An operator perspective on how to realize the 5G vision Per Hj Lehne Telenor Research 18 April 2018
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1 An operator perspective on how to realize the 5G vision Per Hj Lehne Telenor Research 18 April 2018
2 2
3 Telenor Group facts by Q million consolidated mobile subscriptions More than employees Mobile operations across Scandinavia, Central and Eastern Europe and Asia Revenues 2017: NOK 125 billion SUBSCRIPTIONS PR. COUNTRY Myanmar 19.5 Malaysia 11.7 Thailand 22.7 Pakistan 41.6 Bangladesh 65.3 Montenegro & Serbia 3,2 REVENUE DISTRIBUTION 5% 4% 21% 36% 26% 10% Scandinavia Central and Eastern Europe Developed Asia Emerging Asia Broadcast Other Hungary Bulgaria Denmark Sweden Norway 3,1 3,
4 Some other facts about Telenor SITES Total # sites: G: INSTALLATIONS Total number of antenna panels: ~ FREQUENCIES 2G 3G 4G 800 MHz 850 MHz 900 MHz 1800 MHz 2100 MHz 2600 MHz 4
5 5
6 5G will come gradually, not via mass investment It ll be different from what we had on 3G and 4G. They were basically a complete network update. 5G is different and I don t think you ll see anyone coming in as new entrants and taking a position in 5G It ll only be the ones who already have a solid wireless and fixed position in the market It ll also be more business case driven. We won t roll out in an entire country and hope there s a business case. It will be a much more gradual rollout, driven by specific cases No customers will need 5G for current services. They are more than served by the 4G-pluss networks that we have now So don t expect a big investment plan like the one we had on the upgrades from 3G and 4G It ll also take a long time before 5G hits the emerging markets. It ll be Norway and Sweden first and later for the rest of the portfolio Sigve Brekke, CEO Telenor Group, 22 August (source:
7 THE ROAD TO 5G GOES VIA 4G - AN EVOLUTION, NOT REVOLUTION LTE LTE-A Pre- 5G 5G ~2020 Most use-cases foreseen for 5G can be supported with current or future 4G technology Source: Berit Svendsen. From 5G pilots towards operational services. 2 nd Nordic Conference on ICT: Realizing the 5G visions. Telenor, Fornebu Norway, April 2018 Operator perspectives on 5G - Wireless@KTH - 18 April
8 Agenda Why is 5G important for the operators? Steps to realize 5G Use cases and piloting 8
9 Why is 5G important for the operators? Telenor sees many new applications that require significantly faster speeds, reduced latency, and more robustness in the mobile network than 4G will ever be in a position to offer, Berit Svendsen, EVP of Telenor s Scandinavia Cluster, May
10 5G will handle growing traffic demand more efficiently - but Evolved 4G can manage traffic growth for still some years Capacity demand will imply investments, independent of technology generation 3 ways to increase network capacity Technology improvements Additional spectrum Network densification Traffic demand per area, relative to % annual growth 4G potential not fully utilized yet 10
11 5G will offer improved latency performance Strong evolution in latency: HSPA: 20 ms LTE: 10 ms 5G: 1 ms Low latency requires new architecture as well as new radio Source: Nokia 5G Workshop, Taiwan Oct
12 5G will be a toolbox with Network Slicing enabling a diverse set of use cases on the shared physical network Enhanced Mobile Broadband Ultra-reliable Massive IoT 12
13 Steps to realize 5G 5G 13
14 Developing the network for the future Terminals Base stations Transport Core network Edge sites Primary sites New 5G terminals (supporting 5G functionality / protocols) New 5G radio units (supporting 5G functionality / protocols) New spectrum New antennas More high speed transport supporting higher throughputs and lower latency New 5G core network (supporting 5G functionality / protocols) Virtualized infrastructure Distributed sites 14
15 Steps needed to capture the benefits of 5G Pilots and use cases: Transport and X-haul: Spectrum: Network: Developing the use cases and doing piloting through open systems and cross-sector innovation Increased demand on transport and X-haul: Fibre roll-out / dense urban transport network Timely and flexible spectrum allocation and licensing Sub 6 GHz mm-wave Networks slicing: Tailored use of network resources Core NFV Core/RAN: Proper 5G Time 15
16 Network virtualization is needed to achieve the 5G KPIs speed of light demands hosting applications closer to customers (in edge) Network slices (i.e. logical networks) will have different reliability requirements Different Tailoring of services require tailoring flexibility using enabled network by network slicing and virtualization Fast deployment of services require automation, hence, network virtualization Energy optimization by smart utilization and sharing of infrastructure 16 Source: 5G Infrastructure Association: 18 April 2018 Operator perspectives on 5G - Wireless@KTH Vision - White 18 April Paper, 2018 February 2015
17 Spectrum: Pioneer bands for 5G Low band: To enable nationwide and indoor 5G coverage Middle band: Up to 400 MHz of continuous spectrum enabling wide channel bandwidth US EU CJK* 600 MHz 700 MHz 2.6 GHz GHz GHz GHz GHz High band: To ensure all the performance targets of 5G, for example multi gigabit per second data rates. 28, 37, 39 GHz GHz (unlicensed) GHz 28, 39 GHz * China-Japan-Korea Source: GSMA Intelligence: Global Mobile Trends 2017 RSPG FINAL. 17
18 New spectrum principles are discussed for 5G Norway: NKOM: Companies may have their own licenses: More licensees for 5G? Greater need for sharing frequency resources Different geographical coverage, e.g. regional Primary and secondary use, e.g. defense spectrum Sweden: Bahnhof suggests «Open spectrum»: Urban spectrum Regional spectrum Spectrum for business, research and test Telekomidag Inside telecom,
19 Eventually, all IMT-bands will be available for 5G Band GHz GHz 2.6 GHz 2.1GHz 1.8 GHz 900 MHz 800 MHz 700 MHz GHz - First deployments from 2018/19 in parts of GHz (almost global harmonization of 3.5 and 3.7 GHz bands) - Possible extension and global ecosystem for GHz (2020 at the earliest) 26 and 28 GHz - First deployments from 2018 (e.g. FWA in Korea, US) - Developed ecosystem from 2020, more use cases e.g. fronthaul, small cells GSM (2G) HSPA (3G) LTE (4G) 5G 4G and/or 5G NR LTE-A Pre-5G 700 MHz Carrier - Mainly 4G deployments until >2020. aggregation - Some 5G NR deployments after G NR Time 700 MHz GHz Refarmed to 5G NR after 2026 (estimate) 19
20 Network capabilities must improve to capture future service verticals Low-Power Wide-Area (LPWA): LTE-M NB-IoT Sensor networks Enhanced Mobile Broadband EMBB Spectrum LTE-Advanced Pro Cloud RAN Coverage 5G NR Acquisitions Refarming 2G/3G sunset Open RAN Synchronization Data centers Indoor systems Advanced Antenna Solutions LTE LAA Massive MIMO CoMP SON Self-Organizing Networks Low-band spectrum E2E Network slicing Cloud RAN embms New Radio / EDGE data centers MMTC Massive Machine-Type Communication URLLC Ultra-Reliable, Low-Latency Communication 20
21 Future radio network architecture Key pillars (SW) 21
22 RAN virtualization increases X-haul capacity demand Base stations RU RU Standard site CPRI RAN 2018 BBU IP Backhaul RAN virtualization G RU mmimo 4G RU Standard site Busy area site 5G RU mmimo 4G RU BBU Layer 1+2 (RT) Ethernet (MW, fiber ++) Cap.req: Backhaul + 10% No distance restrictions IP fronthaul (F1) ecpri (5G)/ CPRI (4G) Ethernet >100 Gbit/s fibre Max ~30 km Distributed clusters New urban Edge data centers when needed for service performance Edge data center N R T vbbu RT Virtualization Hardware Centralized cloud Data center Mobile Core Virtualization Hardware Primary / Edge data center vbbu NRT Mobile Core Virtualization Hardware 22
23 Use cases and piloting The immediacy and immersion of 5G enables Synchronized Reality which brings two or more consumer environments together. Prof Mischa Dohler, King s College. 2 nd Nordic Conference on ICT: Realizing the 5G vision. Telenor Fornebu, April
24 Use cases: The chicken and egg problem Operators would like customers to use their services, and are hesitant to roll-out potentially expensive network solutions that they don t know if will be profitable Verticals are skeptical to commit until they see what 5G really is. Verticals may also consider that their own (potentially proprietary) solutions are sufficient for now or they simply cannot wait for 5G (like e.g. the automotive industry) There are however exceptions some companies are very outspoken in their wishes for 5G. 24
25 5 Use cases from Norway Source: Berit Svendsen. From 5G pilots towards operational services. 2 nd Nordic Conference on ICT: Realizing the 5G visions. Telenor Fornebu Norway, April
26 5G pilot in Telenor 26
27 Telenor signs agreement with partners to run 5G pilot in Kongsberg, Norway Photo: Martin Fjellanger 9th November Definition phase Planning phase kongsberg-faar-norges-foerste-5g-pilot Execution phase Learning phase 27
28 PILOT IN KONGSBERG Autonomous car Fixed wireless access over 5G for selected houses and businesses And more? 28
29 Someone will most likely make money from 5G but it is not clear who Someone could be any of the main players pushing strongly for 5G 5G will be a network that can accommodate a range of use-cases and vertical applications, but 5G will also need to provide many use-cases over the same network in order to make it profitable. In order to build and run a profitable network, it needs to be filled We need to balance hype vs uncertainty, use cases have to be profitable 5G is not only about B2C Consumer segment But also about B2B industry verticals Some of the use cases are totally unknown Business model Platforms and APIs will be required for offering B2B 5G services beyond connectivity 29
30 Thank you The biggest challenge with 5G is not technology but the mindset
31 Contact Per Hjalmar Lehne, Telenor Research, Norway (preferred) LinkedIn: Phone:
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