WTS 2020 Rob van_den_dam

Telecom’s 5G future
Creating new revenue streams and
services with 5G, edge computing and AI
Rob van den Dam
Global Industry Leader Telecommunications,
Media & Entertainment
IBM Institute for Business Value

Telecom’s 5G
future
The blending of
5G, edge
computing and AI
Kicking of a new chapter
in the history of
telecommunications
Creating value in
the 5G consumer
space
Providing 5G
transformational
services to consumers
Enhancing 5G
networks with
AI
Recognizing AI’s
central role in 5G
networks
Empowering
enterprises with
5G
Enabling new ground-
breaking use cases in
virtually every industry
5G Telecom’s future

3
5G: much more than just another G
3broad categories of 5G use cases:
q Enhanced mobile broadband (eMBB) for
increased throughput and improved coverage
and capacity.
q Massive machine-type communications
(mMTC) for mass adoption of internet of
things (IoT) with the ability to support a very
high density of devices.
q Ultra-reliable low-latency
communications (URLLC) for mission-
critical applications that require very low
latency, and high reliability and security.
8key capabilities

4
With 5G, communications service providers (CSPs) will be able to
combine elements of 4G and 5G as they see fit
Non-standalone deployments
Anchoring 5G New Radio (NR)
access “islands” in the 4G core
• Enables CSPs to quickly
deliver eMBB services
• Allows CSPs to continue to drive ROI on
their 4G core networks
But
• Only elevates 4G’s broadband experience,
not taking full advantage of 5G benefits
Standalone deployments
Pairing 5G NR with a next-
generation 5G core
• Full range of 5G benefits
But
• Most CSPs are still in the early phases of
developing these ubiquitous 5G networks
• Still lot of work to be done in standards,
regulations, support systems and more
• Uncertainty about business cases and ROI

5
CSPs are proceeding with caution and hesitant to go full speed
ahead with 5G core investments
Greensill report: 5G infrastructure upgrades
will need global CSP investments in the
neighbourhood of USD 1 trillion
GSMA report: the annual year-over-year
revenue growth for the telecom industry is
expected to slow to around 1% by 2025
GSMA report: Between 2010 and 2018, CSPs
spent well over USD 1 trillion globally on
upgrading their networks to 4G. They still
have to amortize their 4G core networks
As a result, most
CSPs will not prioritize
the 5G core network
in the first stages of
5G deployment

6
5G is set to have the fastest roll-out of any generation of mobile
network technology, approaching 2 billion connections by 2025

7
CSPs in several markets have gradually switched on commercial
5G in non-standalone mode
https://www.worldtimezone.com/5g.html
5G commercial network world coverage map: 5G field testing / 5G trials / 5G research / 5G development by country (Dec 12, 2019)

8
The blending of 5G,
edge computing and AI
Kicking of a new chapter
in the history of
telecommunications

9
The blending of 5G, edge computing, and AI will enable new ground-
breaking use cases in both the enterprise and consumer spaces

10
Telecom leaders realize that the big win is in addressing enterprise
needs and that investments in 5G are important
Level of investment in 5G mobile technologies in the next 2-3 years
(Source: 2019 IBM Global C-suite Study; n = 730)

11
Without edge computing, much of the positive impact of the
latency reduction enabled by 5G is lost
The basic idea behind edge
computing
By storing/accessing data and performing
high-demand processing on the network
gateway, customer premises or edge devices,
network congestion and latency are
significantly reduced.
Edge computing is complementary to—
rather than in competition with—cloud
computing
Advantages
q Optimizing latency (to the order of
sub-10 milliseconds)
q Filtering data transfer to the cloud
(which helps reduce network
traffic)
q Improving security (because
sensitive data doesn’t need to be sent
over the core network)

12
94 percent of CSPs expect edge computing to have a positive
impact on operational responsiveness within five years
Elements of operational responsiveness where edge computing is expected to have the greatest impact

By 2025
about 75
percent of
data will be
analysed and
acted upon at
the edge
AI at the
network edge
will lay the
foundation for
ultra-low
latency 5G
applications
Edge computing brings AI closer to where the
data is created and where actions need to be taken

14
AT&T: Connecting 6-foot-tall retail
robots to 5G and edge computing
AT&T Foundry in Plano, Texas, is working with
robot manufacturer Badger Technologies to test
robots in a combined 5G and multi-access edge
computing environment for Dutch retailer Ahold
Delhaize.
An onsite MEC device at the foundry allows
computers to be removed from the robots and to
process data on the customers’ premises.

Empowering
enterprises with 5G
Enabling new ground-
breaking use cases in
virtually every industry

16
With a full-fledged ubiquitous 5G network available, CSPs can
deliver services to specific verticals through network slicing
Network slicing

17
5G holds the potential to become the foundation for many new
industrial applications and to support entirely new use cases

18
Overall 5G impact on industry is significant but only accelerates
after 2025
5G is expected to unlock USD 740 billion of value in
manufacturing by 2030

19
Ericsson, Vodafone and e.GO launch
5G car manufacturing in Germany
Automotive manufacturing production, enabled by
5G, network slicing, and edge computing, is now a
reality for German electric microcar company e.GO
Mobile AG at its Aachen complex. The assembly
plant is an Industry 4.0 factory, helping deliver
security-rich, near-real-time data networking across
the production chain, from digital material
management to autonomous vehicle control.

20
Around half of 5G-driven investments are addressable by CSPs,
depending on what role they choose to play
Share and growth rate for global total 5G-enabled B2B opportunity for service providers

21
The combination of 5G, edge computing, and AI will be the
driver of the next Industrial Revolution — Industry 4.0
Potential advantages of 5G for the industry include:
q Easily configurable, highly flexible, and modular production systems that operate on demand
q Substantial increases in operations and resource efficiency
q Just-in-time servicing of machines or replacement of machine parts
q Zero-touch factory operations
q More efficient warehousing and supply chains
q The ability to use digital twins to gain insights into performance and potential problems.
Industry 4.0: Moving from massive production to massive customization

Creating value in the 5G
consumer space
Providing 5G
transformational
services to consumers

23
To understand the 5G experience consumer grave, we surveyed
nearly 12,500 consumers in 21 countries
The
survey
accounts
for 62% of
the world
population
and 77%
of global
GDP

24
Globally, consumers are fairly excited about 5G, find it relevant and
are willing to pay a fair amount extra for it
3%
3%
6%
4%
19%
17%
34%
28%
39%
48%
How RELEVANT will 5G be for you?
How EXCITED are you about the new 5G technology?
Not at all Not so Moderately Quite Extremely
9%
8%
12%
12%
28%
29%
28%
28%
24%
24%
How much extra are you willing to PAY for a 5G DATAPLAN
How much extra are you willing to PAY for a 5G-enabled PHONE
Nothing more Only bit more Moderately more Quite more Significantly more
Excitement for and relevancy of 5G
Willingness to pay extra for 5G

25
But despite consumers’ willingness to pay, enhanced 5G mobile
broadband alone will likely not create significant additional revenue
13%
20%
67%
Would not pay
extra
Neutral / Don't
know
Would pay quite to
significantly extra
Consumers’ willingness to pay extra for a
superior quality video experience
Previous mobile technology
migrations reveal that price
competition will likely level
down data plan rates,
resulting in about the
same amount as
previous plans, even though
data speeds, data plans,
and call allowances have
increased.
However

26
More importantly, many 5G early adopters would switch to another
provider if they can get there better quality mobile video streaming
The challenge for
CSPs preparing for
5G in the consumer
space is to
understand and
keep up with the
high expectations
of early adopters

27
5G enables Ultra High Definition (UHD) video streaming which
appeals to consumers in most of the countries surveyed
Percentage of respondents stating that streaming UHD video to their
mobile is one of the most appealing 5G applications73%
71%
68% 66% 66%
61%
59%
58% 58% 57%
52%
50% 50%
47% 47%
43%
39% 39% 38%
34%
30% 29%
Philippines
India
Brazil
Nigeria
Kenya
SoutAfrica
Indonesia
Argentina
Mexico
GLOBAL
SouthKorea
Australia
China
Italy
Russia
Spain
US
UK
Canada
Japan
Germany
Netherland

28
AT&T test-streaming 4K video over 5G
at the 2018 US Open
In June 2018, AT&T partnered with FOX Sports and
others to bring UHD images of the US Open golf
tournament to FOX Sports viewers—using 5G
technology. The objective was to show the use of 5G
to stream 4K video with no detectible delays and no
degradation to video quality transmitting at very
high speeds (throughput). FOX Sports viewers
received UHD views from two 4K cameras on
the seventh green and tee box, where the trial
network was deployed.
.

29
Future 5G-led transformational applications will include immersive
media encompassing deeply engaging, multisensory experiences
5G-related APPLICATIONS seen as most relevant by consumers
11%
18%
21%
22%
22%
23%
24%
30%
33%
37%
44%
45%
57%
3D HOLOGRAM CALLING
Smart WEARABLE DEVICES (e.g. fitness trackers)
SMART TRANSPORT (e.g. autonomous driving)
Real-time TRANSLATIONS via smart earphones
AR for LOCATION-BASED SERVICES
Digital HEALTHCARE (e.g. remote health diagnostics)
AR/VR-augmented SHOPPING (purchasing in virtual stores)
SMART HOME applications (e.g. remote home monitoring)
IMMERSIVE VIDEO (360 Video, holograms)
AR (Augmented Reality) ENTERTAINMENT applications
Watching VIDEO/movies in 3D
VR (Virtual Reality) ENTERTAINMENT applications
UHD (Ultra High Definition) VIDEO (4K and 8K)

30
5G, cloud and edge computing will be critical to moving Virtual
Reality (VR) forward
• Lacking computer power
• Limited graphics quality
• Heavy devices
• Cable connection, limiting mobility
Complex processing
in the cloud
(or on cloud edge)
• Smaller, more practical devices
• More powerful
• Cheaper
• Energy-efficient
Today Future

31
5G is a vital
component in
gaming and
eSports
ecosystems
eSports enthusiasts understand how important 5G is for them

32
Deutsche Telekom: Entering the
eSports arena
In December 2019, Deutsche Telekom acquired a
25 percent stake in de eSports organization SK
Gaming.
The acquisition underlines the importance and value
that the company places on eSports and gaming. It
intends to further develop the eSports sector, and in
some ways to redefine it, using 5G and edge
computing technologies, among others.

33
Enhancing 5G networks
with AI
Recognizing AI’s central
role in 5G networks

34
AI can help address the huge growth in the volume and velocity
of data generated by all types of 5G devices and consumers
AI can help create the
insights needed for
decision making in a 5G
environment.
IoT data is simply
impossible to use
without AI

3535
But can also lead to negative
consequences
Application of AI
technology means creating
more insights to improve
customer experiences. But
it can also lead to negative
consequences—privacy
concerns, for example—
that could drive people
away from the benefits of
AI-supported IoT
technologies.
Still, our consumer research revealed the
number of respondents seeing more advantages
to AI than disadvantages exceeds the number of
respondents who see more disadvantages

3636
Data sharing across partner
networks—a function of mutual
trust—is a core challenge
As trusted enterprises, CSPs can
safeguard partner and customer data
while also helping them utilize it.
This position enables CSPs pursuing data
monetization strategies.
Integrating new modes of monetization into the
data strategy
Source: https://www.ibm.com/thought-leadership/institute-business-value/c-suite-study

37
AI at the edge creates a world of intelligent connectivity that
positively impacts consumers, organizations, enterprises, industries
Smart consumer edge applications are
mainly focused on providing compelling
user experiences. This include:
• improved streaming entertainment
• light/powerful VR headsets
• AR entertainment applications
• multiplayer gaming
• smart home automations
• autonomous driving cars
• AR/VR shopping
Smart enterprise edge applications are mainly
focused on operational responsiveness. This
include:
• smart manufacturing and equipment monitoring
• asset tracking
• fleet-vehicle diagnostics
• mining
• autonomous delivery,
• patient monitoring and robot surgery
• farm monitoring

38
Action Guide Create value in the 5G
consumer space
• Explore how you can
differentiate yourself in the
consumer space in the next
phase of 5G
• Invest in emerging
technologies—such as AR, VR,
and 360-degree video;
innovate with new business
models.
• Partner extensively.
Partnering is crucial because
creating immersive content
requires dedicated
knowledge.
Empower enterprises and
industries with 5G
• Prepare for the true
transformational power of
5G; explore new
operational and business
models
• Make sure you have the
right knowledge and skills
through acquisitions or
partnerships with
specialists or specialized
companies.
• Create the ability to rapidly
prototype solutions
Enhancing tomorrow’s 5G
networks with AI
• Start the journey to AI-
enabled network operations;
Examine how AI can assist in
5G network slicing to
automate the process of
optimally assigning network
slices
• Take AI to the network edge
where needed
• Invest in AI and AI-related
tools, as well as in skills
development, to help you
keep up with the network
requirements that 5G services
demand

39
Relevant reports
https://ibm.co/5g-telecom https://ibm.co/immersive-5G-entertainment https://ibm.biz/reenvisioncsp
For information:
Rob van den Dam
Global Industry Lead,
Telecom, Media & Entertainment
Institute for Business Value
IBM Global Business Services
rob_vandendam@nl.ibm.com

WTS 2020 Rob van_den_dam

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