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10% of European SMEs would generate 148,000 million if they were digitized

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The incidence of the health crisis caused by the pandemic has increased the added value of companies once they have been digitized. If he 10% of the small European companies that are not currently digitized join the digitization, it would generate a incremental value of approximately € 148 billion, according to the report Digital for Europe from Vodafone.

Digitization has become a fundamental pillar to guarantee the economic sustainability Y resilience, especially in areas outside urban centers, generating new opportunities to close the digital divide in the rural zones.

In this way, rural businesses will be better able to improve your productivity in key sectors for this type of area, such as agriculture, as well as rural regions will enjoy better access to digital public services.

BET ON NEW TECHNOLOGIES THAT ADD VALUE

According to the report, the spread of technologies such as Internet of things (IoT) to 50% of the largest farms in the EU could further reduce pesticide use by 12,000 tonnes and fertilizer use by more than 350,000 tonnes. Another technology that adds added value is the commitment to 5G, which enables high-quality connectivity to be achieved.

An example is the telemedicine. If its use increased by 5% in all European Union countries, the cost of patient care could be reduced by 3.7%, increasing the life expectancy of citizens by up to 1.7% and reducing a 3.6% mortality. Likewise, costs could be reduced by almost 50,000 million euros for the whole of the EU, by having a personalized information Y be able to offer quick answers, According to the document.

Although 20% of EU funds will go to the digital transition and the European Commission points out that the contribution of digitization could represent an increase of up to € 2.2 trillion to EU GDP by 2030, Europe continues to lag behind the United States and China in 5G adoption: by 2025.

The GSMA expects only 34% of European mobile connections to use 5G networks, compared to the 48% in North America and the 47% in China. Digital for Europe insists that Europe needs a faster transition to 4G LTE and 5G networks, driven by policies that incentivize network investments, infrastructure sharing and accelerated release of network spectrum.

PUBLIC-PRIVATE COLLABORATION

The report also points out the need for the recovery and resilience plans of the Member States to be built on the premise of public-private collaboration.

“Meeting the challenge of recovery requires a close collaboration between governments, companies and citizens. Alliances are absolutely necessary to maximize the impact of investments and reforms and avoid leaving any citizen behind ”, adds the director of Vodafone Business Daniel Jiménez.

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