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5G: Issues & Challenges

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5G: Issues & Challenges RÉPUBLIQUE FRANÇAISE 5G: ISSUES & CHALLENGES March 2017 The issues and challenges surrounding 5G The telecoms industry is currently in the process of designing the technologies that are due to take over from 4G, which is still being deployed today. A great deal of work is thus underway to prepare these “5G” technologies. To prepare for the arrival of this new generation of technologies, Arcep wanted to take a detailed look at the industry to better understand what is in the works. This report is the fruit of the interviews and research that Arcep conducted over the course of 2016, and which the Authority wanted to publish as a way to contribute to the public debate over 5G. Its aim it to provide as objective and exhaustive an overview as possible, and deliver a concise, informative snapshot of the work that is currently underway on the future generation of mobile networks. This report reflects the views of the stakeholders who were interviewed, but in no way represents Arcep’s positions on or roadmap for 5G. Arcep awarded in 2015 the 700 MHz band and is currently working towards licensing the 3.5 GHz band, both of which have been identified as 5G bands. Arcep is also working with the Direction générale des entreprises and the Agence nationale des fréquences towards enabling spectrum for 5G. Arcep would like to thank all of the entities (listed on the last page) who agreed to take part in this process, and who were willing to contribute to the regulator’s investigation into the development of 4G’s successor. Arcep is dedicated to sustaining an ongoing dialogue with the market, and invites all interested parties to provide information on the matter or to share their reactions to this report, by contacting Arcep’s Mobile and Innovation Directorate at the following address: [email protected]. Autorité de régulation des communications électroniques et des postes 2/41 Table of Contents INTRODUCTION: THE VISION FOR 5G, CREATING AN ULTRA-CONNECTED SOCIETY ......................... 4 1 5G OBJECTIVES ....................................................................................................................... 7 1.1 TECHNICAL SPECIFICATIONS OF 5G................................................................................................ 8 1.2 5G USE CASES ....................................................................................................................... 10 1.3 JUMP IN PERFORMANCE COMPARED TO 4G NETWORKS ................................................................... 12 1.4 NETWORK SLICING AND SOFTWARE-DEFINED NETWORKS.................................................................. 14 1.5 TECHNOLOGICAL BUILDING BLOCKS TO ACHIEVE THE OBJECTIVES ........................................................ 15 1.5.1 AIR INTERFACE............................................................................................................................... 15 1.5.2 NETWORK ARCHITECTURE................................................................................................................ 17 1.5.3 5G: A MULTI-TECHNOLOGY GENERATION COHABITATING WITH EXISTING NETWORKS ................................. 19 2 5G DEVELOPMENT INITIATIVES ............................................................................................. 21 2.1 GOVERNMENT INITIATIVES ....................................................................................................... 21 2.1.1 IN EUROPE .................................................................................................................................... 21 2.1.2 WORLDWIDE (EXAMPLES IN THE US, SOUTH KOREA, JAPAN AND CHINA) ................................................ 23 2.2 A HOST OF PRIVATE INITIATIVES – A FEW EXAMPLES ........................................................................ 24 3 THE CHALLENGES OF 5G ........................................................................................................ 26 3.1 NEW BUSINESS MODELS FOCUSED ON VERTICAL MARKETS ................................................................ 26 3.1.1 THE AUTOMOTIVE SECTOR ............................................................................................................... 26 3.1.2 INDUSTRY 4.0 ............................................................................................................................... 27 3.2 SPECTRUM HARMONISATION .................................................................................................... 28 3.2.1 MILLIMETRE WAVE FREQUENCIES ..................................................................................................... 28 3.2.2 FREQUENCY BANDS BELOW 6 GHZ .................................................................................................... 29 3.3 INCREASINGLY SMALL CELLS ...................................................................................................... 30 3.3.1 TAXATION ..................................................................................................................................... 31 3.3.2 ACCESS TO ELEVATED AND “SEMI-ELEVATED” LOCATIONS ..................................................................... 31 3.3.3 5G NETWORKS’ REGIONAL COVERAGE AND BACKHAUL ......................................................................... 32 3.4 NET NEUTRALITY ISSUES ........................................................................................................... 32 ANNEX 1 DEFINITION AND STANDARDISATION WORK .............................................................. 35 ANNEX 2 ENTITIES ARCEP MET WITH ........................................................................................ 40 ANNEX 3 FIGURES .................................................................................................................... 41 Autorité de régulation des communications électroniques et des postes 3/41 Introduction: the vision for 5G, creating an ultra-connected society 5G wants to be the disruptive generation, the generation that no longer only caters to the needs of mobile operators and consumer communications, but which opens up new prospects and enables an extremely wide diversity of applications and use, unified within a single technology. 5G is setting itself up as an enabler of the digitisation of society and the economy. The idea that is starting to take shape behind the notion of 5G is that it will not mean just an increase in transmission speeds, as has been the case with previous generations. Consumer mobile communications, video downloads and the use of mobile apps account for the bulk of 4G networks’ radio resources usage today. With 5G, the goal will be to enable a much broader spectrum of uses and a much greater diversity of users. 5G is targeting a wide variety of sectors, which will not necessarily have anything other than this technology in common, but which are central pillars in a society: energy, healthcare, media, industry and transportation. Figure 1. 5G driving industrial and societal changes1 The energy sector, for instance, has undergone a great many changes and developments over the past several years in terms of energy production, storage and transport. Rising fossil fuel costs, the introduction of renewable energy sources and markets being opened up to competition have all helped usher in new kinds of energy product and new stakeholders – both independent companies and ordinary citizens – to the energy marketplace. The objective with 5G will thus be to enable better management of these networks (smart grids, smart agriculture, factories of the future) and their interconnections, to achieve more efficient and more agile distribution. 15G Empowering vertical industries. White Paper, 2016, https://5g-ppp.eu/wp- content/uploads/2016/02/BROCHURE_5PPP_BAT2_PL.pdf Autorité de régulation des communications électroniques et des postes 4/41 Healthcare, transportation and media are sectors that are bound up with our fellow citizens’ daily lives: any improvements in these sectors thus have a clearly visible impact. The introduction of robots to perform specialised surgical operations, of video on demand or the advent of new connected features in cars have already improved our daily lives. 5G is promising to go several steps further in all of these areas: it would enable remote medical diagnoses and operations in real time, it would democratise streaming of 360° 3D video, it would provide users with a vast selection of video content with a picture quality better than ultra high-definition (4K, 8K…). The automotive universe could rely on these new networks to help cars make decisions without human involvement, and also communicate with one another (this is already possible, for instance, with the first experimental fleet of fully autonomous taxis being tested on the streets of Singapore by the firms nuTonomy and Grab2), with reaction times that are compatible with the demands of high-speed travel. In terms of factories of the future, the improvements brought by 5G are primarily targeting the introduction of new generations of connected robots, the interconnection of production sites and the much heavier use of smart sensors to improve industrial processes. Generally speaking, the aim is to achieve ubiquitous communication between machines, a process that is already well underway. One thing that it is crucial to understand, through the few examples listed above whose demands might seem mutually incompatible, is that depending on the sector or the application, the network properties and the functionalities
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