As the world continues to move into the digital age, being connected in terms of broadband and mobile infrastructure plays a crucial role in ensuring that individuals, businesses, and societies can fully participate in and benefit from the digital revolution. Would it surprise you that eight out of the ten top ten economies in the world do not rank as the best-connected destinations in the world? Only China and the USA rank inside the top 10 of the infrastructure ranking. However, the other eight countries are behind in their connectivity achievements.
As we recognise that infrastructure is vital to a country’s future success, we have looked at five key areas to create an overall ranking of the top 60 GDP countries of the world. The five key areas are:
• Average broadband speeds
• Average mobile download speeds
• 4G and 5G coverage by landmass
• Penetration of FTTP (Fibre to the Premise)
Who is the best?
| Country | GDP Ranking | Infrastructure Ranking | Infrastructure Disparity |
|---|---|---|---|
| United Arab Emirates | 33 | 1 (+2) | 32 |
| China | 2 | 2 (+7) | 0 |
| Singapore | 30 | 3 (-1) | 27 |
| South Korea | 12 | 4 (-3) | 8 |
| Qatar | 55 | 5 (-1) | 50 |
| Hong Kong | 40 | 6 (-1) | 34 |
| Denmark | 38 | 7 (+10) | 31 |
| United States | 1 | 8 (+13) | -7 |
| Norway | 28 | 9 (-3) | 19 |
| Japan | 3 | 10 (-2) | -7 |
1. To even out the spread of the data we spread out the infrastructure ranking to 75% 4G and 25% 5G.
2. The infrastructure score was calculated by dividing the highest number of each column by the relevant data from each country.
3. The (+) represents how many positions they improved while the (-) represents how many
positions lost from the 2020 data.
This table represents the top 10 countries with the highest infrastructure rankings. From the rankings, it is clear that the United Arab Emirates (UAE) has made significant investments in infrastructure to support economic growth. Compared to data from 2020, the UAE has gone from third to first, which shows that they have invested significantly in infrastructure. However, in the last three years, the GDP of the UAE has declined significantly. There is an argument that it was due to covid, but it also raises the question if the UAE is yet to fully realize the benefits of these investments.
China and Singapore, for example, have low infrastructure disparity scores while also having a high ranking. This suggests that the investments these countries have made to support economic growth are seeing the benefits of the investments in terms of GDP. Comparing the data to 2020, Singapore has seen a 51.64% increase in GDP, and China has a 31.69% increase in GDP. This data shows that investing in infrastructure can lead to GDP growth.
Furthermore, the United States of America and South Korea were two countries that saw changes compared to 2020. The United States of America in 2020 ranked 22nd in infrastructure ranking. This was surprising at the time since they had the largest economy in the world. However, in 2023, the United States sees itself in the top 10 surpassing Japan which is regarded by many as a technological giant. This is primarily because of the Bipartisan Infrastructure Deal that “delivered $65 billion to help ensure that every American has access to reliable high-speed internet through a historic investment in broadband infrastructure deployment” (Whitehouse, 2021). By contrast the UK is investing $5bn in its gigabit broadband. That is 13 times less than the investment made by the United States. This massive investment has propelled the US forward in infrastructure development and has significantly improved the country’s global standing. Secondly, South Korea in 2020 had the highest infrastructure ranking in the world; however, in 2023, we can see them fall into fourth. This is because of “new telecommunication regulations that threaten to decrease competition among network providers and increase the cost of connectivity” (Nelson and Nelson, 2021).
Overall, the table highlights the importance of infrastructure investments in supporting economic growth and development. Asia is still leading the rankings, but middle eastern and Scandinavian countries have also shown strong results. In essence, countries that invest in high-quality infrastructure are more likely to attract businesses and create jobs while improving the quality of life for their citizens.
Who is the worst?
| Country | GDP Ranking | Infrastructure Ranking | Infrastructure Disparity |
|---|---|---|---|
| India | 5 | 49 (+1) | -44 |
| Russia | 11 | 47 (-18) | -36 |
| Indonesia | 16 | 52 (-11) | -36 |
| United Kingdom | 6 | 37 (-2) | -31 |
| Italy | 8 | 38 (-) | -30 |
| Mexico | 14 | 43 (-6) | -29 |
| Germany | 4 | 31 (+2) | -27 |
| Nigeria | 32 | 58 (-) | -26 |
| Argentina | 23 | 48 (-) | -25 |
This table represents the top 10 countries with the highest infrastructure disparity score. The four countries, India, the United Kingdom, Italy, and Germany, all in the top 10 of the GDP rankings, have infrastructure disparities ranging from -27 to -44, indicating a significant gap between their economic strength and infrastructure quality.
India’s Case:
India’s high infrastructure disparity isn’t a surprise. India has struggled with network infrastructure for many years primarily due to its large population, spread across a very diverse region. However, there is an argument that China has successfully implemented a strong infrastructure despite its large population. Obviously, there are further issues, such as a lack of coordination and cooperation in India, but the question is, when will India change?
Italy’s Case:
Italy has faced many challenges for many years regarding network infrastructure. This is primarily because of the country’s tricky terrain but also due to the slow pace of investments and tricky regulatory issues that have been criticized for being too complex. Furthermore, since 2007 Italy’s GDP has been stagnant and has struggled to recover, which has further limited resources available for infrastructure development. It also poses a question of if they did invest in infrastructure, perhaps it may result in GDP growth.
United Kingdom’s Case:
In 2020, the United Kingdom ranked 6th in GDP and 35th in infrastructure ranking, giving it a disparity of -29. However, in 2023 the United Kingdom ranked 6th in GDP and 37th in infrastructure ranking, giving it a disparity of -31. This data shows that the UK is going backward with its infrastructure growth. The UK government’s manifesto was to deliver nationwide gigabit broadband by 2025. However, in November 2020, the government set a revised target to “deliver gigabit broadband to at least 85% of premises by 2025 and to reach at least 99% by2030” (Gov.uk, 2021). The question is asked if the UK will ever hit these targets.
The UK has fallen behind European countries such as Germany, Italy, France, Spain, etc. In three years, the UK hasn’t made any significant changes, and we must wonder if the UK will ever change.
Furthermore, BT, being the number one provider in the UK, have also pushed for things to be in their favor. BT has a large copper wire infrastructure in the UK and has been reluctant to invest heavily in the necessary upgrades to fiber-optic networks. This has contributed to the slow progress in improving the country’s infrastructure. Regulatory challenges and the complex process of replacing the existing copper wire network have also played a role in this stagnation.
Germany’s Case:
Germany, one of the leading economies in the world, has always been known to have poor network infrastructure. The reason is Germany has always missed investments, failed government action, and a push from Telekom to keep things in their favor. Like the UK and BT, Telekom is the number one provider in Germany. They pushed to keep things in their favor by persuading the governments not to invest in fiber optics but to combine Telekom’s copper cabling with vectoring technology.
In conclusion, these four countries with high GDP rankings and significant infrastructure disparities demonstrate infrastructure development’s complex and multifaceted nature. While there may be various reasons behind each country’s struggles, investments in infrastructure are essential for countries to remain competitive in a global economy.
The case of Hungary and New Zealand:
| Country | GDP Ranking | Infrastructure Ranking | Infrastructure Disparity |
|---|---|---|---|
| Hungary | 52 | 13 | 39 |
| New Zealand | 57 | 26 | 31 |
Looking at rankings from around the world, two countries caught the eye. New Zealand and Hungary have a significantly higher infrastructure ranking than their GDP rankings. What are these two countries doing to have such a high ranking? Both countries have an initiative that the government set out. In New Zealand, the government set out a plan in 2015 called the “Ultra-Fast Broadband Initiative,” aiming to build fiber-to-the-home networks covering 87% of the population by the end of 2022. Like New Zealand, Hungary’s government has a “National Digitalization Strategy 2021-2030” that aims to provide 95% of households with gigabit networks to increase the population’s digital skills, support the digitalization of business processes as well as increase the use of e-government services.
These programs set out by the government have been proven successful because, since 2015, New Zealand’s GDP has seen an increase of 40.34%. Furthermore, Hungary have already seen a 3.7% increase in GDP and they are projected to see a 12% increase in 2024 from 2021. The successful implementation of government initiatives in New Zealand and Hungary provides an example of how strategic investments in infrastructure can lead to significant economic growth, demonstrating the importance of prioritising infrastructure development.
Who’s doing well with 5G:
| Country | 5G Availability | 5G Rankings |
|---|---|---|
| South Korea | 99 | 100% |
| United Arab Emirates | 98 | 98% |
| Chile | 97 | 97% |
| Singapore | 95 | 95% |
| China | 71.7 | 72% |
| Hong Kong | 67.5 | 68% |
| Saudi Arabia | 61.3 | 62% |
| Qatar | 45 | 45% |
| New Zealand | 45 | 45% |
With 5G rolling out worldwide, it is interesting to see which countries have made the most progress in implementing this new technology. From the table, we can see the likes of South Korea, UAE, China, and Singapore, which all score high on the infrastructure ranking, have strong 5G coverage. Furthermore, the most interesting country on the list is Chile. Chile will invest around 3,000 million US$ in the next five years in 5G. The reason is the implementation of 5G technology will allow Chile to “enter the world of the Internet” and achieve advances in the field of smart cities, modernization of the State, telemedicine, production, and distribution of goods and services.
Looking at the table, it is evident that European countries are still lagging in 5G implementation. The UK, for example, in 2020, was ranked 7th most prepared in 5G implementation. However, from our data, the UK sits 23rd in 5G availability. They are behind countries like Romania, Denmark, Netherlands, and Portugal. This raises the question not only for the UK but other European countries of what factors contribute to the slower rollout of 5G and what steps can be taken to accelerate implementation and improve availability.
What can the UK learn?
Looking at the UK, since 2020, the UK’s infrastructure ranking hasn’t changed a bit. It has gotten worse. As mentioned earlier, the UK, from our research, ranks 37th in infrastructure ranking with a disparity score of -31, indicating that there is still a significant gap between its economic strength and infrastructure quality. The UK is still a country that is obsessed with physical, tangible infrastructure projects like HS2. These projects and tangible infrastructure can be great for business, but the UK is living in the communication mechanism of the 20th century and not the 21st century. This can potentially lead to long-term problems in terms of economic stability and growth.
The UK needs to start prioritising its network infrastructure because, as this report highlighted, countries such as New Zealand and Hungary that have invested in infrastructure have been able to attract business, create jobs, and grow economically. Furthermore, the UK can learn from countries like the United States, which have made significant progress in the last three years in infrastructure ranking through the Bipartisan Infrastructure Deal. The UK has the opportunity to implement a policy similar to this, potentially improving its ranking.
Overall, it is clear that the UK needs to prioritise its infrastructure investments to remain competitive in the global economy and provide better living standards for its citizens.
Conclusion
After conducting a thorough analysis, it is clear that investing in high-quality infrastructure is crucial for economic growth and development. Such investments can attract businesses, create jobs, and improve citizens’ quality of life. The rankings reveal that countries in Asia, the Middle East, and Scandinavia have made significant progress in infrastructure investments, which has led to positive outcomes. However, countries with significant infrastructure gaps, such as India, the United Kingdom, Germany, and Australia, may hinder their economic potential. Therefore, policymakers must prioritize infrastructure investments to ensure their countries can participate in and benefit from the digital revolution.
