The 5G business potential
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- Belinda Marjory Freeman
- 5 years ago
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1 The 5G business potential Industry digitalization and the untapped opportunities for operators Jose Luis Ayala ERICSSON
2 LTE dominant radio access technology globally Continued strong traffic growth - 8x traffic increase until 2023 LTE Mainstream bands of 700 MHz, AWS and 2.5 GHz are key to handle traffic growth First commercial networks based on standalone 5G NR in 2019 Major 5G deployments from billion 5G subscriptions on embb by 2023 A 5G subscription is here counted as such when associated with a device that supports NR as specified in 3GPP Release 15, connected to a 5G-enabled network Commercial in confidence
3 All industries will face transformations - 5G value in multiple areas Manufacturing Automotive Public Transport Energy & utilities Public safety Financial Services Healthcare Media & entertainment Product-as-a-service Active creation Service everywhere Personalization Shared across community Embedded into ecosystem Continuous improvement Critical control of robotics Remote healthcare Autonomous cars Infotainment Drone field maintenance Smart grid Automated threat detection Mobile VR/AR gaming Value chain disintegration Sourcing via e- commerce P2P Money Transfer Source: The 5G Business Arthur D. Potential, Little Digital second Transformation edition, executive Study summary 2015 Commercial in confidence Ericsson AB 2017 Page 3
4 With industry digitalization, new fast growing revenue pools emerges Challenge: Current operator service revenues USDbn CAGR Opportunity: Digitalization revenues for ICT players 13,6% ,5% Operator to seize emerging revenue potential * Digitalization revenues for ICT players from 10 key industries Source: Ericsson and Arthur D. Little
5 5G Spectrum principles Global & regional harmonization of spectrum is important Timely availability for 5G spectrum in 2019/20 requires regulatory framework now Combine low, mid, and high bands to provide efficiency, coverage and capacity Bandwidth required per Operator in low (20-40 MHz), mid (~100MHz) and high (>500MHz) bands To benefit for society, auctions should maximize spectrum usage (not state revenue) and stimulate investments in infrastructure Spectrum should be available for immediate use after auction Commercial in confidence
6 5G Spectrum trade-off There are major fundamental trade-offs between capacity, coverage, latency, reliability and spectral efficiency in a wireless network. Due to these fundamental limits, if one metric is optimized for improvement, this may result in degradation of another metric. Source: IEEE A survey on Low latency towards 5G RAN, Core network and Cashing solutions. High bands (24 GHz 40 GHz) New Mid bands II (3.5 GHz 8 GHz) New Mid bands I (1 GHz 2.6 GHz) Legacy Low bands (Sub 1 GHz) New/legacy <1 km 8 km 15 km 30 km >500 MHz >100 MHz 40 MHz 10 MHz 1 ms 10 ms Coverage Bandwidth Latency High capacity hotspot / dense urban Moderate capacity Wide area / outside-in coverage Commercial in confidence
7 5G possible frequency bands and timings - two parallel tracks Bands under country/ regional consideration Low band Mid band High band 1 GHz 3 GHz 4 GHz 5 GHz 20 GHz 30 GHz 100 GHz ITU-R 600/700 MHz GHz GHz 26/28 GHz 38/42 GHz ~2020 >2020 The frequency bands and availability reflects current assumptions and are based indications from different countries/regions Ericsson Internal
8 Example of 5G spectrum strategy in Mexico by GHz Band GHz Band 600 MHz Band 700/850/ 1900 MHz, AWS, 2.5 GHz & others Commercial in confidence G Giga-Lte LTE
9 Summary Do not wait do engage 5G is starting to happen now 5G use cases are explored in real industry environments, using existing and future technology Regulatory frameworks must be ready for 5G roll-out in 2019 and beyond Consider a 5G National Plan for Mexico Pave the way for 5G in industries, drive requirements, and market readiness Provide Operators necessary conditions to explore 5G technology, new bands, and use cases Define 5G spectrum roadmap with sufficient amounts of spectrum in timely and cost-effective way Continue obtaining industry insights via Public Consultations Address key policies, e.g., security, data privacy, infrastructure deployment, IoT industries cooperation Lead regional cooperation in Latin America
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