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Towards 5G September 5th 2018, Tampere, Finland Bengt Nordström
Towards 5G
September 5th 2018, Tampere, Finland
Bengt Nordström
2018 Northstream. Proprietary and Confidential. All Rights Reserved.
NorthstreamStriving for impact
Company fact sheet
Founded in 1998
Privately owned (by Management)
~30 Consultants, 13 nationalities
Offices in Stockholm and Helsinki
Projects in 50+ countries
Strategic Advisory Services as main activity
Thought Leadership through White Papers and Media dialogue
2
Solid reputation and
strongly networked in the industry
Constantly evolving Thought
leadership
Holistic industry view through work
across the ecosystem and
markets
Solid track record in the telecoms industry
2018 Northstream. Proprietary and Confidential. All Rights Reserved.
Overview of services
3
• Corporate strategy development and planning
• Technology & product strategy evaluation
• Operational review, optimization and investment support
Strategy
• Sourcing / Outsourcing of systems, networks, platforms, services
• RFP and process management
• Managed services strategy, assessment and sourcing
Sourcing
• Internal re-organization
• Transition of responsibilities and/or staff to 3rd party
• Shift in supplier base of managed services
Change
• Technology and business strategy
• Investment appraisal
• Market positioning
• Strategy implementation
• Program Management
Internet of Things
• Start-up Accelerator
• Go-to market strategies
• Product strategies
• Business models
Upstream
Since 1998 we have gained a sound reputation through a wide range of business and technology consulting assignments in all corners of the industry.
2018 Northstream. Proprietary and Confidential. All Rights Reserved.
Global experience – sample clients
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Having worked with more than 250 clients worldwide, with a high rate of repetition, Northstream has built a wealth of diversified experience, market understanding and industry contacts
2018 Northstream. Proprietary and Confidential. All Rights Reserved.
TABLE OF CONTENT
Drivers and requirements to deploy 5G
5G in a nutshell
The 5G timeline
Applications of 5G in enterprise connectivity
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2018 Northstream. Proprietary and Confidential. All Rights Reserved.
5G is the next ten-year cycle in mobile network evolution
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5G networks are expected to meet increasing performance requirements for capacity, data rates, latency, battery life, in order to support future needs and use cases.
Performance requirements source: International Telecommunication Union “ Report ITU-R M.2410-0” (2017); Ericsson “Annual report 2016”
Performance requirements
2020+
10 000xmore traffic vs.
2010
10 – 100x times more
devices
10 + years battery life for
low power devices
≦ 1 ms Latency
100 Mbpswherever
needed
20 GbpsPeak data
rates
Evolution of mobile network technology
1991
2001
2011
2020
2G
3G
4G
5G
Voice64 kbps
Voice and data2 Mbps
Data1 Gbps
Data+more20 Gbps
2018 Northstream. Proprietary and Confidential. All Rights Reserved.
5G network architecture: defining features / components
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5G Radio Access Network
Non-standalone
Architecture
Antenna technology
Beamforming
Standalone 5G NR
Massive MIMO
5G Core(Next Generation Core Network)
Mobile Edge Computing (MEC)
Distributed Data Centers (DDCs)
Software Defined Networking (SDN)
Network Function Virtualization (NFV)
VNF-1 VNF-2 VNF-3
Virtualization layer
Network slicing
SDN Controller
Spectrum
Low-band(i.e., 600 + 700 MHz)
Mid-band(i.e., 3.5 GHz)
High-band(i.e., 28 GHz,
39 GHz, 60GHz)
100
6
0
1
24
39
28
60
26
2018 Northstream. Proprietary and Confidential. All Rights Reserved.
Drivers and challenges to adopt 5G in enterprise settings
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Drivers
• Smart cities• Industry 4.0• E-health
• Ever-increasing data usage and connections
• Needed for AR, VR, Health applications Challenges
Availability
Coverage
Revenue uncertaintyData usage
Needs for lower
latency
New use cases
• Use cases with revenue potential
• Requires upfront investments
• Depends on 5G development timeline in different countries
• Uncertainties about network coverage
2018 Northstream. Proprietary and Confidential. All Rights Reserved.
5G enables a lot of “smart” and mission critical use cases and opens up new business opportunities
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Source: Modified from ITU – Framework and overall objective of the future development of IMT for 2020 and beyond (Sep 2015)
Enhanced mobile broadband
Massive Internet of Thing
Ultra reliable Internet of Thing
High Capacity
High Coverage High reliability
Fast internet
Video streaming
Augmented reality
Voice
Industrial automation
Remote surgery
Self-driving car
Smart building
Smart home
Smart city
2018 Northstream. Proprietary and Confidential. All Rights Reserved. 10
2017 20202018 2019 2021 20242022 2023 2025 2026
Trial stage Initial deployment Mass adoption
Commercial LaunchTrials
Commercial launchLarge scale trialsTrials
Commercial launchTrials
Commercial Launch
Launch of FWA Verizon
Trials < 6 GHz
Full coverageRamp-up of 5GLarge scale
introductionIntroduction
1City/countryTrials
No reliable information available
No reliable information available
National Roadmaps for 5G: EU is lagging behind East Asia and U.S
2018 Northstream. Proprietary and Confidential. All Rights Reserved.
Monetize 5G: main use cases
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FWA is a priority use case in early deployments, followed by eMBB and IoT.
W
FIXED WIRELESS ACCESS IN U.S. ENHANCED MOBILE BROADBANDINTERNET OF THINGS (MASSIVE & CRITICAL)
ü Equivalent capacity to best in class fixed broadband connection
ü Verizon and AT&T already started the pre-standard rollout in US cities
� Cost of getting higher frequency signals into home and infrastructure cost
ü Applies in video streaming, Augmented / virtual reality
ü Enables operators to dedicate networks to high value customers, such as enterprises
� Can operators charge more for eMBB services?
ü Cellular IoT devices are expected to grow to 1.5 billion (2022)1
ü Operators can use 5G to provide connectivity solutions
牫 Revenue pressure and technology alternatives to 5G
FWA IoTeMBB
Source: (1) Ericsson Mobility Report (2016)
2018 Northstream. Proprietary and Confidential. All Rights Reserved.
Vendor landscape
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No major changes are likely to take place in the global landscape. The big will stay big.
Infrastructure
Dominants
Devices
Chipsets
• Qualcomm aiming to get a head start by selling to tier 2 device manufacturers
• Samsung recently announced they have developed a 5G chipset
• Huawei launched “5G-solution ready” chipset
• Intel expected to provide Apple with 5G chipset
5G Challengers
Tier 1 – set to retain domination
• Apple
• Samsung
• Huawei
Tier 2 – will launch first, but with small impact
• LG
• Xiaomi
• Oppo
• Vivo
2018 Northstream. Proprietary and Confidential. All Rights Reserved.
0
5
10
15
20
2017 2023
Bill
ion
s
Non-cellular IoT Cellular IoT
6.3
16.3
Will 5G be the engine to revolutionize enterprise connectivity
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Enterprises will need a holistic connectivity strategy while the role of solution providers will be emphasized, and rich portfolio of technologies will co-exist.
5.2
16.6
Enterprise digitalization stack
• As digitalization and automation proceed within an enterprise criticality of connectivity layer emphasized both performance and reliability wise
• Connectivity layer filled with legacy solutions, modernization and harmonization required
• Connectivity alternatives are many and 5G will be yet another option
• Connectivity competence is needed but only few partners master the full scope
Enterprises’ challenges
3.5 billion cellular
0.7 billion cellular
IoT Device Connections1
Application development platforms
Software and applications
Connectivity management platforms
Connectivity technology
Components
System integration, consulting
Source: (1) Ericsson Mobility Report (2018)
• Connectivity technology accounts for only 5-10% of the cost in the IoT solution value chain
2018 Northstream. Proprietary and Confidential. All Rights Reserved.
Enterprises’ connectivity can be fulfilled without 5G
AIRPORT HOSPITAL BUILDING
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Provide network infrastructures
Private LTE network-as-a-service
Marshaller services
Ground vehicles
De-icing
Wireless mesh connectivity
Smart building platform provider
Connected smart building functions
Patient alarm
Nursecall
Communication
Workflow management system
Building infrastructure operator
Airport operator
MNO specialized in enterprises
Network equipment vendor
Clinical software provider
Network-as-a-service In-house IT Connectivity inbuilt in OEM product/service
2018 Northstream. Proprietary and Confidential. All Rights Reserved.
Strong global momentum for 5G in the world
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Connectivity is the backbone of enterprises’ digitalization journey.
Enterprise will need a holistic connectivity strategy while the role of solution providers will be emphasized.
Different connectivity technologies will co-exist, and 5G is one of the options to fulfill enterprises’ use cases.
Summary
