5G Business Models and Applications

Part
01
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Part
01

5G Trends

Key trends in 5G include the use of 5G technology in robotics, IoT, VR/AR, and increased use in mobile networks; another key trend is the potential for growth in profits (CAGR of 31.9%). Complete details about each trend are presented below.

#Trend 1: 5G in Robotics

  • The use of 5G technology applied to robotics demonstrates a global trend because it is enabling the automation of services previously dependent on human participation, such as commerce and payments. Recent data released by the Robotic Industries Association show that after the first applications of 5G technology in robotics (2018), the growth of robot shipments being manufactured jumped from 7% to 42%; this exorbitant growth has proven the use of 5G technology applied to robotics is one of the biggest trends in global use. After all, this is motivated by the real possibility of automating previously unthinkable processes.
  • Latency is a huge challenge for robot developers; if it takes too long for an entry to be processed, then a move to be calculated and executed, the robot is severely limited. The 5G network increases data transmission speeds by more than 10 times, revolutionizing robotics.
  • 5G technology connects the robot to the cloud. Through this, tests are being done where the robot can use machine learning to find the best way to navigate its environment and perform tasks without being specifically scheduled in advance.
  • One of the most important uses for 5G in robotics, which is being developed globally, is medicine—specifically remote surgery—performed by an experienced surgeon who operates robotic tools.
  • Nokia, for example, is using 5G technology to build a "smart factory" equipped with sensors that provide a constant flow of information about every aspect of the manufacturing process.
  • The 5G RuralFirst Project, involving Cisco, the University of Strathclyde and other partner countries, uses 5G technology combined with robotics in agriculture to implement advances that optimize food production.
  • NTT Docomo, the Japanese and Toyota phone operator, developed the T-HR3 robot to demonstrate how, through 5G technology, it could be controlled almost in real-time. In the demonstration, when the operator moved, the robot repeated the movement.

#Trend 2: 5G in the Internet of Things (IoT)

  • By 2020, the B2B IoT market will exceed $300 billion, according to estimates by Bain & Company. And global IoT spending is expected to reach $1.2 trillion by 2022, based on IDC data. The biggest advancement needed for IoT to continue to rise includes faster and more stable connections—a great feature of 5G technology.
  • The 5G technology applied to IoT is a trend proven by the investment it has had in all industry sectors. It is well-tested for home appliances, especially security systems. 5G promises to be able to be controlled over long distances and speeds much higher than the old 4G, which makes these ventures more successful by streamlining diverse operations and enhancing the safety and mobility of people enabled by more efficient uses.
  • For decades, sensors have been used in factories to measure product temperature, count and monitor production and ensure quality. Only 5G technology applied to IoT enables wireless sensors throughout the factory or warehouse, optimizing operations. Statista predicts that by 2020 "the installed base of things-to-be devices is expected to grow to nearly 31 billion worldwide," proving to be one of the industry's top trends.
  • Autonomous cars, connected to different IoT devices, are one of the main bets on the market. Due to 5G technology, it is estimated that by 2020, the number of cars sold with installed telematics will rise from 60% to 90%.
  • Bosch Rexroth demonstrates the use of 5G technology applied to IoT with the "ActiveShuttle" driverless transport system and a new 3D printing system.
  • Festo is focused on utilizing 5G technology applied to IoT to optimize cloud utilization, both at storage speed and operating system usage, and intends to break the market.
  • FTT, a result of 5G at IoT, is developed by IFAK and includes devices that generate traffic and measure parameters with high resolution. FTT-Manager provides a user interface for planning and controlling the test procedure. It can also manage and control standard equipment such as spectrum analyzers for cross-layer analysis or signal generators for introducing interference.
  • Weidmueller and Zeiss are leveraging 5G technology applied to IoT to boost the performance of autonomous cars, implementing from smart censors to state-of-the-art customizable onboard computers.

#Trend 3: 5G in VR/AR

  • A recent Gartner study on augmented reality (AR) and virtual reality (VR) use suggests that by next year, 100 million consumers will use both technologies to shop online and in-store. However, this advance will only be possible with the benefits that 5G technology offers, making this one of the biggest trends in use.
  • Higher 5G output will be required for cloud-transmitted VR and AR content, and with 5G access becoming easier and more common, AR/VR may become mainstream through its use.
  • According to Mangala Bhattacharjee, senior marketing manager at Research on Global Markets, 5G as a technology inherently brings aspects such as high speed, ultra-low latency, and high bandwidth—all in a wireless communication network. He believes that early deployment of consumers (through navigation, virtual tourism, immersive gaming) and corporate (through digital twins for predictive maintenance in the manufacturing industry and remote healthcare surgeries) RA applications will become perfect when 5G networks become widespread.
  • AR technology is used in a variety of markets including commercial, gaming, retail, and e-commerce. Some of the main players in the space are Apple, Sony, Microsoft, Google and Samsung Electronics, which are already testing the VR/AR technology used concurrently with 5G.
  • Apple, Google, Facebook, and Snapchat already offer features and applications in which consumers can use AR in their daily lives. Many technological developments are breaking down the hurdles of AR, with improvements in ease of use, improved developer tools, network enhancement, increased usability, higher performance, and lower costs—and especially 5G.
  • Companies like Netflix are investing in research using 5G technology applied to VR/AR to enable immersive experiences in audiovisual materials from their own homes.
  • Game streaming services like PlayStation Now, GeForce Now and Jump are well-positioned to flourish in the 5G era. One of the key benefits of these platforms is that gamers can stream games at lower prices, reducing the total cost of AR and VR for consumers.
  • The arrival of 5G means that the VR/AR resources can be utilized from the PC and into something called edge cloud; therefore, only the headset is required.
  • At Mobile World Congress in Barcelona, CEO John Hanke presented a video of a prototype that Niantic developed, codenamed "Neon," which allows multiple people in the same place to play an augmented reality game at the same time. This made possible only thanks to 5G technology.

#Trend 4: 5G in Mobile Networks

  • According to a survey by Rethink Research Technology Ltd., of 78 mobile network operators (MNOs), 5G has three differentiating elements of 4G LTE: diversification, densification, and virtualization. Rethink predicts that these features make 5G applied to the mobile network a better investment than continuing with 4G LTE between today and 2025.
  • 5G technology is among the five trends in all 2018/2019 worldwide mobile network trends lists.
  • One of the features of 5G in the mobile network is the increase of small cells to improve network capacity with 100 times denser connections.
  • According to Commscope's senior executive, companies can expect a wireless LAN type architecture that addresses the limitations of Wi-Fi.
  • 5G technology applied to the mobile network has, as trends, reliable connectivity with stringent latency, making the mobile phone a safer environment for risky operations.
  • One of the key features that make 5G a trend in mobile networking is that it employs a virtually distributed layered security design and wireless technology to create a highly secure, resilient and agile system. Some key security features of 5G mobile networks are distributed denial of service (DDoS) detection and mitigation, stronger encryption for over-the-air interfaces, IMSI encryption for each device, and security edge protection proxy to reduce prior technology vulnerabilities and likely attacks (when subscribers are roaming between different carriers).
  • Not only are the speeds higher, but 5G networks must also provide a cheaper data cost. With advanced technology and higher future adoption rate, 5G is expected to play a dominant role in the overall wireless internet.
  • In February 2018, Airtel, Huawei conducted India's first 5G network test. India's largest telecommunications service provider technologies, Airtel and Huawei, conducted experiments for 5G deployment. This test was a small test to verify Airtel network coverage. Both companies are trying to provide a robust 5G ecosystem.

#Trend 5: 5G Potential Profits

  • MRFR's global market research report for 5G services concludes that the CAGR of this market is 31.9% (between 2018 and 2023). In terms of monetary value, the 5G market may be worth $85.84 billion by the end of 2019.
  • According to IHS Markit, for example, by 2035, 5G will enable $12.3 trillion of global economic output (which is roughly the same as total US consumer spending in 2016). 5G will generate $3.5 trillion in output and support 22 million jobs in 2035 (which is now larger than the full mobile value chain). From 2020 to 2035, 5G's total contribution to GDP real global economy will be equivalent to an economy the size of India.
  • Once available, 5G will create significant revenue generation opportunities in the fixed broadband and business-to-business areas including smart cities, the connected home, and IoT.
  • 5G will create a wide range of opportunities—from machine-to-machine services and standalone vehicles to remote healthcare and innovative video distribution services. With its expanded 5G capabilities, telecommunications companies will need to invest in technology to create market entry models that capture 5G-IoT's business potential. (Source 18)

Part
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Part
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AT&T 5G

AT&T has evolutionalized a lot with 5G becoming one of the first phone carriers to bring it to 19 cities and will offer a hotspot to compensate for the lack of smartphone capability. The device and service are not available to consumers quite yet but has given some usage to businesses and developers.

THE EVOLUTION OF 5G WITH AT&T

  • AT&T is taking the first step in the 5G evolution by enabling faster speeds on the existing LTE network, which is up to 2x faster than standard LTE.
  • The network is evolving by adding more "lanes" to the highway that the data travels on, 4X4 MIMO doubles the number of antennas that can send data back and forth, and 256 QAM is making data more efficient.
  • AT&T is also upgrading its network by increasing capacity and coverage on the network, which provides more support for data. The process involves adding fiber to the network for higher peak speeds, enhancing the core network to support lower network latency, and adding in new tower equipment that the company can upgrade through software.

5G AVAILABILITY

  • By the first half of 2019, coverage will expand to cover the majority of all Americans.
  • Some of the most popular smartphones already have a displaying "5G E" indicator.
  • AT&T boasts about 5G service in 19 cities, but there’s still no phone that can use it, not until Samsung and Verzion's S10 exclusivity ends or A&T widely launches its hotspot.
  • There are only two smartphones right now that US customers can use and that's the Verizon exclusive Samsung Galaxy S10, and Verizon and Sprint exclusive LG V50.
  • Even though AT&T can't use the 5G yet, they do use the fact that they are the only carrier to offer mobile 5G service to businesses and consumers ahead of the competition.

5G COMPETITIVE LANDSCAPE: THE COST

  • The AT&T 5G hot spot will go for $499.00 and will also suggest that the 5G devices will require 5G compatible data plans which start at $70/ month for 15 GB.

THREE PILLARS OF 5G


Part
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Part
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Verizon 5G

Verizon is the first carrier to provide 5G mobile network. The company is working with Boingo Wireless to provide a strong 5G network in indoor public places. As at now, the 5G network is available in ten cities. But, the company is planning to expand to more cities before the end of the year

DEVELOPMENTS VERIZON IS MAKING IN THE 5G SPACE

  • Verizon has partnered with Boingo Wireless, a top WiFi provider, to bring 5G Ultra Wideband Service to serve indoor public places like stadiums, airports, office buildings, among others. The two companies are working together to create a hyper-dense network suitable for both small and large indoor spaces.
  • The company's 5G is very fast, but the mmWave technology that it has been using is a bit weak indoors. Therefore, it's partnership with Boingo is aimed at solving this problem by ensuring the 5G network performs better indoors as well as in public places. Verizon will be using Boingo's expertise in Wi-Fi, small cells, and distributed antenna systems (DAS).
  • On the 23rd of August 2019, the company's 5G network went live in Phoenix. It is around Chase Field, The Orpheum Theatre, Phoenix Convention Centre, CityScape, and Talking Stick Resort Arena. It is also available on the Arizona State University Campus. Phoenix is currently the tenth city carrier of the network while the other nine cities are Washington D. C, Detroit, Minneapolis, Chicago, Atlanta, Indianapolis, St. Paul, Denver, and Providence.
  • The company is also planning to provide the 5G service in the following cities before the end of 2019; Columbus, Cincinnati, Boston, Des Moines, Dallas, Little Rock, Kansas City, San Diego, Memphis, Charlotte, Cleveland, Salt Lake City, and San Diego.
  • Currently, the 5G network is available at an average speed of 450 Mbps. The challenge has an unstable connection despite having a network that can deliver at fast speed. As the network continues to develop and improve, the company is focused on having the speed increased.
  • Verizon offers several phones that can connect to its 5G network. They are; Moto Z3, which has a Snapdragon 835 chipset, Moto Z4, which operates on a Snapdragon 670 processor, and Moto Z2. Also, the company is the exclusive vendor of Galaxy Note 10 Plus 5G. The phones can be purchased in store or online.
  • Verizon also sells a 5G hotspot known as Inseego MiFi M1000. The hotspot has advanced firewall protection and security features, and it is being sold at a price of $449 or$649 on a two-year agreement.
  • In payment, the company is charging an extra $10 for each of its four 5G payment plans. However, for now, the amount has been waived for those who have subscribed to Do More, Play More, and Get More. Start Unlimited, which is the cheapest plan at $70, requires its customers to pay for $10 fee.
  • Verizon has 5G labs, which are innovation centers where business persons and start-ups explore the possibilities and power of 5G technology while growing the 5G network. The participants get to try out their ideas, design new applications, get professional help from academicians, and get assistance in accessing donors who will help fund their tech ventures. The 5G labs are in Washington D. C, Los Angeles, New York, Waltham, Mass, and Palo Alto.
  • Despite having a minimal phone selection, Verizon has beat its competitors in being the first carrier to provide a 5G mobile network. However, other carriers are now providing 5G network though it's limited to some cities.
  • In 2018 October, Verizon launched the 5G Home network, a broadband internet service. This service is currently available in Los Angeles, Houston, Sacramento, and Indianapolis
  • According to an article published in Forbes, "Verizon has said it will not likely see revenue from 5G upgrades until 2020. " The company has also invested about $4.3 million in expenditures in building the 5G network.


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Sprint 5G

Sprint provides cheap, longer coverage 5G services compared to its competitors in nine markets supported on the Samsung Galaxy S10 5G, the LG V50 ThinQ, and the HTC 5G Hub. The company provides 4G LTE and 5G simultaneously on the same radio with the use of 64T64R Massive MIMO radios with added 128 antennas and Multiple-Output (MIMO) equipment.

DEVELOPMENTS SPRINT IS MAKING IN THE 5G SPACE

  • Sprint launched its 5G rollout in nine markets which include Atlanta, Chicago, Dallas, Houston, Kansas City, Los Angeles, New York City, Phoenix and Washington, D.C.
  • Sprint deployed 64T64R (64 transmit, 64 receive) Massive MIMO radios using 128 antennas with technology leaders such as Ericsson, Nokia, and Samsung Electronics.
  • The company's added 128-antenna Massive Multiple-Input and Multiple-Output (MIMO) equipment to its existing cell towers create a 4G/5G split service and these allow Sprint to roll out its service quickly and cheaper compared to its competitors.
  • Sprint’s Massive MIMO radios support split-mode which allows the company to provide 4G LTE and 5G simultaneously on the same radio.
  • These Massive MIMO radios require only a software upgrade to serve 5G, making it a cost-efficient strategy.
  • Sprint is working with 5G devices to deliver breakthrough technology and a robust roadmap for its consumer and business customers to experience Sprint 5G.
  • Sprint and LG are working together to deliver the first 5G smartphone in the U. S, Sprint is also working with HTC to provide a 5G mobile smart hub to consumers, and lastly, Sprint together with Samsung partnered to provide a 5G smartphone in the summer of 2019.
  • According to the company, its customers will be able to experience mobile 5G cloud gaming with access to more than 100 premium games and cloud streaming of live games and tournaments through a partnership with Hatch, its cloud gaming provider.
  • According to Sprint, its 5G service offers coverage of approximately 2,100 square miles on a down-spectrum technology of 2.5GHz range for its initial 5G rollout which provides longer-range.
  • Presently, the company offers support for three 5G devices: the Samsung Galaxy S10 5G, the LG V50 ThinQ, and the HTC 5G Hub hot spot and promised support for the OnePlus 7 Pro 5G and the upcoming Galaxy Note 10 Plus 5G.
  • Sprint opened its Sprint 5G Experience; a dedicated immersive center designed to showcase and explain how 5G works and to help change the way people live, work and play.
  • The Sprint 5G Experience, a 1,100 square foot space features several stations and demonstrations using augmented reality, virtual reality and simulated displays to take its visitors through the foundation for 5G (spectrum to a fiber-optics network and from Massive MIMO technology to real-world demonstrations of 5G’s lower latency).
  • The Sprint 5G Experience center which was opened before the launch of Sprint's 5G enabled the company to show that its network performs well indoors amid structural obstacles.

POTENTIAL BENEFITS OF DEVELOPING 5G

  • Sprint is one of the 2 companies currently offering 5G network services to consumers and Sprint's 5G is the cheapest at a retail price of $650.
  • The Sprint's HTC 5G Hub offered at $25 per month for 24 months is designed for use in the home or on the go which is cheaper than that offered by its counterpart Verizon.
  • According to the company, its customers will be able to experience mobile 5G cloud gaming with access to more than 100 premium games and cloud streaming of live games and tournaments through a partnership with Hatch.
  • The proposed Sprint and T-Mobile merger is expected to generate $6 billion in cost synergies, this merger will enable both companies to expand 5G networks much more broadly and rapidly, increase the 5G network capacity they’re able to deploy by 8 times, merge approximately 100 million customers, and also indirectly ensure AT&T and Verizon implement beneficial customer policies.
  • This merger will also enable to Sprint and T-Mobile to compete with AT&T and Verizon more effectively.
Part
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Part
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TMobile 5G

T-Mobile provides a continually growing service offering in the 5G space with the expansion of its low-band (600MHz) spectrum, its promotion of the Samsung Galaxy S10 5G mobile device, and the promise of a potential 3-year price freeze. With all these and a possible merger with Sprint, T-Mobile will be an influential player in the 5G space, gaining as much market share as its competitors and a significant service offering.

DEVELOPMENTS OF T-MOBILE IN 5G

WHAT T-MOBILE STANDS TO GAIN FROM 5G

Part
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Part
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MVNOs and 5G

5G is considered to transform MVNOs in many areas, and experts believe that developments once considered science-fiction will be a part of the daily life in the near future. Most emphasized headlines for the usage of 5G by MVNOs are industry, business, IoT, and smart cities.

INDUSTRIAL USE

  • Paul Berriman, CTO of PCCW tells that with the power of 5G and the partnership of automotive companies with MVNOs, now manufacturers are able to supervise the performance and reliability of their cars. He predicts that MNVO companies' partnership with other industries will create more revolutionary results in the future.
  • Cisco recently introduced 5G to the rural areas of USA. This development is considered a cornerstone for future practices in agriculture, where remotely controlled machines will be able to work 24 hours a day.
  • Another agricultural prospected use is to monitor salmon fishery. This is thought to make fishing more sustainable especially in UK, where salmon export is a huge export channel. The technology will allow the detection of oxygen levels in salmon farms and activate automatic feeders when necessary.

BUSINESS OPPORTUNITIES

  • Network slicing, a feature of 5G which allows the operator to provide specific qualities to the client is thought to increase new entries in areas where cloud services or AI are needed. Since slicing will make it more efficient and cheaper, small start-ups would be able to optimize AI or cloud solutions.
  • 5G is also contributing to MVNOs in terms of flexibility and customization. In the near future, modification of services would be easier so that entrepreneurs would seize the opportunities better.
  • AT&T, one of the four biggest carriers for MVNOs proposes that 5G and MVNOs will make huge changes in our everyday life. Among the changes they foresee are augmented-reality shopping and virtual presence at live events.
  • 5G is also considered fostering changes in financial services. Wearable bio-metric devices and remote tellers will enable the customer to have necessary information without going to a branch.

IoT

  • Some networks may become MVNOs themselves in the future. BBC, for example, is planning to focus on 5G for fully digital broadcasting.
  • 5G and MVNOs are thought to head in the direction of an interconnected world. Some people assume in the near future wearables and medical devices will join IoT as well as mentioned industrial vehicles and result in an all-connected world of devices.
  • 5G and MVNOs may also allow critical tasks to be handled by industrial robots. This proposition is supported by the fact that drones are already used for agriculture in rural areas.
  • For the healthcare industry, telehealth and remote home monitoring systems will be used for quicker treatment opportunities. 5G will also allow MVNOs to transmit large files quicker.

SMART CITIES

  • As a result of its IoT and industrial use, 5G and MVNOs are thought to create smart cities in the future. Traffic optimization, smart lights, and communication between vehicles are proposed to create this.
  • MVNOs can make transportation smarter with the help of 5G. With smarter transportation and agriculture, it will also be possible to address environmental issues efficiently.
Sources
Sources

From Part 01
From Part 05
Quotes
  • "T-Mobile and Sprint's combined assets could jump-start its 5G ambitions, pushing the industry further into the next-generation technology."
Quotes
  • "5G dataspeeds will be four to six times faster than if the pair remained separate companies. And these improvements can be traced to the use of T-Mobile's low-band spectrum together with Sprint's mid-band airwaves."
Quotes
  • "The next generation in wireless connectivity, 5G will provide download speeds at least ten times faster than 4G LTE. Once a nationwide network is up and running, we should see these faster speeds contribute to the creation of new industries and businesses that we can't even conceive of right now. The availability of nationwide 4G LTE helped create the ride-sharing industry which now has two billion-dollar companies in Uber and Lyft. "
Quotes
  • "Deutsche Telekom chief Tim Höttges is on the cusp of combining Sprint with his T-Mobile unit and creating a top-tier U.S. wireless player with more than 90 million subscribers and nearly as much market share as industry leaders Verizon and AT&T."
Quotes
  • "T-Mobile customers began having access to a 5G network in the US on June 28, 2019, but only in a handful of locations. The company is not only rolling out mobile 5G but is also developing a 5G broadband service so that you can get 5G's ultrafast speeds at home, too."
Quotes
  • "We are committed to making a 5G future available for all with the New T-Mobile network. And not just in wireless, but everything from home broadband and entertainment to self-driving cars and Internet of Things."
Quotes
  • "Thankfully for customers, T-Mobile’s 5G plans aren’t all that different from its current 4G plans. T-Mobile Chief Technology Officer Neville Ray said 5G plans will be unlimited and won’t cost more than the current $70-per-month rate (for a single line)."