5G Ecosystem The digital haven of opportunities September 2019 - Deloitte

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5G Ecosystem The digital haven of opportunities September 2019 - Deloitte
5G Ecosystem
The digital haven of opportunities
September 2019
5G Ecosystem The digital haven of opportunities September 2019 - Deloitte
5G Ecosystem | The digital haven of opportunities

ii
5G Ecosystem The digital haven of opportunities September 2019 - Deloitte
5G Ecosystem | The digital haven of opportunities

Contents
Foreword03
Message from CII                                                                               04

5G commercial launch in India: Are we ready?                                                   05
•   National Digital Communications Policy (NDCP) lays the foundation
    for next generation                                                                        05
•   Movement/transition of data traffic to 4G                                                  06
•   Regulatory endeavour for 5G spectrum allocation                                            06
•   Progress made on policy front to prepare for a 5G future                                   08
•   Efforts to have an indigenous 5G technology                                                09
•   Mega cloud push will accelerate change in India’s infrastructure                           09

Encircling the seamless – what is the 5G ecosystem?                                             10
•   Handset manufacturers geared up for 5G                                                      10
•   Equipment manufacturers - Key for new business opportunities                                12
•   Infrastructure providers - Expanding the network footprint	                                 13
•   Mobile network operators - Supporting the 5G ecosystem                                      14
•   Rise of application/software providers	                                                    22

Digital transformation across industry verticals – no one wants
to be left behind                                                                              24
•   Manufacturing	                                                                             25
•   Media and entertainment	                                                                   26
•   Automotive	                                                                                27
•   Government	                                                                                28
Current 5G ecosystem in India	                                                                 29
Conclusion	                                                                                    31
Glossary of terms	                                                                             32
About Confederation of India Industry                                                          33
Acknowledgements	                                                                              34
Contacts	                                                                                      34
References	                                                                                    35

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5G Ecosystem The digital haven of opportunities September 2019 - Deloitte
5G Ecosystem | The digital haven of opportunities

02
5G Ecosystem The digital haven of opportunities September 2019 - Deloitte
5G Ecosystem | The digital haven of opportunities

Foreword

                             5G will be a game changer for India with the potential to create significant social and
                             economic impact. As the 5G ecosystem develops in the country, telcos are expected
                             to focus beyond connectivity towards collaboration across the telecom value chain
                             and cross-sector, leading to the creation of new business models and innovation.
                             India is making giant strides towards cross-sector convergence, spearheading digital
                             transformation across industries.

                             As the nation prepares for the launch of 5G, favourable regulatory policies to
                             develop digital infrastructure are expected to drive investments to fuel the growth
                             of 5G ecosystem. With basic connectivity solutions already in store, more advanced
                             capabilities with cloud, mobile edge computing, complex-converged automation,
                             IoT, artificial intelligence (AI), and augmented and virtual reality, are expected to
                             enable industries to drive efficiencies and unlock the full economic potential of 5G.
                             Investments are being made for the impending arrival of 5G as much in the telecom
                             sector as other industries, such as manufacturing, healthcare, government, and
Sathish Gopalaiah            retail.
Partner
Leader, Telecommunications   The adoption of these above-mentioned capabilities, along with next-generation
Deloitte India               hyper-scale solutions, will not only cause a paradigm shift from traditional services to
                             Everything-as-a-Service (XaaS) but also challenge the existing boundaries of Quality-
                             of-Service (QoS), and personalisation and overall customer experience.

                             This report presents a view on the following:
                             • Progress made thus far to make 5G a reality in India
                             • Ever-evolving 5G ecosystem and the rise of new value chain players
                             • Telecom value chain and cross-sector player preparations to embrace 5G
                             • Key considerations in facilitating the commercial launch of 5G in India during 2020

                             Policy roadmap addressing the spectrum, infrastructural, and business challenges,
                             favourable investment climate, indigenous technology development, and customised
                             use cases in the Indian context will help in the timely adoption of 5G in India, realising
                             the industrial internet and digital aspirations across the connected society.

                             We hope that you find this report insightful and enriching!

                                                                                                                            03
5G Ecosystem The digital haven of opportunities September 2019 - Deloitte
5G Ecosystem | The digital haven of opportunities

Message from CII

                                                    5G has the potential to transform our economy. It will enable wireless broadband
                                                    services to be provided at gigabit speeds, and offer low latency and high reliability to
                                                    support new types of applications, connecting devices and objects through internet
                                                    of thing (IoT). It will fuel the development of innovative business models across
                                                    multiple sectors ranging from transport, health, and manufacturing to logistics,
                                                    energy, and media and entertainment.

                                                    It is an opportunity for operators to move beyond connectivity and collaborate
                                                    across sectors such as finance, transport, retail, and health to deliver new and better
                                                    services. It is also an opportunity for industry, society, and individuals to advance
                                                    their digital ambitions, using 5G as a catalyst for innovation. 5G will naturally evolve
                                                    from existing 4G networks and it will mark an inflection point in the future of
                                                    communications, bringing instantaneous high-powered connectivity to billions of
                                                    devices. It will enable machines to communicate without human intervention in an
                                                    IoT environment capable of driving a near-endless array of services.
Umang Das
Chairman                                            Although 5G will engage a new generation of consumers attracted by innovative
CII Telecom Convergence                             services and seamless connectivity, new demands will be placed on finite spectrum
Summit’19                                           resources. We will need greater bandwidth to meet the speed and capacity
                                                    requirements of an increasingly connected society. Operators must be prepared
                                                    to meet the challenges of a network designed for both people and machines.
                                                    Governments and service providers must also be ready to meet demands in the
                                                    future.

                                                    This transformation is not waiting for the launch of 5G. Many digital changes to our
                                                    society are already underway, using existing networks. However, what additional
                                                    5G brings here is the speed, reliability, and spread they will need to reach their full
                                                    potential in the future. We know where we want to go and how to get there. However,
                                                    we cannot take our foot off the pedal. We need the continued commitment of
                                                    industry players, policy makers, and national authorities to complete this journey.

                                                    The success of 5G depends on the adoption of common global standards to ensure
                                                    that all parties can begin using 5G as a platform for innovation soon at the lowest
                                                    possible cost. We should work closely with members and players across the
                                                    ecosystem to define the technologies, identify spectrum bands and develop business
                                                    models and policy initiatives that will bring 5G to life. Through industry collaboration,
                                                    we can ensure that 5G becomes an evolutionary change with a revolutionary impact.

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5G Ecosystem The digital haven of opportunities September 2019 - Deloitte
5G Ecosystem | The digital haven of opportunities

5G commercial launch in India:
Are we ready?

In the previous convergence summit held in 2018, CII and          National Digital Communications Policy (NDCP) lays the
Deloitte released first in the series of the thought leadership   foundation for next generation
on 5G, ‘5G – The catalyst of digital revolution in India’.        As we move forward, India aspires to unlock the digital
The thought leadership discussed various aspects of the           value chain with the recently announced NDCP and 5G India
technology, its impact on various industry stakeholders,          2020 forum with an emphasis on timely development of 5G
India’s preparedness, use cases that could transform various      infrastructure.
industries and society, and implementation challenges. Last
year same time, India was planning to launch 5G in line with      The policy sets directions to lay foundations for the 5G
the global commercial launch.                                     ecosystem to:
                                                                  •     Enhance the digital communication sector’s contribution to
While the global commercial launch of 5G has been seen in
                                                                        India’s GDP to 8%1
countries such as the U.S., Korea, and the U.K., 5G launch in
                                                                  •     Propel India to become one of the top 50 nations on the
India is slated for 2020.
                                                                        ICT development index of International Telecommunication
                                                                        Union (ITU)2

Figure 1: Goals to deliver a 5G-ready future3

     Connectivity                       Investment for                      Strengthen                            Build capability
        goals                             innovation                   infrastructure setup                          to deliver
 • Create a roadmap for            • Attract investments of           • Set up fibre first initiative        • Establish a centre of
   emerging technologies             US$ 100 billion in digital         fiberisation of at least               excellence for spectrum
   – 5G, AI, IoT, robotics,          communications sector              60% of telecom towers                  management, security,
   cloud, and M2M                                                                                              and next-generation
                                   • Create innovation-led            • Establish a national
                                                                                                               networks
 • Encourage the use of              start-ups in the digital           grid with common
   open APIs for emerging            communications sector              service ducts and utility            • Promote and create a
   technologies                                                         corridors                              fund for R&D in new
                                   • Create globally
                                                                                                               technologies for start-
 • Adequate licensed and             recognised IPRs in India         • Set up common RoW
                                                                                                               ups and entrepreneurs
   unlicensed spectrum for                                              with standardisation of
                                   • Increase contribution to
   IoT/M2M services                                                     cost and timeline                    • Promote innovation by
                                     the global value chain
                                                                                                               fostering the intellectual
 • Ensure the availability of                                         • Encourage and facilitate
                                   • Move towards Industry                                                     property rights regime
   spectrum for 5G in 6                                                 sharing                              • Provide financial
   GHz bands                       • Develop standard                                                          incentive to develop SEPs
                                                                      • Establish a global hub for
                                     essential patents (SEPs)
 • Enhance backhaul                                                     cloud computing, content             • Simplify the process for
   capacity to support next-                                            hosting, and delivery                  obtaining experimental
   generation networks                                                                                         licences and establishing
                                                                      • Simplify the licensing and
                                                                                                               regulatory sandboxes
 • Review industry practice                                             regulatory framework
                                                                                                             • Promote design-led
   for traffic prioritisation                                           (security, data centres,
                                                                                                               manufacturing and
   for 5G-enabled                                                       and content delivery
                                                                                                               strict compliance to
   applications and services                                            networks)
                                                                                                               preferential market
                                                                                                               access requirement

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5G Ecosystem The digital haven of opportunities September 2019 - Deloitte
5G Ecosystem | The digital haven of opportunities

Movement/transition of data traffic to 4G
With 750 million unique subscribers, India has cemented its place as the world’s second-largest smartphone market. 4

Figure 2: Transition of data traffic in India across five years over technologies Data usage/volume (in billion GB) 5
100%

 90%

 80%
                     0.35
 70%                                                0.70                2.77

 60%                                                                                              16.42
                                                                                                                           40.30
 50%

 40%

 30%
                     0.34                                               1.22
 20%                                                0.47

 10%                                                                                              3.18
                                                                                                                            5.65
                                                                        0.47
     0%                                                                                           0.42                      0.44
                  2014                         2015                   2016                     2017                      2018

                                                             2G           3G          4G

     The year 2018 saw users consume more data in a single month compared with the total data consumed over a period of
     five months in 2016.
     •   The continued increase in 4G data consumption has been fueled by the migration of data users from 2G and 3G to 4G. The
         total volume of wireless data usage increased from 20.09 billion GB in 2017 to 46.40 billion GB in 2018 at a growth rate of
         131%.
     •   4G data traffic increased by 132%, whereas 3G data traffic saw a de-growth of 1% (YoY).
     •   99.7% of the total data traffic, carried over mobile networks in December 2018, was driven by 3G and 4G technology users.
     •   4G (LTE) traffic contributed a major part i.e., 86.85% of the total data traffic with a volume of 40.30 billion GB in 2018.
     •   4G data consumption has been driven by an increase in 4G device penetration, heavy discounts and offers from telecom
         operators and OEMs, and a growing digital ecosystem.

Regulatory endeavour for 5G spectrum allocation
The Telecom Regulatory Authority of India (TRAI) had convened a workshop “Enabling 5G in India” in May 2019.6 The workshop
gave an opportunity to stakeholders to present and align their considerations for the timely implementation of 5G in India.7
A need for a more harmonised spectrum and moving to higher frequency bands for capacity fulfilment requirements were
identified as key enablers.

India is finalising spectrum across the 600MHz, 1.4GHz, 2.6GHz, 4.8GHz, 26GHz, 31GHz, 47GHz, and E and V bands (for
microwave – access backhaul traffic). Consensus over these bands will be further shared at the World Radiocommunication
Conference 2019 (WRC-19) convened by ITU in October 2019.8

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5G Ecosystem The digital haven of opportunities September 2019 - Deloitte
Table 1: Global comparator: 5G deployment progress9 (illustrative list)

                 5G         Commercial          Commercial           South Korea       Commercial             Commercial             Commercial           EE launched           Vodafone/Huawei          Verizon began rolling
                 commercial deployment          deployment yet to    Telecom, KT, and  deployment yet to      deployment yet to      deployment yet to    the 5G network        launched the 5G          out its 5G services
                 deployment yet to be           be implemented       LG Uplus launched be implemented         be implemented         be implemented       in six cities         network in 15 major      in Chicago and
                            implemented                              the world's first                                                                    (London, Cardiff,     Spanish cities on 15     Minneapolis on
                                                                     nationwide 5G                                                                        Edinburgh, Belfast,   June 2019                3 April 2019
                                                                     services in March                                                                    Birmingham, and

maturity level
                                                                     2019                                                                                 Manchester) on 30
                                                                                                                                                          May 2019
                 5G partial Partial             Sri Lanka's Dialog   South Korea        China to roll out     5G NTT DoCoMo          5G MegaFon           The UK operator     Orange plans to            AT&T rolled out mobile
                 deployment deployment          Axiata and TRCSL     Telecom and        nationwide (40        plans to launch 5G     tested in Russia     EE plans to         launch 5G in Spain in      5G service in 12 US
                            yet to be           completed 5G         Korea Telecom      cities) 5G coverage   services at venues     World Cup 2018       launch 5G (in       2019                       cities in December
                            implemented         transmission using   showcased 5G       by 1 October 2019     of the 2020 Tokyo                           London, Cardiff,                               2018
                                                commercial grade     service at the                           Olympic and            Russian mobile       Edinburgh, Belfast,
                                                base stations and    2018 Olympic       Huawei claimed        Paralympic Games       operators are        Birmingham, and                                Sprint/Nokia/
                                                end-user devices     Winter Games in    the world's first                            set to launch        Manchester) on 30                              Qualcomm completed
                                                in December 2018     PyeongChang        5G hardware for                              commercial 5G        May 2019                                       the world's first
                                                                                        the automotive                               networks in 2020                                                    over-the-air 5G data
                                                                                        industry (22 April                                                Vodafone UK                                    transmission using 2.5
                                                                                        2019)                                                             plans to release                               GHz on its commercial
                                                                                                                                                          5G in the Lake                                 network in January
                                                                                                                                                          District and                                   2019
                                                                                                                                                          Cornwall in 2019
                 5G test/      Bharti           A successful field   South Korea        5G China Mobile/      NTT DoCoMo/            MegaFon/Huawei       5G Centre for         Vodafone Spain           Qualcomm
                 trials        Airtel and       test of the pre-5G   Telecom, along     ZTE completed         Huawei                 tested 5G cellular   Communication         launched 5G trials       Technologies tested
                               Huawei have      LTE Advanced Pro     with Samsung,      testing the world’s   demonstrated           networks via TV      Systems Research      in Madrid, Valencia,     first 5G mobile
                               successfully     technology was       Nokia, Ericsson,   first pre-5G          mobile internet        channel "Russia      (Huawei, Fujitsu,     Seville, and Barcelona   connection with a
                               conducted        conducted            Samsung, Intel,    massive MIMO          speed of 3.6 Gbps      24"                  EE, Aircom,           in June 2018             connection speed of 1
                               India’s first                         and Rohde          base station          in the world's first                        BT, Samsung,                                   Gbit/s
                               5G network                            & Schwarz,                               large-scale public     MTS/Nokia and        Telefonica,
                               trial under a                         completed a 5G                           network test of 5G     Ericsson tested 5G   Vodafone,                                      Verizon (with Cisco,
                               test setup                            field trial                              in Chengdu, China      at the World Cup     Aeroflex, and                                  Ericsson, Nokia,
                                                                                                                                     soccer games in      Rohde and                                      Qualcomm, Samsung)
                               Vodafone,                                                                      The 5G NTT             Russia in 2018       Schwarz)                                       conducted 5G testing
                               Samsung, Jio,                                                                  DoCoMo/Nokia                                conducted 5G                                   in "sandboxes" (small
                               and BSNL are                                                                   trial of real-time     A 5G trial           testing at Surrey                              testing areas)
                               said to be                                                                     transmission of 8K     were done by         University
                               in talks for                                                                   of 48 Gbps video       Rostelecom with                                                     AT&T/Ericsson
                               conducting                                                                     was held on May        Ericsson in St.                                                     conducted 5G trials/
                               5G trials soon                                                                 19 2016                Petersburg and                                                      testing
                                                                                                                                     with Nokia in
                                                                                                                                     Skolkovo
                 5G research   Ericsson sets    Sri Lanka Telecom    5G forum           IMT 2020, a 5G        The Ministry of        Megafon,             5G Centre for         Telefonica and           AT&T, T-Mobile, and
                               up a centre      and Dialog Axiata    established        promotion group,      Internal Affairs and   Rostelecom, MTS,     Communication         ZTE Corporation          Sprint, along with
                               of excellence    undertake 5G         to develop 5G      was formulated        Communication,         and Vimpelcom        Systems Research      established 5G testing   Nokia, Ericsson,
                               (CoE) and        research             standards with                           supported by 5G        commenced 5G         focused on            labs                     Google, and Facebook,
                               incubation                            private- and                             Mobile Promotion       research             accelerating 5G                                commenced R&D on
                               centre with a                         public- sector                           Forum, started field                        implementation                                 5G technologies
                               5G test bed at                        participation,                           trials in 2017
                               IIT Delhi                             including South
                                                                     Korea Telecom,
                                                                     Korea Telecom,
                                                                     and LG
                 COUNTRIES     India            Sri Lanka            South Korea        China                 Japan                  Russia               United Kingdom        Spain                    United States

07
                                                                                                                                                                                                                                  5G Ecosystem | The digital haven of opportunities
5G Ecosystem The digital haven of opportunities September 2019 - Deloitte
5G Ecosystem | The digital haven of opportunities

Progress has been made on policy front to prepare for a 5G future

Figure 3: Policy landscape to steer the growth of digital revolution10

                                                                            National Digital Communications Policy 2018

                                                                                                        Draft Cloud Computing Policy
National Manufacturing Policy

                                                                  Policy
                                                                landscape

                                                                                                   Electronics Development Fund
     Preferential Market Access (PMA)
                                                                                                   (EDF) policy

                             National Digital Communications Policy 2018
                             Promotes fiberisation   Promotes effective          Aims to set up 10          Establishes a
                             and establishing global use of the E and V          million Wi-Fi hotspots     comprehensive data
                             hub for cloud computing spectrum bands and          by 2022 across the rural   protection regime for
                                                     promulgation of 5G          and urban areas            digital communications
                                                     networks

                             Draft Cloud Computing Policy
                             Mandates the localisation of      Promotes the identification of 20     Recommends the development
                             data generated in India           locations for data centre setup       of a “national cloud strategy”

                             Electronics Development Fund (EDF) and National Manufacturing Policy
                             Provides companies risk capital   The government of India             R&D incentives and capital
                             to develop new technologies in    provides a capital subsidy of up    subsidy for promoting
                             electronics and IT                to 25% for 10 years                 manufacturing

                             Preferential Market Access (PMA)
                             Provides OEM competitive advantages in              Incentivising private operators to buy domestic
                             government bids and receiving tax benefits          telecom products

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5G Ecosystem | The digital haven of opportunities

        Efforts to have an indigenous 5G technology                             Mega cloud push will accelerate change in India’s
        ITU plans to setup its first innovation centre in India. Ten Indian     infrastructure
        academic institutions are expected to join ITU; the number              The Indian data centre market is slated to grow at a CAGR of
        is expected to increase to about 40 institutions in the near            about 9% to reach about ~US$ 4 billion by 2018−2024.12
        future.11 Through such initiatives, India is expected to drive          A key growth driver for data centre is the need for mega cloud
        inclusive growth to strengthen its R&D capabilities, generate           environments, which have become commonplace for deploying
        more Intellectual Property (IP), and drive the growth of                automation, AI, and machine learning (ML) for driving multiple
        indigenous manufacturers.                                               use cases for 5G service across industries.

        The government’s ‘Make in India’ campaign aims to establish             Market entry by new players, and investment across new
        India as a global manufacturing hub by bringing telecom                 hyper-scale and edge facilities against the backdrop of land,
        equipment, chip, and smartphone manufacturing to the                    power, water cooling, fibre availability, and data localisation are
        country. This will further help make 5G an indigenous                   expected to shape the dynamics of the market over the next
        technology.                                                             three years. India's data localisation bill, known as the Personal
                                                                                Data Protection Bill, is also likely to play a key role in increasing
                                                                                the number of data centres in the country.

        Figure 4: Cloud computing spend13

                                        400                                                                                                   8
                                                                CAGR 16.5% pa
                                                                                                             7.2
                                        350                                                                                                   7
Cloud spending – Global (US$ billion)

                                                                                                             345
                                                                                                                                                       Cloud spending – India (US$ billion)

                                        300                                                                                                   6

                                        250                                                                                                   5

                                        200                                                                                                   4
                                                                                         CAGR 30% pa
                                                       187
                                        150                                                                                                   3
                                                       2.5
                                        100                                                                                                   2

                                         50                                                                                                   1

                                          0                                                                                                   0
                                                         Year 2018                                        Year 2022

                                              Cloud spending - Global                        Cloud spending - India
                                                                                                                                                          09
5G Ecosystem | The digital haven of opportunities

Encircling the seamless – what is
the 5G ecosystem?

5G technology is expected to give a plethora of opportunities to telecom value chain players willing to increase investments
in infrastructure to meet demands for 5G use cases. As 5G technology will be initially built on existing 4G infrastructure (i.e.,
non-standalone deployments), service providers and other value chain players can work on an incremental basis as a part of
the 5G evolutionary process. Telcos are constantly innovating to minimise cost and improve time to market for delivering 5G
service offerings. There are multiple cases of partnerships across the value chain to innovate solutions for 5G deployment,
which leads to the growth of new business models.

Figure 5: Telecom value chain players across 5G ecosystem14

         Electrical
                                             Radio                    Network                           Application

                                                                          3                    5                         6
      Component                        Wireless device               Infrastructure
     manufacturers                     manufacturers                   providers

          1                                2
                                                                                            Service/
                                                                          4               application                 End users
     Wireless chipset                                                                      providers
     manufacturers/                  Network equipment              Mobile network
         handset                       manufacturers                  operators
     manufacturers

                                                         Policy and standards framework

1.   Handset manufacturers geared up for 5G
     According
     	        to a Global mobile Suppliers Association (GSA) report, a device ecosystem should consist of phones, hotspots,
     indoor CPE, outdoor CPE, modules, dongles/adapters, and USB terminals, (collectively known as form factors). Until June 2019,
     GSA has identified 13 such form factors, 39 vendors with available or forthcoming 5G devices, 90 announced devices,
     25 phones, 7 hotspots, and 23 CPE devices.15

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5G Ecosystem | The digital haven of opportunities

Figure 6: Upcoming and existing device ecosystem (Illustrative list)16

 Phone                                • Samsung Galaxy S10 5G                    • Oppo R15
                       >10
                                      • LG V50 THINQ                             • Samsung Galaxy Fold
                                      • Huawei Mate X                            • Huawei Mate 20 x 5G
                                      • Xiaomi Mi Mix 3                          • One Plus 7 Pro 5G
                       >15
                                      • ZTE Axon 10 Pro                          • Nokia 10
   CPE
                                      • Fibocom FG100                            • Inseega R1000
                        8
                                      • Huawei 5G CPE 2.0 (mmWave)               • Nokia Fastmile 5G Gateway
                                      • Huawei 5G CPE 2.0 (Sub-6Ghz)             • Samsung SFG-D0100
                                      • Huawei 5G CPE Win
                        15
                                      • Huawei 5G CPE Pro

 Hotspot
                        3             • HTC 5G Hub (US bands)
                                      • HTC 5G hub (Europe & Asia bands)
                                      • Netgear Nighthawk M5 Fusion
                        4               MR5000

 Module
                        4             • Fibocom FG100
                                      • Huawei MH5000
                                      • SIMCom Wireless SIM8200-EA-M2
                        16            • SIMCom Wireless SIM8200G

 Dongle
                        1
                                      • Motorola 5G Moto Mod (only on Verizon)

                        1

                                                   Commercially available                     To be launched

                                                                                                                                   11
5G Ecosystem | The digital haven of opportunities

The Indian telecom industry's major players, including                        •   Innovation in semiconductors used for developing
JioPhone, Foxconn, HTC, Huawei, Lava, and Google, have                            5G technologies
formed The Mobile Association (TMA) that works towards                            Semiconductor manufacturers are innovating solutions
developing the 5G device ecosystem.17                                             for 5G networks that can be used with 4G technology as
                                                                                  well. With the launch of 5G, China, Japan, South Korea,
2.    	Equipment manufacturers - Key for new business                            and Taiwan are becoming hotspots for semiconductors,
      opportunities                                                               serving global clients.18 China remains one of the largest
                                                                                  consumers in the semiconductor market. Companies
      •   Advancements in network Infrastructure
                                                                                  such as Samsung and Huawei are creating their own
          Telecom equipment manufacturers are focusing on
                                                                                  chips through their subsidiaries Samsung Austin
          cloud solutions such as Cloud RAN (or CRAN) and
                                                                                  Semiconductor and HiSilicon, respectively.
          Virtual-RAN, which involves the virtualisation of Radio
          Access Network (RAN).
                                                                              •   Driving partnership projects
                                                                                  The value proposition of 5G lies in fast data connectivity
      •   Scalable 5G – flexible business opportunities
                                                                                  and new business opportunities that will be enabled by
          To achieve economies of scale and smoothly transition
                                                                                  it. To realise new business opportunities, collaboration
          to 5G, equipment manufacturers are coming up with
                                                                                  among players across the telecom value chain is
          solutions related to 5G spectrum sharing and 5G carrier
                                                                                  imperative. Examples of collaborators already in play are
          aggregation.
                                                                                  provided:

Table 2: Innovation through collaborations19 (Illustrative list)

Reason for collaboration                            Participating entities                      Examples
Development of next-generation hardware Network transformation providers and                    •   Ericsson and Intel
management platforms                    semiconductor manufacturers                             •   Nokia and Intel
5G MoU – to operate 5G in the market                Network transformation providers and        •   Ericsson, along with multiple service
                                                    telecom service providers                       providers, such as Bharti Airtel,
                                                                                                    T-Mobile, and Zain
                                                                                                •   Huawei, along with China Telecom, and
                                                                                                    China Mobile
Accelerate innovation and digital                   Multiple telecom equipment                  •   Ericsson and Cisco
transformation                                      manufacturers and solution providers
Develop 5G business models                          Telecom service providers and 5G            •   Orange and Dell
                                                    technology solution providers
Cloud computing enabled 5G for scalable             Telecom service providers or equipment      •   AT&T and Microsoft
solutions                                           manufacturers and cloud solution            •   Nokia and AWS
                                                    providers

•    Rise of IoT platforms and IoT device ecosystems
     The number of connected IoT devices is forecast to increase at a 10% CAGR between 2018 and 2025. By the end of 2021, this
     number would exceed other device connections (phones, tablets, PCs, etc.). By 2025, the number of IoT connections will reach
     ~25 billion with smart building and smart home leading the way. 20

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5G Ecosystem | The digital haven of opportunities

Figure 7: Growth of IoT connections by 202521

  30                                                                                                      Industrial

                                   Consumer                                                                                                       1.5      25.2
  25                                                                                                           0.7          0.3       0.2
                                                                                                    0.8
                                                                                        1.6
                                                                              5
  20

                                                       0.5        0.3
  15                                        0.7                                                Consumer IoT – 11.5 billion connections
                                 1.3
                      3.2                                                                      Industrial IoT - 13.7 billion connections

  10      9.1

   5                 Consumer IoT – 5.5 billion connections
                     Industrial IoT – 3.6 billion connections

   0
         2018                                                                                                                                              2025
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3.	Infrastructure providers - expanding the network                                      As emerging technologies, such as 5G, IoT, and smart
    footprint                                                                             cities, will drive massive growth in data transactions, a
    5G networks will need a network of small cells with 5G                                robust infrastructure would be required to keep systems
    antennae placed throughout the city, compared with                                    operational by providing uninterrupted power supply.
    the huge, geographically dispersed cell towers of the
    LTE technology. Infrastructure costs for the network                                  Most of this additional infrastructure will likely be built with
    footprint could be grouped under the following four                                   small cells that use lamp posts, utility phones, or other
    areas:                                                                                similar-sized structures that can host smaller, less obtrusive
    •   Upgrades to the traditional network                                               radios required to build a densified network. Tower and
                                                                                          Infrastructure Providers Association (TAIPA) is also targeting to
    •   Addition of new macro sites
                                                                                          deploy diesel-free sites using efficient solutions, such as Li-ion
    •   Creation of the new 5G layer
                                                                                          batteries, advanced VRLA batteries, simple power panels, fuel
    •   Addition of small cells                                                           cells, outdoor sites, free cooling units, and solar cooling units.22

                                                                                                                                                                   13
5G Ecosystem | The digital haven of opportunities

4.   Mobile network operators - supporting the 5G ecosystem

     New technologies being adopted by telcos for radio, core, and transport network
     	To facilitate smooth roll out of 5G, operators need to identify the deployment approach effectively using existing investments
     and best supporting their own business strategies. Telcos/TSPs are making investments in several new technologies to
     achieve a 5G-ready status:

Figure 8: Enhancements across networks to meet 5G requirements (Illustrative list)23, 24, 25, 26, 27

                                               Radio
Market highlights
                                  Cloud RAN
                                                                                                        5G
The global cloud radio
access network (C-RAN)
market is expected to
                                  RAN solutions in the cloud
                                  provide high scalability to                                       Technologies
reach ~ US$ 14 billion by         address varying demand
2022, at ~21% of CAGR             for capacity using powerful
over 2019−2022. Expected          new capabilities, such as AI
growth drivers: reduced           (for real-time optimisation)
costs, improved energy            and edge cloud (to improve
efficiency, spectrum              subscriber experience.                    Transport
utilisation among others.
                                                                                                                  Core
                                                                                                                                      Market Highlights

                                                                  Software Defined                  Network Function
The deployment of 5G or           Small cell                      Networking (SDN)                  Virutalisation (NFV)              The network function
multimode small cells is                                                                                                              virtualisation market
                                  While serving a much            SDN architecture, along with      The concept of NFV
expected to cross the one                                                                                                             is expected to see 42%
                                  smaller geographical area       Path Computation Engine           decouples software from
million mark in 2020 and                                                                                                              growth to reach US$ 70
                                  than a macro cell, small        Protocol (PCEP) capability,       hardware. Using this
further increase steeply                                                                                                              billion by 2024.
                                  cells increase network          can be used in 5G networks        technology, it is expected
to reach 5.2 million in
                                  coverage, capacity, and         to facilitate ways to automate    that network administrators       Expected growth
2025. The total installed
                                  quality of service to deliver   optimised paths and               do not need to invest in high-    drivers: Significant capex
base count of 5G small
                                  dense coverage and high-        network redundancy from           priced, proprietary hardware      and opex reduction
cell in 2025 is predicted
                                  capacity network required       a centralised control plane       to set up a service chain of      opportunity, increasing
to be 13.1 million.
                                  by 5G.                          and circumnavigating major        network-connected devices.        data centres and cloud
Expected growth drivers:
                                                                  outages by determining            Instead, they create virtual      services, adoption of IoT
increasing data uptake,
                                                                  optimal data flows in real        network functions that can
rising high bandwidth
                                                                  time.                             be installed in a few days or a
required applications, and
                                                                                                    week instead of months.
increasing urbanisation

                                  Massive MIMO                    Network slicing                   Mobile Edge Computing             The global edge
Valued at US$ 1.05                                                                                  (MEC)                             computing market
billion in 2017, the global       MIMO uses a combination         Networking slicing is a
                                                                  fundamental building                                                is expected to reach
massive MIMO market               of advanced antennas with                                         MEC is a network architecture
                                                                  block of 5G core networks,                                          US$ 6.96 billion over
is expected to expand             a large number of steerable                                       that supports computing and
                                                                  enabling operators to                                               2018−2024, growing at a
at a CAGR of more than            ports to significantly                                            storage at the edge of the
                                                                  rapidly create custom                                               CAGR of 34%.
39% from 2018 to 2026             increase the number                                               network, i.e., closer to users,
                                                                  services by segregating           thereby lowering low latency
to reach US$ 20.85                of transmission points.
                                                                  traffic and delivering specific
billion. Expected growth          This increases spectral                                           essential for delivering
                                                                  sets of KPIs for each of
drivers: 4.5G technology,         efficiency and network                                            mission critical and massive
                                                                  them. These independent
improved SNR (signal to           capacity, and delivers                                            IoT device ecosystem. Edge
                                                                  network instances enable
noise ratio), link reliability,   faster data throughput.         service-specific service          technology can be invaluable
expected launch of 5G                                             level agreement (SLA)             for the process of machine
                                                                  needs for connectivity,           learning, automation, and big
                                                                  mobility, capacity, security,     data applications.
                                                                  redundancy, and QoS/QoE.

5G network deployments are primarily service-based architectures (SBA) providing a modular framework where all functions are
deployed through open software on generic hardware rather than proprietary hardware-software combination. This is both a
significant advantage over legacy wireless networks and a source of vulnerability, as software is more easily subject to malicious
attacks exploiting weaknesses. Due to these vulnerabilities, along with the transition to edge clouds, end-to-end security from the
mobile core to the edge is a pre-requisite.

14
5G Ecosystem | The digital haven of opportunities

Figure 9: Security challenges and mitigations28

  5G security concerns                                                                                                 5G security resolutions
                                                                                               Resilience
                                                        DDoS                                  to potential
                                                                                                threats
                      System
                   vulnerabilities
                                                                                                                                    Identity
                                                               Phishing                                                           management
                                                                                          Privacy
                                                                 and                     assurance
                                                               malware
                                                                                                                              Recurring
                                                                                                                               security
                           Data loss &                                                                                         & threat
                        inadequate data                                                                                       evaluation
                            back-up           Negligence &                                         Communication
                                              insider threat                                          security

 Deloitte is assisting government and private sector players build telecom infrastructure. It is offering assistance in the following
 areas: network capex prioritisation, network planning, detailed project report, investment estimations, design and bill of
 quantities development, and project management to meet connectivity requirements. Deloitte has also been involved in data
 centre design and implementation, security operation centre (SOC) development, etc., in the telecom infrastructure space.

 Deloitte’s engagements also span across robotics process automation, big data analytics, AI and ML design, and
 implementation for telecom and cross-sector players.

5G spectrum bands
To provide diversified 5G use cases, operators will need spectrum across three frequency ranges − below 1 GHz, 1 - 6 GHz, and
above 6 GHz. The 3.5GHz band has been identified as the primary band in many countries as it is expected to be harmonised.

Operators would need to use multiple combinations of bands to provide a wide variety of uses cases as there is a trade-off among
coverage, capacity, and latency for each band.

Figure 10: Key characteristics across spectrum bands (illustrative)29
                                                         Low band                             Mid band                                     High band
                                                            < 1 GHz                            1–6 GHz                                     24–40 GHz
                                          •   Ubiquitous coverage (outside-in   •   High capacity                         •    Ultra high broadband speed
        Characteristics                       and deep indoor)                  •   Low latency                           •    Extremely low latency
                                                                                •   Wide coverage

        Suitable area of application      •   Rural areas                       •   Urban and sub-urban areas             •    Dense urban areas

                                          •   mMTC                              •   eMBB                                  •    eMBB
        Use case category                 •   eMBB                              •   URLLC
                                                                                •   mMTC
                                          •   TV broadcasting                   •   Environmental monitoring              •    Industrial IOT
                                          •   Multimedia services               •   Smart cities                          •    Fixed wireless access
        Use case                          •   Voice services                    •   Mission critical services –           •    High-definition cloud gaming
                                                                                    security and safety                   •    Real-time augmented reality
                                                                                •   Critical IoT applications                  service
                                          •   New Zealand                       •   Japan            •   China            •    Ireland      •   China
                                          •   India                             •   UK               •   South Korea      •    UK           •   South Korea
        Countries supporting              •   Canada                            •   Spain            •   India            •    Spain        •   India
        different bands                   •   Mexico                            •   South Africa     •   Brazil           •    China        •   Brazil
                                          •   Albania                           •   Australia        •   France           •    Italy        •   Hong kong

                                                                                                                                                              15
5G Ecosystem | The digital haven of opportunities

In India, the regulator has harmonised 700 MHz band and                  will have to increase infrastructure spending to cope with
identified 3.5 GHz band for IMT service. 30,31 Telecom service           increasing traffic.
providers plan for 4G and 5G deployments in line with the
spectrum roll out and the regulator’s harmonisation plans.
                                                                         In the Indian context, both the strategies are being seen to
                                                                         be deployed by telcos. While Reliance Jio focuses on a lean-in
Investment requirements for 5G deployment
                                                                         strategy, other telcos seem to be having a more conservative
Cost and investments related to traditional 2G, 3G, and 4G               outlook. With debt-laden financials, telecom service providers
networks, unlike those for 5G, are likely to differ over time            (TSPs) are in dilemma to meet the capital needs of network
and would depend on local conditions. Operators have                     expansion. Private telcos are now attempting to monetise on
at least two options. The first involves a lean-in strategy              the fibre opportunity through fiberco and towerco separations,
in which they prioritise 5G investments in anticipation of               thereby trying to deleverage a big chunk of their (overall) debt
accelerating commercial prospects. The second involves                   and making themselves asset-light. Fund raising is also for the
a more conservative method in which they delay 5G                        need to expand 4G networks and make them 5G ready. Hence,
investments as long as possible while existing networks                  the network expansion is already underway to expand 4G
are upgraded. Even if operators delay 5G investments, they               networks and lay the foundation for 5G in the near future.

Figure 11: Network infrastructure transformation of telco-fiberco separation (illustrative list) 32, 33, 34, 35

                              Net debt: ~US$ 15.65 billion         Net debt: ~US$ 16.44 billion         Net debt: ~ US$ 22.06 billion
                              Towers: Bharti Infratel              Towers: Bharti Infratel              Towers: 220,000
                              and Indus merger (163,000            and Indus merger (163,000            Fibre: 300,000 route KMs
                              towers)                              towers)
                              Fibre: 246,000 route KMs             Fibre: 156,000 route KMs

                             Bharti Airtel                         Vodafone Idea Limited               Reliance Jio
                             Bharti Airtel is in the last stages   The segregation of fibre assets     The transfer of control of
                             of transferring its optical fibre     sets the stage for VIL to engage    assets has been done to
                             cable network to its wholly           in active discussions with          two InvITs – Digital Fibre
                             owned subsidiary, Telesonic           potential buyers, which could       Infrastructure Trust and Tower
                             Networks Ltd, by way of a             culminate in a fast-track hive-     Infrastructure Trust, which is
Network                      slump sale.                           off of the fibre business.          set up by a wholly owned unit
infrastructure                                                     VIL’s fibre network asset has       of Reliance Industries (RIL).
transformation               The objective of this                 been estimated to be US$
of telcos                    transaction is to have a truly        0.43−0.45 billion.                  Incremental capex related to
- fiberco                    independent fiberco with ability                                          network infrastructure will also
separation                   to monetise the fibre assets                                              be made by InvITs, which will
                             and also avoid duplication of                                             reduce Jio’s capex intensity and
                             capex.                                                                    strengthen its balance sheet.

                             Bharti Airtel and Vodafone
                             Idea Limited are likely to
                             announce their optic fibre
                             combined entity, which will be
                             an Infrastructure Investment
                             Trust (InvIT).

  Deloitte has been assisting telcos in the innovative structuring of hived off businesses such as Investment Infrastructure Trust
  as part of tower and fibre assets separation. This helps drive investments in infrastructure. The company is also helping telcos
  in separating business plan development for valuation, asset valuation, potential operating model, plan for monetisation, and
  separation advisory.

16
5G Ecosystem | The digital haven of opportunities

Partnerships and alliances for monetisation                                    LTE-A and 5G being underlying technologies for end-to-
                                                                               end connectivity.
5G monetisation can be tricky and many service providers
are struggling with how to monetise 5G use cases. Effective
                                                                          2)   Rise of content partnership among telcos and CDN/
monetisation of 5G use cases among other things, demands
                                                                               OTT players
agile, low-latency high-performance networks and supporting
                                                                               To boost revenues, there has been a significant upswing in
systems based on modern software methodologies.
                                                                               partnerships between telcos and CDN/OTT players in India
                                                                               and globally to provide exclusive video content, games,
New business models are seen to be evolving with cross-sector                  music, etc., to former’s subscriber. Moreover, content
partnerships to provide IoT services to retail and enterprise                  providers are promoting their platforms aggressively
customers. To meet the demand for high quality-of-service                      through a two-pronged strategy.
and high-definition content, telecom service providers are
                                                                               a. Allow
                                                                                  		   initial free usage to enable customer to
partnering with content data network (CDN) and over-the-top
                                                                                  experience platforms and content consumption.
(OTT) players.
                                                                               b. 		Incremental premium fees at a later stage after
1)    	Offering end-to-end IoT solution to enterprise and
                                                                                  consumer behaviour is in favour.
      retail consumers
      Telcos are partnering with IoT device OEMs to offer end-
      to-end solutions to enterprise and retail consumers, with

Figure 12: Business models evolving through cross-sector alliances and partnerships (illustrative list) 36, 37

                        Content Partnership between                                       End-to-end IoT solution to
                        TELCOs and CDN/OTT players                                        Enterprise and Retail consumers

     Global                                                                5G-enabled smart office solution
     • AT&T acquired Time Warner and HBO to bring premium                  SK Telecoms partnered with Samsung and Cisco to provide a
        content direct to consumer distribution (D2C) using high-          5G-based smart office solution offering customised mobile
        speed networks to provide differentiated, high-quality,            enterprise phones, collaboration solutions, mobile-oriented
        mobile-first entertainment experience to customers.                business environments, and 5G network services per client
     • Verizon acquired AOL and Yahoo, and combined Yahoo’s                requirements.
        internet assets with AOL’s business to create Oath, an
        integrated AOL-Yahoo operation, to enhance their capabilities
        in content provision and drive data business growth
                                                                           PoS (point-of-sale) machines (unorganised sectors)
     • British Telecom (BT) signed a deal with Amazon to have Amazon
                                                                           Reliance Jio bundled Jio Mobile PoS device with Reliance Jio
        Prime Video app available via the UK telco TV set-top boxes.
                                                                           mobile 4G network services to connect the unorganised retail
     • Telefonica and Netflix formed a global partnership to integrate
                                                                           industry to its 4G network. Reliance’s subscribers can use the
        Netflix’s service into Telefonica’s TV and video platforms
                                                                           service to order supplies.
        across Europe and Latin America.
     • France based Orange, established its own original content
        services to create content, which it makes available on a
        wholesale basis and not just to its own customers.
                                                                           Connected cars
     India                                                                 MG Motor partnered with Cisco, Microsoft, and Unlimit to come
     • Vodafone Idea partnered with digital content provider SonyLIV       up with their first internet car with the advanced connectivity
        to provide access to SonyLIV exclusive digital content across      system, which is a complete integrated solution that combines
        all genres to Vodafone Idea subscribers. Vodafone Idea also        hardware, software, connectivity services, and applications with
        collaborated with OTT player ZEE5 to offer a content portfolio     the first of its kind machine-to-machine sim.
        of ZEE5 to Vodafone Idea subscribers.
     • Airtel and Netflix formed a strategic partnership wherein
        select Airtel postpaid and broadband subscribers received
        free subscription of Netflix for three months and Airtel
        postpaid subscribers can pay for Netflix in their Airtel bills.    Surveillance in commercial and residential buildings
     • Reliance Jio picked up a significant stake in home-grown            Telcos in India are partnering with CCTV OEMs like CP Plus and
        content providers, such as Eros International and AltBalaji, in    Kent CamEye to provide surveillance services which are now
        content sharing deals.                                             an important compliance for every residential and commercial
     • DTH operator Tata Sky partnered with Amazon to launch a             buildings from security point-of-view.
        platform ‘Tata Sky Binge’, which aggregates digital contents
        from multiple apps.

                                                                                                                                                  17
5G Ecosystem | The digital haven of opportunities

Innovative products and services (cloud-based                           on generic hardware that allows greater flexibility. This
infrastructure enabling micro-services)                                 is expected to significantly reduce time-to-market and
                                                                        deployment cost as systems are configured on generic
For the effective monetisation of business models revolving
                                                                        hardware using a high degree of automation. This helps
around 5G network, telcos would need to act as an
                                                                        further reduce costs and ensure faster resolution of
intermediary to enable 5G network connectivity, agile network
                                                                        issues.
infrastructure, and different types of bundled service offerings.
Telcos are also seen realising the importance of picking the        •   Telcos are expected to evaluate benefits of transitioning
right partner and systems for such network transformation.              their existing network for 5G deployment vis-a-vis
                                                                        greenfield deployment of 5G network to keep up with
•    Telcos will have to transit to a micro-service model
                                                                        market competition.
     (instead of a traditional monolithic model), which
     is expected to have multiple benefits, such as rapid           •   Telcos are looking forward to introduce innovative products
     deployment, autonomy of application offering lower                 and services through cross-sector collaboration with OEMs,
     capex and opex, agility, dynamic extendibility, and service        software vendors, and cross-sector partners. In the 5G era,
     scalability through the deployment of cloud-based                  the B2B2C business model is likely to be more prevalent
     infrastructure.                                                    with telcos providing connectivity, platform, analytics, and
                                                                        AI, IoT, and AR-VR solutions across sectors.
•    Telcos will have to upgrade or migrate their networks to
     modern day systems, which are more software-driven,

18
5G Ecosystem | The digital haven of opportunities

                                              19
20
     Figure 13: Innovative products and services in the 5G era (illustrative list) 38

     Sector           Use cases      Market                   Network feature      Services                   Examples
                                     opportunity              requirements
     Entertainment    Infotainment   The global               • Enhanced           • Consumer – 180           • In the US, Verizon demonstrated a multi-user VR experience using a
                      services       connected                  mobile               degree and 360             360 degree camera that transmitted over a 5G system.
                      on public      automotive                 broadband            degree videos, VR        • In the US, AT&T enables its customers to capture their 3D AR
                      transport      infotainment             • Ultra-low            game streaming, and        holograms and view them in real time.
                      immersive      system market is           latency              AR non-time sensitive
                                                                                                              • In Finland, Telia uses 5G to provide 3G VR transmissions of a football
                      event          forecast to reach          performance          advertising overlay
                                                                                                                match in Telia 5G Arena.
                      experience     US$ 53.28 billion by                          • Industry – Real-time
                                                                                                              • In Japan, NTT DOCOMO introduced first 360-degree 8K 3D VR
                      for public     2026.                                           AR content overlay,
                                                                                                                system for live video streaming for upcoming sporting events, such
                      spaces (rise                                                   and holographic
                                                                                                                as Rugby World Cup, Tokyo Summer Olympics, and nationwide
                      of AR and VR
                                                                                                                                                                                         5G Ecosystem | The digital haven of opportunities

                                                                                     solutions
                                                                                                                cultural events, such as Shogatsu, Setsubun, and celebrating
                      content)
                                                                                                                emperor’s birthday.

                      Immersive      The video game        • Increased cell        • AR/VR applications       • In Australia, Optus provides 5G wireless services to customers (using
                      experience     segment is expected     capacity              • Video and music            fixed wireless access).
                      for homes      to spearhead the      • Deep indoor             streaming                • France Televisions provides 5G ultra-HD broadcast to its customers.
                      Online         entire AR and VR        coverage              • Over-the-top gaming      • Orange Romania conducted trials with CISCO and Samsung using
                      interactive    market, reaching
                                                           • Low latency for       • Cloud-based                mmWave technology for 5G to offer 5G experience to consumers.
                      gaming         a valuation of US$
                                                             delay sensitive         environments for small   • In South Korea, LG U Plus Corp is set to release cloud-based virtual
                                     217.26 billion by the
                                                             applications,           offices                    reality (VR) gaming service in 2019, taking advantage of its low-
                                     end of 2025.
                                                             such as VR                                         latency 5G network.
                                                                                   • Ultra-HD broadcast
     Automotive       Connected      The global               • Ultra-low          • Locations services       • O2 UK will provide spectrum to a government-funded project for
                      vehicle        connected car              latency            • GPS                        testing 5G-enabled connected and autonomous vehicle (CAV)
                                     market was valued        • High reliability                                technologies using 2.3GHz and 3.4GHz airwaves.
                                                                                   • Infotainment
                                     at US$ 63.02                                                             • American automotive giant Ford is building its own LTE/5G network
                                                              • Mission critical   • Truck platooning/
                                     billion in 2017. It is                                                     to test connected cars in a private environment in Dearborn
                                                                services             management as a
                                     projected to reach                                                         (Michigan, US), operating across 3.5GHz CBRS band and using
                                                              • Security             service
                                     US$ 225.15 billion                                                         equipment from Ericsson, Juniper, and Dell.
                                     by 2025, registering
                                                                                                              • Samsung has signed an MoU with Korea Transportation Safety
                                     a CAGR of 17.1%
                                                                                                                Authority (KOTSA) to collaborate on autonomous driving innovation.
                                     from 2018 to 2025.
                                                                                                              • Airtel has identified the auto sector as a focus area and is building
                                                                                                                platforms through partnerships for connected cars. The telco has
                                                                                                                started talks with several automakers for potential partnerships. It
                                                                                                                is also exploring alliances with global telecom operators to provider
                                                                                                                IoT solutions to their auto customers in India.
                                                                                                              • India’s telecom operator Vodafone Idea has signed an exclusive
                                                                                                                partnership agreement with Hyundai AutoEver India, a subsidiary of
                                                                                                                Hyundai Motor Group, for the roll out of connected car services with
                                                                                                                Hyundai Blue Link technology. The tie-up will enable Hyundai cars
                                                                                                                (starting with its recently launched SUV Hyundai VENUE) to offer
                                                                                                                ‘advanced connected car functionality’. The partnership will see
                                                                                                                Hyundai deploy a connected solution in the Indian market with the
                                                                                                                integration of eSIMS with voice, 3G/4G data, SMS, etc.
Sector          Use cases      Market                 Network feature      Services                   Examples
                                    opportunity            requirements
     Healthcare      Tele-          The global           • Ultra-low            • Wireless tele-surgery    • A successful surgery was carried out at a hospital in China using
                     medicine       telemedicine market    latency              • 5G-enabled                 medical equipment through images, which were transmitted using
                     Location-      will expand from     • High reliability       ambulances                 5G technologies in collaboration with Huawei, China Mobile, and
                     based          its current US$ 38.3                                                     Chinese PLA General Hospital.
                                                         • Security             • Wireless service
                     services       billion valuation to                                                   • The Spanish government worked with Vodafone, Juniper Networks,
                                                                                  robots
                                    US$ 130.5 billion                                                        emergency equipment provider Corpuls, satellite provider Hispasat,
                                    by 2025. The                                                             research and innovation centre i2cat, and IT company Informatica
                                    teleconsultation                                                         El Corte Ingles to bring out 5G-enabled ambulance to serve medical
                                    service market is                                                        emergency systems to respond to health emergencies.
                                    expected to grow at
                                    a CAGR of 18.9%.
     Manufacturing   Automation     The size of the      • Ultra-low            • Tracking of critical     • Engineering company Worcester Bosch, UK, is testing 5G for
                                    global factory         latency                equipment and              improved factory output. It is expected to examine how it can
                                    automation market • High reliability          monitoring output of       provide help across preventative maintenance using IoT sensors
                                    is expected to reach                          manufacturing lines        and data analytics to predict failure, re configuration, and real-
                                                         • Security
                                    US$ 368.37 billion                          • Remote maintenance         time analysis, to steering a machine's movements from a remote
                                    in 2025, from US$                             of equipment               location. Tech companies involved includes Huawei, O2, and BT.
                                    190.88 billion in                                                      • AT&T and Samsung, US, plan to partner on a 5G "Innovation Zone"
                                    2017, growing at a                                                       to test how 5G will affect manufacturing.
                                    CAGR of 8.8% from
                                    2018 to 2025.
     Smart Grid      Automation In India, the energy • Ultra-low                • Real-time fault          • Nokia, ABB, and Kalmar have conducted industrial trials for
                     and        metering market           latency                 management                 5G technology to support time-critical applications, along with
                     management is about US$ 0.34       • High reliability      • Power control              enhancing protection and efficiency across smart electricity grid.
                                billion. It is expected
                                                        • Security              • Load forecasting
                                to grow at a CAGR
                                                                                • Smart metering
                                of 8−10 percent
                                over the next 4−5
                                years.
     Defense         Drones         The drone market       • Ultra-low          • Surveillance services    • In South Korea, SK Telecom signed agreements with drone
                                    is expected to grow      latency            • Public protection and      manufacturer DJI in June 2018 to cooperate for the R&D of
                                    at a CAGR of 20.5%     • High reliability     disaster relief            5G-connected drones.
                                    from US$ 14.1
                                                           • Security           • Remote imaging
                                    billion in 2018 to
                                    US$ 43.1 billion in
                                    2024.
     Retail          Robots and     Global retail sales    • Ultra-low          • Inventory                • AT&T Foundry is testing 5G connectivity using Badger Technologies’
                     augmented      were projected to        latency              management                 robots, which identify out-of-stock, mispriced, or misplaced
                     reality        reach about US$        • High reliability   • Large interactive          inventory, and store hazards, enabling retailers to improve
                                    28 trillion by 2020,                          touchscreens               operational efficiencies.
                                    up from ~US$ 22                               displaying products
                                    trillion in 2016.
                                                                                • Virtual dressing rooms

21
                                                                                                                                                                                  5G Ecosystem | The digital haven of opportunities
5G Ecosystem | The digital haven of opportunities

5.                          Rise of application/software providers                                              entry barriers for new players. This will lead to a shift in
                                                                                                                paradigm, where the main value propositions will be in
                            	5G is seen catalysing significant changes in the
                                                                                                                software solutions and the business model will be OPEX-
                            telecommunications infrastructure by increasing the
                                                                                                                oriented.
                            adoption of open source software, non-proprietary
                            hardware, and encouraging multi-vendor collaboration
                                                                                                                Downstream
                                                                                                                	            application scenarios with a mature
                            to build programmable software-defined infrastructure
                                                                                                                technology and a high economic value are likely to be
                            capable of delivering critical services.
                                                                                                                given priority in the implementation of 5G network. More
                                                                                                                technical barriers are expected to be broken down over
                            	
                            These services could be delivered over 5G infrastructure
                                                                                                                time. As a result, 5G-based downstream applications will
                            with minimal hardware and software to be owned.
                                                                                                                cater to new emerging use case scenarios, creating higher
                            Future networks, increasingly relying on software, are
                                                                                                                economic value.
                            expected to accelerate the pace of innovation and lower

Figure 14: Application implementation timeline (estimated) 39

                                                       Intelligent power
                                                       distribution                           Life scenarios
                                                       system                                                        Remote
                                                                             Smart traffic
                                                                                                                     maintenance and
     Economic value of application scenario

                                                                             control system
                                                                                                                     inspection robots
                                                                                            Remote equipment
                                                     Agricultural High speed railways       operating system
                                                     drones       communication and
                                                                                                                                            Sophisticated tele-
                                                                  entertainment
                                                                                    AR/VR               Commercial vehicle                  surgery
                                                                                    immersive           platooning
                                                                Connected
                                                                                    entertainment                                                       Production
                                                                homes                                                   Assisted tele-
                                                                                                                                                        scenarios
                                                                                                                        surgery
                                                                     L2 intelligent
                                                                                                          Outdoor logistics
                                                                     driving
                                                           Logistics                                      robots
                                                           drones
                                                                                                      L3 intelligent              L4 intelligent           L5 intelligent
                                                     Mobile HD                                        driving                     driving                  driving
                                                                                AR/VR based
                                                     monitoring
                                                                                education and
                                                                                shopping
                                                                 4K/8K HD
                                                                                           Short term                          Mid term                    Long term
     High                                                        videos
                                                                                           (Present–2022)                      (2022–2026)                 (2026–2030)

                                                                            Technical difficulty of application scenario            Smart        Smart           Smart
                                              Easy
                                                                                                                                    life         production      city

22
5G Ecosystem | The digital haven of opportunities

The planned rollout of 5G wireless technology by telcos globally    a)   Need
                                                                         		  more lab trials to resolve interoperability issues
offers at least US$ 10 billion business over the next six years          among different ecosystems
to India’s information technology (IT) services companies.
                                                                    b)   SLA
                                                                         	  delivery of 99.999% service uptime may not be
This new technology spend by telecom firms on software and
                                                                         guaranteed considering limited maturity
services could bring more than US$ 1.1 billion in incremental
revenue over the next three years for the country’s five largest    c)   Security
                                                                         	       and privacy concerns considering dependency on
companies − Tata Consultancy Services Ltd, Infosys Ltd, HCL              another company
Technologies Ltd, Wipro Ltd, and Tech Mahindra Ltd.40               d)   Government
                                                                         	            and regulatory organisation’s stand on XaaS
                                                                         is still unknown
The XaaS model has some detriments that mobility and
                                                                    e)   Workforce has to be reskilled with new technologies
enterprise service providers have to consider:

Figure 15: XaaS models (illustrative) 41, 42

        Unified                  Content-as-a-             Network-as-a-           Data Protection-as-            Data Lake-as-a-
  Communication-as-a-            Service (CaaS)            Service (NaaS)           a-Service (DPaaS)             Service (DLaaS)
    Service (UCaaS)

  This model offers          Content-as-a-Service      Virtual network           DPaaS enables                 A data lake is
  different types of         is one of the fastest-    infrastructure through    organisations to secure       a centralised
  communication              growing services          network slicing           their data for long-term      repository that allows
  solutions to enterprise    in XaaS categories.       feature can be used       retention requirements        organisations to
  customers. These           CaaS would help           by incumbent service      and helps with quick          store structured and
  solutions are hosted       organisations manage      provider to deliver       recovery to avoid             unstructured data at
  on service provider’s      data repositories and     a virtual wide area       business interruption.        any scale, enabling
  or vendor’s cloud          optimise application      network for new                                         different types of
  infrastructure.            agility.                  enterprise or service                                   analytics (such as
  • VoIP (voice-over-                                  provider companies.                                     big data processing,
      internet protocol)                                                                                       real-time analytics,
                                                                                                               and machine learning
  • IM (instant
                                                                                                               for effective decision-
      messaging)
                                                                                                               making).
  • Chat box and
      video conferencing
      services

                                                      Use cases (Illustrative)

  Microsoft, Cisco, and      Worldwide content         Communication service     Solution providers,           Various technology
  Avaya offer unified        services software         providers (CSPs) have     such as Hitachi               giants, such as
  communication              revenue totalled          been deploying a range    Vantara, provide              Amazon and Google,
  service on cloud           ~US$ 10.7 billion in      of new software-based     data protection-              offer data lake as
  to serve end-to-           2018, an increase of      virtual networking        as-a-service, which           a service. Google
  end enterprise             11.7% from 2017. At       services. Operators       includes recovery             Cloud Platform
  communications.            present, top vendors      such as AT&T offers       copy, long-term               include BigQuery, a
  The market spend           in content services       SD-WAN services           retention, and                serverless, managed
  across Global Unified      are Microsoft,            based on VMware           disaster recovery.            data warehouse
  Communication will         OpenText, and IBM         (formerly VeloCloud),     The market for security       offering; allows
  increase at a 2.6%         with a combined           with POP-based            software increased            customers to address
  CAGR to reach US$ 46.4     share of 40.7% in         gateways to improve       annually to about 9.7%        a wide range of
  billion by 2023.           2018, whereas Hyland,     performance and           in 2018, touching US$         use cases (from
                             Google, and Alfresco      scalability, along with   36.3 billion in revenue       the traditional data
                             Software had the          simplifying migration.    (attributing to an            warehouse to data
                             highest growth with                                 increase in demand            science use cases)
                             43.8%, 26.8%, and                                   for data security-as-a-       by integrating ML
                             23.3%, respectively.                                service offerings).           capabilities in BigQuery
                                                                                                               ML, and integrating
                                                                                                               them in Cloud
                                                                                                               Dataflow.

                                                                                                                                          23
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