5G Perspectives

Viktor Arvidsson

Evolution of mobile communications5G4G3G2G

Voice100

1990’s

Browsing200

2000’s

Media/Video600

2010’s

Digital & IoT+1,3002020’s

Million subs after 5 years of launch

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1000

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Global subscriptions (million)

5G forecast

4G

Global population coverage (percent)

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70%

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5G forecast

4G

5G potential population coverage

Year from first deployment:- 4G in 2009- 5G in 2018

In 2024 , 5G subscriptions will have reached 1.9B subscriptions globally

In 2024 , up to 65% of the world´s population may be covered by 5G by leveraging Ericsson Spectrum Sharing

99.999% Availability

1-20 Gbps Maximum peak rates

500 kphMobility

1 mPosition accuracy

1 msLatency

10 ansBattery life

1 M/km²Device connection

density

5G performance Technological ecosystem

5G

Cloud

AI

Edge compute

IoT

• Build ubiquitous NR coverage

• Deploy new core network

• Add mid- / high-band NR spectrum and radios

• Add baseband hardware for gNB

• Upgrade EPC software

5G Deployment considerations

LTE LTE

EPC

LTE NRLTE

5G EPC

LTE NRLTE/NR

5G EPC 5GC

Mu

lti-ban

d

Spectrum trade-offs between capacity, coverage and latency

High bands(24 GHz – 40 GHz)New

Mid bands II(3.5 GHz – 6 GHz)New

Mid bands I(1 GHz – 2.6 GHz)Legacy

Low bands(Sub – 1 GHz)New/legacy

Urban

Wide AreaRegional

Moderate

High

Low

Coverage Capacity Latency

Ultra-Low

High capacitydense urban / localized

deployments

Moderate capacitywide area/ outside-in

coverage

• Increased Signal Power

• Interference reduction

Beamforming gains

— LTE controlled sharing: LTE scheduler grants resources (RE) to NR during a certain period

— NR users “scheduled” on top of LTE carrier while avoiding symbols used by LTE for cell specific signals (e.g. CRS)

— Resources allocated to technology based on ‘instantaneous’ traffic needs

From Static to Dynamic Spectrum SharingEricsson’s offering to enable NR in low band earlier than competition

Legacy LTE UE NR UE

4G /5G BB

100ms100ms

LTE

Radio

Static Sharing Instant Sharing

1ms

LTE DL

NR DL

Commercial in confidence, © Ericsson AB 2018

100ms100ms 1ms

Dynamic/Instant Spectrum Sharing will allows “soft” re-farmingto NR with minimal impact to LTE performance

Carbon impact and 5G perspectives

More data, same footprint

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Million TB

Mt CO2-eq

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2-e

q

mill

ion

ter

abyt

e (T

B)

Carbon footprint of ICT and data traffic development

IEA June evaluation for data centers

Ericsson assessment for ICT

• YES. Breaking the energy curve is not just a possibility, but an industry requirement.

• The yearly global energy cost of running mobile networks is USD 25 billion.

• From cost and carbon footprint perspectives, energy use is one of our industry’s biggest challenges.

Can we quadruple data traffic without increasing energy consumption?

Ener

gy

Time

2G

3G

4G5G

Traditional 5G deployment

5G + Ericsson’s breaking the energy curve approach

Ericsson’s breaking the energy curve

Manage traffic growth

Reduce costs

Be a technology leader

Reduce environmental footprint

Activateenergy-saving

software

Build 5G withprecision

Operate siteinfrastructureintelligently

Prepare the network

Break the energy curvein mobile networks Benefits for service providers

In 2025 there will be 2.8 billion 5G subscriptions

190m190 million 5G subscriptions expected end of 2020.

>75More than 75 service providers around the world have switched on 5G.

0

Ericsson leading in 5G

We are supporting with our 5G network technology

65+live networks

Largest number of supported devices on 5G live networks

40+devices

We have shipped 4 million 5G HW-prepared radios since 2015

5million radios

First with commercial 5G live networks in 4 continents: Americas, Europe, Asia and Oceania

5G publicly announced contracts with more than 40 operators

~111Commercial 5G agreements

Automated and agile operations for faster time to market and enhanced experience with less OPEX

Automation

Revenue growth with new services built on secure, trusted & reliable 5G networks in partnership with ecosystem

New business

Delivering the full 5G potential for telecom operators

Smooth 5G evolution and superior end-to-end performance

Network evolution

5G networks forecast to carry nearly half of the world’s mobile data traffic in 2025

160EBTotal traffic predicted to reach 160 exabytes per month in 2025

5G addressing operator pain points

Consumer 5G use case roadmap

Timeline to go mainstream from 5G launch

Willingness to pay

Lowest(47%)

Highest(79%)

Base: Smartphone users aged 15–69 in Australia, Argentina, Brazil, Belgium, China, Canada, Chile, France, Finland, Germany, India, Indonesia, Ireland, Italy, KSA, South Korea, Singapore, Thailand, Uruguay, the UAE, the UK and the US

Korea 5G updates

5G in South Korea

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20

40

60

1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3

2012 2013 2014 2015 2016 2017 2018 2019 2020

Mobile technology shift

CDMA WCDMA LTE 5G

0,0 0,3 0,8 1,3 1,9 2,8

3,5 4,0 4,4 4,7 4,9 5,4 5,9 6,3

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2

4

6

8

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

5G subscriptions per operator

SKT KT LGU+ total

0,3 0,4 0,4 0,3 0,3 0,3 0,3 0,2 0,2 0,1 0,08 0,08 0,05

8,6 9,2 9,1 9,7 9,8 9,5 9,9 9,5 9,8 9,9 9,4 10,3 9,3

22,9

18,7

24,0 24,7 25,2 26,6 27,7 26,3 27,3 27,7 25,8

27,223,8

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Monthly 3G/LTE/5G data consumptions per smartphone (GB)

3G smartphone LTE smartphone 5G smartphone

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800

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Monthly 3G/LTE/5G mobile data traffic trend(PetaByte)

27%

X 2.56

9.1%(millions) (millions)

79.6%

9.9%1.3%

93% of the population covered with mid TDD band in 85 cities *As of May 2020

5G service offerings by Korean telcos.

B2C services

— VR services with the bundle of tariff plans and VR headsets

▪ AR devices released: Gear VR, oculus Go VR, pico G2, Google cardboard, Samsung Gear VR

▪ continue to increase VR contents, e.g. VR screens, educations, games, movies, concert, show, etc.

▪ services: SKT 5GX Jump VR, KT Super VR, U+ VR

— AR services with FoC for most 5G subscribers, except low-level of tariff plans

▪ try to vitalize AR service by providing themes(e.g. ‘AR zoo park’), useful apps.(e.g. mobile shopping) and charged contents(e.g. U+ AR service)

— boost 5G with ‘free services’ and accessories

▪ opened hot places for various AR/VR contents experiences, etc. (e.g. SKT ‘5GX Boost Park’)

▪ provides various experiences on contents such as sports, Idol, game, music, etc. via 5G apps.

▪ release necessary accessories, e.g. KT’s neckband camera ‘FITT360‘

B2B services

— Private 5G network service▪ Build private 5G network/dedicated server

and provide E2E service▪ e.g. SKT’s ‘5GX service’ (provides P-5G

network, P-security USIM, P-MDMS and P-5G devices). KT/LGU+ also provide the same service

— MEC(Mobile Edge Computing) service

▪ Building distributed edge or on-site edge

▪ Use case: Autonomous car, Real-time video analysis, VR/AR collaboration, Smart factory/office/logistics/hospital/etc.

— Other 5G-based B2B services

▪ Smart factory

▪ Intelligent CCTV service with AI

▪ Real-time remote control for heavy machine/etc.

▪ 5G-based V2X network & service: V2V, autonomous car, etc.(e.g. LGU+’s C-ITS)

▪ Smart drone: control, autonomous flying, video transmitting, cloud drone management, etc.

Industry use cases

5G/IoT use case

Source: Arthur D. Little, clippings, Ericsson — 2,5 M€ savings in the first step

ericsson.com/en/reports-and-papers/industrylab/reports/a-quick-guide-to-your-digital-carbon-footprintericsson.com/industrylab

ericsson.com/sustainability