participant. UK, Singapore, Switzerland, and Finland,
where they can adapt AI to profitably participate Connectivity ecosystem. They will need to have become centers for Data Scientists
in Intelligent Connectivity ecosystems. As understand the roles of the ecosystem’s • Examples: Decision Makers are seen in GCI where government and business support the
nations improve their GCI scores and develop various stakeholders to develop viable growth Frontrunners such as the US, Japan, education and research infrastructure
the infrastructure to support AI, AI upside strategies for their own countries and Singapore, Germany, the UK, France and needed to develop AI solutions.
potential will begin to make itself felt through industries to participate. South Korea. China stands out among
GDP growth. Adopter nations for its advanced work in AI
Participants in the ecosystem can expand the and the ability to develop Intelligent Data Collectors
scope of their expertise by collaborating across Connectivity ecosystems and complete
Intelligent Connectivity roles and domains, breaking down silos in their supply chains. • Function: They collect and share the data
creates value through organizations, and creating value and more necessary to create actionable insights, train
AI systems, develop business models, and
collaborative ecosystems quickly delivering results to customers that
Data Scientists provide customized services for ecosystem
increase business opportunities. At its most
Intelligent Connectivity functions and creates basic level, stakeholders in the Intelligent players. Data Collectors can come from
value through collaborative ecosystems. If oil was Connectivity ecosystem have the potential to • Function: They analyze the data flowing countries at any level of economic
the fuel of economic growth in the 20th century, create value and sustainable cycles of success through the ecosystem to obtain insights and development – from a business executive
data is the driving force of sustainable growth in where each of the five roles generate value and provide innovative use cases for downstream providing feedback on a business-class flight
the 21st century. Intelligent Connectivity profit from their work. deployment by ICT Companies and Decision to a farmer monitoring and sharing crop data
ecosystems employing AI, cloud services, and IoT Makers. Data Scientists might also have the to a senior citizen making their opinion heard
thrive and expand in relation to the volume and Understanding how to participate and leverage industry know-how to better understand on a government service.
quality of available data. When more relevant the strengths of the collaborative ecosystem is business processes. Other industry experts
unstructured data is accessible for AI to analyze, crucial for policymakers and industry leaders are Decision Makers or industry leaders.
Intelligent Connectivity becomes better at that aim to deliver sustainable growth for their
predicting user needs. With higher volumes of country or organization. These stakeholders • Positioning: They offer expertise in data
high-quality data, Intelligent Connectivity can are expected to play a growing role in economic analytics as well as experience in developing
deliver personalized products and services to win development as the influence of Intelligent and deploying machine learning algorithms.
new customers and solve real-world problems. Connectivity expands. A closer look at how the Their work requires advanced infrastructure
Intelligent Connectivity ecosystem functions services and skills supported by consulting
and the five stakeholder roles is as follows. groups, universities, and research
organizations. Data Scientists represent the

• Positioning: They play an indispensable • Examples: Adopter and Starter nations, such A typical Intelligent Connectivity ecosystem
role in supplying the basic data that drives as India, China, and the Czech Republic, play
the ecosystem. Once data is collected, it is important parts in developing ICT Companies
passed to other players for further analysis to serve ecosystems due to their often large,
to become productive. The key to the success high-quality, and typically lower-cost ICT
of Data Collectors is their ability not just to talent pool.
access data, but to access the most relevant
and useful data the ecosystem requires.
The nature and aims of Data Collectors vary: End Users Decision Makers
Identify business
they can be, for example, paid workers or
• Function: They benefit from Intelligent cases where AI can
volunteers, farmers or fishermen paid to be applied through
deliver crop or fisheries data, a museum Connectivity by receiving and supporting an an Intelligent
Data Collectors
visitor offering feedback on their experience, ecosystem’s services and products and, as Connectivity
Produce and curate ecosystem
or HR or logistics departments that collect customers, are crucial to the ecosystem’s data for use by
data for a company. Feedback from End Users success. When End Users can appreciate ecosystem players
across all business sectors or government the value, products or services developed
services also plays a role in data collection. and provided by the Intelligent Connectivity
ecosystem, they provide the motivation for Data Scientists
• Examples: Nations at every level of economic ecosystem players to sustain and further Provide insights and
develop the system. recommendations via
development may be data rich and generate vast data analysis; this
amounts of both structured and unstructured requires industry
• Positioning: They can be individuals, Intelligent knowledge and can
data relevant to an ecosystem’s success.
devices, companies, governments or even End Users Connectivity also come from
Purchase and Decision Makers or
international organizations. Typically, they other industry leaders
appreciate high
ICT Companies have little to do with the ecosystem’s quality products or
development and may even be unaware of it. services developed
through an Intelligent
• Function: They provide a wide range of In addition to their primary role, End Users
Connectivity ecosystem ICT Companies
technical knowledge and support (both are both Data Providers and Data Collectors.
Provide infrastructure
software and hardware, including or services such as
infrastructure, platforms, and systems) and • Examples: Products or services enjoyed Intelligent Connectivity,
systems know-how (for example, AI robotics, by End Users could be funded by local Broadband, Cloud,
Data Centers, and IoT
data management, and network skills) that governments, policymakers, global NGOs,
support the ecosystem’s technical platform. and bodies like the World Bank and Asian
They can also be scientists or R&D personnel Development Bank, with policy agendas such
working in a laboratory or a field engineer as alleviating poverty. Conversely, End Users
monitoring how systems function. can be companies or individuals acting as
consumers of the ecosystems’ products
• Positioning: While not in short supply like and services. End Users can also simply be
Data Scientists, ICT Companies must be individual customers.
vigilant that their teams are constantly
upgrading their skills to keep pace with the
ecosystem’s often fast-changing requirements.
Likewise, nations must continually invest in
their Intelligent Connectivity platforms to
support the development of ICT Companies,
or top talent will follow job opportunities
elsewhere.

It takes a global Intelligent Connectivity
ecosystem to build the autonomous vehicle
Success for automakers in the 21st century will increasingly mean optimizing global operations via
an Intelligent Connectivity ecosystem. Let’s suppose a European multinational automaker planned
Global win-win collaboration is Intelligent Connectivity ecosystems, the new
an Intelligent Connectivity ecosystem to design and manufacture autonomous vehicles. A global the key to success economic value, growth opportunities, and win-
win business models created can be expected to
ecosystem could look something like the following example.
While “Decision Makers” and “End Users” might help solve an array of socioeconomic challenges
be expected to derive the lion’s share of benefit and set the pace for global GDP growth in future.
A typical Intelligent Connectivity value chain from an Intelligent Connectivity ecosystem,
ROI may in fact be more evenly apportioned to However, this does not mean that countries
nations and industries across the development should let up on their GCI progress to develop
spectrum than initially supposed. The idea that Intelligent Connectivity. Using the case study
Intelligent Connectivity’s benefits accrue only earlier as an example, countries with higher
Germany 5,000 million
1 to the most technologically advanced countries GCI scores tend to have more Decision Makers
Decision Makers
Pioneers autonomous cars and trucks is a misconception. and enjoy much higher benefit from the Intelligent
2 Israel 50 million 3 US/India 5 million
Connectivity ecosystem than everyone else.
Data Scientists ICT Companies In fact, policymakers and industry leaders in
Global Digital and AI R&D Center Designs platforms for nations at every stage of economic development The rise of Intelligent Connectivity marks a
4 scaling and computer
India 0.5 million vision models are discovering ways to participate in Intelligent critical inflection point in global digital
Data Collectors Connectivity ecosystems. However, those with transformation, and is already having a
Outsources vision data tagging
to local Indian contractors
Total value add: US$5 billion + isolationist and protectionist inclinations stand to significant economic impact in countries at all
fall behind, as ecosystems at the local, regional, development stages. While still in its infancy,
5 Australia and global scale will increasingly rely on cross- the potential of Intelligent Connectivity to drive
End Users
Autonomous vehicle industry and international collaboration to create GDP growth via innovative problem solving and
drivers generate road data value. The collaborative nature of the ecosystems the development of new business models and
makes the model a win-win for all participants – technologies will affect virtually every aspect
The data flow of a typical Intelligent Connectivity ecosystem nations, enterprises, social enterprises, and of society and national economies in ways yet
individuals. Although it’s still early days for to be imagined.
In step one, the company or Decision Maker as the vehicle generates massive amounts of
invests in designing and developing autonomous data that can later be analyzed by the Data
vehicles at its European headquarters. Once the Scientist team in India. When the direct and
initial planning is settled, step two sees the indirect benefits of this Intelligent Connectivity
Decision Maker identify and bring onboard a ecosystem beyond the revenue generated are
team of Data Scientists and machine learning finally considered, they can include fewer
(ML) engineers based in Israel. This team is injuries or even deaths from road accidents,
charged with developing models and analytics lower cost of ownership or operations for drivers,
for the proposed new vehicles. and more efficient, sustainable resources for
the ecosystem’s participants.
The Data Scientists’ program is then tasked with
designing computer vision models that interpret The efficient and cost-effective development of
changing road views. In step three, this group the successful autonomous vehicle depends on
identifies and invests in a US/Indian computer the participation and value-add from each group
vision platform that can outsource visual image and country involved from around the world.
data tagging or Data Collector work efficiently Thus, the concept of Intelligent Connectivity is
and cost effectively in India. Next is step four, not the sole domain of a few Frontrunners, as
where the new application’s End Users could every country can play a role in these ecosystems
then be the buyer of a fleet of autonomous and profit from them. Policymakers from the
vehicles to serve as rental cars in Australia. But Adopter and Starter countries should start
even the End User can also play a role of data planning how they can best tap the benefits of
provider and data collector in the ecosystem, this new economic model.

SUMMARY
Technology
Impact
We expect nations that cross the GCI tipping
point of 65 and at the same time focus on
AI adoption to develop the potential to add
more than 1% to their GDP growth.
For Frontrunner economies, this will be a New Opportunities On the Horizon with
breakthrough after several years of sluggish Technology Convergence
growth caused in part by reaching the maximum
value-add of previous ICT investment.
The most advanced Frontrunners leveraging

Intelligent Connectivity could grow their
economies 2.4X faster than other nations for each
point of GCI improvement.
The five types of stakeholders in an Intelligent

Connectivity ecosystem reflect the rise of cross-
border collaboration and thus business
opportunities.
26 | GLOBAL CONNECTIVITY INDEX 2019 TECHNOLOGY IMPACT | 27

Technology
new products and services, optimize operations, The reason for the condensed timeline is that
and boost productivity to drive growth. Typically, 5G has started its roll-out with several distinct
this growth explosion occurs as a new generation advantages. Unlike the launches of 3G and 4G
Impact
wireless network reaches 10% global market technology, 5G will have more than 40 5G-
penetration. What is different for each new ready devices, mostly smartphones, already
wireless generation is the timeline for reaching available in the market in 2019. In addition, 5G
10% global penetration. For example, it took semiconductor devices and routers are available
Cloud and IoT Investment Set the Stage for seven years for 3G to cross the 10% global on the market today, in advance of 5G network
AI and 5G Business to take off penetration mark in 2009, but only six years for
4G to do the same. We expect 5G to reach the
availability. This up-front 5G infrastructure is
expected to give the technology a strong head-
10% tipping point in only four years. start and shorten its adoption timeline.
Mobile broadband evolution from 3G to 5G

The convergence of technologies – broadband, cloud, IoT, and AI – first seen in
GCI 2018 have come together under the banner of Intelligent Connectivity to put
AI to work accelerating the development of new technologies and applications, Time to reach 10% penetration rate globally
disrupting established business models and turbocharging economic growth. 4 years 2019 - 2023 (forecast)
5G’s much anticipated speeds will soon complement Intelligent Connectivity
with real-time capabilities to activate autonomous vehicles, augmented reality, 6 years 2008 - 2014 (actual)
and an array of other as yet-unimagined applications.

7 years 2002 - 2009 (actual)
Intelligent Connectivity today is primarily the 5G’s rapid rollout will create 0 1 2 3 4 5 6 7 8
domain of countries with advanced ICT
infrastructure – the GCI’s Frontrunners and a new economic growth Years
handful of Adopters. For others, it remains a
work in progress as policymakers’ direct
With 5G field trials nearly complete, new high- AI requires a solid base of collects and creates the massive datasets that AI
speed networks are finally becoming a reality.
investment to build out the underlying After commercial rollouts in South Korea and cloud and IoT systems need to develop insights and expand their
technologies needed to deliver Intelligent capabilities for machine learning. This year we
the US in 2019, more than 70 mobile operators Investing in broadband infrastructure has long found that when a nation’s cloud readiness score
Connectivity. Accessing the potential of this around the world announced 5G launch plans,
powerful new technology should be a high been the focus of policymakers’ ICT strategy. Today, and IoT readiness score cross the 50 and 45 mark
with more than 50 scheduling 5G mobile their investment strategy is looking to a broader respectively, AI’s impact on their economy begins
priority for policymakers in countries at every services to begin by year-end 2020. While it’s
stage of digital development, as Intelligent range of technologies and opportunities beyond scaling up.
still premature to predict 5G’s eventual impact Internet-driven businesses. AI readiness is
Connectivity is expected to fuel a new wave on the global economy, its addition to the
of global GDP expansion. The formula for increasingly the focus of policymakers and industry Another major finding of this year’s GCI 2019 is
Intelligent Connectivity mix is expected to spur leaders, and this first requires strengthening the that a country is required to achieve ICT investment
success is simple: Governments should change on a seismic scale.
invest in Intelligent Connectivity’s foundation ICT platform for Intelligent Connectivity. At the between 3% to 4% of its GDP to achieve the cloud
technologies with a particular focus on two same time, attention must be paid to the two and IoT readiness levels needed to create the
If 5G’s introduction conforms to what we saw touchstones of AI readiness – cloud and IoT. tipping point for AI to take off. Policymakers
critical preconditions needed for AI to be when previous wireless generations from 2G
effective – cloud and IoT. planning for the long-term benefits of deploying
to 4G were launched, then we can predict a Cloud provides the data storage and AI need to be aware that a solid foundation in
spike in global GDP growth. With each new computational capabilities and IoT delivers the these two technologies is the key to activating
wireless generation, businesses worldwide data that AI systems require to scale and deliver the AI capabilities necessary to drive strong
have been quick to take advantage of the analytical power. Another precondition for AI economic growth.
improved broadband experience to introduce readiness is a strong installed base of IoT, which

The AI tipping points of cloud and IoT
Cloud IoT
55 55
Ireland Ireland
50 50
United States
Switzerland United
45 States 45
Denmark Singapore Singapore Switzerland Denmark
40 China Australia Norway Sweden 40 China Australia Norway
Germany France Finland France Germany Finland Japan

35 Austria Canada 35 Canada Austria
New Zealand New Zealand

AI Maturity
AI Maturity
30 30
South Korea Turkey Czech Republic Estonia South Korea
Italy
25 Turkey Estonia Italy 25 United Arab Emirates Spain
Chile
Indonesia Argentina Brazil India Argentina Mexico Greece
20 Pakistan Jordan Bangladesh Oman Slovakia Uruguay 20 Jordan
Botswana Kenya Bulgaria Hungary Bahrain Croatia

15 15
10 10
Frontrunners Frontrunners
5 Adopters 5 Adopters
Starters Starters
0 0
20 25 30 35 40 45 55 60 65 70 75 80 85 90 95 20 25 30 35 40 50 55 60 65 70 75 80 85 90 95
50 Cloud Maturity
45 IoT Maturity
Cloud investment per GDP – 0.02% IoT investment per Capita – US$250
Cloud migration rate – 23% IoT devices installed base – 6
IoT analytics per Capita – US$6

Intelligent Connectivity offers
opportunities to transform industries
The core value of the Intelligent Connectivity is now empowering fishermen to directly
platform is its ability to make AI accessible. monitor trends in prices and demand and thus
Connecting everything for The technologies that support autonomous
This is an important breakthrough as AI opens disintermediate some local distributers. One an intelligent world vehicles will also have a role to play in
transforming the way we live in the future.
economic growth possibilities by accelerating immediate saving derived from the new mobile
We expect 5G networks to reach critical mass Consider that there are 1.4 billion vehicles on
the development of new technologies and technology in fishermen’s hands is reduced
for the world’s population much faster than 3G the world’s roads today around the world. The
applications, enabling business leaders to waste. It’s estimated that if a fisherman can
and 4G. As 5G’s global uptake grows, it is challenges they present aren’t limited to the
re-imagine industries and helping entrepreneurs reduce the time and work spent on catching
predicted that it will begin to converge with growing need for energy to run these vehicles, or
to create innovative new business models. In and processing fish that consumers are
other technologies that enable Intelligent the need to manage the traffic congestion they
fisheries management, for example, an often not currently interested in buying, they can
Connectivity such as cloud, IoT, and AI from create. They have another, more profound
tradition-bound business is discovering new increase revenue by as much as a 40%.
2025 onwards. 5G’s role in delivering agile and impact: close to 1.25 million people die each
methods to improve efficiency and profits using
low-latency connectivity will gradually become year in traffic accidents, making such accidents
mobile broadband technologies. The current With Intelligent Connectivity, we have begun
the foundation for the converged technologies the 9th leading cause of death and accounting
fisheries industry value chain comprises to see monitoring of the entire fisheries value
to work optimally and intelligently to address for 2.2% of all deaths globally v. There are other
fish stocks, fishermen and fish farms, local chain, usually via a regulatory agency. This new
an array of socioeconomic challenges. As this downsides to the growing number of vehicles on
distributers and processors, retailers and connectivity in the fisheries value chain optimizes
mix of technologies begins to connect virtually the world’s roads as well: air pollution, the cost
exporters, and finally consumers. different parts of the system to achieve longer-
everyone and everything in the future, we can of vehicle ownership, and a lower quality of life
term value add, and, ideally, build sustainability
expect it to fill critical gaps by intelligently for many due to congestion and long commute
Prior to the availability of the new connectivity, into the system. Select fisheries that have
optimizing scarce resources, improving times – all of which will be addressed by Smart
interaction among stakeholders was limited to adopted such holistic management practices
productivity, and creating new business models. Cities.
direct, one-on-one communications. Bringing have seen revenue improve in a range of 50% to
3G and 4G mobile apps into the mix, however, 220% in just a few years.
As the technologies that underpin Intelligent Intelligent Connectivity is predicted to play a
Connectivity start to cross and converge, they key role in managing transportation issues. For
How Intelligent Connectivity changes the value chain in fisheries will spur innovation with the potential to pro- example, Intelligent Connectivity will enable
foundly change our everyday lives. For example, the data collected from smart sensors and
delivery companies today are already actuators on each vehicle, on streetlights and
Modern Fisheries developing drones to deliver parcels and food highways, and in traffic blackspots and car
by tapping the capabilities of cloud, IoT, and parks to be delivered to a central transportation
ultra-low-latency mobile broadband. We can system via the cloud. AI systems in the cloud
expect entrepreneurs to develop and deploy will then identify and deliver insights for
2G 3G and Apps 4G and AI disruptive new technologies such as AR to traffic controllers who will advise drivers (or
Connectivity brings Connectivity and Connectivity, apps and develop innovative solutions across many autonomous vehicles directly) on the shortest,
information to fishermen apps enable analytics/AI collate industries. In healthcare, for example, scenar- fastest, and safest routes to their destinations,
on the location of fish fishermen to sell behavior from all parties
stocks and current prices, directly to retailers to ensure sustainable io-based AR can be used to train medical stu- and offer tips on how to avoid collisions. From
helping them to select and exporters industry-wide fishing dents and provide them with the diagnostic a city government perspective, autonomous
where best sell their practices enhances
catch long-term yields and surgical skills to serve remote areas. cars could communicate with street lighting
in the areas they’re driving through, so only
Greater efficiency with Greater efficiency and
Smart Cities is another area where technology roads in use need to be illuminated, saving
better information, less sustainability with convergence will play a major role. By 2050, energy and money while keeping drivers safe.
waste, and some optimized coordination
Current value chain in
disintermediation across the entire value chain
some 66% of the world’s population will live in It’s not difficult to imagine the potential impact
the fisheries industry
cities, according to UN estimatesiv. Transforming that technology convergence will have, reducing
40% increase 50%-220% increase in
in revenues¹ revenues² fast-expanding urban areas into Smart Cities traffic and mortality rates while improving
today has become the goal of countries aiming public safety and optimizing the overall
Consumers Consumers Consumers
preferences information
Flow of orders, consumer
to tackle socioeconomic challenges like traffic transportation system.

Flow of good, products
Retailers & Exporters

Retailers & Exporters Retailers & Exporters congestion, waste management, e-government
and information
Distributers & Processors services, energy, healthcare, security, social

Fisherman & Fish Farms Fisherman & Fish Farms
Fisherman & Fish Farms engagement, and much more.
Fish Stocks Fish Stocks Fish Stocks
Source 1: Johns Hopkins University Bloomberg School of Public Health. ‘Nearly half of US seafood supply is wasted,’
Accessed May 1, 2019: https://phys.org/news/2015-09-seafood.html
Source 2: Tindall, 2012; MARG, 2010 based on select fisheries in US and NZ

SUMMARY
Social
Impact
The convergence of technologies – broadband,
cloud, IoT and AI – comes together under the
banner of Intelligent Connectivity to activate the
power of AI, enabling development of innovative
Intelligent Connectivity As
new business models, services, and opportunities.
a Force For All
5G’s rapid rollout will create new economic growth.
Cloud and IoT are the touchstones of AI readiness.

AI will start to scale as the capabilities of these
fundamental technologies begin to dial up.
34 | GLOBAL CONNECTIVITY INDEX 2019 SOCIAL IMPACT | 35

SOCIAL
The digitalization of payments promises to potential of mobile money and expand financial
change the lives of unbanked Egyptians. Think inclusion, according to a GSMA report. Early
of the loss of productivity, not to mention indications are that these programs are making
Impact
inconvenience, of having to pay bills by cash in progress. The nation’s Central Bank states
person during office hours. Add to that the there were 20 million mobile money accounts
opportunities for corruption in a cash-centric in 2018, and the Bank aims to increase that to
society. Since Egypt’s unbanked are not 40 million accounts in two years.
Intelligent Connectivity As a Force For All entrenched in the traditional banking practices
of branches, ATMs, and credit cards, they’re An estimated 1.7 billion adults worldwide still
more open to accessing banks and conducting have no access to a bank account, according
payment transactions on their mobile phones. to the World Bank. But there is good news
The latest updates to the World Bank’s Global too. About two-thirds of these unbanked own
Intelligent Connectivity is recognized as a powerful business tool, but it also has Findex database in 2018 notes that the a mobile phone that they can use to access
the potential to provide innovative solutions for many of the world’s most difficult availability of mobile phones among the poor financial services. Making that connection
worldwide offers the opportunity to increase to Fintech services is the key to expanding
and longstanding social problems financial inclusion via mobile accounts, financial inclusion and an important step in
especially if governments lend credibility by combating poverty for unbanked consumers
taking the lead. Digital services offer the in Egypt and globally.
Policymakers and corporate Decision Makers urban areas, many Egyptians are cut off from unbanked a safer way to handle transactions,
today are quickly learning how to manage economic opportunities and severely limited in since workers do not have to carry cash. These Environmental conservation: Deforestation
Intelligent Connectivity and AI’s capabilities to finding means to improve their financial services also have the added advantage of has long been ignored as the price of progress.
drive economic growth. But at the same time, prospects. helping the poor avoid many transaction fees But the loss of forest land is now playing a major
and perhaps less visibly, there is equally and the need to submit to corruption. role in climate change. Deforestation today
important work taking place among NGOs, With Egypt’s population expanding at about accounts for nearly 20% of the world’s total
social enterprises, and entrepreneurs that are 2% or 2 million people a year, demand will With Egypt’s mobile penetration rate of 102% carbon emissions. Turning this disaster around
applying and scaling up Intelligent Connectivity increase for all services, including those and 28 million smartphone users, Fintech will be difficult as up to 90% of deforestation is
and AI to address some of society’s most offered by the government, creating more offers Egyptians the best chance to access due to illegal logging. One non-profit group,
pressing challenges. Among their early targets opportunities for digital solutions. Developing financial products and services. Overseas Rainforest Connection (RFCx), is putting
are healthcare, hunger, education, inclusion, Egypt’s financial sector and broadening the workers’ remittances are a case in point. The Intelligent Connectivity and AI to work to fight
environmental conservation, safe cities, and range of available services to be more ability to receive remittances via a mobile deforestation and protect the millions of
crisis response. Financial inclusion, environmental inclusive is crucial to promote economic phone is having a significant and growing species that inhabit the earth’s rainforests.
conservation, and improving medical diagnoses growth in a country where youth impact in Egypt. Money from Egyptians Acting as an Intelligent Connectivity ecosystem
are three areas where Intelligent Connectivity is unemployment exceeds 30%. Increasing working abroad is important not only to “Decision Maker”, RFCx looked to Huawei Cloud
today being actively applied for the public good. access to financial services is an important support families, but also to invest in new and Data Scientist expertise to help develop
step to reducing poverty, according to the businesses. In 2016, remittances accounted for conservation solutions. RFCx came up with a
Financial inclusion: Intelligent Connectivity World Bank, as it accelerates job creation, an estimated 20% of capital used to launch solution that mixes a low-tech common-sense
has a unique role to play combating global reduces vulnerability to the financial shock new businesses in Cairo, according to the approach with the data-crunching capabilities
poverty, with mobile networks expanding common to lower income groups, and World Bank. On average in 2018, foreign of AI. RFCx has upcycled old Huawei phones to
financial inclusion. Egypt stands as an example increases investment in human capital. The remittances of US$200 were charged a fee of create a fully connected intelligent ecosystem
of how mobile phones can make a difference World Bank v is clear in stating that poverty will US$14, or 7%, a significant amount for to monitor the world’s rainforests. The phones
for the poor. In Egypt, cash remains king and not be eradicated without financial inclusion. low-wage workers. Egypt isn’t alone in communicate continuously with AI-equipped
electronic payments account for only a tiny relying on such remittances. The World Bank servers and when suspicious sounds such as
proportion of transactions. Out of the nation’s For Egypt and other developing economies, estimates that some US$530 billion in chainsaws or trucks are detected in a forest,
population of 100 million, the World Bank financial inclusion typically starts with remittances were sent globally in 2018. rangers on the scene are notified in real time to
estimates that just 10-15% of Egyptians have a payments. Payments open access to services investigate. This Intelligent Connectivity-based
bank account, one of the lowest penetration like saving accounts, credit, and insurance. As Today, Egypt aims to pioneer digital payments solution is already deployed across forests in 10
rates in the world. With few bank branches and financial inclusion spreads, people increase in the North Africa region, according to nations including Brazil, Indonesia, Peru,
Automatic Teller Machines (ATMs) per capita their ability to save, access credit, and the country’s National Telecommunication Romania, the US, and South Africa, protecting
compared to countries with similar per-capita conveniently make and receive payments. Regulatory Authority. In 2018, Egypt introduced more than 2,500 km2 of forest – an area
income, and most services concentrated in regulatory reforms designed to tap the equivalent to almost 200,000 football stadiums.

RFCx is also developing Intelligent Connectivity Intelligent Connectivity today is already enabling How Intelligent Connectivity transforms healthcare
ecosystems to tackle animal conservation and innovative new tools to fight diseases affecting
thus slow the rising extinction rate, which is now millions around the world. Cervical cancer,
estimated to be 50,000 species a year, seriously which the World Health Organization cites as Healthcare
undermining the health and biodiversity of the fourth most frequent cancer women face,
rainforests. RFCx chose to focus on a species it is an example of how Intelligent Connectivity is
considered to be a bellwether of forest health – opening the way to new screening tools to
the Spider Monkey. RFCx developed an save lives.
Intelligent Connectivity ecosystem to protect Before Healthcare Professionals’
Patient Benefits from
the Spider Monkeys that play a key role in the Early diagnosis is critical to survive cervical Intelligent Connectivity Benefits from
seed dispersal that’s essential for rainforest cancer; however, the availability of PAP tests Shakes Up Healthcare Intelligent Connectivity
sustainability. Habitat destruction, often due to carried out during a pelvic examination is
illegal logging, has left Spider Monkeys a limited by a shortage of licensed pathologists
• Shortfall of 4 million • Health assistants: • Health assistants: Cuts
critically endangered species. RFCx turned to required for screening. China, despite its doctors and 3 million Personal health guide and time spent by doctors on
Huawei to develop a platform capable of high incidence of the disease. suffers from a nurses globally symptoms’ checker (e.g. trivial matters, frees up
detecting Spider Monkey sounds. Upcycled old shortage of 90,000 pathologists, according to YourMD medical chatbots) doctors’ time and reduces
Huawei phones were placed in boxes in trees to one 2018 study. KingMed Diagnostics, a • Worse in rural areas and waiting times
capture audio from the forest that is streamed Chinese medical diagnostic test company developing countries with • Virtual nurses: Smart
to the cloud where Huawei Cloud AI analyzes the worked with Huawei Cloud engineers to develop high population growth watch provides remote • Virtual nurses: Reduces
animals’ behavior and movements. RFCx is an AI-assisted test to compensate for this monitoring and support for number of false alarms;
• Shortfall of nurses common and high-cost keeps doctors better
currently optimizing its first voice-detection shortage. The tool it developed is over 99% trained to meet needs
model by adopting a high-precision recognition accurate and testing is done at one-tenth medical conditions such as informed of the latest
of older patients in diabetes research on disease and
algorithm to reduce the false positive rate and the cost in a fraction of the time it takes for developed countries with treatments; allows nurses
eliminate user fatigue caused by the work to a PAP test. aging populations • Diagnosis and treatments: more time with patients
invalidate false positives. Identification of skin
To train, validate and test the AI, developers fed • Medical errors are the cancer (Stanford); eye • Diagnosis: AI typically
Diagnostic accuracy: Healthcare is another it with 32,000 samples collected from over third leading cause of scans to prevent blindness provides fast and
area where Intelligent Connectivity is already 43 million cervical screenings from around death in the US (DeepMind / NHS); and IBM accurate diagnoses 99%
making a difference by augmenting the work the nation. While pathologists on average • Paperwork takes up half for oncology of the time. The result is
of skilled medical specialists. The world today spend six minutes examining samples under a a doctor’s time increased productivity for
• Record keeping and doctors and nurses
faces a shortfall of 7 million doctors and microscope for a PAP test, the new AI-assisted
• On average doctors operations: Health
nurses, a situation that is particularly acute test takes only 36 seconds. KingMed is now
read one research paper catalyst, Cortex • AI enabled record-
in developing nations. The challenges facing exploring applications for the technology to be keeping: Reduces a
doctors and other healthcare professionals applied to pathologies for the digestive system, a month • Develop new drugs: doctor’s time spent on
can be overwhelming; for example, managing kidney, blood, and breast. • Doctors make most of Enable drug development paperwork and systems
massive volumes of paperwork, which in their decisions based on to be quicker, cheaper, by 30%
turn limits face-time with patients, keeping advertising and more effective
up with the latest research; rising costs; and
the increasing likelihood of errors. Intelligent
Connectivity, however, is enabling innovative
new technologies such as virtual nurses, health
assistants, robotic nurses, automated diagnoses,
and treatments. These new capabilities have
the potential to revolutionize the practice of
medicine.

SUMMARY
Intelligent Connectivity could be the answer to
Recommendations
How to Leverage the Power of
many of the world’s most complicated and deeply
rooted social challenges. Intelligent Connectivity
Financial inclusion: The digitalization of payments
allows people, especially the unbanked, to
increase their ability to save, access credit, and
more conveniently make and receive payments.
Environmental conservation: By harnessing

the power of Intelligent Connectivity, countries
can fight deforestation and improve animal
conservation to promote the health and
biodiversity of rainforests.
Diagnostic accuracy: Intelligent Connectivity will

enable an array of new technology-driven
capabilities such as virtual nurses, robotic health
assistants, and AI powered automated diagnostics
that will improve healthcare access and outcomes.
For example, AI-assisted PAP tests for cervical
cancer can increase diagnostic accuracy to 99%
while reducing the cost of tests by 90%.
40 | GLOBAL CONNECTIVITY INDEX 2019 RECOMMENDATIONS | 41

Recommendations NEXT STEPS
2
RECOMMENDED ACTIONS
• Conduct competitive analysis: Audit competitive advantages

How to Leverage the Power of (national and industries) in relation to other participants in global
Prioritize Intelligent Connectivity ecosystems.
Intelligent Connectivity AI expertise
• Focus on existing industries: Identify expertise in particular
national industries and areas where AI can expand opportunities
and drive growth. These can vary widely, for example, from rubber
plantations in Malaysia and fish farms in Botswana to silk
The growing influence of Intelligent Connectivity collaborative, often global ecosystems may manufacturing in Pakistan or medical tourism in Thailand.
and its role in enabling AI is one of the most find their country isolated from the digital • Prioritize social problems: Develop a taskforce of government
notable findings of GCI 2019. This year’s GCI dividends of the new economic order. officials, social enterprises, and NGOs to identify a country’s most
found that a country’s success in deriving value challenging social issues and determine where AI can help. These
from ICT infrastructure investment and its While countries at different stages of economic – will vary, but typically include financial inclusion, healthcare,
ability to create economic growth and and digital – development face their own unique education, and disaster relief.
address social issues increasingly depends on market conditions, needs, and challenges, the
its readiness to develop and participate in underlying principles of developing and
• Implement structural education reform: To meet the needs of
Intelligent Connectivity ecosystems.
A policymaker who fails to grasp the
participating in Intelligent Connectivity ecosystems
are essentially the same. The GCI 2019 report’s
3 AI-enabled workplaces, policymakers should promote the
importance of the new technologies and recommendations for policymakers are as follows: Put support reengineering of their country’s education system, curriculum,
doesn’t identify ways to participate in the functions in place resource allocation, and staffing strategies.
for Intelligent
Connectivity • Resource allocation and incentivization: Provide adequate
ecosystems resources and incentives for Data Scientists and ICT Companies to
NEXT STEPS RECOMMENDED ACTIONS develop Intelligent Connectivity – and where appropriate, develop
these resources internally or work with external providers.
1 • Ensure the availability of a stable electricity supply: Data
Collectors, often the group that takes the lead for less developed • Adopt a coordinated approach: Orchestrate efforts by government
Invest in Intelligent economies to participate in Intelligent Connectivity ecosystems, bodies, enterprises, interest groups, academia, and the wider
Connectivity – need a stable electricity supply and adequate connectivity – this community to share research, use cases, data and findings to
ensure the is especially important for regions prone to natural disasters and advance ecosystem development.
prerequisites are in power outages.
place to participate • Fair play: Be fair and ensure that Decision Makers, End Users and
in collaborative • Invest in ICT strategically: Countries, especially those in the early data owners are treated equally to share the benefits of Intelligent
ecosystems stages of digital economy development, should strengthen cloud Connectivity solutions.
and IoT adoption to reach the AI tipping points identified by GCI
2019. The AI tipping points unleash a round of productivity by • Affordability and accessibility: Provide organizations and
accelerating access to the benefits of Intelligent Connectivity. 4 individuals with the means to access and engage with Intelligent
Make Intelligent Connectivity ecosystems. Support measures to foster
• Promote technology convergence: Policymakers should Connectivity understanding of and interest in analytics and AI systems.
collaborate with ICT companies and start-ups to identify and affordable and
overcome technology bottlenecks in key industries. accessible to all • Avoid ‘tragedy of the commons’ situations: Intelligent Connectivity
is especially vulnerable to situations where the benefits are
privatized to the advantage of a few stakeholders while the costs
are shared globally across the entire ecosystem.
42 | GLOBAL CONNECTIVITY INDEX 2019 RECOMMENDATIONS | 43

Appendix
NEXT STEPS RECOMMENDED ACTIONS
5 • Start small, learn fast: Start small and gather data from across all
aspects of the Intelligent Connectivity ecosystems to fine-tune the
Evolve and scale program. The aim must be to ensure that ecosystems can be
continuously improved and self-perpetuating in a virtuous cycle.
• Scale locally: Leverage a country’s local market scale to become

End Users and Data Collectors in ecosystems by collaborating with
countries and enterprises around the world.
• Demonstrate value: Show value to the ecosystem’s stakeholders.

Leverage initial success to attract investment and scale up
operations.
• Commercialize: Commercialize products or solutions derived

from the ecosystems where possible, and license those products
or services to countries or industries with similar market needs
or challenges.
6 • Data privacy and liability: Sustainable Intelligent Connectivity

ecosystems will require laws and regulations around data privacy
Codify fair practices and liability to ensure that the rights and responsibilities of various
in regulations and stakeholders are well-defined and satisfied. Introduced in 2018, the
rules European Union’s General Data Protection Regulation (GDPR) has
become a de facto gold standard of data privacy regulation.
44 | GLOBAL CONNECTIVITY INDEX 2019 APPENDIX | 45

GCI Methodology 2019 The Four Pillars: SDEP Applications drive demand. Delivered on broadband
networks, stored in data centers, and distributed via cloud
The four pillars encompass the entire chain of ICT services for mass consumption, they enable technology to
development and digital transformation to provide a produce outcomes. Applications feed data to analytics
360-degree view of the digital economy. Each pillar has solutions for processing into information that can effect
The GCI analyzes the full spectrum of measurements for Connectivity’s four enabling technologies into four: a set of 10 data indicators. changes through IoT devices.
intelligent connectivity and provides a detailed map of Broadband, Cloud, Internet of Things, and Artificial
the global digital economy. Intelligence. Two notable changes we made were to merge The Four Technology Enablers Customer experience is driven by quality of service (QoS).
the Data Centers perimeter into Cloud and incorporate Big It ensures that ICT services meet the expectations and
The index benchmarks 79 countries according to their The index allows the horizontal analysis of four technology requirements of businesses and consumers in a way that
Data into a newly-created AI perimeter. Please refer to the
performance in 40 indicators that track the impact of enablers that are crucial signposts to help benchmark encourages greater use and investment. For example, a
diagram below for details.
ICT on a nation’s economy, digital competitiveness and the relative strengths, weaknesses, opportunities, and country could have strong investment in cloud solutions
future growth. Combined, these countries account for 95 These advanced technologies are built on a foundation challenges facing digital economies: Broadband, Cloud, but poor network performance or reliability, which will
percent of global GDP. layer of technologies such as telecom infrastructure, IoT, and AI hinder the ability of end users to derive economic benefits.
e-Commerce, and the overall adoption of computers,
Each horizontal layer includes at least one variable Patents lead to potential. They form the basis that stimulate
Research Framework smartphones, and the Internet - all of which have been
from each of the four pillars: supply, demand,
key determiners of the growth and development of digital the innovation of new products and services. High demand
The GCI analyzes digital transformation from basic levels experience and potential. coupled with a good experience builds strong future
economies over the past two decades. The GCI also
of connectivity to supplementary, advanced technologies. includes forward-looking factors such as ICT patents, Thus, the GCI can be analyzed both vertically (supply, potential to accelerate digital transformation and make
The GCI has adapted its methodology over time to capture R&D and the outlook for each technology’s compound demand, experience, potential) and horizontally economic gains. The four technology enablers require
how technology evolves and to better evaluate the annual growth rate. (Broadband, Cloud, IoT, and AI). patents for innovation.
correlation of ICT investment with GDP growth. In 2019,
The research framework thus covers a complete combination This allows an extremely detailed analysis on the relative A strong IT workforce ensures that a skilled and technology-
the GCI’s methodology has been expanded again to
of advanced and fundamental technologies, enabling us to strengths and weaknesses of individual countries to literate population is available to drive future digital
highlight Intelligent Connectivity’s role in boosting
analyze how yesterday, today, and tomorrow intersect. pinpoint the areas in which additional investment is transformation through innovation based on real-world use.
the digital economy. We consolidated Intelligent
needed to advance connectivity and economic benefits. A shortage of skilled workers can be a significant inhibitor to
a country’s potential transformation. Equally an educated
Additionally, this structure enables the detailed analysis workforce is needed to make the most of digital technology.
of correlations between advanced connectivity services
Four Pillars like IoT and the key areas of supply, demand, experience, Other fundamental layer measurements include telecom
and potential. This reveals the most successful roadmaps infrastructure investment, Internet bandwidth, e-Commerce,
SUPPLY DEMAND EXPERIENCE POTENTIAL
for growth and development, and possible areas where smartphone and computer penetration, e-government,
leapfrog technology adoption has proved more successful Internet participation, average download speed, R&D
than others. expenditure, and number of software developers.
Measures current levels of Gauges demand for Comprises variables for Comprises a forward
supply for ICT products and connectivity in the context analyzing the experience of looking set of indicators The GCI is a rich and deep dataset that serves as a Measurement and normalization
services used for digital of users and activities connectivity for end users that point towards the
transformation. relating to digital and organizations in today’s future development of the blueprint for individuals and organizations to analyze a The variables are measured against factors such as GDP
transformation initiatives. digital economy. digital economy. wide range of factors relating to digital transformation, ICT PPP, number of households, and total population.
development, and the economic benefits of connectivity.
FOUNDATION ICT Investment App Downloads E-Government Services R&D Expenditure These factors assess the full picture of connectivity for each
The overall index rankings provide a snapshot of the
Telecom Investment Smartphone Penetration Telecom Customer Services ICT Patents
current state of connectivity across the global digital country, including measurements like app downloads per
ICT Laws eCommerce Transactions Internet Participation IT Workforce
economy, forming a leading indicator for the next decade person or fiber optic penetration against total households.
International Internet Computer Households Broadband Download Software Developers of ICT expansion and evolution.
Bandwidth
Secure Internet Servers
Speed
ICT Influencing
In emerging economies, connectivity levels in major
Security Software Cybersecurity Awareness New Business Models
The ICT Fundamentals metropolitan areas tend to be much higher than their
Investment
national scores, because these nations are still in the early
The four technology enablers need to function on a platform stages of ICT adoption. This provides an important metric
BROADBAND Fiber Optic Fixed Broadband Fixed Broadband Broadband Potential of robust core measurements of ICT fundamentals for a for understanding the potential of the increased economic
Four Technology Enablers
4G Connections Mobile Potential nation to transform into a digital economy and build upon benefits that these emerging economies will probably see
Mobile Broadband Mobile Broadband
these fundamentals in a self-reinforcing loop. over the next decade and beyond, as they close the digital
Examples of these fundamentals and their functions are divide through rapid investment and adoption programs.
CLOUD Cloud Investment Cloud Migration Cloud Experience Cloud Potential
as follows: In all cases, the data inputs are first measured against a
INTERNET OF IoT Investment IoT Installed Base IoT Analytics IoT Potential ICT laws are essential for Supply: They set down regulatory normalizing variable like population size, so the index can
THINGS
boundaries that govern privacy, confidentiality, and safe and benchmark countries according to relative levels of
legal use. The digital IP, digital assets, identities, and privacy connectivity rather than absolute market size, which would
ARTIFICIAL AI Investment AI-enabled Robotics Data Creation AI Potential be more reflective of economy size.
INTELLIGENCE of businesses and consumers must be protected against
abuse and misuse, ICT laws make it feasible for the public
and private sectors to invest in supplying ICT products and
services to the mass market safely and under regulations.

Scoring and Aggregation Where the average values are significantly lower than the The Evolution of the GCI: Benchmarking the Digital Economy Journey
median, the formula is adjusted to include meaningful
For each variable, a country receives a rating of 1 (low) to differentiation at the lower end of the scale and avoid
10 (high), depending on the data input. excessive clustering of countries with equal (low) GCI scores.
Each indicator has a scale based on a realistic target value For example, for Fiber Optics, we use a formula that
for 2025, and beyond with a score of “10” indicating that the differentiates between a value of 1% to 5% of the Target
CONNECTIVITY INTELLIGENT CONNECTIVITY
target value has been reached. (GCI Score=1) and a value of 6% to 10% of the Target (GCI
These target values are extrapolated from market penetration Score=2). This reflects the fact that average Fiber Optics
projections based on the highest ranked countries, historical penetration rates are much lower than the median value.
market performance, and expert opinions. Each country’s 2014 2015 2016 2017 2018 2019
These indicator scores are then aggregated to form a total
score is then determined by its normalized raw data value in score for each of the four GCI pillars: Supply, Demand,
relation to this scale. In most baseline cases, a value that is Experience and Potential. These run from a scale of 10 to
less than 10% of the target value will be allocated a score of 100 (where 10 is the lowest possible total score, equivalent
1. A value of between 10% and 20% of the target value Benchmarking Harnessing the Tap Into New Growth Powering Intelligent
to a score of 1 for each of the 10 indicators within a segment). New Economic Connect Where
is allocated a score of 2, and so on. This is shown The Digital Power of with Intelligent Connectivity with
in the table: The final index score is then calculated by aggregating the Barometer it Counts
Economy Journey Connectivity Connectivity Global Collaboration
four segments:
VALUE GCI GCI Total = (Supply + Demand + Experience + Potential) / 4

(% of target value) SCORE See “GCI Definitions” for a full list of data category definitions and sources.
1-10 % 1
Additional Notes
11-20 % 2
For variables weighted against GDP, we use the GDP at
21-30 % 3 Purchasing Power Parity (PPP) calculation. This is generally
the best way to calculate in-country purchasing power after
31-40 % 4 it has been adjusted for the cost of living. This measures the
41-50 % 5
relative wealth of a nation in terms of its ability to purchase
goods and services within the national economy.
51-60 % 6
The data is always the most recent that is available,
61-70 % 7 depending on the source. Data sources include: OECD,
ITU, GSMA, WEF, World Bank, United Nations, Ookla, IDC, ICT infrastructure
71-80 % 8
and Huawei. We’ve estimated the data for missing values Broadband Countries need to
Realizing economic investment initiates a AI readiness is Cloud and IoT
81-90% 9 based on geographical cohorts. Numbers in the charts
might appear different from direct calculation due to
Technology investment is a key transformation with move up the chain reaction to integral to investment set the
requirement identified technology stack to
91-100% 10 rounding adjustments. Historical data shown in GCI 2019 Impact by industries to build
five enabling
drive further
digital transformation, success in the stage for AI to
may be different from data used in GCI reports of previous technologies with cloud as a digital economy take off
years, as it has been updated with the most recent actual a digital economy GDP gains potent catalyst
data to improve accuracy.
A one-point increase in AI is turning Intelligent

A one-point increase A 20% growth in ICT GCI correlates with a The digital divide Intelligent Connectivity
Economic in GCI correlates with investment will 2.1% increase in national creates a digital Connectivity into creates value
chasm: the rich get
Impact a 1.4% -1.9% increase increase a country’s competitiveness, 2.2%
richer and the poor
a gateway for a through
in GDP GDP by 1% increase in innovation, new cycle of collaborative
and 2.3% in productivity get poorer economic growth ecosystems
Tech4all:
Intelligent Connectivity can
Social
Economic be the answer to many of
Impact society’s complicated and
deeply rooted challenges.

GCI Definitions DEMAND Secure Internet Servers The total number of individuals accessing the internet at
least once during the 12-month period via wireline and/or
Total employment in the supply and management of IT for
each nation. This includes workers employed directly in
Fixed Broadband Subscriptions Secure Internet Servers (per 1 million people) refers to mobile Internet access. the IT industry (hardware manufacturers, software
the number of distinct, publicly-trusted TLS/SSL vendors, service providers, and channel organizations),
Total number of subscriptions that access the Internet certificates according to the Netcraft Secure Server Survey. Calculation: per capita
and IT staff employed by end users in IT departments for
SUPPLY IT services, and telecom services. The total market
through a wireline (including satellite) broadband Calculation: per capita E-Government Services the management, deployment, support, and strategic
Internet connections. implementation of technology solutions.
International Internet Bandwidth size is measured against the overall size of the
economy (GDP), which provides a measurement of Calculation: per capita Computer Households These scores are sourced directly from the United Nations
Calculation: per capita
International Internet bandwidth refers to the total market supply maturity. E-Government Survey, which benchmarks countries
Mobile Broadband Subscriptions The number of households with access to a computer – according to ratings derived from a survey to assess the
used capacity of international Internet bandwidth, in Calculation: % of GDP a fixed desktop computer, laptop, or tablet (or similar R&D Expenditure
megabits per second (Mbps). Used international e-government development status of all UN member states.
Total number of mobile broadband services subscribers handheld computer). Excludes smartphones. Expenditure on R&D means current public and private
Internet bandwidth refers to the average traffic load 4G Connections measured in relation to the overall size of the population. Calculation: n/a
of international fiber optic cables and radio links for Calculation: % of total households capital expenditure on creative work to increase
carrying Internet traffic. The average is calculated The percentage of mobile device connections that Calculation: per capita IoT Analytics knowledge, including knowledge of humanity, culture, and
over the 12-month period of the reference year and access a 4G/LTE network. This measurement is not
based on geographic landmass, and is therefore a Smartphone Penetration EXPERIENCE Total spending on analytics software relating to IoT data
society, and the use of knowledge for new applications.
R&D covers basic research, applied research, and
takes into consideration the traffic of all international
more accurate measurement of the actual supply of Fixed Broadband Affordability analysis. These software tools extract value from the experimental development.
Internet links. International Internet bandwidth (bps) Smartphone penetration expressed as a percentage of
4G services to individuals and organizations. Users mass of data being created via IoT to improve the
per Internet user is then calculated by converting to total connections (excluding M2M). A smartphone is Calculation: % of GDP
who haven’t subscribed to 4G services but who use a The price of a monthly subscription to an entry-level experience of a nation or organization with an IoT platform
bits per second and dividing by the total number of defined as a mobile handset with advanced access to
4G phone aren’t counted. fixed-broadband plan. These entry-level plans may that transforms IoT data into actionable information. Software Developers
Internet users, and this is used to calculate the Internet-based services and computing functions. include a variety of data and download speed Calculation: per capita
index scores. Calculation: % of mobile data connections Calculation: share of total connections allowances. The calculation is a percentage of a nation’s The total number of software developers in each nation.
Calculation: per internet user average monthly GNI per capita. Data Creation Professional software developers are engaged in
Fiber Optic App Downloads employment where the primary activity is constructing
Calculation: per GNI
Telecom Investment The number of Fiber to the Home (FTTH) subscriptions, Based on the estimated availability of target-rich, software or supervising its construction.
The total number of new mobile application downloads in actionable data (TB) that can be leveraged by Artificial
Telecom Service Provider investment in modern measured against the total number of households in the calendar year on all major mobile platforms Mobile Broadband Affordability Calculation: per capita
each nation. “Fiber to the Home” is defined as a Intelligence (AI) platform and analytics tools to enhance
network infrastructure over an aggregated five- (Android and iOS). This is measured against the overall
communications architecture in which the final The price of a monthly subscription to postpaid handset- the experience and ROI of organizations investing in the ICT Market Potential
year period. This focuses on key carrier network size of the population, and refers to new app downloads,
connection to the subscriber’s property is Optical based data services with a minimum of 500 MB data deployment of AI solutions. To improve the experience of
technologies that are integral to the delivery of not the existing installed base.
Fiber. The fiber optic communications path is allowance. This is calculated as a percentage of a this technology, the scalability of created data needs to An index derived from local nation survey data on the
cloud, mobile, and high-speed data services Calculation: per capita
terminated on or in the premise for the purpose of nation’s average monthly GNI per capita. be considered. potential for market development and the economic benefits
including service provider routers, service provider
carrying communications to the subscriber. Calculation: per GNI Calculation: TB per capita to be derived from adopting Cloud, AI, IoT and Broadband
switches, and wireless infrastructure (including 3G, E-commerce Transactions solutions. To assess future potential for development, the
4G, and 5G). Aggregate spending over the most Calculation: % of total households
Broadband Download Speed Cloud Experience five-year forecast for CAGR (compound annual growth rate)
recent five-year period is used to provide a more E-commerce involves orders placed on the internet (i.e.,
is used for the time period through 2022. This CAGR
holistic measurement of Telco infrastructure Security Software Investment the buyer clicks an order button on the Internet) in a Average download speed for each country. These An index that measures the quality of service available to accounts for current market assumptions relating to
deployments in the context of carrier investment commitment for paid goods or services. Total e-commerce metrics leverage billions of Internet and mobile network customers of public cloud service providers in each
Investment in software relating to the security of technological development, penetration rates,
cycles and economic wild cards. measures the volume of all e-commerce transactions, tests to provide a current view and analysis of global nation. This is calculated on the basis of Broadband
ICT resources and data. These security products macroeconomic growth and the ability of customers in
Calculation: % of GDP both B2B and B2C (including volume purchases). Internet access speeds. Affordability and Average Download Speed.
may be deployed in data centers, on networks, and each country to invest in these ICT markets.
on devices. Spending by all end-user segments is Calculation: per capita Calculation: n/a Calculation: n/a Calculation: n/a
ICT Laws included (private and public sector). The data is
Cloud Migration Cybersecurity Awareness
A World Economic Forum survey on how developed a weighted by the total size of population.
POTENTIAL ICT Influencing New Business Models
nation’s ICT laws are (e.g. electronic commerce, Calculation: per capita An index based on the percentage of traditional software The Global Cybersecurity Index is a trusted reference that Based on a survey conducted by the World Economic
digital signatures, and consumer protection). budgets that have migrated from traditional on-premise measures the commitment of countries to cybersecurity at ICT Patents
Forum where respondents were asked to evaluate the
Calculation: N/A AI Investment licensing to ‘as a service’ cloud deployments, thus a global level. As cybersecurity has a broad field of extent to which ICT enables new business models.
measuring demand for advanced Public Cloud Services The total number of patents filed under the PCT within the
The sum of investments for the deployment of application, cutting across many industries and various ICT technology domain in the inventor’s country of residence,
in relation to overall ICT spending. Calculation: n/a
IoT Investment artificial intelligence (AI) solutions by private and sectors, each country’s level of development or engagement as measured and tracked by the OECD (stats.oecd.org).
public institutions. This includes AI-related Calculation: % of total annual software investment is assessed along five categories: Legal Measures,
Spending on IoT solutions and deployment Calculation: per capita
investments in hardware systems, software Technical Measures, Organizational Measures, Capacity
including systems, sensors, modules, AI-enabled Robotics Building, and Cooperation. It is then aggregated into an
infrastructure, networks, specialized devices, platforms, and professional services. IT Workforce
overall score. Scores are derived from an online survey,
security, software, connectivity services, IT and Calculation: % of GDP Total annual investment in robotics deployments partly
which also allows for the collection of supporting evidence.
installation services, content services, OT enabled by artificial intelligence for advanced use cases
Through consultation with experts, these survey responses
(operational technology), and ongoing services Cloud Investment across multiple vertical end-user industries. Example
are then weighted, giving the final index scores.
(including consumer services). Weighed against the use cases include customer service, medical surgery/
size of the population (IoT per capita). Overall investment in cloud infrastructure services therapy, autonomous vehicles, and advanced Calculation: n/a
(Infrastructure as a Service), leveraged for the inspection/diagnosis. REFERENCES
Calculation: per capita supply of server (compute) and storage Telecom Customer Services
infrastructure resources in a cloud environment. Calculation: per capita i United Nations Conference on Trade and Development. “Bangladesh sets foundations for bridge over digital divide”, Accessed May 7, 2019:
ICT Investment This provides a direct measurement of the supply of Current service levels provided by telecom operators https://unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=2033
services from cloud infrastructure deployments to

IoT Installed Base based on previous research and surveys conducted
ii Regression analysis using AI-GDP impact ratio versus GCI 2019 score was used to develop model for the country clusters at 65 inflection point.
The overall size of the traditional ICT market in each iii World Economic Forum. “The Future of Jobs 2018”, Accessed May 7, 2019: http://www3.weforum.org/docs/WEF_Future_of_Jobs_2018.pdf
and end users. It is weighted against GDP. within each nation. iv United Nations. “World’s population increasingly urban with more than half living in urban areas”, Accessed May 7, 2019: http://www.un.org/en/
country, as defined by the total amount of end-user Total installed base of IoT devices and systems (including
Calculation: n/a development/desa/news/population/world-urbanization-prospects-2014.html
spending on IT hardware (servers, storage, PCs, Calculation: % of GDP Intelligent Systems).
v Politi, James. “No end to poverty without financial inclusion, says World Bank”. The Financial Times. Assessed May 7, 2019: https://www.ft.com/
devices, peripherals, network equipment), software, Calculation: per capita content/0fb60294-4b36-11e9-bde6-79eaea5acb64
Internet Participation

Tradememark Notice
, , are trademarks or registered trademarks of Huawei Technologies Co.,Ltd
Other Trademarks,product,service and company names mentioned are the property of thier respective owners
GENERAL DISCLAIMER
THE INFORMATION IN THIS DOCUMENT MAY CONTAIN PREDICTIVE STATEMENT INCLUDING, WITHOUT LIMITATION, STATEMENTS
REGARDING THE FUTURE FINANCIAL AND OPERATING RESULTS, FUTURE PRODUCT PORTFOLIOS, NEW TECHNOLOGIES,ETC.
THERE ARE A NUMBER OF FACTORS THAT COULD CAUSE ACTUAL RESULTS AND DEVELOPMENTS TO DIFFER MATERIALLY
FROM THOSE EXPRESSED OR IMPLIED IN THE PREDICTIVE STATEMENTS. THEREFORE, SUCH INFORMATION IS PROVIDED
FOR REFERENCE PURPOSE ONLY AND CONSTITUTES NEITHER AN OFFER NOR AN ACCEPTANCE. HUAWEI MAY CHANGE THE
INFORMATION AT ANY TIME WITHOUT NOTICE.
Copyright © 2019 HUAWEI TECHNOLOGIES CO., LTD. All Rights Reserved.

No part of this document may be reproduced or transmitted in any form or by any means without prior written consent of
Huawei Technologies Co.,Ltd.

Gci 2019 Whitepaper en

Uploaded by

Copyright:

Available Formats

Gci 2019 Whitepaper en

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Gci 2019 Whitepaper en

Uploaded by

Copyright:

Available Formats

Powering Intelligent

New Opportunities Technology Impact 27

Technology Convergence Technology Convergence

Intelligent Connectivity APPENDIX 45

Intelligent Connectivity GCI 2019 finds that nations at every level of

6 | GLOBAL CONNECTIVITY INDEX 2019 COUNTRY RANKINGS | 7

FRONTRUNNERS ADOPTERS STARTERS

Netherlands 74 Malaysia 54 Belarus 45 India 34

Australia 74 Hungary 54 Argentina 45 Venezuela 33

New Zealand 72 Slovakia 53 Kazakhstan 44 Paraguay 33

AI’s influence on GDP growth, which is particularly 76 Pakistan 27

GCI SCORE RANGE 65-85 40-64 23-39

GDP PER CAPITA US$58,100 US$17,200 US$3,800

8 | GLOBAL CONNECTIVITY INDEX 2019 COUNTRY RANKINGS | 9

• Among the 79 countries ranked in the GCI 2019

• Other rising stars among the Adopters include

10 | GLOBAL CONNECTIVITY INDEX 2019 COUNTRY RANKINGS | 11

UKRAINE SOUTH AFRICA BANGLADESH ALGERIA

12 | GLOBAL CONNECTIVITY INDEX 2019 COUNTRY RANKINGS | 13

Two other notable changes in the research

The new 40 indicators of GCI 2019

SUPPLY DEMAND EXPERIENCE POTENTIAL

FOUNDATION ICT Investment App Downloads E-Government Services R&D Expenditure

BROADBAND Fiber Optic Fixed Broadband Fixed Broadband Broadband Potential

CLOUD Cloud Investment Cloud Migration Cloud Experience Cloud Potential

ARTIFICIAL AI Investment AI-enabled Robotics Data Creation AI Potential

14 | GLOBAL CONNECTIVITY INDEX 2019 ECONOMIC IMPACT | 15

Intelligent Connectivity Is Set to Drive Global GDP Growth

16 | GLOBAL CONNECTIVITY INDEX 2018 ECONOMIC IMPACT | 17

GCI 2019 – S-Curve 1.6%

30K South Korea at the 65 inflection

18 | GLOBAL CONNECTIVITY INDEX 2019 ECONOMIC IMPACT | 19

20 | GLOBAL CONNECTIVITY INDEX 2019 ECONOMIC IMPACT | 21

22 | GLOBAL CONNECTIVITY INDEX 2019 ECONOMIC IMPACT | 23

24 | GLOBAL CONNECTIVITY INDEX 2019 ECONOMIC IMPACT | 25

The most advanced Frontrunners leveraging

The five types of stakeholders in an Intelligent

26 | GLOBAL CONNECTIVITY INDEX 2019 TECHNOLOGY IMPACT | 27

Mobile broadband evolution from 3G to 5G

and an array of other as yet-unimagined applications.

28 | GLOBAL CONNECTIVITY INDEX 2019 TECHNOLOGY IMPACT | 29

40 China Australia Norway Sweden 40 China Australia Norway

Germany France Finland France Germany Finland Japan

New Zealand New Zealand

Botswana Kenya Bulgaria Hungary Bahrain Croatia

30 | GLOBAL CONNECTIVITY INDEX 2019 TECHNOLOGY IMPACT | 31

to tackle socioeconomic challenges like traffic transportation system.

Retailers & Exporters

Distributers & Processors services, energy, healthcare, security, social

32 | GLOBAL CONNECTIVITY INDEX 2019 TECHNOLOGY IMPACT | 33

Cloud and IoT are the touchstones of AI readiness.

34 | GLOBAL CONNECTIVITY INDEX 2019 SOCIAL IMPACT | 35

36 | GLOBAL CONNECTIVITY INDEX 2019 SOCIAL IMPACT | 37

38 | GLOBAL CONNECTIVITY INDEX 2019 SOCIAL IMPACT | 39

Environmental conservation: By harnessing

Diagnostic accuracy: Intelligent Connectivity will

40 | GLOBAL CONNECTIVITY INDEX 2019 RECOMMENDATIONS | 41

• Conduct competitive analysis: Audit competitive advantages

42 | GLOBAL CONNECTIVITY INDEX 2019 RECOMMENDATIONS | 43