The 5G Business Potential

Terminsstart Telekom 2017

Monika Byléhn, 5G marketing director

© Ericsson AB 2017 | September 2017 | Page 2

DiversE opportunities with 5G

VIDEO

MULTIPLE INDUSTRIES

BROWSING

VOICE

2G 3G 4G5G

© Ericsson AB 2017 | September 2017 | Page 3

5G - a path to new revenues

Develop new business models

beyond data monetization

Capture the mobile video

opportunity with 11 fold

consumption increase

Make enterprises capture

the IoT opportunity

New consumer services like

8K and fixed wireless

Digitalize enterprises

with new capabilities

Enable enterprises build truly

global, connected solutions

5G

© Ericsson AB 2017 | September 2017 | Page 4

SMART

AGRICULTUREFLEET

MANAGEMENT

SMART

METER

LOGISTICS

TRACKING

TRAFFIC SAFETY

& CONTROL

INDUSTRIAL

APPLICATION &

CONTROL

REMOTE

TRAINING

REMOTE

MANUFACTURING REMOTE

SURGERY

SMARTPHONESHOME

NON-SIM

DEVICES

ENTERPRISE

VENUES

MOBILE/

WIRELESS/

FIXED

4K/8K UHD

BROADCASTING

VR/AR

5G is use case driven

LOW COST, LOW ENERGY

SMALL DATA VOLUMES

MASSIVE NUMBERS

ULTRA RELIABLE

VERY LOW LATENCY

VERY HIGH AVAILABILITY

Critical MTCMassive MTC

Enhanced mobile broadband

© Ericsson AB 2017 | September 2017 | Page 5

Technical expectations of 5G

Peak Data Rate

1 - 20 Gbps

User Experienced Data Rate

10 -100 Mbps

Spectral Efficiency

×1 - ×3

Mobility350 - 500

km/h

Latency 1 - 10 ms

Connection Density

10k - 1m

devices / km2

Network Energy Efficiency

×1 - ×100

Area Traffic Capacity

0.1 - 10

Mbps / m2

Availability99.999%

(of time)

Battery life 10 years*

Reliability 99.999%

(of packets)

Position

accuracy10m - <1m

Security

*For low power IoT devices Source: ITU-R, NGMN, 3GPP

High

© Ericsson AB 2017 | September 2017 | Page 6

Use case evolution with supporting technology

Manufacturing

Healthcare

Energy & Utilities

Enhanced Mobile

Broadband

Automotive

Technologies

Multi-standard network

Cat-M1/NB-IoT

Cloud optimized network

applications

VNF orchestration

Gigabit LTE (TDD, FDD, LAA)

Massive MIMO

Network Slicing

Dynamic service orchestration

Predictive analytics

5G NR

Virtualized RAN

Federated network slicing

Distributed Cloud

Real time machine learning/AI

On the road to 5G 5G experienceCurrent

Fixed Wireless Access

Interactive live concerts

and sport events

Predictive vehicle maintenance Capturing sensor data for real-time traffic, weather, parking, and mapping services.

Collaborative robots

Distributed control system

Remote quality inspection

Telesurgery

Augmented reality aiding

medical treatment

Distributed energy resource

management

Distribution automation

4K/8K videos, Mobile

AR/VR gaming and

immersive media

Autonomous vehicle control

Cooperative collision avoidance

Vulnerable road user discovery

Remote control of robots

AR in training, maintenance,

construction and repair

Precision medicine

Remote robotic surgery

Ambulance drones

Control of edge-of-grid generation

Virtual power plant

Real time load balancing

WiFi Hotspot,

On demand GPS map data

Over-the-air SW updates

Browsing, social media

Music, video

Connected goods

Intra-/inter enterprise

communication

Smart metering

Dynamic and

bidirectional grid

Remote patient monitoring

Connected ambulance

Electronic health records

© Ericsson AB 2017 | September 2017 | Page 8

Operator Addressable 5G DIGITALIZATION REVENUES IN 2026

Source: Ericsson, Arthur D. Little

Note; 1) Year 2026

5%

582USDbn

Energy & Utilities

Automotive

Media & Entertainment

Public transport

Healthcare

Financial servicesManufacturing

Public safety

19%

13%

13%

8%

13%

17%

11%

© Ericsson AB 2017 | September 2017 | Page 9

Sweden –opportunity for operators

Source: Ericsson and Arthur D. Little

Note: 1) Excludes revenues from devices

5G

ad

dre

ssa

ble

o

pe

rato

r re

ve

nu

es

Cu

rre

nt o

pe

rato

r se

rvic

e r

eve

nu

es

1

4.8

0.6

Public

safety

0.8

0.6

Energy &

utilities

Media &

enter-

tainment

0.5

HealthcareManu-

facturing

0.6

Total

0.9

Public

transport

Financial

services

0.2

Auto-

motive

0.4

(USDbn)

0

2

4

6

8

10

12

14 +57%

2022 20262020 202420182016

>

Current & 5G addressable revenues Split per industry (2026)

© Ericsson AB 2017 | September 2017 | Page 11

Broadband experience

everywhere, anytime5GConnecting people,

industries and society

Photos by ABB, Boliden and SKF

© Ericsson AB 2017 | September 2017 | Page 12