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Will 5G Remake the World, Or Just Make It a Little Faster? That May Depend on Technology, Media & Telecommunications Companies

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Will 5G Remake the World, Or Just Make It a Little Faster? That May Depend on Technology, Media & Telecommunications Companies Will 5G remake the world, or just make it a little faster? That may depend on Technology, Media & telecommunications companies. Telecommunications Contents Introduction 04 Blockchain to blockchains 30 How 5G could enable remote Communications infrastructure healthcare through the use of upgrade: The need for deep fiber 14 AR/VR and robotic surgery 32 Spectrum portfolios in a 5G world: Predictions 34 Rethinking the value of spectrum 18 A network of networks: How will But will consumers pay for faster carriers handle the evolution to 5G? 20 connections? 37 To be or not to be: The future of Conclusion 40 the telco business model 23 Blockchain @ Telco 27 Will 5G remake the world or just make it a little faster? Will 5G remake the world or just make it a little faster? Introduction The availability of ubiquitous high-speed mobile Internet connectivity has substantively changed the world in a short amount of time. Beginning with third-generation (3G) wireless technology, then 4G and Long-Term Evolution (LTE), consumers and business users could connect to the Internet virtually anywhere. Ever- increasing coverage, data speeds, and advancements in mobile devices helped spur the smartphone era. Today, nearly 2.5 billion people use smartphones, and 1.2 billion use tablets.1 Over 175 billion apps were downloaded in 2017 alone. These apps, some of which have over 1 billion users,2 have helped transform how we communicate, make and maintain relationships, 1 eMarketer, 2/17, http://mobilemarketingmagazine.com/24bn-smartphone-users-in-2017-says-emarketer. 2 App Annie 2017 Retrospective Report, https://www.appannie.com/en/insights/market-data/app-annie-2017-retrospective/. Will 5G remake the world or just make it a little faster? watch TV and movies, shop, and devices, and the figure is forecast to get from point A to point B. And reach over 20.4 billion by 2020.3 while the Internet of Things (IoT) is still a developing story, devices In short, the combination of wireless ranging from in-home assistants connectivity and smartphones to vehicles are connecting to the has sparked a global revolution Internet through mobile networks. that can affect nearly every aspect IoT will likely rely heavily upon of a consumer’s life. Companies the next generation of wireless face a world in which competitors technologies, 5G, which is poised can quickly scale their offerings to potentially become the most to millions of consumers instantly revolutionary advancement in and simultaneously, at relatively mobile communications yet. In 2017, little or no cost. These include there were 8.4 billion connected communications services (such as instant messaging), mobile financial Will the evolution of services (such as foreign fund wireless create another transfers and in-store payments), revolution in customer over-the-top media services (such behavior and industry as subscriptions to premium movies and content), location-based disruption, or simply continue what 3 Gartner, https://www.cnet.com/news/at-ces-security-risks- 4G started? still-a-core-internet-of-things-fear/. Will 5G remake the world or just make it a little faster? services, and an almost endless list remake the competitive landscape carriers to operate mobile voice and of other possibilities. yet again? data connectivity. In fact, commercial applications enabled by 5G could In fact, 4G (and Wi-Fi4) was Recent Deloitte Global member change how multiple industries responsible for so much change that firm research from around the operate, while also providing one might wonder whether it’s even world is answering these questions much-needed revenue streams for possible to create another wireless by taking a close look at 5G. While telecommunications organizations technology revolution in customer the technical standards are still that are struggling to recoup their behavior and industry disruption, developing, 5G has the potential investments in 4G networks,5 and or if changes will simply build to drive numerous advancements, whose relationships with consumers incrementally upon what 4G started. including digital transformation may be at risk of being supplanted In other words, will the future of across industries, providing the by technology platforms. connectivity make tomorrow mostly platform for end-to-end connectivity like today, only a bit faster? Or will in IoT, enabling faster connections What’s so great about 5G, and why is it usher in a new era of capabilities, for consumers, and even providing the future of connectivity so closely enable new business models, and a more cost-effective platform for tied to it? Three things, really: A single autonomous vehicle will generate an estimated 4,000 gigabytes each day—about as much as 3,000 people. 4 See: Sean Kinney, “Analyst: Wi-Fi Carries 80% of Mobile Data Traffic,” RCR Wireless, July 7, 2016, www.rcrwireless.com. 5 https://www.morganstanley.com/ideas/5G-wireless-outlook. Will 5G remake the world or just make it a little faster? speeds, low latency, and more more than entertainment, however, of IoT has long been touted, but the “lanes” in the network to organize including handling data pertaining difficulty of setting up low-latency and allocate bandwidth. to vehicle speeds. A single wireless networks capable of linking autonomous vehicle could generate sensors and connected devices has Why do we need faster mobile an estimated 4,000 gigabytes each typically been a serious barrier to data speeds? One big reason is day—about as much as 3,000 widespread adoption. 5G can help video. By 2021, 78 percent of mobile people. 5G network speeds will data traffic will be video, up from likely be critical for moving that 5G can help 6 60 percent in 2016. A 5G network much data around. telecommunications can allow a subscriber to download an HD movie in 5 to 10 seconds, What is latency, and why is companies develop compared with 10 minutes for 5G’s low latency such a big critical new revenue 4G. In fact, 5G technology could advantage? Latency is the amount streams while helping deliver speeds of up to 10 gigabits of time it takes a data packet to get drive the digitization of per second. Such speeds can also from one point to another on a data make even more data-intensive network. Much of the excitement nearly every industry. entertainment like virtual reality around 5G networks has to do viable on mobile networks, instead with their low latency—about one of relying on a Wi-Fi connection. millisecond. Low latency can be High data speeds can be used for critical for enabling IoT. The promise 6 Cisco Visual Network Index, 2017, https://www.cisco.com/c/ en/us/solutions/collateral/service-provider/visual-networking- index-vni/mobile-white-paper-c11-520862.html. Will 5G remake the world or just make it a little faster? telecommunications companies Both precision and haptic feedback edge computing (MEC) can solve develop critical new revenue require very low latency, which 5G this problem by providing data streams, while helping drive the mobile networks can deliver. processing power at the edge of the digitization of nearly every industry. mobile network. 5G networks can How will 5G enable “multi- make MEC better by combining high Many of the most promising IoT access edge computing,” speeds and low latency. The edge use cases, such as industrial and why does this matter? computing concept has long been automation, asset tracking, “smart Smartphones and connected used in Content Delivery Networks city” applications, autonomous devices of all kinds are consuming (CDNs) to handle the increased vehicles, and remote surgery, and generating large quantities use of streaming media and over- require ultra-low latency. For of data at the “edge” of wireless the-top (OTT) services. With the example, robotic surgery networks. The more data that is capabilities of 5G and IoT, however, requires precision and “feel.” sent to and from these mobile the number of use cases will likely Recent advances in haptic devices, the more strain is put grow far beyond just consumer and feedback provide the surgeon an on centralized cloud-based social content— increasing the need instantaneous sense of touch when architectures, where data is for advanced MEC. using medical implements that may processed and stored in a be located thousands of miles away. central location. Multi-access “Network slicing” enables a single, common network infrastructure to contain multiple virtual networks. Will 5G remake the world or just make it a little faster? Wireless service providers (WSPs) wireless networks. Edge networks a WSP can use a common network can integrate small data centers can also sort through data, sending infrastructure to create multiple into their 5G network nodes instead valuable information to centralized virtual networks. It can then deliver of sending data all the way back to data centers and discarding the “network-as-a-service” to customers a centrally located data center. At rest. Industry 4.0 applications and with varied use cases. For example, the edge, companies can use data augmented reality/virtual reality an IoT application might require analytics and artificial intelligence (AR/VR) on mobile devices are other very low latency, but also low data to generate more value from data, use cases that can benefit from throughput. A VR application, on the and to help enable data-intensive 5G-enabled MEC. other hand, could have less-critical applications. Again, consider roads latency requirements, but high full of autonomous vehicles, each Will 5G enable more lanes data throughput. generating huge amounts of data per network? 5G networks can that require real-time processing. accommodate several dedicated With so much potential, what can Cloud-based networking and data “lanes” on the same network stop 5G from having a huge impact, processing are simply unworkable; infrastructure.
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