5G: a network of opportunities and challenges

Transcription

1 5G: a netwrk f pprtunities and challenges 5G will evlve frm tday s mbile netwrks, but it is much mre than a faster technlgy. It will mark an inflectin pint in the future f cmmunicatins, bringing a fundamental transfrmatin f the rle that telecmmunicatins sectr plays in sciety. Álvar Neira, Manager at Madrid, 1 July 2017 Technlgy is cntinuusly changing the wrld arund us. The freseeable future will be characterized by ntable advances, such as artificial intelligence, self-driving cars, machine learning and augmented/virtual reality, which will be supprted by high-speed and ultralw-latency applicatins that are ubiquitus and reliable. Many f these technlgical develpments will cme t reality in the s-called 5G era, which is expected t be amng us frm G netwrks will be at the centre f an ecsystem that pwers sciety s cntinued digital transfrmatin. Frm 2G t 4G, each radi access technlgy generatin ver the last 25 years has fcused n imprving the speed and efficiency f wireless netwrks t enhance mbile services fr cnsumers. But 5G, which is currently being develped and ready t be deplyed in the cming years, differs frm previus generatins because mbile bradband is nt the nly use case that is driving the technlgy develpment. 5G use cases are expected t be built upn three main categries: ENHANCED MOBILE BROADBAND (EMBB) Extensin f the existing 4G value prpsitin MASSIVE INTERNET OF THINGS (MIT) Adptin and utilizatin acrss different sectrs Uptake f mbile technlgies t address MIT applicatins 5G differs frm previus generatins because mbile bradband is nt the nly use case that is driving the technlgy develpment. Extending cellular cverage Imprving netwrk capacity MISSION CRITICAL SERVICES (MCS) Applicatins that require high reliability and ultra-lw latency cnnectivity Strng security and availability

2 Enhanced Mbile Bradband (EMBB), which is expected t be the natural extensin f the 4G value prpsitin. Firstly, 5G will allw t extend cellular cverage int a brader range f structures including ffice buildings, shpping malls, etc. Secndly, 5G will imprve the netwrk capacity t handle a greater number f devices using high vlumes f data. enhanced utdr wireless bradband, enhanced indr wireless bradband cverage, fixed wireless bradband deplyments, and augmented and virtual reality 1. Massive Internet f Things (MIT), in which 5G will build upn earlier investments in traditinal M2M and IT applicatins t enable increases in ecnmies f scale that drive adptin and utilizatin acrss all sectrs. asset tracking, smart cities 2, and remte mnitring. Missin Critical Services (MCS), which will represent a new market pprtunity fr mbile technlgy. This area will supprt applicatins that require high reliability, ultra-lw latency cnnectivity with strng security and availability. autnmus vehicles, drnes 3, and industrial autmatin. Amng the abve three use case categries, accrding t a recent reprt published by GSMA 4, 5G in its initial phase is expected t be, first and fremst, an pprtunity t deliver a transfrmed enhanced mbile bradband experience t custmers. 5G in its initial phase will primarily supprt an enhanced mbile bradband experience t cstumers. MIT and MCS will fllw later, as service prviders seek t unlck the incremental pprtunity, particularly in key enterprise verticals. This will be targeted predminantly at cnsumers, but service prviders wuld be lking t the enterprise segment t unlck the incremental pprtunity f the 5G dimensin. Fr example, the 1 See example: 2 See example: 3 See example: 4 The 5G era: Age f bundless cnnectivity and intelligent autmatin.

3 autmtive sectr, with the intrductin f virtual/augmented reality applicatins, is a very gd example f an industry that culd benefit frm the capabilities f 5G. As the efficiencies and synergies mve t the next phase with massive IT and missin critical services, 5G will allw service prviders t lk fr new pprtunities beynd traditinal cnnectivity and partner with ther service prviders acrss different sectrs (e.g. financial services, healthcare, public safety). It is clear that all stakehlders in the industry are keen t define, develp and deply a 5G system t drive the next wave f grwth in the industry. Hwever, there are als certain risks and challenges that need t be addressed t realise the visin f the 5G era: Spectrum availability: Spectrum will play a key rle in delivering 5G services acrss the different use cases. 5G will need spectrum within three key frequency ranges t deliver widespread cverage and enhance the netwrk capacity: Sub-1 GHz spectrum will supprt widespread cverage acrss urban, suburban and rural areas and help supprt IT services. 1-6 GHz spectrum ffers a gd cmbinatin f cverage and capacity benefits. Spectrum abve 6 GHz will be needed t meet the ultra-high bradband speeds envisined fr 5G Spectrum availability Mnetizatin f investments Regulatry certainty Infrastructure sharing All stakehlders in the industry are keen t define, develp and deply a 5G system t drive the next wave f grwth in the industry. Hwever, there are als certain risks and challenges that need t be addressed in rder t realise the visin f the 5G era. Mnetizatin f investments: The investments required fr 5G netwrks (e.g. small cell deplyments, reliable cnnectivity with ultra-lw latency) need t be balanced with

4 the ability f service prviders t mnetize such investments thrugh new services and new market segments (especially enterprises). Regulatry certainty: Given the heavy investment required t deliver 5G and prvide reliable cnnectivity, it is imprtant fr plicymakers t prvide a transparent and predictable pr-investment and pr-innvatin plicy framewrk. Infrastructure sharing: Fr 5G t be a success, innvative spectrum and infrastructure sharing mdels (subject t cmmercial agreements) are essential, particularly given the level f investment required fr netwrk densificatin. In summary, 5G is expected t be ne f the mst critical pillars f the frthcming digital sciety, as it prmises, amng thers, a new wave f technlgy services. This will bring a new wrld f pprtunities acrss different industries. Hwever, there are als certain technical, sci-ecnmic and regulatry challenges that need t be addressed t realise the visin f the 5G era. At Axn Cnsulting, we are fully cmmitted t help bth regulatry authrities and ICT service prviders t strength the pprtunities arisen frm this new era and address the risks and challenges that are always inherent t a paradigm shift. Axn Cnsulting is an internatinal cnsulting firm prviding advisry services t a brad client base in the ICT industries. We have a well-merited reputatin as a wrld-class leader in helping regulatrs and service prviders achieve strategic and regulatry bjectives. At Axn Cnsulting, we are fully cmmitted t help bth regulatry authrities and ICT service prviders t strength the pprtunities arisen frm this new era and address the risks and challenges that are inherent t a paradigm shift. Our cnsulting services fall under 3 main verticals: Public Plicy and Regulatin, Business Advisry and Analytics, and Csting and Prfitability. On this matter: Our Public Plicy and Regulatin practice helps t anticipate, design and put int practice apprpriate regulatry strategies and instruments t cpe with the evlving marketplace that 5G will bring t ur sciety.

5 Our Csting and Prfitability practice helps t understand hw a cmpany must adapt and ptimally explit the investments, including the spectrum, in the light f increasing cmpetitin and rapid technlgical change. Our Business Advisry and Analytics practice helps t gain insights n the business, imprve the peratins and ensure a prfitable and sustainable grwth thrugh the mnetizatin f investments within a unified set f prducts and services. Thrugh ur reginal ffices lcated in Madrid (Headquarters), Bgtá, Delhi, Dubai, Istanbul, Mexic City and Miami, we have cmpleted mre than 150 assignments arund the glbe in the abve areas f expertise: Madrid (HQ) Istanbul Méxic DF Miami Dubai Delhi Bgtá Axn Offices Prjects Undertaken Fr further infrmatin n Axn Cnsulting and ur areas f expertise, please visit ur website: