Omdia: China’s 5G network co-sharing + cloud will create growth opportunities for Chinese service providers
After building the world’s largest 5G network with 2.3 million 5G base stations by the end of 2022, China is on track add over 600,000 5G base stations and reach 2.9 million by the end 2023, according to new Omdia market research (owned by Informa). A key milestone in terms of China’s co-building and co-sharing 5G networks recently took place in May 2023, through the 5G network collaboration between all the four service providers in China. Under the organization and guidance of the Ministry of Industry and Information Technology (MIIT), the four major mobile operators in China – China Mobile, China Telecom, China Unicom, and China Broadnet, jointly announced the launch of what they claimed as the world’s first 5G inter-network roaming service trial. The service enables customers to access other telecom operators’ 5G networks and continue using 5G services when outside the range of their original operators’ 5G network.
Ramona Zhao, Research Manager at Omdia said: “Omdia expects inter-network roaming to improve operators’ 5G network coverage particularly in rural areas. Driven by better 5G network coverage, 5G will overtake 4G’s leading position and become the largest technology in China’s mobile market by 2026. By the end of 2028, we anticipate 5G will account for 65.1% of the total mobile subscriptions (including IoT connections).”
An advertisement for 5G mobile service at Shanghai Pudong International Airport. Image Credit: DIGITIMES
Omdia deems China as a 5G pioneer in terms of many areas, including technology innovation, network deployment, and 5G use cases. Driven by the increasing 5G adoption, Chinese service providers’ mobile service revenue and reported mobile (non-IoT) ARPU have all achieved year-on-year (YoY) growth in 2022. China Telecom reported an increase of 3.7% in its mobile service revenue; China Unicom‘s mobile service revenue saw a YoY increase of 3.6%; while China Mobile’s mobile service revenue also increased by 2.5% YoY.
Owing to the digital transformation demand from various state-owned enterprises, cloud services are also considered a growing business for Chinese service providers.
“Omdia recommends that Chinese service providers innovate more applications through the integration of cloud and the 5G network. This will be vital to enable the digital transformation of various industries and the acquisition of new revenue streams,” concludes Zhao.
According to a previous GSMA report, dubbed “The Mobile Economy China 2023”, 5G technology will add $290 billion to the Chinese economy in 2030, with benefits spread across industries.
“Mainland China is the largest 5G market in the world, accounting for more than 60% of global 5G connections at the end of 2022. With strong takeup of 5G among consumers, the focus of operators is now increasingly shifting to 5G for enterprises. This offers opportunities to grow revenues beyond connectivity in adjacent areas such as cloud services – a segment where operators in China have recently made significant progress,” the GSMA report reads.
5G will overtake 4G in 2024 to become the dominant mobile technology in China, according to the report. “4G and 5G dominance in China means legacy networks are now being phased out. While most users have been migrated to 4G and 5G, legacy networks continue to support various IoT services. However, some estimates suggest that legacy networks could be almost entirely shut down in China by 2025,” the study reads.
Chinese vendor Huawei Technologies has secured over half of a major contract to deploy 5G mobile base stations for local carrier China Mobile, according to recent reports by Chinese media.
Huawei obtained over 50% of the total of China Mobile’s centralized procurement program in 2023.
The report also stated that Huawei will provide 5G base stations for different frequency bands. The bands ranging from 2.6 GHz to 4.9 GHz will have around 63,800 stations, divided into two projects, while the number of base stations to operate in the 700 MHz band will be 23,100, divided into three projects. ZTE was the second-biggest winner in terms of base stations, followed by Datang Mobile Communications Equipment, Ericsson and Nokia Shanghai Bell.
References:
Technavio: APAC region leads global telecom services market with 33% growth
According to a new report by Technavio, the telecom services market is forecast to grow by $625.5 billion from 2022 to 2027, progressing at a CAGR of 6.13% during the forecast period. APAC is estimated to contribute 33% market growth (more details below). The report offers an up-to-date analysis regarding the current global market scenario, the latest trends and drivers, and the overall market environment.
Increased demand for broadband is the key factor driving the growth of the global telecom services market. The demand for high-speed broadband connections has increased due to the rise in the number of internet users globally. As a result, the companies are providing faster speeds and higher bandwidths by upgrading their network infrastructure. The world is becoming connected through the internet so the demand for telecom services is growing rapidly. Furthermore, people and businesses require fast and reliable connectivity to access information and services, stay connected with each other, and conduct their daily activities. Hence, these factors will boost the growth of the telecom services market during the forecast period.
Telecom service is provided by a telecommunication provider or a specified set of user-information transfer capabilities provided to a group of users by a telecommunication system. Telecom services include all forms of voice telephony and data transmission as well as leasing of circuit capacity.
Market Drivers:
- Increased demand for broadband
- Mergers and acquisitions
- Increase in global mobile data traffic
- Technological advancements
- Adoption of 5g technology
- High investment by vendors
Challenges:
- Regulatory compliance
- Increasing competition among vendors
- Growing concerns for environment
APAC region leading:
- APAC dominated the global telecom services market with the largest market share in 2022.
- APAC is the world’s most populous continent, and its population is increasing rapidly.
- As the population grows, so does the demand for telecom services, such as mobile phones and Internet access.
- Many APAC countries are experiencing rapid economic development, which is increasing the demand for telecom services.
- As people become more affluent, they are more likely to want access to mobile phones and high-speed Internet. APAC is experiencing a significant shift from rural to urban living.
- As people move to cities, they require more advanced telecom services to stay connected and conduct business.
- The rapid pace of technological change is transforming the way people live, work, and communicate.
- In APAC, there is a strong focus on digital transformation, which is driving the demand for telecom services.
- Thus, due to population growth, economic development, urbanization, and digital transformation, the demand for telecom services is booming in APAC, which may positively impact the growth of the global telecom services market during the forecast period.In 2020, the COVID-19 pandemic increased the demand for telecom services as more people work, learn, and socialize from home.
- As a result, there has been a surge in the demand for high-speed Internet, video conferencing, and online entertainment services.
- The increased demand for telecom services has also led to network congestion in some areas.
- With more people using the Internet simultaneously, network speeds can slow down, making it difficult for people to work and communicate effectively.
- The pandemic has disrupted global supply chains, which has impacted the availability of telecom equipment and devices.
- This has led to delays in the rollout of new infrastructure and has impacted the supply of mobile devices.
- However, in late 2020, the initiation of large-scale vaccination programs led to the lifting of lockdown restrictions and the resumption of industrial operations, which increased the demand for telecom services in commercial end-users as many people started going to offices.
References:
Biden administration announces $40+ Billion grants for broadband internet access
The Biden administration today revealed new details about how $40+ billion from the Bipartisan Infrastructure Law will be spent in the years ahead to connect more Americans to high-speed internet. The funds will flow into a Commerce Department program with checks set to begin flowing to states early next year.
High-speed internet is no longer a luxury – it is necessary for Americans to do their jobs, to participate equally in school, access health care, and to stay connected with family and friends. Yet, more than 8.5 million households and small businesses are in areas where there is no high-speed internet infrastructure, and millions more struggle with limited or unreliable internet options.
High-speed internet infrastructure deployment will be funded by the Broadband Equity Access and Deployment (BEAD) program—a $42.45 billion grant program created in the Bipartisan Infrastructure Law and administered by the Department of Commerce. This announcement—the largest internet funding announcement in history—kicks off the three-week Administration-wide Investing in America tour, where President Biden, Vice President Harris, First Lady Jill Biden, Cabinet members, and Senior Administration Officials will fan out across the country to highlight investments, jobs, and projects made possible by President Biden’s economic agenda.
Highlights:
- Awards range from $27 million to over $3.3 Billion, with every state receiving a minimum of $107 million.
- 19 states received allocations over $1 billion with the top 10 allocations in Alabama, California, Georgia, Louisiana, Michigan, Missouri, North Carolina, Texas, Virginia and Washington.
- With these allocations and other Biden administration investments, all 50 states, DC, and the territories now have the resources to connect every resident and small business to reliable, affordable high-speed internet by 2030.
Details related to the BEAD allocation for the states, D.C., and territories, as well as the total Federal investment in high-speed internet in each State and Territory are available here.
In addition to helping connect everyone in America to high-speed internet, this funding will support manufacturing jobs and crowd in private sector investment by using materials Made in America. For example, anticipating this major investment in high-speed internet infrastructure deployment, earlier this year, fiber optic cable manufacturers CommScope and Corning announced $47 million and $500 million expansions of their domestic manufacturing capacity, which will create hundreds of good-paying American jobs in North Carolina.
These investments are part of the nearly $500 billion in private sector manufacturing and clean energy investments spurred by the President’s Investing in America agenda. The Investing in America agenda represents the most significant upgrade to our nation’s infrastructure in generations—an investment larger than FDR’s Rural Electrification effort, Eisenhower’s effort to build the Interstate Highway system, and the construction of the Panama Canal.
President Biden’s American Rescue Plan also included over $25 billion for high-speed internet, including:
- The Department of Treasury’s Capital Projects Fund (CPF) provides $10 billion to states, territories, and Tribes for which high-speed internet is an eligible use. Today, over $7 billion has already been dedicated to high-speed internet deployment and connectivity across 45 states;
- The Coronavirus State and Local Fiscal Recovery Funds (SLFRF) delivered funding across the country to support the response to and recovery from the COVID-19 pandemic. About $8 billion is being used by states, territories, Tribes, and local governments for high-speed internet deployment and connectivity; and,
- The Federal Communications Commission’s (FCC) $7 billion Emergency Connectivity Fund program helped schools and libraries close the “homework gap,” providing schools and libraries with 10.5 million connected devices and over 5 million internet connections.
NTIA will issue a formal notice of allocation to recipients on June 30. Once they receive that notice, eligible entities (all 50 states, the District of Columbia and U.S. territories) will have 180 days to submit initial proposals describing how they plan to run their grant programs. Initial proposals can be submitted beginning July 1st. Once NTIA approves a state’s initial proposal, that state will be able to request access to at least 20% of its BEAD allotment.
Additional information on Biden-Harris high-speed internet programs and funding is available at InternetForAll.Gov.
References:
Nokia achieves extended range mmWave 5G speed record in Finland
Nokia today announced it has achieved sustained average downlink speeds of over 2 Gigabits per second (Gbps) using millimetre wave (mmWave) spectrum and 5G Fixed Wireless Access (FWA), over a distance of 10.86 kilometres. This milestone download speed, the fastest recorded worldwide to date, was accomplished using Nokia’s 5G extended range mmWave solution at the OuluZone test facility in Oulu, Finland.
The test utilised Nokia’s AirScale baseband and AirScale 24GHz (n258 band) mmWave radio and a Nokia FastMile 5G PoC CPE (customer premises equipment). Testing involved eight component carriers (8CC) in the downlink, aggregating 800MHz of mmWave spectrum. This enabled a top downlink speed of 2.1 Gbps, and an uplink speed of 57.2 Mbps.
This achievement, which builds on a previous world record announced by Nokia in 2021, demonstrates the reach and connectivity speeds that 5G mmWave can deliver. It also lays the foundations for high-quality internet connectivity solutions delivered via FWA to areas where wired connections are not always possible.
Nokia’s mmWave radio portfolio is comprised of compact, high- and medium-power solutions, offering a wide range of deployment options that provide flexibility in ensuring service continuity across a wide variety of environments.
The Nokia FastMile 5G PoC device used in these tests is currently being trialed by major operators globally. High speeds over significant distances can be achieved with its high-gain 360° antenna (27dBi), which dynamically adapts to changing conditions to overcome mmWave deployment challenges.
Source: Nokia
Ari Kynäslahti, Head of Strategy and Technology at Nokia Mobile Networks, said: “We just set a new speed record for extended range 5G mmWave. This demonstrates that mmWave solutions will be an essential building block for operators to efficiently deliver widespread, multi-gigabit 5G broadband coverage to their customers in urban, suburban, and rural areas, complementing sub-6 GHz spectrum assets. This is a substantial achievement that reflects how we are constantly innovating and evolving our 5G services and solutions.”
References:
Resources and additional information
Nokia AirScale
AirScale mmWave Radio
5G mmWave for Fixed Wireless Access
Fixed Wireless Access
Nokia FastMile
Samsung achieves record speeds over 10km 5G mmWave FWA trial in Australia
AST SpaceMobile achieves 4G LTE download speeds >10 Mbps during test in Hawaii
AST SpaceMobile has announced a significant achievement during its testing phase with the BlueWalker 3 Low Earth Orbit (LEO) satellite. Engineers successfully conducted download speed tests on off-the-shelf smartphones, surpassing speeds of 10 Mbps. This achievement paves the way for space-based cellular communications at 4G speeds, marking another major milestone, according to the company. AST SpaceMobile says it is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices.
In a press release, AST SpaceMobile Chairman and CEO Abel Avellan called this latest achievement another groundbreaking moment in telecom history and an important step toward AST SpaceMobile’s goal of bringing broadband services to parts of the world where cellular coverage is either unreliable or doesn’t exist today.
The 4G LTE download speed testing, which used AT&T spectrum and Nokia Radio Access Network (RAN) technology, reached initial speeds up to 10.3 Mbps, with further testing of voice calls to AT&T employees.
“Successfully reaching double-digit download speeds during satellite-to-smartphone testing takes us one step closer to ensuring people across the United States will be able to stay connected no matter their location,” said Chris Sambar, head of AT&T Network, in a statement. “This milestone wouldn’t be possible without the overall focus and determination of the teams working daily to achieve our shared space-based vision of connectivity.”
The next major test activity involves the enablement of 5G broadband.
AST SpaceMobile expects to begin initial non-continuous commercial service in 2024 after the launch of its first five planned BlueBird 1 satellites, followed by the launch of 90 satellites for global, continuous broadband and direct-to-device service.
This achievement demonstrates the feasibility of accessing broadband services in areas where cellular coverage is unreliable or nonexistent, bringing connectivity to parts of the world previously underserved.
AST SpaceMobile emphasized the significance of this milestone and its impact on global connectivity: “Achieving this milestone from an unmodified, standard cell phone on the ground connecting through our low Earth orbit satellite is another groundbreaking moment in telecommunications history and an important step toward AST SpaceMobile’s goal of bringing broadband services to parts of the world where cellular coverage is either unreliable or simply does not exist today.”
AST SpaceMobile announced on April 25th that they completed the first-ever space-based voice calls using unmodified smartphones. They achieved this through the successful deployment of BlueWalker 3, which is the largest commercial communications array ever deployed in low-Earth orbit.
According to the statement, BlueWalker 3 is designed to communicate directly with cellular devices using standard frequencies, including 5G speeds. The satellite is now fully unfolded, spanning a size of 693 square feet, which is crucial in supporting a cellular broadband network in space.
The AST SpaceMobile technology helps wireless companies improve their coverage by filling in gaps and dead zones in their networks. AST SpaceMobile has agreements and understandings with over 35 mobile network operators around the world.
References:
AST SpaceMobile Achieves Download Speeds Above 10 Mbps During Testing in Hawaii
AST SpaceMobile Deploys Largest-Ever LEO Satellite Communications Array
FCC Grants Experimental License to AST SpaceMobile for BlueWalker 3 Satellite using Spectrum from AT&T
Qualcomm CEO: AI will become pervasive, at the edge, and run on Snapdragon SoC devices
Cristiano Amon, President & CEO, Qualcomm discusses Qualcomm’s role in the AI evolution and how AI will impact our workplaces and homes in the near future with Bloomberg’s Ed Ludlow at the Bloomberg Technology Summit.
“If AI becomes pervasive (which we believe it will), it’s going to happen at the edge. That’s how you should think about Qualcomm. If AI is going to get scale, you’re going to see it running on Qualcomm Snapdragon (SoC) devices, whether it’s on your phone, in your car, in your PC or in other machines.”
“For generative AI to become truly mainstream, much of the inferencing will need to be executed on edge devices,” said Ziad Asghar, senior vice president of product management, Qualcomm Technologies, Inc. “Our best-in-class AI hardware and software empowers developers to make full use of our powerful AI capabilities, delivering incredible new user experiences on laptops, phones and other devices powered by Snapdragon.”
Qualcomm’s Sascha Segan explains on-device generative AI and Stable Diffusion in this video.
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“Generative artificial intelligence” is set to add up to $4.4 trillion of value to the global economy annually, according to a report from McKinsey Global Institute, in what is one of the rosier predictions about the economic effects of the rapidly evolving technology.
Generative A.I., which includes chatbots such as ChatGPT that can generate text in response to prompts, can potentially boost productivity by saving 60 to 70 percent of workers’ time through automation of their work, according to the 68-page report, which was published early Wednesday. Half of all work will be automated between 2030 and 2060, the report said.
McKinsey had previously predicted that A.I. would automate half of all work between 2035 and 2075, but the power of generative A.I. tools — which exploded onto the tech scene late last year — accelerated the company’s forecast.
“Generative A.I. has the potential to change the anatomy of work, augmenting the capabilities of individual workers by automating some of their individual activities,” the report said.
McKinsey’s report is one of the few so far to quantify the long-term impact of generative A.I. on the economy. The report arrives as Silicon Valley has been gripped by a fervor over generative A.I. tools like ChatGPT and Google’s Bard, with tech companies and venture capitalists investing billions of dollars in the technology.
https://www.nytimes.com/2023/06/14/technology/generative-ai-global-economy.html
References:
Generative AI Unicorns Rule the Startup Roost; OpenAI in the Spotlight
Generative AI in telecom; ChatGPT as a manager? ChatGPT vs Google Search
Curmudgeon/Sperandeo: Impact of Generative AI on Jobs and Workers
AT&T Tops VSG 2022 Global Provider Carrier Managed SD-WAN Leaderboard
AT&T attained first place on Vertical Systems Group’s (VSG) 2022 Global Provider Carrier Managed SD-WAN Leaderboard, followed by Orange Business, Verizon, BT Global Services, NTT, Telefonica Global Solutions, Hughes and Vodafone. AT&T bumped Orange out of first place on the 2022 leaderboard. No surprise as AT&T continues to top VSG’s 2022 U.S. Carrier Managed SD-WAN Leaderboard for five consecutive years!
BT Global Services overtook NTT for 4th place. Hughes moved out of the Challenge Tier and onto the leaderboard. The top three service providers – AT&T, Orange Business and Verizon – also have MEF 3.0 SD-WAN certification.
This leaderboard includes service providers with 4% or more billable retail site share outside their home countries, which are shown in the graphic below:
Twelve companies qualify for the 2022 Global Provider Managed SD-WAN Challenge Tier (in alphabetical order): Aryaka (U.S.), Colt (U.K.), Comcast Business (U.S.), Deutsche Telekom (Germany), Global Cloud Xchange (India), GTT (U.S.), Liberty Networks [formerly Cable & Wireless] (Barbados), PCCW Global (Hong Kong), Singtel (Singapore), Tata (India), Telia (Sweden), and Telstra (Australia). The Challenge Tier includes companies with site share between 1% and 4% of this defined SD-WAN segment.
“Leading global SD-WAN providers continued to expand their footprints into dozens of new countries during 2022, with the goal of providing multinational customers with seamless connectivity,” said Rosemary Cochran, principal of Vertical Systems Group. “There was some shuffling of provider rankings since our last Leaderboard release, as competition for global customers is intense and share differentials in this segment are extremely tight.”
Research Highlights:
- Share results for this new Global Provider Managed SD-WAN LEADERBOARD include each provider’s installed year-end 2022 base of multinational customer sites, excluding home country. Vertical’s initial benchmark for this specialized segment was the Mid-2021 Global Provider Managed SD-WAN LEADERBOARD, which included site installations as of June, 30 2021. The share comparisons provided in this analysis are based on these two time periods.
- The roster of companies ranked on the LEADERBOARD increased to eight in 2022, up from seven previously.
- AT&T advances to first position on the LEADERBOARD, up from second and displacing Orange Business. AT&T also ranks first on the 2022 U.S. Carrier Managed SD-WAN LEADERBOARD.
- BT Global Services moves up to the fourth LEADERBOARD position, which drops NTT to fifth position.
- Hughes enters the LEADERBOARD in seventh position, moving up from the Challenge Tier. Vodafone dips from seventh to the eighth and final position.
- The 2022 Challenge Tier remains at twelve companies, however with lineup changes. Lumen drops from the Challenge Tier into the Market Player tier, and Comcast Business (includes Masergy) moves up from the Market Player tier.
- Carrier Managed SD-WAN solutions for multinational customers are typically custom hybrid network configurations that require global infrastructures and technical expertise, and may incorporate MPLS VPNs bundled with cloud connectivity, plus advanced security that is integral or provided with technology partners.
- MEF 3.0 SD-WAN certification has been attained by the top three companies ranked on the 2022 Global Provider Carrier Managed SD-WAN LEADERBOARD – AT&T, Orange Business, and Verizon. Additionally, five companies cited in the Challenge Tier have MEF 3.0 SD-WAN certification as follows: Colt, Comcast Business, PCCW Global, Tata and Telia.
- The primary technology suppliers utilized by the Global Provider SD-WAN LEADERBOARD and Challenge Tier companies are as follows (in alphabetical order): Cisco, Fortinet, HPE Aruba, Nuage Networks from Nokia, Palo Alto, Versa and VMware.
The Market Player tier includes all other companies with Global Provider SD-WAN site share below one percent (1%), including the following companies (in alphabetical order): Batelco (Bahrain), China Telecom (China), Cirion (Argentina), Claro Enterprise Solutions (Mexico), CMC Networks (South Africa), Cogent (U.S.), Embratel (Brazil), Epsilon (Singapore), Etisalat (Abu Dhabi), Exponential-e (U.K.), Flo Networks (Mexico), Fusion Connect (U.S.), HGC Global (Hong Kong), Intelsat (U.S.), KDDI (Japan), Lumen (U.S.), Meriplex (U.S.), PLDT Enterprise (Philippines), Retelit (Italy), SES (Luxembourg), Sparkle (Italy), StarHub (Singapore), T-Mobile (U.S.), Telenor (Norway), Telin (Singapore), TelMex (Mexico), Transtelco (U.S.), Virgin Media (U.K.), Zayo (U.S.) and other providers selling SD-WAN services outside their home country.
Vertical Systems Group’s Definition: Carrier Managed SD-WAN Service:
Vertical Systems Group defines a Carrier Managed SD-WAN Service for segment analysis and share calculations as a carrier-grade offering for business customers that is managed by a network operator. Required components and functionality for these offerings include an SDN service architecture that provides dynamic optimization of traffic flows, a purpose-built SD-WAN appliance or CPE-hosted SD-WAN VNF at each customer edge site, support for multiple active underlay connectivity services, automated failover fast enough to maintain active sessions, and centralized network orchestration with traffic and application visibility end-to-end. Security is the most essential additional managed SD-WAN service capability that may be provided or integrated based on specific customer requirements.
References:
Kearney’s “5G Readiness Index 2022” and How to Monetize 5G
A new report from management consultancy Kearney analyzes a year of 5G progress across 33 countries around the world. The Kearney “5G Readiness Index 2022” assesses 5G and how close countries are to realizing all the potential and benefits of widespread 5G in the context of the overall maturity of a country’s telecoms market and its socio-economic position. The report covers 33 countries, all of which had launched 5G by the third quarter of 2022. To be included, countries must have launched 5G by the fourth quarter of 2021.
“Europe is falling behind on 5G!” is a cry we heard at the latest Mobile World Congress. The Kearney 5G Readiness Index 2021 reflected it, and our 2022 Index confirms it, at least for now (see Figure 1).
11 out of 28 countries tracked have at least one operator with a standalone 5G core network launched. Asia leads with seven countries, while Europe trails with just Finland and Germany reaching this point. Only in two countries have all operators launched standalone cores—Singapore and China—opening up their markets for a 5G transformation.
This year’s Index reveals that only 10 countries have made high band spectrum available, and operators in just five of them (the United States, Australia, South Korea, Thailand, and Japan) have launched full commercial services within it. So far, no European countries have gotten this far, although select services have been launched on limited mmWave licenses, including in Germany. The lack of availability of mmWave spectrum is disappointing because its advantages are the cornerstone of new, high speed 5G-enabled services.
The Index identified more key developments during the past year:
- The United States continues to push ahead of other countries. Its regulator has provided spectrum in all three band classes, and national operators have made the most of it by launching services. One operator has launched a standalone 5G core. Canada also has an operator offering 5G services via its new standalone core.
- South Korea, which ranked second in the 2021 Index, has dropped to fifth because it has not made low band spectrum available, despite high subscriber penetration.
- Most Nordic countries are pulling ahead, thanks to wider spectrum availability and broader deployment across bands, but Sweden is held back by the lack of mmWave spectrum as full availability of 26 GHz isn’t planned before 2025. This slows Sweden down and risks muting consumer excitement.
- Germany moved from laggard to leader of the EU4 (France, Germany, Italy, and Spain) plus the United Kingdom, thanks to operators launching 5G in multiple bands. Only one operator has launched a 5G standalone core.
- France now trails other larger European countries because of its late launch of 5G (November 2020) and customers’ apparent limited interest in it.
- A strong showing in the Middle East (Saudi Arabia, United Arab Emirates, and Qatar) is a testament to their networks’ quality and strong rollouts. Penetration is 9 to 11 percent. A Saudi operator has launched a standalone 5G core.
- Australia was one of the first countries to launch 5G, has continuously expanded spectrum access across all bands, and enjoys successful commercialization. It has 18 percent 5G penetration, the second highest in the Index.
Kearney also uncovered the following findings:
- Take-up (as a percentage of total subscribers in the first quarter, 2022) is paltry across Europe. Switzerland is the best with 13 percent but launched in April 2019. Belgium is the worst offender at 1.7 percent of connections. Take-up is 31 percent in South Korea.
- In South Korea, the government has announced a push for creating an ecosystem of companies that innovate and leverage 5G (aiming for 1,800 5G service firms by 2026). They understand operators won’t be solo drivers but enablers.
- Rollout of new capacity in the United States allows operators to launch impactful services, such as 5G fixed wireless access (FWA). One operator is using
- 5G to equip ambulances with high-quality video feeds that medical professionals can view while patients are en route.
Europe is behind, but not irreparably so. Vigilance and focus are required, together with operators’ preparation to win with 5G when their countries have reached ready status.
Monetize 5G step-by-step, building up to an ecosystem of products, services, and partners:
Currently, 5G lacks killer uses cases to drive customer uptake. Without seductive 5G products or services, people won’t see its benefits. Yet, operators wonder whether advancing investment in 5G is wise. It’s classic chicken-and-egg, but it will start somewhere, spearheaded by first-mover operators along with third-party providers that will figure out what will make everyone want 5G. Plan monetization first with small steps, and then plan the ecosystem to realize its potential.
It still may seem like early days in the 5G journey, but time grows shorter for European telcos to catch up with the United States and other markets. Getting your strategy rolling now is the only way to take advantage of the European market when it becomes fully 5G ready.
References:
Ericsson Mobility Report: 5G monetization depends on network performance
Moody’s skeptical on 5G monetization; Heavy Reading: hyperscalers role in MEC and telecom infrastructure
ABI Research: Expansion of 5G SA Core Networks key to 5G subscription growth
PwC report on Monetizing 5G should be a wake up call to network operators!
How 5G network operators can stay competitive and grow their business
UScellular Launches 5G Mid-Band Network in parts of 10 states
UScellular today announced the launch of its 5G mid-band network, with customers in parts of 10 states who now have access to the benefits of the company’s faster and stronger network. UScellular’s 5G mid-band technology combined with a mid-band enabled device can provide up to 10x faster speeds than its 4G LTE network and low-band 5G. This technology has more capacity, enhances the mobile experience, and has business and fixed wireless applications.
By the end of June, UScellular’s 5G mid-band network will be available mainly in parts of Illinois, Iowa and Wisconsin, including sections of Rockford, Ill., Des Moines, Iowa and Milwaukee. Communities in Maine, Missouri, Nebraska, Oklahoma, Oregon, Virginia and Washington are also included in the initial rollout. By the end of the year, the company plans to cover more than 1 million households in its operating footprint with its 5G mid-band network. The company is using 5G network equipment from Nokia and Ericsson.
“We view mid-band as the sweet spot of 5G because it provides broad coverage, low latency and fast speeds – enabling more people to connect to what matters most at home or on-the-go,” said Mike Irizarry, executive vice president and chief technology officer for UScellular. “As we approach serving 100,000 High-Speed Internet customers later this summer, mid-band will play an important role in furthering the reach and enhancement of that product. We’ve made it a priority to expand the technology to more communities in the coming years.”
Broader 5G coverage (see map) with mid-band technology provides customers and businesses with even faster data connection speeds for a better experience. UScellular will continue to expand its device portfolio, including adding more options for its High-Speed Internet product and additional IoT devices, to further enhance its mobile and fixed connectivity offerings.
UScellular now offers customers low-band, mid-band and high-band mmWave 5G speeds and services. The company expects nearly 3 million households in its operating footprint will have access to 5G mid-band connectivity by the end of 2024.
UScellular’s 5G mid-band network is using 3.45 GHz spectrum that was purchased through Auction 110 granted in 2022. The company is partnering with Nokia and Ericsson for its mid-band buildout. The company was among the top five bidders in the FCC’s 3.45 GHz Auction 110, where it spent over $579 million. It also acquired C-band spectrum for about $1.46 billion in 2021; that spectrum starts to become available later this year.
UScellular did not need to coordinate with the Department of Defense (DoD) for the 3.45 GHz sites that are part of this launch, but DoD coordination is needed for some sites that are to be deployed in the future, according to a company spokesperson.
Speaking at the Wireless Infrastructure Association’s Connect(X) conference in New Orleans last month, Irizarry said the company expects a “rapid acceleration” of its mid-band spectrum 5G deployment to occur in 2024.
About UScellular:
UScellular is the fourth-largest full-service wireless carrier in the United States, providing national network coverage and industry-leading innovations designed to help customers stay connected to the things that matter most. The Chicago-based carrier provides a strong, reliable network supported by the latest technology and offers a wide range of communication services that enhance consumers’ lives, increase the competitiveness of local businesses and improve the efficiency of government operations.
Through its After School Access Project, the company has pledged to provide hotspots and service to help up to 50,000 youth connect to reliable internet. Additionally, UScellular has price protected all of its plans, promising not to increase prices through at least the end of 2024.
To learn more about UScellular, visit one of its retail stores or www.uscellular.com.
References:
https://www.uscellular.com/coverage-map
https://www.fiercewireless.com/5g/uscellular-lights-345-ghz-parts-10-states
US Cellular touts 5G millimeter wave and cell tower agreement with Dish Network
IDC IoT investment forecast: 10.4% CAG over 2023-2027
Worldwide spending on the Internet of Things (IoT) is forecast to grow 10.6% this year to a value of $805.7 billion, according to the latest forecast from IDC. Investments in the IoT ecosystem are expected to surpass $1 trillion in 2026 with a compound annual growth rate (CAGR) of 10.4% over the 2023-2027 forecast period.
“The last few years have shown that connecting with a digital infrastructure is no longer a luxury, but a necessity,” said Carlos M. González, research manager for the Internet of Things at IDC. “For organizations to excel in data-driven operations, investing in IoT projects is essential. Connecting devices to data networks to gather insight, expand operations, and increase performance are the hallmarks of executing an IoT ecosystem.”
Discrete and Process Manufacturing are the industries that will see the largest investment in IoT solutions in 2023 and throughout the forecast period, accounting for more than one third of all IoT spending worldwide. Professional Services, Utilities, and Retail are the next largest industries in terms of overall IoT spending with roughly 25% of the worldwide total. State/Local Government and Telecommunications will deliver the fastest spending growth over the five-year forecast with CAGRs of 12.0% and 11.7% respectively.
IoT investment is a key building block to supporting an increasingly digital and distributed organizational footprint. Most of these investments are seeking solutions that can help organizations achieve a specific business goal or customer challenge, such as cost savings or supply chain efficiency. As such, use cases are the focus of most IoT investment plans.
The two IoT use cases that will receive the most investment in 2023 are both closely tied to the manufacturing industries: Manufacturing Operations ($73.0 billion) and Production Asset Management ($68.2 billion). The next largest use cases – Inventory Intelligence ($37.6 billion), Smart Grid (Electricity) ($36.9 billion), and Supply Chain Resilience ($31.6 billion) – will benefit from strong investments from the Retail and Utilities industries. The use cases that will experience the fastest spending growth represent the diverse application of IoT technologies – Electric Vehicle Charging (30.9% CAGR), Next Generation Loss Prevention (14.5% CAGR), Agriculture Field Monitoring (13.9% CAGR), and Connected Vending and Lockers (13.8% CAGR).
“Updates to the IoT use case taxonomy in this release of the IoT Spending Guide reflect the evolving Digital Transformation investment objectives of enterprises. Thematically, greater investment in goods production and supply chains resulting from the COVID-19 pandemic and global reactions that caused massive business and societal disruptions are evident in the new use cases. These production and supply chain related use cases can be seen in the Discrete Manufacturing, Process Manufacturing, Retail, and Transportation industries,” said Marcus Torchia, research vice president with IDC’s Data & Analytics Group. “Meanwhile, digital business investments are ramping up in other industries such as the Resource Industries. For example, IoT is helping to improve upstream supply chain processes in Agriculture, such as growing, harvesting, and delivering higher quality produce to market.”
This release of the IoT Spending Guide also includes a Video Analytics overlay forecast that is intended to provide high-level insight into a broadly adopted use case (i.e., found in most or all enterprise industries). Video analytics refers to the use of artificial intelligence (AI) and other advanced algorithms to recognize, detect and analyze live or stored video feeds in a variety of uses, including business analytics, security surveillance, and other rapidly evolving adaptations of this technology. These uses are found in numerous settings (e.g., business analytics in manufacturing and retail, in government for crowd management and traffic congestion management, and broadly for security surveillance). Video analytics requires IP networked capable cameras to support the advanced software whether embedded in hardware or provided by third party vendors.
IDC expects spending on Video Analytics solutions across all industries to be more than $23.5 billion this year. Future releases of the IoT Spending Guide will include additional broadly adopted use cases, such as smart buildings.
From a technology perspective, IoT services will be the largest area of spending in 2023 and through the end of the forecast, accounting for nearly 40% of all IoT spending worldwide. Hardware spending is the second largest technology category, dominated by module/sensor purchases. Software will be the fastest growing technology category with a five-year CAGR of 11.0% and a focus on application and analytics software purchases.
Western Europe, the United States, and China will account for more than half of all IoT spending throughout the forecast. Although Western Europe and the United States currently have similar levels of spending, Western Europe will expand its lead with an 11.0% CAGR over the 2023-2027 forecast, compared to an 8.0% CAGR for the United States. China’s IoT spending is forecast to surpass the United States by the end of the forecast due to its 13.2% CAGR.
The Worldwide Internet of Things Spending Guide (V1 2023) forecasts IoT spending for 18 technology categories and 70 named use cases (87 including sub-use cases) across 19 industries in nine regions and 53 countries. The spending guide also includes an IoT connectivity forecast for cellular, Low-Power Wide Area Networks, and other connectivity (e.g. wired, satellite). This provides tech buyers and providers with a tool to understand how the plethora of IoT use cases call for multiple connectivity types, driven by different expectations in terms of latency, bandwidth, and data frequency.
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Separately, Rational Stats says the global IoT platforms market was estimated at a market value of $15.3 billion in 2022 and is expected to grow at a significant CAGR of over 15.2% over the forecast period of 2023-2028.
The main drivers of this expansion are the increased availability of inexpensive sensors and the rising need for connected devices across a range of sectors, including manufacturing, healthcare, and retail. IoT platforms must be scalable to handle the rising number of connected devices and the growing volume of generated data.
References:
https://www.idc.com/getdoc.jsp?containerId=prUS50936423#
https://www.idc.com/getdoc.jsp?containerId=US49578922
https://www.openpr.com/news/3094459/global-iot-platforms-market-analysis-and-forecast-2023-2028
