Capturing the 5G/IoT industry business potential

June 2018

Ericsson IOT & Emerging Business Julio Echenique Carbonell

© Ericsson AB 2018 | Page 2

1. New mobility models require 5G

2. 5G value capture journey overview

3. Use case examples

Agenda

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‘Without 5G & AI fully autonomous vehicles would be impossible’

Source: Intel, Forbes, VentureBeat

VentureBeat

5G wireless will make autonomous cars smarter

Forbes

AI critical to the future of autonomous vehicles

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Would you really trust an autonomous car?

Source: Clippings

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Anatomy of an autonomous vehicle’s accident w/o 5G

Source: Clippings

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Building trustworthy public transportation services enabled by AI and 5G

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1. New mobility models require 5G

2. 5G value capture journey overview

3. Use case example

Agenda

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With industry digitalization, new fast growing revenue pools emerges

* Digitalization revenues for ICT players from 10 key industriesSource: Ericsson and Arthur D. Little

2016

1.4971.736

1,5%

2026

USDbnCAGR16´-26´

Operator to seize

emerging revenue potential

Challenge: current operator service revenues Opportunity: digitalization revenues*

13,6%

20262016

3.458

968

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5G revenue potential for operators addressing industry digitalization

USDbn, 2026

1 736

619*415

204

Cu

rre

nt

se

rvic

e r

ev

en

ue

s5

G a

dd

ress

ab

le

B2

B2

X

2026

Service enabler and service creator revenue potential

Network developer revenue potential *Total addressable as Service creator operator role

Adding an addressable

revenue growth potential

36%

Manufacturing18%

Energy and utilities16%

Public safety13%Healthcare

12%

Public transport12%

Media and entertainment10%

Automotive8%

Financial services5%

Retail5%

Agriculture1%

619USDbn

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The analysis of 5G use case clusters offers a vision on investment optimization.

Agro AutoEnergy & Utilities

Financial Services

Health Mfg.Media & Entmt.

Public Safety

Public Transport

Retail TOTAL

Real-time Automation 100,8

Enhanced video 96,2

Other 77,4

Monitoring & tracking 72,6

Connected vehicle 68,8

Hazard & mnt. sensing 57,0

Smart Surveillance 46,7

Autonomous Robotics 40,5

Remote Ops 35,4

AR/VR 23,6

619,0

Addressable market for telcos (2026, USDbn)

+++ ---

Source: Ericsson

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1. New mobility models require 5G

2. 5G value capture journey overview

3. Use case examples

Agenda

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5G – One network for multiple industries

10-100xEnd-user data rates

1000xMobile data volumes

5xLower latency

100xMore devices

Low costDevice cost reduction

5xNW energy efficiency

3xSpectral efficiency

Network slicing

eMBB mMTC cMTC Enterprise and Industry

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— Hotspots in cars; adding car dealerships, service stations and parking company through platform

— Offers devices to plug into cars, smartphone app and cloud solution to manage devices and data

— App lets drivers know driving behavior, car info and location, lowering insurance premiums

European operator creating value via connected car ecosystem

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Real-time location of the train

Remote control of trains

Real-time video surveillance

Gigabit mobile broadband for passengers

A PoC collaboration with Swisscom to test the

applicability of upcoming 5G features like network slicing for future railway communications

Rail application5G Network slicing

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Enterprise IoT adoption stages