Connected Cars: On The Edge Of A Breakthrough - How the AECC's distributed edge architecture can drive revenue for MNOs

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Connected Cars: On The Edge Of A Breakthrough - How the AECC's distributed edge architecture can drive revenue for MNOs
WHITEPAPER

Connected Cars: On The
Edge Of A Breakthrough
How the AECC’s distributed edge architecture can drive revenue for MNOs

                  Published by
Connected Cars: On The Edge Of A Breakthrough - How the AECC's distributed edge architecture can drive revenue for MNOs
Executive Summary
                 Mobile networks will enable many of this decade’s most promising
                 technologies, and perhaps no other device holds as much potential
                 as the connected vehicle. GSMA has forecast that the global
                 connected car market will be worth $198 billion by 2025.1
                 According to the analyst team at McKinsey, the average vehicle will
                 generate an estimated $310 a year in connectivity revenue by the
                 end of this decade2 (annual smartphone revenue per user (ARPU)
                 would have to grow at a compound annual growth rate (CAGR) of
                 more than 10% to match that3).

                 As each vehicle on the road becomes part of at least one mobile
                 network, the opportunity for operators is significant. So, too, is the
                 cost of letting the connected car ecosystem evolve without
                 coordinated cooperation from mobile network operators (MNOs).
                 By 2025, at least 400 million passenger vehicles globally will have
                 embedded connectivity, according to SBD Automotive's 2020
                 Connected Services Forecast.4 A data deluge from connected cars is
                 coming no matter what, and operators that get involved now will be
                 ready to handle the data more economically and efficiently.

                 The AECC is a multi­industry collaboration formed to maximize the
                 opportunities created by vehicular connectivity and automotive big
                 data. Recognizing the connected car’s reliance on cellular networks,
                 leaders from the automotive industry are partnering with carriers,
                 equipment vendors, software developers and cloud service providers.

                 Proactive mobile network operators are collaborating with the auto
                 industry, which is increasingly focused on delivering services in
                 addition to simply selling vehicles. Services such as dynamic HD
                 maps and intelligent driving rely on the network’s ability to
                 instantaneously process localized data and transmit actionable
                 insights. Mobile networks will need the computing resources to
                 process the right data in the right place at the right time: a topology­
                 aware distributed edge computing cloud architecture.

                 This white paper examines the opportunities for MNOs to become
                 leaders in the emerging ecosystem of the automotive edge. To fully
                 capitalize on this opportunity, mobile network operators need to
                 work closely with a consortium of automotive, edge and cloud
                 solution providers.

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Connected Cars: On The Edge Of A Breakthrough - How the AECC's distributed edge architecture can drive revenue for MNOs
The AECC’s Topology-aware Distributed
Edge Computing Cloud Architecture
What is the                             equipped with fast internet access,
                                        artificial intelligence and access to
                                                                                 With the right infrastructure and
                                                                                 protocols in place, connected cars
AECC and how is its                     big data analytics for high-definition   will be able to interact with cellular
                                        map creation and distribution, as        networks rather than just using them
approach unique?                        well as for services like intelligent    to send massive amounts of data to
                                        driving and more. Within four years,     the cloud. Navigation is a good
The AECC and its members are            hundreds of millions of vehicles will    example. Unlike today’s navigation
working to identify the connected       be sending a thousand times more         apps, which use relatively small
vehicle requirements needed to          data to the cloud than today’s           amounts of cellular data, real-time
design the next generation of           connected cars.                          high-definition maps will be in
networks that can think globally and                                             constant communication with the
act locally. As cars become             As the connected car market rapidly      network, providing a service that will
increasingly autonomous, data will      expands beyond luxury models and         be highly valuable to drivers. Cars
be processed by the vehicles, in the    premium brands to high-volume,           will be able to quickly alert drivers to
cloud and in between at                 mid-market models, the industry          dangerous traffic patterns or help
strategically located edge compute      will soon reach a tipping point. The     them find parking in crowded areas.
locations that will capture data that   volume of vehicle data generated
does not need to be aggregated in       will overwhelm existing cloud,           A localized distributed edge
the cloud.                              computing and communications             computing cloud architecture
                                        infrastructure resources.                speeds data processing by matching
Consider the numbers: with a billion                                             compute resources with the
cars already on the planet, each        Not all vehicular data needs to          vehicles that need them. In the
vehicle replacement represents a        travel to the cloud. “Data has a         context of edge computing for
new connection. By 2025, 100% of        nature of locality,” explained           automotive use, the “edge” means
all new vehicles, more than 100         Toyota’s Ken-ichi Murata, Chair of       the hierarchically distributed non-
million, will come to market            the AECC, and Fellow and General         central clouds where computation
connected, according to IHS,            Manager of Connected Cars at             resources are deployed, and edge
bringing new services and business      Toyota. “The vehicles in Texas do not    computing technology can be used
models to bear. This next generation    need data from New York. … That’s        to design a flexible topology-aware
of connected cars will need to be       just a waste of network.”                cloud infrastructure.

                                                                     Connected Cars: On The Edge Of A Breakthrough          3
Distributed edge computing on localized networks

            Distributed Computing                         Cloud             Data           Data
                                                                                           #-$.)           Data                                       Local Data
                                                                                                                                                 Integration Platform
            Reduces concentration of
             computation to shorten                                                                                                           Inter-connects local cars to
                processing time                       Local                                                                  Local                integrate information
                                                      Data                                                                   Data
                                                                   Local                                          Local
                                                                   Data            Local           Local          Data
                                                                                   Data            Data

                                        Intelligent                    High                                                         Intelligent              High
                      V2C2V               Driving                    Definition                               V2C2V                   Driving              Definition
                                   !"                                  Map                                                     !"                            Map

                              Distributed Computing                                                                       Distributed Computing

    Localized Network                                                                                                                             Localized Network
                                                                           Localized Network
                                                                            Splits data traffic in
                                                                           order to handle huge
                                                                                  data flow

                 Connected Car                                Connected Car                                 Connected Car                         Connected Car

     (Source: AECC)

    This architecture creates an                              AECC Director Roger Berg, Vice                                thousands of companies that service
    opportunity for mobile network                            President for R&D in North                                    cars and trucks, all of which can
    operators to host edge servers                            America at DENSO International                                benefit from automotive big data.
    running cloud-based applications.                         America, sees smartphones already                             Makers of roadside infrastructure are
    The cloud is dominated by a handful                       creating a need for a robust edge                             also part of the mobility ecosystem,
    of hyperscalers, but at the edge,                         network. “If similar needs from the                           since street signs, billboards and
    MNOs have more of a chance to                             mobility industry can be met by a                             stoplights can all potentially be
    participate, given their position as                      distributed computing network                                 connected to the internet.
    owners of the network access                              architecture set up for smartphone
    points. MNOs are already                                  apps, then the MNO has another                                Many different technology
    experimenting with this business                          vertical from which to gather                                 providers are investing human and
    model, according to the AECC’s                            additional ARPU sources from the                              financial capital to learn how to
    Proof of Concept Committee.                               same network,” Berg noted.                                    better serve the automotive
                                                                                                                            industry. From the chips that
    As mobile operators invest in edge-
    based servers meant to host cloud
                                                              The Distributed                                               connect devices and power servers
                                                                                                                            to the data centers that process
    applications, the goal is typically to                    Edge Ecosystem                                                exabytes per day, IT hardware is
    support mobile subscribers. But                                                                                         integral to the connected car. In
    within a few short years, this                            These futuristic features will rely on                        addition to mobile network
    infrastructure could support not                          the cooperation of many different                             operators, fiber providers, satellite
    just mobile but also mobility, the                        ecosystem participants. Connected                             operators and Wi-Fi equipment
    connected car ecosystem that auto                         vehicles are supported not just by the                        vendors are eyeing the connected
    executives call the mobility industry.                    automakers, but also by the                                   car opportunity.

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Connected vehicles are supported by a heterogeneous ecosystem

                                                         Wide-area                                           Roadside
                                                   cellular network                                         equipment

                 Fleet                 OEM

                                                                                             Wi-Fi

                                                                                                      Te
                                                                                                      Telematics
                   Passenger Wi-Fi   Telematics,
                                     ADAS, C-ITS

               Commercial vehicle for people transport                            Private vehicle

 (Source: AECC and AECC member Ericsson, 2021)

The AECC has assembled a                     and Toyota, along with information       Google. The consortium also
partnership that connects                    and communications technology            includes software giants Oracle and
industries and brings together the           (ICT) leaders AT&T, Dell EMC,            Microsoft, which has recently made
connected vehicle ecosystem.                 Cisco, Ericsson, Intel, KDDI, NTT        two significant acquisitions of
AECC members include automotive              and Samsung. Data center leader          companies that develop mobile
technology heavyweights DENSO                Equinix is also a member, as is          network technology.

Exploring the Market Opportunity
Some companies will participate in           and repurposed, and it will              Network operators may have a role to
the market solely by selling                 generate significant value for a         play in monetizing automotive data,
products or services, while others           number of industries.                    especially if they host edge cloud
will want to monetize the data                                                        servers to help process this data. But
generated by connected cars.                 “I expect multiple sources of data …     for operators, hosting applications at
Ownership of that data is a                  will be used to build a multi-use        the network edge is likely to be a
complex issue, especially since              case, multi-sector analytics platform    more immediate opportunity. The
drivers may naturally assume that            for mobility data collected through      AECC has identified five primary use
some of the data their cars                  vehicles and related transportation      cases that will be enabled by a
generate belongs to them. But                infrastructure,” said AECC Director      topology-aware distributed edge
most  of that data will be analyzed          Roger Berg of DENSO.                     computing cloud architecture.
 Source: HPE

                                                                         Connected Cars: On The Edge Of A Breakthrough         5
Use Cases
    HD Mapping                              HD maps are dynamic because they
                                            are constantly updated with
                                                                                     This data session portability is a
                                                                                     cornerstone of several connected
    An HD map is a frequently updated       information collected by the             vehicle use cases, and it relies on the
    map overlaid with various               vehicles. This data can be analyzed      readiness of mobile network
    information such as traffic             by the vehicles or by an edge server,    operators to use uniform and
    situations, access ways and road        but the maps should be updated by        transparent protocols.
    obstructions, with high precision at    the servers because they rely on
    the centimeter level. In the AECC       information from multiple vehicles.      Vodafone, Ericsson and Toyota are
    model, dynamic information is           To reliably send and receive HD          testing a proof of concept of 5G
    classified into four layers according   map data in transit, vehicles need to    core session and service continuity,
    to the time intervals at which          be able to start a data session in the   also called “make-before-break.”
    dynamic information changes.            vicinity of one edge server and          The team found no loss of
                                            continue it in another.                  connectivity with 5G core make-

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Layers of an HD map

   Highly
   Dynamic
   Layer

   Transient                  UNEXPECTED
                              STRONG RAIN
   Dynamic
   Layer                                                            OBSTACLE

   Transient
   Static                                              ROAD WORK          ACCIDENT           FOG
   Layer                                    LANE CLOSED

   Permanent
   Static
   Layer

 (Source: AECC)

before-break gateway switching in       together, their cooperation can         generated by both the vehicle and
its published results and takeaways     jump-start the connected car            the driver (biometric data). One
from joint trials at the Aldenhoven     market by giving automakers             goal is to give drivers a complete
Testing Center.5                        confidence in the networks.             and dynamic picture of their driving
                                                                                profiles so that exhausted drivers in
Technically, session continuity is      “If there are differences in            unsafe cars get off the road. Edge
likely to be achievable, but            networks, how can I build one car at    servers can instruct the vehicle on
operationally it will rely on carrier   production time and deliver it to any   what data to send to the cloud and
cooperation, like many other            of these countries, any of these        help to pre-process the data before
standard network features. “That’s      operators?” Boberg said. “I think       it is sent. The driver sees near real-
a big discussion with our MNO           that is the main thing that makes it    time performance metrics.
friends,” said AECC Director            easy … to produce a car, knowing
Christer Boberg, director of IoT and    the technology I have incorporated      A driver monitoring his or her
Cloud Technology Strategies at          into the car can be used in any         performance/alertness on a road
Ericsson. “How do we build this         operator network I connect to.”         trip is likely to move from one edge
network of edges to cater to                                                    server’s region to the next during
consistent behavior on a global
scale? Maybe not the same provider
                                        Intelligent Driving                     the journey. The ability to transfer a
                                                                                data session from one edge server
or supplier, but it should have the     A second key use case enabled by a      to another again becomes critical.
same methods.” Boberg said that if      distributed edge is intelligent
operators are willing to work           driving, which relies on sensor data

                                                                    Connected Cars: On The Edge Of A Breakthrough        7
Insurance                                  V2Cloud                                                    Vehicle groups are highly dynamic,
                                                                                                          with individual vehicles moving
    The same data that drivers use to          Cruise Assist                                              seamlessly from one group to
    monitor their own performance can                                                                     another. Group sizes are also
    be used over time by insurance             V2Cloud Cruise Assist is an evolution                      expected to be fungible, as the set of
    companies to reward good drivers           of intelligent driving into a more                         vehicles that needs a given piece of
    with better rates. Data from               flexible service model. Here the                           information will vary with the
    connected cars is highly valuable to       network mediates vehicle-to-vehicle                        nature of the information.
    insurers, and the most valuable data       communications by integrating
    can be collected at the scene of an        information obtained from                                  AECC Director Said Tabet, Chief
    accident. This information can be          neighboring cars. This mechanism is                        Architect for Intelligent Connected
    analyzed in the cloud, but if pre-         called the vehicle-to-cloud-to-vehicle                     Vehicles at Dell Technologies, said
    processing occurs at the edge, cars        service or simply V2C2V. This service                      that edge computing will be
    may be able to make prescriptive           scenario is especially effective when                      essential to managing and
    suggestions to drivers while they          used to broadcast information to                           processing this data in a timely
    are still at the scene. For example,       vehicles that need the same                                manner. He said that even
    drivers can be prompted to                 information, by utilizing the                              hyperscale cloud providers will
    photograph skid marks on the road          combination of neighboring vehicles,                       probably end up directing safety-
    or to document aspects of a collision      roadside units and others.                                 related vehicular data to the edge.
    before the cars are moved.

                         Connected vehicle services enabled by a distributed, coordinated edge cloud

     Integration & Storage                                                               Automotive
     • Wide area integration &                                               Cloud       Data Center
        analysis
                                                                                                                AI Enabler
     • Permanent storage                                                                                        Enabling AI based applications in
                                  Edge Computing
                                  Distributed platform                                                          distributed computing platform.
     Distributed Processing       for low latency and
     • Analysis of local data     fast computation.
                                                                                          Intelligent
       with wide area                                                                                                High
                                                                    V2C2V                   Driving                                  Flexible topology-aware
       information                                                                                                 Definition
                                                                                                                     Map             distributed clouds
     • Real-time data
       processing
     • Low-latency response                               Data traffic
       to connected cars
     • Local area information                                                            Access NW
       collection, filtering,     Camera
       aggregation, cleansing                                             Data Traffic                      Data Traffic        Data Traffic

                                                         Sensor          Radio Access Technology
     Local Devices                                                       wireless connectivity more
                                      Roadside Unit
     • Devices for sensing                                               flexible in quality and cost.
       road condition,
       detecting objects e.g.
       pedestrians

                                                                              Connected Car             Connected Car           Connected Car
                                  Drone
                                                   Pedestrians

     (Source: AECC)

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Another aspect of V2Cloud Cruise
Assist is simply expediting the
                                        Mobility-as-a-Service
process of moving information from      Ridesharing is just one aspect of
the vehicle to the cloud. According     mobility-as-a-service. Automakers
to Tabet, test fleets of autonomous     are starting to see cars as
vehicles are generating more data       generators of ongoing service
than today’s network architectures      revenue, and in some cases the car
can handle – they download it and       itself becomes the service. “Within
ship cartridges by FedEx to cloud       one day you will see a vehicle being
providers. This is not a sustainable    used as a mobile library or a mobile
model; network architectures need       store or a clinic,” said Tabet.
to evolve.                              “Mobility as a service is about
                                        integrating into the environment.”

Now Is the Time To Join the AECC
Wireless carriers created a             the network, the mobile equipment      network operators have an
multibillion-dollar smartphone          could choose the network with the      immediate opportunity to be part of
industry by standardizing network       necessary capabilities and roam to     this process, instead of waiting until
protocols, and supporting the next      that network even if the incumbent     the distributed edge architecture
wave of innovation will require even    MNO/MSP has a network overlay. …       has developed and trying to adapt at
greater levels of cooperation.          MNOs need to assess the value of       a later time.
Connected vehicles will need to         the capital expenditure necessary to
move seamlessly from one carrier’s      invest in multi-access edge            Connected vehicles are about more
edge servers to the next, without       computing, and stay competitive in     than new revenue models for
service interruption or loss of data.   markets where more than one            automakers and service providers.
                                        MNO provides service.”                 Vehicle emissions are one of the
“It doesn’t work for automakers and                                            biggest contributors to climate
their service providers if different    Investments in edge computing          change, and traffic accidents claim a
networks have different capabilities    resources should be made with as       life every 25 seconds. These
in Dallas than they do in San           much information as possible about     problems can be mitigated when
Antonio,” said AECC Director Roger      how those resources will be used.      vehicles have a shared perception of
Berg of DENSO, adding that mobile       The Automotive Edge Computing          their environment. The applications
service providers who ignore the        Consortium will define                 that will enable this are predicated
reasons to work together run a          requirements and develop use cases     on wireless network
significant risk.                       for emerging mobile devices, with a    interoperability and performance.
                                        particular focus on the automotive
“In the age of eSIM, a mobile user      industry, bringing these               The wireless industry’s history has
equipment provider and                  requirements and use cases into        repeatedly demonstrated the power
applications aggregator can virtually   standards bodies, industry             of collaborative standard-setting
instantaneously change MNO/MSP          consortia and solution providers.      and technology testing. This will
network services in a mobile            The consortium will also encourage     prove true once again as mobile
environment,” Berg said. “So for a      the development of best practices      network operators approach what is
given application with certain key      for the distributed and layered        likely to be the biggest opportunity
performance requirements from           computing approach. Mobile             since the smartphone.

                                                                    Connected Cars: On The Edge Of A Breakthrough       9
About the AECC: The Automotive Edge Computing                                               Mobile World Live is the premier destination for news, insight
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     1. GSMA: "The Connected Vehicle Opportunity," January 2021 (https://www.gsma.com/iot/wp-content/uploads/2021/01/Infographic-The-Connected-Vehicle-Opportunity.pdf)

     2. McKinsey: "Unlocking the full life-cycle value from connected car data," February 2021 (https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/unlocking-
     the-full-life-cycle-value-from-connected-car-data)

     3. GSMA Intelligence, February 2021 (https://www.gsmaintelligence.com/data/)

     4. SBD Automotive: "Connected Services Forecast," 2020 (https://www.sbdautomotive.com/en/connected-services-forecast-report)

     5. M. Muehleisen, “Automotive Trials for Make-Before-Break 5G Edge Cloud Handover – Results and Takeaways from Joint Trials of Toyota, Vodafone and Ericsson at the
     Aldenhoven Testing Center,” 2020 (https://5g-ppp.eu/wp-content/uploads/2020/07/Maciej-Keynote-CLEEN-Workshop-Published.pdf)

     Disclaimer: The views and opinions expressed in this whitepaper are those of the authors and do not
     necessarily reflect the official policy or position of the GSMA or its subsidiaries.                                                                                  © 2021

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