Unleashing the 5G Value

N E T 2 0 8 - S Unleashing the 5G value

Peters Suh Managing Director, North American Communications Industry Lead & Network Practice Lead Accenture

1. 5G Network Promise

2. Transforming Business Models

3. Transforming the Value Chain

4. New Opportunities © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Consumer and Enterprise Demands Both consumer and enterprise demands will generate attractive commercial opportunities for 5G

Streaming & Internet Enterprise – TV and Videos Consumer Cross Vertical Solutions Enterprise Global Spend ($B) Global Spend ($B)

$16.0 $700

$14.0 $600

$12.0 $500

$10.0 $400 $8.0 $300 $6.0

$200 $4.0

$2.0 $100

$- $0 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 60% of telecom executives believe that 5G will cover a 72% of executives need help to imagine the potential majority of the population by 2022 uses of 5G enterprise solutions

Source: Accenture analysis, Gartner, IDC Improving the Traditional Network Cost Structure

Average Incumbent Network Spend vs. Potential Network Spend Strategic Levers

Virtualization Legend

Operating Expense $17-21B Rethinking use of licensed Annually Capital Expenditure and unlicensed spectrum Average Opportunity Incumbent Operating for Driving higher asset Annual Savings Network utilization of excess capacity Spend Cloud-Native Personnel Carrier Accelerating network Annual deployment, enabling the benefit of Third-Party Network owner’s economics Network Spend Limiting third-party costs by Labor/ Other optimal site deployment and acquisition RAN Construction Best-in-class lease terms (e.g., rent, utilities, taxes) Core Capacity RAN Partnering with other Transport infrastructure providers Capacity

Source: Accenture Analysis © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. 5G World 5G Pervasive 5G Network Platform Mobility IX.0 Services Connecting the digital world with SDN, automation, and MEC as a Self-Healing MEC core tenant Network Wearables

Automation MEC NFV Analytics & MEC Big Data Cloud SDN

MEC

Cybersecurity Internet of Things

Open Source Crowd Sourcing 5G Next-Generation Platform

5G REVOLUTION Disruptive 5G Focus Business 5G Strategy & Future Areas Models Use Cases Growth

DEVELOP “CLOUD-NATIVE DIGITAL PLATFORM ENABLEMENT CREATE THE 5G PARTNER NETWORK AS A SERVICE” FOR CONSUMERS, ENTERPRISES, ECOSYSTEM 1 PLATFORM 2 AND PARTNERS 3 Considerations for Success Through Accenture’s 5G work, we identified six important focus areas on the road to unlocking 5G potential

2. 1. STRATEGY, 3. SPECTRUM USE CASES, AND DEVICE AVAILABILITY BUSINESS MODELS INNOVATIONS

4. 5. 6. NETWORK PLATFORM OPERATIONAL DEPLOYMENT INNOVATION COMPLEXITY Strategy and Use Cases A detailed roadmap of use cases will ensure 5G success

Customer Small & Medium Consumer Enterprise Government Industry Segments Business (SMB)

Enhanced Mobile Fixed Wireless Access / Ultra Resolution Video / Next-Gen Comms / Broadband Mobile 5G Immersive Entertainment Social / Assistance (eMBB)

Autonomous Ultra Low Extended Reality (XR) / Robotics Automation / Latency Vehicles / V2X / Gaming Remote Operations (ULL) Edge Compute

Massive Internet Massive Sensor Smart City / UAV of Things Networks Smart Spaces Non-Line of Sight Drones (mIoT)

Deployment In-Home In-Building Dense Urban Venue / Campus Suburban Rural Scenarios © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. The Next Generation: Cloud-Native 5G Platform

Driving Innovation at Pace • “Test & Learn” over “Fail & Fire” • “Team of Teams” • Liquid Partner Ecosystem 5G Digital Cloud- Native Network Platform as a Product Platform • Rise of the Platform – SRE Principles • Cloud-Native • Data-Driven Architecture • Microservice Drive • Continuous Technology Architecture Improvement • Open & Decoupled Platform Disruptive Operating Model • Cognitive Capability-Enabled Operations • Disruptive Execution Models • Lean Practices and Scaled Agile Delivery Telcos Are Transforming the Network Through Cloud

Proprietary HW in The Hardware World Network Design Physical Boxes Proximity to End Users the Data Center and from NEPs & Deployment Management on Premises

Software Everywhere, Cloud Visual Design NFV/SDN for Hyper-Capillarity for Core Whitebox x86 from Whomever and Activation Automated Lifecycle No Latency Use Cases & by the End User

LAST BACKHAULING/ BACKHAULING/ MILE AGGREGATION CORE CORE AGGREGATION LAST MILE END USER Backbone (P) Provider Edge (PE) Customer Edge (CE)

MEC Wireline HOUSEHOLDS Access

(DWDM) ENTERPRISES Switches/ MEC IP Network Routers, IMS, DPI, FW, CRAN HFC CARS MEC 2G / 3G / 4G / 5G OBJECTS OF IOT (DWDM) (MetroE, BLSR/UPSR RINGs, BRAS, etc.) Legacy Network Configurations NFV Network Configurations Partnering on the 5G Platform

UNIQUE EXPERIENCE Customized brand elements with consistent omni-channel experience for B2B and B2C customers

PLATFORM AWARENESS Enable real-time, insights-driven recommendations and contextual experience across all network services

PARTNER-AGNOSTIC CORE Base capabilities that are common and required for all types of partners – core network, horizontal platforms, provisioning, etc. Recode Your Organizational DNA

Measure & Sustain Future State Design Track impacts of adopting a Operating model that supports customer-centric approach through 5 1 innovative, dynamic business and key metrics (NPS). Create an service models. Break down internal intelligence layer (i.e., VRO) to silos and create cross-functional manage. collaboration.

OPERATING MODEL

2 4 New Skilling 3 Culture Change Create/upskill connected digital Workforce Create an innovation, co-creation, workers and provide field Consider inorganic and adaptive plays and growth mindset-driven culture. technicians digital to augment current network workforce technologies/tools to increase mix and attract and retain top talent. proficiency and service quality. Thank you!