4G technology could be a more efficient solution for full coverage of the population with broadband internet compared to 5G technology for Albania.
World Bank experts, in a 2021 study, assessed the costs of universal internet coverage across generations, depending on the technology used.
The study concludes that, for countries like Albania, which have high population coverage with 4G networks, universal coverage using this technology would be more advantageous.
Based on data from the Electronic and Postal Communications Authority (AKEP), used in the study, Albania has 96% population coverage with 4G networks. Costs have been calculated across several scenarios, considering different technical solutions and different target network speeds.
In the optimal scenario, aiming for a speed of 400 megabits per second (Mbps) in densely populated urban areas, the World Bank team calculates that Albania would require an investment between $250 and $340 million for universal coverage with 4G networks.
The $250 million investment refers to a scenario where the network is built only on mobile infrastructure, while costs could reach up to $340 million if this network is supported by fiber optic infrastructure.
In the case of 5G technology, universal internet coverage would require an investment of at least $320 million for exclusively mobile infrastructure, but could reach up to $710 million if fiber optic support is used.
Investment values are lower in scenarios predicting lower network speeds. However, it should be noted that the aforementioned optimal scenario is the only one that meets the objectives set by the United Nations Broadband Commission, which sets a speed of at least 10 Mbps in rural areas.
Even for scenarios predicting lower speeds, however, 4G technology is more advantageous, and even in these scenarios, the cost advantage of 4G is much deeper.
However, 5G technology could be advantageous in a scenario where operators would build a shared network infrastructure, rather than each establishing their own network independently.
The degree of cost saving would depend on the level of shared infrastructure usage, and investment costs could be reduced by up to 70% if operators were to use fully shared networks in rural areas.
Such a solution would significantly reduce investment costs, but, according to experts, could have long-term negative impacts on competition. Reducing competitive pressures could lead to a gradual decline in efficiency, gradually reducing economic benefits over time.
Analyzing several developing and middle-income countries, the study concludes that 5G technology could have economic advantages for universal internet coverage only for those states where 4G network coverage of the population is low.
