China is expected to become the world’s largest 5G market by 2025, accounting for around 430 million 5G connections, representing a third of the global total.
Industry verticals where 5G are expected to play a key role include: automotive, drones and manufacturing. The report calls for China to promote the development of legislation for areas such as car-hacking and data privacy to support China’s connected car market.
The report notes that China Mobile, China Telecom and China Unicom are all currently trialing 5G autonomous driving and working on solutions such as cellular vehicle-to-everything (C-V2X) for remote driving and autonomous vehicles.
To accelerate the development of the drone market, the report calls for common standards for connectivity management. The drone market is expected to be worth around $13 billion by 2025.
Finally, the report calls for common standards for interconnection between Industry 4.0 platforms and devices (more below) to avoid market fragmentation, drive economies of scale and increase speed to market.
“China’s leadership in 5G is backed by a proactive government intent on delivering rapid structural change and achieving global leadership – but without industry-wide collaboration, the right incentives or appropriate policies in place, the market will not fulfil its potential,” commented Mats Granryd, Director General, GSMA. “Mobile operators should be encouraged to deliver what they do best in providing secure, reliable and intelligent connectivity to businesses and enterprises across the country.”
“Wide collaboration and a right policy environment are essential for 5G to unleash its potential in various verticals, and the three sectors addressed in the report are only a beginning,” said Craig Ehrlich, Chairman of GTI. “The Chinese government and all three operators have been propelling 5G trials and cross-industrial innovation, and the valuable experience gained from the process should serve as a worthwhile reference for the other markets around the globe.”
velopment of legislation for areas such as car-hacking and data privacy. New policies should be pro-innovation and pro-investment to encourage future developments in the sector. All three operators are currently trialling 5G autonomous driving and working on solutions such as Cellular Vehicle-to-Everything (C-V2X) for remote driving, vehicle platooning and autonomous vehicles.
Accelerated Growth of Drones Market:
The report also calls for common standards for connectivity management in the drones market to help accelerate investment and the deployment of new infrastructure and service models. The drones market, estimated to be worth RMB80 billion ($13 billion) by 2025, is developing rapidly in China in applications such as parcel delivery and tracking, site surveying, mapping and remote security patrols, among others. Improvements in mapping, real-time video distribution and analytics platforms are also helping to establish the technology in industrial verticals.
China Entering Age of Industry 4.0:
Backed by government support, China is transforming its manufacturing industry through embracing the use of artificial intelligence, the Internet of Things (IoT), machine learning and analytics. The government’s aim is to increase productivity and drive new revenue opportunities. The report calls for common standards for interconnection between platforms and devices to avoid market fragmentation, drive economies of scale and increase speed to market. GSMA Intelligence estimates that there will be 13.8 billion global Industrial IoT (IIoT) connections by 2025 with China accounting for 65%.
Separately, GSMA today reported that more than 60,000 unique visitors from 112 countries and territories attended the 2018 GSMA Mobile World Congress Shanghai, from 27-29 June in Shanghai. The three-day event attracted executives from the largest and most influential organisations across the mobile ecosystem, as well from companies in a range of vertical industry sectors. In addition to this business-to-business audience, nearly 8,800 consumers from the greater Shanghai metropolitan area attended the Migu Health and Fitness Festival, which was held in the Mobile World Congress Shanghai halls at the Shanghai New International Exhibition Centre (SNIEC).
“We are extremely pleased with the results for the 2018 Mobile World Congress Shanghai, particularly the very strong growth in our business-to-business segment,” said John Hoffman, CEO, GSMA Ltd. “Attendees were able to truly “Discover a Better Future”, from the thought leadership conference to the exhibition and everywhere in between. With more than two-thirds of the world’s population as subscribers, mobile is revolutionising industries and improving our everyday lives, creating exciting new opportunities while providing lifelines of hope and reducing inequality. Mobile truly is connecting everyone and everything to a better future.”
Covering seven halls at the SNIEC, the 2018 Mobile World Congress Shanghai hosted 550 exhibitors, nearly half of which come from outside of China. The conference programme attracted nearly 4,000 attendees, with more than 55 per cent of delegates holding senior-level positions, including nearly 320 CEOs. Nearly 830 international media and industry analysts attended Mobile World Congress Shanghai to report on the many industry developments highlighted at the show.
About the GSMA:
The GSMA represents the interests of mobile operators worldwide, uniting nearly 800 operators with more than 300 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organisations in adjacent industry sectors. The GSMA also produces industry-leading events such as Mobile World Congress, Mobile World Congress Shanghai, Mobile World Congress Americas and the Mobile 360 Series of conferences.
About the GTI:
GTI (Global TD-LTE Initiative), founded in 2011, has been dedicated to constructing a robust ecosystem of TD-LTE and promoting the convergence of LTE TDD and FDD. As 4G evolves to 5G, GTI 2.0 was officially launched at the GTI Summit 2016 Barcelona, aiming not only to further promote the evolution of TD-LTE and its global deployment, but also to foster a cross-industry innovative and a synergistic 5G ecosystem.
For more information, please visit the GTI website at http://gtigroup.org/
Net neutrality advocates are declaring June 26 another day of action in support of Democrats’ resolution to restore the 2015 Obama-era net neutrality rules. Public Knowledge, Common Cause, Consumers Union and other groups want to bring pro-net neutrality Americans directly to the offices of their representatives in the House to lobby for passage of the measure, drawn up under the Congressional Review Act. The Senate passed it 52-47 last month, and so far 124 House lawmakers have signed the paperwork to force a floor vote (they need 218, so they’ve got some work cut out for them). TechFreedom is hosting a more skeptical panel discussion on Democrats’ effort Tuesday. Among the panelists slated to appear is Grace Koh, who advised President Trump on telecom issues until she left the White House earlier this year.
Tom Leithauser of TR Daily (subscription required) wrote yesterday:
The rollback of net neutrality rules by the FCC will spark broadband investment in rural and suburban areas served by small and mid-sized cable TV operators, Matthew Polka, president and chief executive officer of the American Cable Association, said on this week’s “The Communicators” program.
“It created a sense of greater innovation and investment that these companies can now deploy,” Mr. Polka said on the show, which is set to air on C-SPAN tomorrow and C-SPAN2 on Monday.
He noted that broadband networks were increasingly being viewed as “infrastructure” by policy-makers and that deployment to underserved and unserved areas was a top priority at the FCC and among some members of Congress.
One impediment to broadband deployment, he said, is the time and cost required to arrange access to utility poles. Andrew Petersen, an ACA board member and senior vice president for TDS Telecom who also appeared on the C-SPAN program, said pole attachment rates for his company averaged $7.80 per pole, but were significantly higher in some markets. “It really retards our ability to make those investments to extend broadband,” Mr. Petersen said.
Mr. Petersen expressed hope that the FCC’s Broadband Deployment Advisory Committee would offer recommendations on ways to lower the cost of pole attachments and other broadband deployment expenses, which he said were his company’s top cost.
“When you bring robust broadband to a new area, you’re combatting the ‘homework gap,’ [and] you’re allowing for economic development and commerce to take place,” Mr. Petersen said. He said it was unlikely, however, for 5G service to bring broadband to unserved areas because those areas generally lack structures needed to place 5G equipment.
“We’re not bullish that 5G is going to make its way to suburban and rural areas immediately,” he said. “I don’t believe 5G technology is going to make its way to those areas in the next several years.”
In a related CNET post, Margaret Reardon wrote:
AT&T has given up efforts to challenge the Federal Trade Commission’s authority to regulate broadband (Internet access) providers. AT&T on Tuesday informed court officials that it would not file a petition to the US Supreme Court to challenge a lower court’s decision in the case. In 2014, the FTC sued AT&T in the US District Court of Northern California, accusing the company of promising unlimited data service to customers and then slowing that service down to rates that were barely usable. The case hasn’t yet gone to trial since AT&T had argued that the FTC has no authority over any of AT&T’s businesses.
The US Appeals court in Northern California rejected that argument in February and said the case could proceed. AT&T had until May 29 to file an appeal the the Supreme Court to challenge the decision.
AT&T indicated earlier this month in a status report submitted to the appeals court that it was considering appealing to the Supreme Court to stop the case.
This case was being closely watched by net neutrality supporters, because the question of whether the FTC has authority over AT&T would have had big implications for the future of the internet and whether there will be any cop on the beat ensuring that consumers are protected from big phone companies abusing their power online.
Why? When the Federal Communications Commission gave up its authority to police the internet with its repeal of net neutrality regulations in December, it specifically handed authority to protect consumers online to the FTC.
Net neutrality is the idea that all traffic on the internet should be treated equally and that large companies like AT&T, which is trying to buy Time Warner, can’t favor their own content over a competitor’s content. Rules adopted by a Democrat-led FCC in 2015 codified these principles into regulation. The current FCC, controlled by Republicans, voted to repeal the regulations and hand over authority to protect internet consumers to the FTC.
But there was one hitch in the law that could have made it impossible for the FTC to oversee some of the biggest broadband companies. Many of these companies, like AT&T and Verizon, also operate traditional telephone networks, which are still regulated by the FCC. AT&T argued that because some aspects of its business, like its traditional phone services, are regulated by the FCC, the FTC doesn’t have jurisdiction.
A federal appeals court disagreed with AT&T’s argument, stating the FTC can fill in oversight gaps when certain services, like broadband, aren’t regulated by the FCC. If AT&T had appealed to the Supreme Court and if the court had taken the case and ruled in AT&T’s favor, it would have meant that phone companies providing broadband or wireless internet services would be immune from government oversight. By contrast, cable companies, which do not operate traditional phone networks regulated by the FCC, would still be under the authority of the FTC.
For now, that doomsday scenario is put to rest and the lower court’s ruling that the FTC can, in fact, oversee all broadband providers stands.
Meanwhile, net neutrality supporters continue their fight to preserve the 2015 rules. Several states, including California and New York, are considering legislation to reinstate net neutrality rules. Earlier this year, Washington became the first state to sign such legislation into law. Governors in several states, including New Jersey and Montana, have signed executive orders requiring ISPs that do business with the state adhere to net neutrality principles.
Democrats in the US Senate are also trying to reinstate the FCC’s rules through the Congressional Review Act, which gives Congress 60 legislative days in which to overturn federal regulations. The resolution passed the Senate earlier this month and must pass the House of Representatives and eventually be signed into law by President Donald Trump to officially turn back the repeal of the rules.
Ericsson is one of the top three wireless network equipment companies in the world (they were #1 until Huawei took that coveted spot). Approximately 40% of the world’s mobile traffic is carried over Ericsson networks. The company has customers in 182 countries and offers comprehensive industry solutions ranging from Cloud services and Mobile Broadband to Network Design and Optimization. Ericcson also has one of the most compelling IoT platforms in their IoT Accelerator, which we described earlier this year.
Image above courtesy of Ericsson
Ericsson had a huge presence at IoT World 2018 with an impressive exhibit floor booth, a Wednesday private briefing session at their Santa Clara, CA location and three presentations at IoT World 2018 conference sessions.
I attended the private briefing at Ericsson- Santa Clara, got a tour of some of the exhibits there, heard the talk by Shannon Lucas (VP. Head of Emerging Business Unit in North America) on Tuesday and met with Ericsson’s IoT expert Mats Alendal on Thursday for a one on one conversation about Ericsson’s IoT strategy and associated wireless WANs (e.g. NB-IoT, LTE-M, and “5G”).
Most surprising was that Mats claimed that the transition from 4G LTE to whatever the 5G RAN/RIT is will be ONLY A SOFTWARE UPGRADE OF ERICSSON’S BASE STATION. He also said that if the 5G latency could be reduced to 1 or 2 ms, it would open up many new real time Industrial IoT (IIoT) applications that we haven’t thought of yet. Such a low latency would require a controlled environment, typically in a manufacturing plant or similar, and mm wave radio.
Currently most IIoT applications rely on wired connectivity on a factory floor, manufacturing plant or test facility. In a few cases wireless LANs (e.g. WiFi, Zigbee, proprietary) might be used. Hence, wireless WAN connectivity represents a big shift for many industrial customers. IIoT use cases in manufacturing require a wireless WAN with low latency, guaranteed delivery of messages/packets/frames, and instant control/feedback.
One of the best IIoT wireless WAN solutions is Private LTE. It’s probably more robust than cellular LPWANs (NB-IoT and LTE-M) and provides cost benefits as well. In a Thursday afternoon session, Nokia recommended Private LTE for many of those IIoT applications (more information by emailing this author). Ericsson is delivering Private LTE equipment via its 3GPP compliant, licensed and unlicensed bands for Private LTE.
IIoT use cases powered by Ericsson include connected factory robots, manufacture of highly precise bladed disks (BLISKs) for turbines, and spherical roller bearings for SKF. A case study for 5G trial for BLISKs may be viewed here.
Highlights of Shannon Lucas’ talk – Data Infrastructure: Mobile IoT: LPWAN & 5G:
- 18B connected IoT devices are expected by 2022 (that’s down from earlier forecasts of 20B and more by 2020)
- Edge computing network is needed for ultimate scalability and a great user experience (user might be a machine/device)
- Hardware innovation platform can make LTE-M and NB-IoT easier to implement for network operators. AT&T and Verizon are using Ericsson’s NB-IoT technology for their commercial offerings.
- Ericsson has driven standards for cellular connectivity, and that effort is now naturally extending into setting standards for IoT, and more specifically, cellular IoT. With standardization, the IoT becomes a platform from which collaboration between organizations, both private and public, will benefit us all.
- Ericsson’s standardized approach for connecting devices and sensors allows cities to collaborate and share data, regardless of legacy platforms. This helps engineers improve traffic flow, and allows emergency services to optimize response times.
- A collaboration between Ericsson, Intelight and Teleste is helping to break up traffic and information gridlock. Four cities in the Dallas-Fort Worth metroplex have launched a regional system employing the Ericsson Connected Urban Transport ITS platform.
Wednesday Evening Private Briefing:
Ericsson Ventures (VC arm of Ericsson) is focused on driving innovation in areas that will accelerate Ericsson’s core business and generate strong financial performance. Intent is to combine start-up solution with Ericsson’s technologies. 6 to 7 deals per year with average investment of $1.5M. Ericsson likes to be part of a syndicate of VCs and corporate investors in the targeted start-up. They are start-up stage agnostic.
Areas for Ericsson Ventures investment include: IoT, analytics connected car, security, SDN, AR and VR, mobile advertising, wireless connectivity AI and ML.
Many new IoT applications will be enabled by 5G (so thinks everyone), including the connected car and real time control for IIoT. This author is not so sure. We think that high bandwidth and/or low latency might be needed for at most 5 to 10% of IoT applications.
Ericsson IoT accelerator platform: https://www.ericsson.com/en/internet-of-things/solutions/iot-platform
Ericsson Technology Review (our most technical papers): https://www.ericsson.com/en/ericsson-technology-review
Cellular IoT Use Cases: https://www.ericsson.com/en/networks/cases/cellular-iot
Ericsson white papers: https://www.ericsson.com/en/white-papers
- 5G radio access – capabilities and technologies
- Cellular networks for Massive IoT
AT&T says it will use small cells for its mobile “5G” service planned for 12 U.S. cities this year. The company’s first of these roll outs will use millimeter wave  spectrum, which offers higher capacity rates than low-band spectrum but does not propagate over large distances. That requires transmit/receive radios need to closer together than they are in LTE deployments.
Note 1. Millimeter wave (also millimeter band) is the band of spectrum between 30 gigahertz (Ghz) and 300 Ghz.
“Millimeter wave is more associated with small cell-like ranges and heights,” said AT&T’s Hank Kafka, VP of network architecture. “It can be on telephone poles or light poles or building rooftops or on towers, but generally if you’re putting it on towers it’s at a lower height than you would put a high-powered macrocell, because of the propagation characteristics.”
“5G will change the way we live, work and enjoy entertainment,” said Melissa Arnoldi, president, AT&T Technology and Operations. “We’re moving quickly to begin deploying mobile 5G this year and start unlocking the future of connectivity for consumers and businesses. With faster speeds and ultra-low latency, 5G will ultimately deliver and enhance experiences like virtual reality, future driverless cars, immersive 4K video and more.”
AT&T has announced 23 cities that are getting its 5G Evolution infrastructure, which the company describes as “the foundation for mobile 5G.” Those cities are Atlanta; Austin; Boston; Bridgeport, Connecticut; Buffalo, New York; Chicago; Fresno, CA; Greenville, South Carolina; Hartford, Connecticut; Houston; Indianapolis; Los Angeles; Louisville; Memphis; Nashville; New Orleans; Oklahoma City; Pittsburgh; San Antonio; San Diego; San Francisco; Tulsa, Oklahoma and Sacramento, California.
AT&T’s deployment of small cells to support mobile 5G will be largely independent of another 2017 AT&T infrastructure initiative – the build-out of the 700 MHz spectrum for FirstNet.
“Where appropriate we’re always going to try and get as much synergy as we can … but there’s a difference between dealing with small cell sites and dealing with macro sites,” Kafka said.
“You’ll find that a lot of radios that suppliers are putting out now are going to be upgradeable to support 5G,” Kafka said. “Some of the radios we’re deploying now do have that capability in the hardware.”
Kafka said that in some instances, tower crews might be able to add “5G” equipment near the base of the tower at the same time they add 700 MHz radios to the top. But the synergies between the two deployments are limited.
In sharp contrast to AT&Ts endorsement of millimeter wave technology, Sprint’s CTO John Saw said last week that he is not sure that using millimeter waves to deliver 5G services is a practical economic use of the high-band spectrum and that Sprint will be focusing on using its existing bandwidth to initially deploy 5G.
“What is the cost to deliver a bit over millimeter waves? Where is the business case on that?” John Saw asked at the Citi conference in Las Vegas.
Verizon CTO Hans Vestberg told a CES panel last week that Verizon “will be first” to deploy 5G. Verizon is moving ahead with deployment of pre-standard fixed-wireless 5G service, starting with a rollout in Sacramento, California in the second half of this year. But Vestberg noted fixed-wireless is just one part of what Verizon plans to do with 5G.
“From 5G you can do different slices. We are now focusing on one slice, which is basically residential broadband to deliver superior performance quicker to market…That’s one use case, we can talk about many others.”
New ITU-T standards related to “5G”:
ITU-T has reached first-stage approval (‘consent’ level) of three new international standards defining the requirements for IMT-2020 (“5G”) network systems as they relate to network operation, softwarization and fixed-mobile convergence.
The standards were developed by ITU-T’s standardization expert group for future networks, ITU-T Study Group 13.
Note: The first-stage approvals come in parallel with ITU-T Study Group 13’s establishment of a new ITU Focus Group to study machine learning in 5G systems.
End-to-end flexibility will be one of the defining features of 5G networks. This flexibility will result in large part from the introduction of network softwarization, the ability to create highly specialized network slices using advanced Software-Defined Networking (SDN), Network Function Virtualization (NFV) and cloud computing capabilities.
The three new ITU-T standards are the following:
- ITU Y.3101 “Requirements of the IMT-2020 network” describes the features of 5G networks necessary to ensure efficient 5G deployment and high network flexibility.
- ITU Y.3150 “High-level technical characteristics of network softwarization for IMT-2020” describes the value of slicing in both horizontal and vertical, application-specific environments.
- ITU Y.3130 “Requirements of IMT-2020 fixed-mobile convergence” calls for unified user identity, unified charging, service continuity, guaranteed support for high quality of service, control plane convergence and smart management of user data.
ITU’s work on “International Mobile Telecommunications for 2020 and beyond (IMT-2020)” defines the framework and overall objectives of the 5G standardization process as well as the roadmap to guide this process to its conclusion by 2020.
ITU’s Radiocommunication Sector (ITU-R) is coordinating the international standardization and identification of spectrum for 5G mobile development. ITU’s Telecommunications Standardization Sector (ITU-T) is playing a similar convening role for the technologies and architectures of the wireline elements of 5G systems.
ITU standardization work on the wireline elements of 5G systems continues to accelerate.
ITU-T Study Group 15 (Transport, access and home networks) is developing a technical report on 5G requirements associated with backbone optical transport networks. ITU-T Study Group 11 (Protocols and test specifications) is studying the 5G control plane, relevant protocols and related testing methodologies. ITU-T Study Group 5 (Environment and circular economy) has assigned priority to its emerging study of the environmental requirements of 5G systems.
ITU-T Study Group 13 (Future networks), ITU’s lead group for 5G wireline studies, continues to support the shift to software-driven network management and orchestration. The group is progressing draft 5G standards addressing subjects including network architectures, network capability exposure, network slicing, network orchestration, network management-control, and frameworks to ensure high quality of service.
The “5G” wireline standards developed by ITU-T Study Group 13 and approved in 2017 include:
- ITU Y.3071 “Data Aware Networking (Information Centric Networking) – Requirements and Capabilities” will support ultra-low latency 5G communications by enabling proactive in-network data caching and limiting redundant traffic in core networks.
- ITU Y.3100 “Terms and definitions for IMT-2020 network” provides a foundational set of terminology to be applied universally across 5G-related standardization work.
- ITU Y.3111 “IMT-2020 network management and orchestration framework” establishes a framework and related principles for the design of 5G networks.
- ITU Y.3310 “IMT-2020 network management and orchestration requirements” describes the capabilities required to support emerging 5G services and applications.
- Supplement 44 to the ITU Y.3100 series “Standardization and open source activities related to network softwarization of IMT-2020”summarizes open-source and standardization initiatives relevant to ITU’s development of standards for network softwarization.
“5G” Core Network functions & Services Based Architecture:
The primary focus of ITU-R WP5D IMT 2020 standardization efforts are on the radio aspects (as per its charter). That includes the Radio Access Network (RAN)/Radio Interface Technology (RIT), spectral efficiency, latency, frequencies, etc.
To actually deliver services over a 5G RAN, a system architecture and core network are required. The core network provides functions such as authentication, session management, mobility management, forwarding of user data, and (possibly) virtualization of network functions.
3GPP Technical Specification (TS) 23.501 — “System Architecture for the 5G System” — is more commonly referred to as the Service-Based Architecture (SBA) for the 5G Core network. It uses service-based interfaces between control-plane functions, while user-plane functions connect over point-to-point links. This is shown in the figure below. The service-based interfaces will use HTTP 2.0 over TCP in the initial release, with QUIC transport being considered for later 3GPP releases.
There are many aspects to this, but the white paper highlights:
- How the idea of “network function services” (3GPP terminology) aligns with the micro-services based view of network service composition
- How operators may take advantage of decoupled control- and user-plane to scale performance
- How the design might enable operators to deploy 5GC functions at edge locations, such as central offices, stadiums or enterprise campuses
The first 5G core standards (really specifications because 3GPP is not a formal standards body) are scheduled to be included in 3GPP Release 15, which “freezes” in June next year and will be formally approved three months later. This will be a critical release for the industry that will set the development path of the 5G system architecture for years to come.
Download white paper: Service-Based Architecture for 5G Core Networks
“The 3GPP Technical Specifications and Technical Reports have, in themselves, no legal standing. They only become “official” (standards) when transposed into corresponding publications of the Partner Organizations (or the national / regional standards body acting as publisher for the Partner).”
The Fog World Congress (FWC), to be held October 30th to November 1st in Santa Clara, CA, provides an innovative forum for industry and academia in the field of fog computing and networking to define terms, discuss critical issues, formulate strategies and organize collaborative efforts to address the challenges. Also, to share and showcase research results and industry developments.
FWC is co-sponsored by IEEE ComSoc and the OpenFog Consortium. It is is the first conference that brings industry and research together to explore the technologies, challenges, industry deployments and opportunities in fog computing and networking.
Don’t miss the fog tutorial sessions which aim to clarify misconceptions and bring the communities up to speed on the latest research, technical developments and industry implementations of fog. FWC Research sessions will cover a comprehensive range of topics. There will also be sessions designed to debate controversial issues such as why and where fog will be necessary, what will happen in a future world without fog, how could fog disrupt the industry.
Here are a few features sessions:
- Fog Computing & Networking: The Multi-Billion Dollar opportunity before us
- Driving through the Fog: Transforming Transportation through Autonomous vehicles
- From vision to practice: Implementing Fog in Real World environments
- Fog & Edge: A panel discussion
- Fog over Denver: Building fog-centricity in a Smart City from the ground up
- Fog Tank: Venture Capitalists take on the Fog startups
- 50 Fog Design & Implementation Tips in 50 Minutes
- Fog at Sea: Marine Use Cases For Fog Technology
- NFV and 5G in a Fog computing environment
- Security Issues, Approaches and Practices in the IoT-Fog Computing Era: A panel discussion
View the 5 track conference program here.
Finally, register here.
For general information about the conference, including registration, please email: firstname.lastname@example.org
About the Open Fog Consortium:
The OpenFog Consortium bridges the continuum between Cloud and Things in order to solve the bandwidth, latency and communications challenges associated with IoT, 5G and artificial intelligence. Its work is centered around creating an open fog computing architecture for efficient and reliable networks and intelligent endpoints combined with identifiable, secure, and privacy-friendly information flows between clouds, endpoints, and services based on open standard technologies. While not a standards organization, OpenFog drives requirements for fog computing and networking to IEEE. The global nonprofit was founded in November 2015 and today represents the leading researchers and innovators in fog computing.
For more information, visit www.openfogconsortium.org; Twitter @openfog; and LinkedIn /company/openfog-consortium.
Most network operators say they’re ready for “5G” even if they don’t know what it will actually deliver (the RAN and other key functions haven’t even been discussed by ITU-R WP5D for IMT 2020, let alone agreed upon), Ericsson found in a survey of wireless network operators around the world (see References and hyper-links below). Many expect the enterprise market and Internet of Things (IoT) applications to drive revenue growth from 5G technology.
More than three-quarters of the respondents said they were in the midst of 5G trials. That corresponds with research from the Global Mobile Suppliers Association research which found 81 5G trials underway in 42 countries.
23% of survey respondents plan to migrate 4G subscribers to 5G with enhanced services and revenues (but when?). Yet nearly two thirds (64%) of operators said they can’t pay for 5G by simply raising rates on consumers, because consumers are “tapped out.” Eighteen percent of respondents said they expect to monetize 5G by “expanding to new markets—enterprise/ industry segments.”
“In 2016, 90% pointed to consumers as the central segment in their planning and only 34% focused on specialized industries,” the Ericsson researchers wrote in this year’s report. An increased emphasis on the enterprise market is a key shift since a previous Ericsson 5G operator survey was conducted in 2016.
“This year, operators are seeing that the consumer market is saturated, so planning for 5G is more evenly split across specialized industry segments (58%), business users (56%) and consumers (52%),” the Ericsson researchers added.
Specific industry segments on which operators expect to focus 5G monetization efforts include media/entertainment (cited by 69% of respondents), automotive (59%), public transport (31%), healthcare (29%) and energy/ utilities (29%).
Providing industry-specific services to these industry segments will be important in 5G monetization, according to 68% of respondents. The single most important use case in the media/entertainment segment is high-quality streaming, respondents said. Other top use cases by segment included:
- Automotive: autonomous vehicle control
- Public transport: Smart GPS
- Healthcare: Remote robotic surgery
- Energy & utilities: Control of edge-of-grid generation
More than three quarters (77%) of respondents said third-party collaboration is an essential element in 5G monetization and 68% said they need to find new revenue-sharing models.
Chart courtesy of Ericsson’s 5G Readiness Survey
Survey Questions and Methodology:
Some of the questions asked in the survey:
-Exactly how have preparations for 5G evolved over the past year?
-Where do telcos stand now in their 5G activities and developments?
-What actions are service providers taking now in anticipation of 5G?
-What priorities drive their initiative?
-How ready are they to take leadership positions in the 5G future?
The survey’s objective was to obtain a snapshot of the state of the industry in relation to next-generation mobile technology. Last year, we struggled to find 50 executives globally who were far enough along in 5G to answer the survey questions.
This year, Ericsson says they “easily identified 50 executives, both business and technical leaders, from 37 operators around the world. As leaders of their organizations’ 5G efforts, they are at the center of the 5G evolution. That increase clearly signifies the growing recognition among industry leaders of 5G’s importance.”s
Is it possible for South Korea to have more 5G then 3G subscribers BEFORE the official “5G” = ITU-R WP5D – IMT 2020 standards are completed?
Indeed, South Korean mobile network operators plan to take an early lead in the deployment of 5G (perhaps because of the February 2018 Winter Olympics in Pyeongchang). That would help them overcome stagnating traditional wireless service revenues, according to market research firm GlobalData.
The South Korean market’s 5G subscriber base is forecast to outnumber the 3G base by 2020, two years after the world’s first commercial 5G deployment during next year’s Pyeongchang Winter Olympics, GlobalData said in its report.
That will occur at a time when mobile voice service revenues are expected to decline at an average rate of 7% per year through to 2021, GlobalData telecom market analyst Malcolm Rogers stated.
“Operators around the globe faced with the same challenge, evolve to something more than a pipe provider or offer services that come with more utility. However, the Korean operators have been among the most proactive in growing business outside the core of communication,” he said.
“Whereas operators in some markets have been slow to react to the digital disruption caused by OTTs and internet giants like Google and Amazon, the players in South Korea have been investing in new digital business for years.”
The main South Korea wireless network operators – SK Telecom, KT and LG U+ – are focusing on a range of non-core segments including industrial IoT, payment platforms, media and commerce, Rogers added.
From the report description (see Reference below):
SK Telecom and LG U+ now offer cellular based wireless payment platforms that allow small retailers, traders and vendors to conduct business from anywhere. All three major telecom providers have also invested in B2C and B2B e-commerce operations, venturing into an entirely new industry. 5G networks will enable operators to provide new services for industry, government and consumers. Korea Telecom (KT) has already completed trial to offer 5G enabled entertainment services such as high definition virtual reality and 8K mobile video while SKT and KT are developing driverless car solutions and security platforms based on 5G technologies.
South Korea plans to complete the deployment of a commercial 5G mobile network in the second half of 2019, Heo Won-seok, director of ICT and Broadcasting Technology Policy at South Korea’s Ministry of Science, ICT and Future Planning, said during a keynote presentation at the Global 5G Event, May 25, 2017 in Tokyo, Japan.
KT recently launched an AI-based home assistant service while both SK Teleom and LG U+ are offering cellular based wireless payment platforms. All three carriers are investing in business-to-consumer and business-to-business e-commerce offerings, which is an entirely new industry for those network operators.
Against this backdrop, 5G networks are expected to allow the network operators to introduce new services targeting industry, government and consumer markets, according to GlobalData.
For example, KT is already exploring offering 5G-enabled entertainment services including 8k mobile video streaming, while SK Telecom and KT are developing driverless car solutions and security platforms based on 5G technologies.
According to the Financial Times (on line subscription required):
Telecom Italia plans to test its home grown “5G” technology in the micro-state of San Marino next year, making it the first country in the world to boast a nationwide 5G network. The state of San Marino, which has little more than 30,000 citizens, extends to only 61 sq km, making it the smallest republic in the world.
Telecom Italia Mobile (TIM) has signed a memorandum of understanding with the government of the tiny country to upgrade the existing 4G-LTE network in advance of a trial of “5G” services in 2018. It will double the number of mobile sites and will install a network of small cells in downtown San Marino, a Unesco heritage site, this year that will provide the backbone of the future commercial network. Investment in 5G network trials are taking place around the world with carriers in South Korea, China and the US among the most active in testing 5G technology. Giovanni Ferigo, head of technology for Telecom Italia Mobile, said San Marino’s 5G network would be the first in Europe “for sure.”
It was not revealed who created the specs for the Italian telco’s “5G” network or where Telecom Italia will procure the end point devices/handsets. One would assume that Ericsson is supplying TIM with the “5G” base stations, based on a MOU signed between the two companies in March of this year. TIM wrote in a press release on March 2, 2017:
TIM and Ericsson are committing to share skills, projects, laboratories and resources for designing, testing and building the technological components of the new 5G network needed to create a complete and open ecosystem around next-generation digital services.
In particular, the agreement will directly involve the research and innovation structures of the two companies, focusing on the design and testing of access infrastructure, the respective antenna systems and network virtualisation solutions, particularly through joint participation in Italian and European research projects and integration of service platforms for testing in the field of innovative Use Cases.
The 5G system will provide peak speeds of up to dozens of Gbps for UltraHD services and cloud computing solutions, a decrease in communication latency, reducing it to a few milliseconds, reliability for mission-critical services and service density with the ability to connect up to a hundred thousand terminals per cell. These characteristics mean that 5G will become the reference mobile network for next-generation digital services (such as virtual reality) and for the industrial Internet (robotics, manufacturing, health, environment, self-driving logistics).
The agreement is part of the “5G for Italy” initiative launched in 2016 by TIM and Ericsson for the establishment of an ecosystem of experimental industrial partners, confirming the commitment of the two companies to innovating technologies and networks in support of the socio-economic growth of the country.
Telecom Italia is also testing “5G” in Milano and Torino, but has more freedom in San Marino to experiment because of fewer restrictions on the use of airwaves than in Italy.
“We need to experiment as soon as possible,” Mr Ferigo said. The work done in San Marino would play a critical role in the future of 5G technology in Italy but was also crucial to the wider European sector as standards for the new network are refined.
“For 5G, our intention is a European leadership in standardization,” he said. The European Commission published a 5G action plan last year when it estimated that sectors such as healthcare, transport, cars and utilities would see economic benefits of €113bn by 2025 from the technology. However, the European Commission does not generate any telecom standards. For Europe, that’s ETSI which contributes to 3GPP and its members contribute to ITU-R WP 5D which is standardizing true 5G (as we’ve noted in numerous blog posts/articles).
Earlier this year, Telecom Italia Mobile (TIM) said LTE customers are expected to account for around 90% of its mobile broadband customers by 2019; That’s due to almost blanket LTE coverage of Italy with network speeds up to 75 Mbps and peaks of 500 Mbps in the main cities via the use of LTE Advanced Carrier Aggregation.
The above referenced FT “5G” article states:
Some countries have committed to the first 5G launches in 2019 but the wider telecoms industry is still struggling to define exactly what 5G technology is and some have argued that it is not yet clear how they can justify spending billions on the new network.
Mr Ferigo said the San Marino launch would be “very important” in defining the use case for 5G that would transform all sectors from healthcare to robotics to public transport. Telecom Italia has started working with companies including Maserati and Ducati on the use of better wireless technology but also the makers of parmesan cheese who want to better monitor the cows in their fields. Small territories have been used in the past for telecoms testing. The first 3G trial in the UK took place on the Isle of Man, while the remote Isle of Bute in Scotland was used to test “white space” technology.
Copyright The Financial Times Limited 2017. All rights reserved.