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
The global satellite M2M and IoT market is expected to grow to $2.9 billion in revenue by 2026, according to satellite based market research company NSR.
This growth will be driven by over 6.8 million in-service terminals, NSR said in their new report. Potential applications include (see chart below): land transport and especially cargo tracking, which is expected to be the most profitable and sought after segment of the emerging industry.
“Revenues are growing year-over-year across each of the 22 applications NSR identified, and will accelerate as new M2M capacity supply, in the form of new constellations, come online in the medium term,” NSR senior analyst and lead report author Alan Crisp said.
“Most increases in new demand for M2M service today stem from basic product offerings, as for many use cases bandwidth requirements remain in the kilobyte range,” Crisp added.
While most M2M and IoT services require only low bandwidth, NSR also predicts that over the next decade some verticals will demand additional bandwidth to support applications such as big data analytics, engine telematics and live data streaming.
The report states that a number of small satellite constellations will target low bandwidth and latency insensitive applications in agriculture and tracking market segments.
Despite the huge revenues predicted, the report notes that despite growing demand for IoT satellite services, the business case for IoT exclusive satellite constellations has yet to be proven – especially considering the exponential growth of LPWANs, LTE-M and NB-IoT terrestrial networks for IoT.
For example, last week China Mobile-Hong Kong demonstrated a smart parking service carried over its commercial NB-IoT network. Meanwhile, rival wireless network operators 3 Hong Kong (part of Hutchinson-HK) and SmarTone have also made recent announcements of NB-IoT deployments. 3 HK and Huawei have built the NB-IoT infrastructure with NB-IoT modules designed in accordance with the 3GPP standard to facilitate tests and development of NB-IoT applications.
This report answers key questions on the satellite M2M/IoT market:
- Which applications, frequencies and regions exhibit the greatest growth potential?
- How important are latency, security and high bandwidth requirements for upcoming M2M/IoT applications?
- What role will small satellites have with IoT connected devices, and how will this impact the existing satellite M2M/IoT operators?
- How can satellite benefit from the growth of Low Power Wide Area networks?
China Telecom’s 3 New IoT Partnerships:
China Telecom has entered three new partnership agreements aimed at accelerating the development of services based on an Internet of Things (IoT) open platform.
The operator has announced an expanded partnership with HKT to cover the development of a common IoT open platform to serve the operators’ customers in the combined geographical footprints of mainland China and Hong Kong.
With the arrangement, each network operator’s customers will be able to deploy IoT and M2M services on the other’s network.
The joint offering will allow seamless switching of IoT subscription between networks by integrating the two commonly-deployed embedded universal integrated circuit card platforms. The multi-domestic service is supported by the Ericsson Device Connection Platform (DCP).
China Telecom also announced a similar strategic partnership with Norway-based Telenor Group. That partnership will allow customers from China Telecom and Telenor Connexion to deploy IoT and Machine-to-Machine (M2M) services in each other’s network. It enables China Telecom’s multi-national enterprise customers with outbound IoT business to deploy their assets and offerings under Telenor Connexion’s networks in the European and other Asian Markets.
Similarly, Telenor Connexion’s global customers can enjoy the benefits of the rapidly growing Chinese market by leveraging on China Telecom’s IoT network resources and business capabilities. The seamless switching of IoT subscription between networks is achieved by the integration of the two commonly deployed eUICC platforms which are the key component of IoT collaboration across borders.
To recap, China Telecom’s multi-national enterprise customers will gain access to Telenor Connexion’s IoT networks in Europe and Asian markets, and will serve as Telenor Connexion’s preferred partner for connectivity in China.
A separate agreement with Orange Business Services will enable both companies to serve their respective enterprise customers through a combined footprint across three continents – Asia, Europe and Africa.
The network operators have also agreed to collaborate on the development of new service models supporting global IoT opportunities and to explore the potential of enhancing existing IoT capabilities and applying emerging technologies such as mobile IoT.
GSMA functions to connect participants throughout the global mobile communications ecosystem, including almost 800 operators and over 300 enterprises. The association lays significant emphasis on addressing common concerns to best serve the interests of mobile operators worldwide. GSMA’s “Best IoT Innovation for Mobile Networks” award identifies and rewards Internet of Things (IoT) products, solutions, services, and new business models to highlight innovative breakthroughs based on new technological developments and standards of mobile networks.
Huawei’s NB-IoT solution comprises an NB-IoT terminal chipset, terminal operation system LiteOS, NB-IoT RAN and EPC, OceanConnect (a cloud platform for IoT management), and OpenLab that helps related enterprises develop IoT services and applications. The goal of the Huawei NB-IoT solution is to jointly build a better connected IoT solution and ecosystem with operators and partners from a diverse range of vertical industries. Huawei was the first to launch associated products after 3GPP released standards formulated for NB-IoT – one of multiple competing “standards” for Low Power WANs (LPWANs) targeted at the (non LAN) IoT market.
In 2016, Huawei began conducting NB-IoT trial applications in conjunction with mainstream network operators and partners. In early 2017, Huawei launched Boudica120, the world’s first commercial NB-IoT chip.