businessOpportunities

Dr. Magnus Ewerbring – CTO Asia Pacific, Ericsson

5g

CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 2

5G is coming soon. really

550 million 5G

subscriptions

in 2022

Subscriptions by technology (billion)

CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 3

5G operator

addressable

Digitalization revenues

5G enabled

digitalization

revenues

Digitalization

revenues

for ICT players1 2 3

CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 4

5GEmpowering people,

transforming industries,

advancing society

5G FOR Industries

CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 5

Scania platooning

CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 6

5G for mining

Smart Rock Bolts

Smart Ventilation

Remotely Controlled VehiclesWheel Loaders, Scalers, Fire Robots,

Trucks, etc.

CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 7

The world's first cellular IoT-based factory was developed

jointly by China Mobile, Ericsson and Intel, its elements

include a connected screwdriver and other tools

World’s first cellular IoT based factory

CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 8

A growing shift in the revenue pools

Source: Ericsson and Arthur D. Little (2017)

1.5%

2016

1.7361.497

2026

USDbn

CAGR

16´-26´

2026

13.3%3.281

2016

Current operator service revenues Digitalization revenues for ICT players

0.939

CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 9

5G enabled digitalization revenues for ICT players 2026

Source: Ericsson and Arthur D. Little

13%

8%6%

10%

20%

13%

1,233BUSD

Energy & Utilities

Manufacturing

Public safetyHealthcare

Public transport

Automotive

Financial services

10%

Media & Entertainment

19%

CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 10

Operator and industry roles

Operator

Applications & Services

Systems & Platforms

Connectivity & Communication

Networkdeveloper

Users, Content & Devices

Serviceproducer

Serviceplatform

developer

Servicecreator

Serviceenabler

Other

40% 40% 20%

CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 11

Connectivity and

Infrastructure

Provisioning

Service

Enablement

Application &

service

provisioning

operators share of the 5g value created

Source: Ericsson segmentation model, Arthur D. Little smart market model

Note: The total addressable market for operator role Service creator is the total operator addressable market

Operator addressable market

for role Network developer

Operator addressable market

for role Service enabler

Operator addressable market

for role Service creator

Su

m o

f ad

dre

ssable

5G

reve

nu

e p

er o

pe

rato

r

role

193 $bn

507 $bn

582 $bn

193 $bn

193 $bn 315 $bn

193 $bn 315 $bn 74 $bn

Total 5G enabled revenue per

smart value chain step

Total 5G enabled revenue

(2026) 1,233 $bn

217 $bn 606 $bn 410 $bn

89% 52% 18%Operator addressable share

CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 12

582

113

101

78

76

74

62

48

30

Current and 5G-enabled industry

digitalization addressable revenuesSplit per Industry by 2026 (5G)

opportunity for operators

0

500

1,000

1,500

2,000

2,500+34%

202620242020 20222016 2018

New

ad

dre

ssab

le 5

G

en

ab

led r

eve

nu

es

Curr

en

t o

pe

rato

r se

rvic

e r

eve

nu

es

Potential to add 34% growth

in revenues in 2026

Financial

services

Autom

otive

HealthcarePublic

safety

Energy

&

Utilities

Public

transport

Manu-

facturingTotal Media &

ent.

USDbn

>582BUSDOPERATOR ADDRESSABLE

5G DIGITALIZATION

REVENUES

IN 2026

CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 13

Opportunity in Australia

Source: Ericsson and Arthur D. Little; Major strategic choices ahead of TelCos: Reconfiguring for value, Arthur D. Little; IDC; Gartner

Note: 1) Excludes revenues from equipment's

5G

ad

dre

ssa

ble

o

pe

rato

r re

ve

nu

es

Financial

services

0.7

Healthcare

1.6

1.6

Media &

enter-

tainment

Public

safety

2.5

1.4

Manu-

facturing

Auto-

motive

1.0

2.2

Energy &

utilities

Public

transport

1.7

Total

12.7

USDbn

0

5

10

15

20

25

30

35

40

45

2016

+45%

20262024202220202018

>

Cu

rre

nt o

pe

rato

r se

rvic

e r

eve

nu

es

1

12.7BUSDOPERATOR ADDRESSABLE

5G DIGITALIZATION

REVENUES IN 2026 IN

AUSTRALIA

Current and 5G-enabled industry

digitalization addressable revenuesSplit per Industry by 2026 (5G)

CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 14

There will be 550 million 5G connections by 2022.

Significant potential for Industrial IoT and an early

mover advantage.

Global outlook 2026:

582 BUSD operator addressable

5G digitalization revenues

Potential to add 34% growth in revenues by 2026

Australian outlook 2026

12.7 BUSD operator addressable

5G digitalization revenues

Potential to add 45% growth in revenues by 2026

Energy, Manufacturing and Public Safety are key

sectors in capturing the 5G opportunity

Summary

CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 15