5g-miedge · section 3 starts by providing an update on the 5g system stakeholder analysis and on...

Deliverable Horizon2020 EUJ-01-2016 723171 5G-MiEdge D1.4

Date : July 2019 Public Deliverable

5G-MiEdge

5G-MiEdge Millimeter-wave Edge Cloud as an Enabler for 5G Ecosystem

EU Contract No. EUJ-01-2016-723171

D1.4 Final report on joint EU/JP vision, business

models and eco-system impact

Contractual date: M36

Actual date: M36

Authors: See list

Work package: WP1: Scenario/use cases, business model, and 5G architecture and ecosystem

Security: Public

Nature: Report

Version: Final

Number of pages: 49

Abstract

This deliverable provides a report on the actions accomplished to align and synergize the work of the

two consortia composing the 5G-MiEdge project, i.e., the European and the Japanese one.

First the final vision of the project is provided, followed by the description of the impact that the

project achieved on the ecosystem in both Europe and Japan, especially focusing on highlighting the

synergies between the two world areas.

Then, updates to the work done in previous deliverables are provided on 5G stakeholders and SWOT

analysis. Based on those, a conclusive analysis is performed through the Business Model canvas, an

effective means to leverage on the project strengths and provide business models related to scenarios

where joint deployments of MEC and mmWave technologies take place.

Keywords

Business analysis, SWOT analysis, Stakeholders analysis, JP-EU inter-work.



5G-MiEdge

Business models, business analysis, eco-system impact, EU/JP joint vision.

All rights reserved.

The document is proprietary of the 5G-MiEdge consortium members. No copy or distribution, in any

form or by any means, is allowed without the prior written agreement of the owner of the property

rights.

This document reflects only the authors’ view. The European Community is not liable for any use hat

may be made of the information contained herein.

Authors

INTEL Valerio Frascolla

Robert Zaus

[email protected]

[email protected]

CEA-LETI Antonio De Domenico

Nicola di Pietro

[email protected]

[email protected]

Fraunhofer Heinrich Hertz

Institute

Konstantin Koslowski

Thomas Haustein

[email protected]

[email protected]

Telecom Italia Sergio Barberis

Valerio Palestini

[email protected]

[email protected]

Sapienza University of

Rome

Sergio Barbarossa

Mattia Merluzzi

[email protected]

[email protected]

Tokyo Institute of

Technology

Gia Khanh Tran [email protected]

Kei Sakaguchi [email protected]

Panasonic Koji Takinami [email protected]

KDDI Research, Inc. Katsuo Yunoki [email protected]

mailto:[email protected]

mailto:[email protected]



5G-MiEdge

Table of contents

Table of figures ............................................................................................................ 4

Abbreviations .............................................................................................................. 5

Executive Summary .................................................................................................... 7

1 Introduction ......................................................................................................... 8

2 Vision of a joint EU / Japan impact .................................................................... 9

2.1 Project Vision ................................................................................................ 9

2.2 Collaboration among Japan and Europe ....................................................... 10

2.3 Ecosystem impact ........................................................................................ 13

2.3.1 MiEdge+ .......................................................................................... 15

2.3.2 5G! Pagoda ...................................................................................... 17

2.3.3 5G PPP community .......................................................................... 19

3 Business aspects ................................................................................................. 20

3.1 Updated analysis of 5G system stakeholder ................................................. 20

3.1.1 Current status of 5G commercial networks in countries of interest for

the project partners ........................................................................... 20

3.1.2 Conclusion ....................................................................................... 23

3.2 Updated analysis of use cases SWOT .......................................................... 24

3.2.1 2020 Tokyo Olympics Games........................................................... 24

3.2.2 Automated driving ........................................................................... 26

3.2.3 Omotenashi services......................................................................... 26

3.3 Techno-economic evaluation ....................................................................... 27

3.3.1 Survey of other research projects’ techno-economic analysis ............ 27

3.3.2 Business model analysis with CAPEX / OPEX discussion ............... 32

4 Conclusions ........................................................................................................ 48

5 References .......................................................................................................... 49



5G-MiEdge

Table of figures

Figure 1. Interactions of 5G-miEdge with the 5G Ecosystem. ...................................... 13

Figure 2. Cooperation between 5G-MiEge and MiEdge+. ............................................ 16

Figure 3. 5G-MiEdge and MiEdge+ joint booth in WTP2019. ..................................... 17

Figure 4. 5G-MiEdge and 5G!Pagoda joint booth at CEATEC2018. ............................ 18

Figure 5. 5G spectrum allocation in Japan. .................................................................. 22

Figure 6. Plan of local 5G in Japan [MIC]. .................................................................. 23

Figure 7. Business Model Canvas [BMC]. ................................................................... 33

Figure 8. Overall system architecture [D1.3]. .............................................................. 34

Figure 9. Business Model Canvas for Omotenashi services.......................................... 35

Figure 10. Key players of the Omotenashi services use case. ....................................... 37

Figure 11. Overall Tokyo 2020 Olympics system architecture [D1.3]. ......................... 39

Figure 12. Business Model Canvas for 2020 Tokyo Olympics. .................................... 40

Figure 13. Key players in the Tokyo 2020 Olympics. ................................................... 41

Figure 14. mmWave based V2V/V2X for cooperative perception [D1.3]. .................... 44

Figure 15. Business Model Canvas for the Automated driving use case. ...................... 45

Figure 16. Key players for the Automated driving use case. ......................................... 46



5G-MiEdge

Abbreviations

Acronym Description

3GPP Third Generation Partnership Project

5G PPP 5G Infrastructure Private-Public Partnership

AI Artificial Intelligence

AP Access Point

API Application Programming Interface

App Application

AR Augmented Reality

ARIB Association of Radio Industries and Businesses

BBU BaseBand Unit

C-RAN Cloud-RAN

CAD Computer Aided Design

CAPEX Capital Expenditure

CEATEC Combined Exhibition of Advanced Technologies

CDN Content Delivery Network

CPS Cyber-Physical Systems

CU Central Unit

D-RAN Distributed RAN

eMBB enhanced Mobile Broadband

EC European Commission

EU European Union

E2E End-to-End

HD High Definition

IaaS Infrastructure-as-a-Service

IoT Internet of Things

ISP Internet Service Provider

JP Japan

LiDAR Light Detection And Ranging

MEC Multi-access edge cloud (computing)

MEH Mobile edge host



5G-MiEdge

MIC Ministry of Internal Affairs and Communications

MIMO Multiple-Input-Multiple-Output

mmWave millimeter-wave

MNO Mobile Network Operator

OBU On Board Units

OEM Original Equipment Manufacturer

OPEX Operational Expenditures

PaaS Platform-as-a-Service

PDCP Packet Data Convergence Protocol

QoS Quality of service

RaaS RAN as-a-service

RAN Radio Access Network

RoI Return on Investment

RRH Radio Remote Head

RSU Road Site Unit

RU Radio Unit

SCOPE Strategic Information and Communications R&D Promotion Programme

SD-WAN Software-Defined Wide Area Networks

SNS Social Networking Service

UDN Ultra-Dense Network

uRLLC ultra Reliable and Low Latency Communications

uHSLLC ultra-High-Speed and Low Latency Communication

V2X Vehicle-to-X

VR Virtual Reality

WG Work Group

WP Work Package

WTP Wireless Technology Park



5G-MiEdge

Executive Summary

This deliverable provides a report on the actions accomplished to align and synergize the work of

the two consortia composing the 5G-MiEdge project, i.e., the European and the Japanese one.

First the final vision of the project is provided, followed by the description of the impact that the

project achieved on the ecosystem in both Europe and Japan, especially focusing on highlighting

the synergies between the two world areas.

Then, updates to the work done in the previous deliverables of WP1 are provided on 5G

stakeholders and SWOT analysis.

Based on those, a conclusive analysis is performed on the business models, related to three most

interesting scenarios, i.e.,

- Omotenashi services,

- Tokyo 2020 Olympics,

- Automated driving,

where joint deployments of MEC and mmWave technologies take place, using the Business Model

Canvas as the means to provide a business model focusing on the project strengths.



5G-MiEdge

1 Introduction

At the verge of the start of the 5G system deployment and commercial services, there

is the need of projects, simulations and results that can better frame and assess the

potential of the forthcoming newly proposed 5G technologies, w.r.t ecosystem impact

and especially business aspects.

This Deliverable concentrates its focus exactly on those regards, and it can be

considered a continuation and an extension of the work done in the middle of the 5G-

MiEdge project, as reported in Deliverable D1.2 [D1.2]. In fact, the intention of this

Deliverable is to provide an update, when the case, of the results provided in D1.2, and

to finally perform a techno-economic analysis of the potential expressed by the new

technologies proposed by 5G-MiEdge, with main focus on the use cases worked on in

the project lifetime. This Deliverable is principally composed of two main Sections,

Section 2 and Section 3.

Section 2 starts by assessing what the vision of the 5G-MiEdge project is, now that its

main technical achievements are finally available. It elaborates on the very good

synergy expressed by the fruitful collaboration of the two teams composing the project

consortium, i.e. the Japanese and the European one. Finally it surveys the international

interactions and impacts, focusing mainly on the Japanese and the European sites, of

the co-work and the synergies of 5G-MiEdge with other related research projects and

relevant associations that foster the introduction and the commercialization of 5G

systems.

Section 3 starts by providing an update on the 5G system stakeholder analysis and on

the SWOT analysis performed on the project use cases in focus. It continues proposing

a survey of the results coming out of other research projects working on topics similar

to the ones of 5G-MiEdge. It finally provides a business model analysis including

CAPEX and OPEX considerations, and a return of investment of the most important

technologies proposed by the 5G-MiEdge project.

Section 4 finally draws the conclusion of the Deliverable and hints at potential next

steps.



5G-MiEdge

2 Vision of a joint EU / Japan impact

During its lifetime, the project has influenced both the academia and the industrial 5G

ecosystem, in a way made more effective by the cooperation between the European

and the Japanese consortia. In this section, we summarize the achievements and results

of 5G-MiEdge’s joint intercontinental collaboration, based on a common vision of the

forthcoming 5G revolution.

2.1 Project Vision

Our vision is that many future services will keep stressing the need of bringing

computing resources as close as possible to mobile users to provide virtual "zero"

latency (i.e., a latency smaller than human capabilities can achieve or perceive) and a

truly immersive virtual reality experience. Bringing in future systems cloud computing

functionalities with very low latency and high reliability will also be the key enabler

of automated driving and fully automated factory. The main achievements of the 5G-

MiEdge project have and will keep having an impact on this broad vision, even after

the end of the project.

The collaboration between European and Japanese partners in 5G-MiEdge has

produced a significant advancement in the deployment of 5G systems at both the

physical and architectural level. One of the main challenges of 5G-MiEdge was to

exploit mmWave links to bring cloud functionalities at the edge of the networks, taking

into account the benefits of mmWave links, like high data rates, and their main

currently known challenge, namely blockage. At the physical level, multi-Gbps

communications have been demonstrated on field trials, showing significant reduction

of downloading time. Wireless backhauling using mmWave links has been introduced

and validated as a scalable and cost-effective solution to connecting small cell

networks, especially in the dense deployment scenario envisaged by the 5G roadmap.

Important contributions have been produced by exploiting multi-link communications,

as a way to overcome blocking. New learning mechanisms have been introduced to

predict some aspects of the network, like wireless data traffic or radio environmental

map, useful to enable a proactive allocation of network resources. At the architectural

level, a special attention has been devoted to bringing cloud functionalities, namely

computation and caching, at the edge of the network.

The project has identified five representative scenarios, namely Omotenashi services,

moving hotspots, dynamic crowd, 2020 Tokyo Olympic Games, and automated

driving. For each of them, a proper architecture merging edge computing and mmWave

links has been designed. Effective computation offloading mechanisms have been

designed, enabling mobile terminals to run mobile applications remotely in nearby

mobile edge hosts (MEH). Two testbeds have been finally implemented to test the

capabilities of the main concepts proposed by 5G-MiEdge, concerning the deployment

of cloud functionalities near the end user: dynamic crowd and automated driving. In

the first case, reconfigurable mmWave backhaul links have been tested as well as the

live migration of virtual machines serving the mobile users. In the second case, the

exchange of Lidar images among vehicles has been implemented to build a cooperative

perception system that improves safety of driving.



5G-MiEdge

The framework established within 5G-MiEdge has contributed significantly to the 5G

ecosystem at both the theoretical and practical level. Several high quality papers have

been published or are under review in some leading top-class journals. Several specific

workshops have been organized in synergy with other international research projects

and in conjunction with the most important international conferences, to achieve the

best possible visibility and to share the accumulated experience with the broadest

possible research community. Finally relevant organizations and industrial

associations fostering the inter-working among the main 5G ecosystem stakeholders,

the introduction and an early commercialization of 5G services (like for instance the

5G Infrastructure Public-Private Partnership (5G PPP) association), have been

monitored and properly impacted, when the case.

With regard to standardization activities, several contributions were provided to 3GPP,

ETSI and IEEE groups, as detailed in D5.3 [D5.3]. Finally, the project also interacted

with regulatory bodies, as the usage of 5G spectrum, especially the new mmWave

bands, and the opportunities that will come with it are an important differentiating

factor of the 5G proposal for the society as a whole.

2.2 Collaboration among Japan and Europe

Under the well-balanced management structure developed in WP6 with project

coordinators, project managers, fixed-term technical managers, work package leaders

and sub-leaders assigned from each continent, 5G-MiEdge has succeeded in

maintaining the synergies to realize the aforementioned project vision through its

collaborative activities among the two continents as follows.

WP1

This work package fosters and ensures that an effective collaboration between the

Japanese and the European teams takes place, creating a common vision that

maximizes the synergies, reduces the risks and finally avoids all possible deviations

from the common targets. Especially, through numerous and effective discussions

between the two continents, the project selected five common use cases and scenarios

relevant for merging mmWave and MEC technologies ,i.e., Omotenashi services,

moving hotspots, dynamic crowd, 2020 Tokyo Olympic Games, and automated

driving. Moreover, WP1 analyzed the impact of the main project results on the

business models in the wireless communication markets, based on contributions from

partners from both continents. Such achievements have been highlighted in the four

deliverables:

D1.1: Use cases and scenario definition,

D1.2: Mid-term report on joint EU/JP vision, business models and eco-system

impact,

D1.3: System architecture and requirements,



5G-MiEdge

D1.4: Final report on joint EU/JP vision, business models and eco-system

impact.

WP2

This work package proposes novel mmWave edge cloud technologies for 5G RAN

deployment based on contributions from partners from both continents. For instance,

contributors of Task 2.1 (EU: FHG, URom, CEA; JP: PANA, TTech) jointly developed

mmWave ultra broadband access technologies taking into account not only mmWave

physical layer design, but also sophisticated resource allocation (including Multiple-

Input-Multiple-Output (MIMO) and coordinated beamforming), ultra-lean

signaling/control plane for mmWave Access Point (AP) management, mmWave AP

deployment design, etc. Contributors of Task 2.2 (EU: TI, FHG; JP: TTech)

collaboratively designed mmWave antenna for specific scenarios toward Tokyo

Olympic 2020 Games via both numerical analyses and joint measurements (between

TI and TTech). Contributors of Task 2.3 (EU: FHG, URom, CEA; JP: TTech) jointly

conducted site specific deployment of mmWave edge cloud with caching/prefetching

and relay via mmWave backhauling, in order to efficiently exploit the capacity of

mmWave access for mobile users. Achievements of such activities were summarized

in the four deliverables.

D2.1: Requirement and scenario definition for mmWave access, antenna and

area planning for mmWave edge cloud,

D2.2: Design of mmWave ultra broadband access for 5G,

D2.3: Design of mmWave antennas for 5G enabled stadium,

D2.4: Method of site specific deployment of mmWave edge cloud.

WP3

This work package aims to design joint radio and computation resource orchestration

algorithms for distributed mmWave edge cloud of 5G wireless heterogeneous

networks. Most importantly, under the coordination of partners from both continents,

WP3 established context information based control plane architecture and signaling

for 5G RAN deployments of 5G-MiEdge use cases and scenarios. The architecture is

co-designed to realize the three objectives of the work package i.e. to develop agile,

interoperable and resilient control signaling to support multi-connectivity; to design

distributed context aware machine learning methods to forecast future traffic in

specific areas of mmWave edge cloud; and to develop joint radio and computation

resource orchestration algorithm for distributed mmWave edge cloud as highlighted in

the work package’s deliverables. Joint simulations were carried out by partners from

both continents to validate the proposed innovations.

D3.1: Architecture of mmWave edge cloud and requirement for control

signaling,

D3.2: Integration of mmWave edge cloud into 5G cellular networks,



5G-MiEdge

D3.3: Context information management to create traffic map for mmWave

edge cloud,

D3.4: User/application centric orchestration of mmWave edge cloud.

WP4

Based on the strong collaboration of partners from the two continents, this WP was

dedicated to the evaluation of the 5G system performance enhanced by the MiEdge

concepts using system level simulation tools and real world field tests for both indoor

and outdoor environments. For instance, contributors of Task 4.1 (EU: FHG, Intel,

URom; JP: TTech, PANA) jointly designed a common architecture for facilitating the

development of system level simulators in order to capture system relevant KPIs of

the typical use cases under investigation in the project. Furthermore, contributors of

Task 4.2 (EU: FHG, TI; JP: TTech, PANA, KLAB) coordinately developed

common/joint 5G MiEdge testbed for evaluating the project’s typical scenarios in real

fields, thanks to the many face to face meetings held, expertise exchanges and joint

experiments in Task 4.3 (EU: FHG; JP: TTech, PANA, KLAB). Such activities were

reported in the deliverables

D4.1: Performance evaluation of 5G-MiEdge based 5G cellular networks,

D4.2: 5G-MiEdge testbed integrating mmWave access, liquid RAN C-plane,

and user/application centric orchestration,

D4.3 (to be reported concurrently with this document): 5G-MiEdge field trials

integrated in 5G-Berlin testbed toward Tokyo Olympic 2020.

WP5

This work package aims to create awareness about the 5G-MiEdge project and its

specific objectives and technical results under the strong synergies of the consortium

as a whole. The achievements of the consortium were addressed in European, Japan

and international 5G research activities, research societies, industry fora, and

standardization and regulation bodies. Furthermore, partners of the project made large

efforts to maximize the ecosystem impact of 5G-MiEdge into both industrial and

scientific communities, via the organization of workshops and panels and the

publication of joint research papers whose authors come from both the European and

the Japanese partners, as explained in details in D5.3 (see below) and briefly

summarized in Sect. 2.3. WP5 entails the following deliverables:

D5.1: First report on dissemination, standards, regulation and exploitation

plan,

D5.2: Second report on dissemination, standards, regulation and exploitation

plan,



5G-MiEdge

D5.3 (to be reported concurrently with this document): Final report on

dissemination, standards, regulation and exploitation.

2.3 Ecosystem impact

One of the targets of 5G-MiEdge was to identify and contribute to international events,

venues, and public demonstrations that are relevant for the focus areas of the project.

Globally, 5G-MiEdge has aimed to interact with and affect the growing 5G ecosystem

in a diverse and heterogeneous manner, maximizing the size and the kinds of targeted

audience. In this section, we summarize the synergies and relevant interactions

between 5G-MiEdge and other research endeavors (collaborative projects and the

5GPPP community). More details on 5G-MiEdge’s disseminations activities, both at

an industrial and an academic level, are available in D5.3.

One of the 5G-MiEdge project goals is to establish links with other related

collaborative projects in the 5G ecosystem to have both a better knowledge of existing

solutions and to take advantage of possible advances in the considered fields. A special

care was spent on aligning the course of 5G-MiEdge with other funded projects

running in parallel (see Figure 1), so to avoid overlapping or leaving white spots, which

would reduce the impact of the project, and to foster synergies among projects working

on related areas.

Figure 1. Interactions of 5G-miEdge with the 5G Ecosystem.



5G-MiEdge

The interactions between 5G-Miedge and other projects, throughout the whole lifespan

of the project, are summarized in below.

Table 1: Interactions between 5G-miedge and other collaborative research projects

Project

Name Project website

Funding

Timeline Common topics

Cooperation

outcomes

5G-MiEdge+

N/A

JP MIC

30/9/2016 31/3/2019

5G Multi-RAT

Organization of Smartcom 2017,

F2F meetings,

Common booth at WTP2019

5G-Pagoda https://5g-pagoda.aalto.fi

EU H2020-JP

1/7/2016

30/6/2019

5G architecture

5GMF

F2F meeting,

Common booth at the Third Global 5G

Event 2018

Futebol http://www.ict-futebol.org.br

EU H2020-Br

1/3/2016

28/2/2019

mmWave for IoT

Industry and

Stakeholders panel at EUCNC 2018,

Participation to Futebol panel at

EWSN 2018

Superfluidity http://superfluidity.eu

EU H2020

(5GPPP Phase1)

1/7/2015

31/3/2018

Economic of 5G systems

Smartcom 2017,

Joint paper at WCNC 2018

SPEED-5G

https://speed-5g.eu

EU H2020

(5GPPP Phase1)

1/7/2015

31/3/2018

5G Spectrum

Workshop at EUCNC 2018,

SPEED-5G final workshop in UK

Flex5Gware http://www.flex5gware.eu

EU H2020

(5GPPP Phase1)

1/7/2015

30/6/2017

5G testbed

CLEEN 2017,

Workshops at EUCNC 2017

FANTASTIC-5G

http://fantastic5g.eu

EU H2020

(5GPPP Phase1)

1/7/2015

30/6/2017

5G air interface Participation to CLEEN 2017

5GEx http://www.5gex.eu

EU H2020

(5GPPP Phase1)

1/10/2015 30/6/2018

5G architecture Participation to CLEEN 2017

5G-Crosshaul http://5g-crosshaul.eu EU H2020

(5GPPP Phase1)

5G fronthaul/backhaul

5G architecture

Participation to CLEEN 2017



5G-MiEdge

1/7/2015

31/12/2017

COHERENT http://www.ict-

coherent.eu

EU H2020

(5GPPP Phase1)

1/7/2015

31/3/2018

Spectrum management,

heterogeneous radio access networks

Participation to CLEEN 2017

MiWaveS http://www.miwaves.eu

EU FP7-ICT

1/1/2014

30/42017

mmWave

technology

Workshops at

EUCNC 2017

5G CHAMPION

http://www.5g-champion.eu

EU H2020/KR

1/6/2016

31/5/2018

mmWave technology, 5G

testbed

Workshop at IEEE Globecom 2017,

Workshops at EUCNC 2017,

Panel participation to IEEE ICC 2017,

EuCNC 2018

VirtuWind http://www.virtuwind.eu

EU H2020

(5GPPP Phase1)

1/7/2015

30/6/2018

Economic of 5G systems

Workshop at EUCNC 2018

TWEETHER https://tweether.eu

EU

1/1/2015

1/9/2018

mmWave

technologies

Workshop at IEEE

WCNC 2018

ULTRAWAVE

https://ultrawave2020.eu

EU H2020

1/9/2017

31/8/2020

mmWave technologies

Workshop at IEEE WCNC 2018

mmMAGIC https://5g-mmmagic.eu/

EU H2020

(5GPPP Phase1)

1/7/2015

30/6/2017

mmWave

technologies

Workshop at

EUCNC 2017

2.3.1 MiEdge+

MiEdge+ is the sibling project of 5G-MiEdge, funded by the Japanese Ministry of

Internal Affairs and Communications (MIC), and for that it is expected that a very tight

interaction with the 5G-MiEdge project takes place. NICT, Panasonic and Tokyo Tech

are among the members of MiEdge+. This research project targets to virtually

construct location specific small area access networks operated by a micro operator,

especially under the consideration of roaming mobile terminals, which might join this

micro operator’s network. In addition to 5G access technology, MiEdge+ plans to

introduce edge cloud to simultaneously realize high data rate and low latency



5G-MiEdge

communications, so to support location specific applications, e.g., (foreign) audiences

at event sites such as at the Tokyo 2020 Games Olympic stadium.

Differently from 5G-MiEdge, MiEdge+ covers all kinds of 5G access technologies and

takes into account the interoperation of different micro operators, which might share

the same network infrastructure.

Since MiEdge+ is a sibling project of 5G-MiEdge, both funded by MIC from Japan

side, both projects are working together mostly in parallel and tight cooperation has

been achieved, especially on disseminating the research outcomes and in impacting

relevant standardization bodies. Further details on the relationship between 5G-

MiEdge and MiEdge+ can be found in Figure 2Figure 2. Cooperation between 5G-

MiEge and MiEdge+.

.

Figure 2. Cooperation between 5G-MiEge and MiEdge+.

For that reason, 5G-MiEdge participated to the Wireless Technology Park (WTP) 2019

event and disseminated its activities in the MIC area in a shared booth, where the joint

test-bed developed by the both projects was show-cased, and posters summarizing

common research achievements throughout the 3-year project period were shown (see

Figure 3).

The WTP is one of the biggest events in Japan focused on research and development

of wireless communication technologies, consisting of exhibition, seminars, and large

academic programs. WTP 2019 was organized at the Tokyo Big Sight and had more



5G-MiEdge

than 50000 attendees. It gathered the latest products and technologies which are

essential for research and development of wireless communications technology.

Under the main theme, “Shaping a new society with wireless technology – beginning

of 5G”, WTP2019 features the 5th Generation Mobile Communication System, the

most advanced technologies for mobile communication, and introduces various

wireless technologies applicable to the Internet of Things (IoT), as shown in several

other events, like the “5G Tokyo Bay Summit 2019”, the “Flexible Factory Project”,

etc.

Figure 3. 5G-MiEdge and MiEdge+ joint booth in WTP2019.

2.3.2 5G! Pagoda

5G! Pagoda (Federating Japanese and European 5G Testbeds to Explore Relevant

Standards and align Views on 5G Mobile Network Structure Supporting Dynamic

Creation and Management of Network Slices for Different Mobile Services) and 5G-

MiEdge are twin projects, selected by the same EU-Japan joint call, under the same

topic of “5G: Next Generation Communication Networks (EUJ-01-2016)”, funded by

the European Commission (EC) under the Horizon 2020 research and innovation

programme and by the Japanese MIC as Strategic Information and Communications

R&D Promotion Programme (SCOPE).

The two projects have been collaborating tightly with each other to create synergies,

with 5G!Pagoda mainly focusing on 5G networks, and 5G-MiEdge on 5G access. The

overall objective of 5G!Pagoda is standardization and verification of End-to-End (E2E)

network slicing technologies through EU/Japan collaborative R&D efforts. On the



5G-MiEdge

other hand, 5G-MiEdge project has developed application centric RANs by combining

mmWave access and edge computing, to satisfy extreme requirements on high data

rate and low latency, needed in specific scenarios such as the 2020 Tokyo Olympic

Games and automated driving.

During the 3-year period, the two projects complemented each other, where experts of

each project joined the general assembly of the other. Based on the discussions held,

we concluded that the technologies of the two projects can be compensated for each

other, e.g., 5G-MiEdge is able to provide MiEdge enabled RANs to 5G!Pagoda, so to

meet the requirements set by the chosen applications, whereas 5G!Pagoda is able to

provide E2E networks to 5G-MiEdge to realize E2E slice for specific applications

including inter-continental MEH migration (for more details see [D4.3]).

One symbol of the collaboration between both projects was that we co-organized a

joint exhibition booth at the Combined Exhibition of Advanced Technologies

(CEATEC) JAPAN 2018 in the ARIB area, to showcase both novel wireless and wired

network technologies, and the possibility for future further collaboration among the

partners of the two consortia, as shown in Figure 4.

Figure 4. 5G-MiEdge and 5G!Pagoda joint booth at CEATEC2018.

CEATEC JAPAN 2018 celebrated its 19th anniversary by announcing its

transformation from a consumer electronics show to a comprehensive Cyber-Physical

Systems (CPS) /Internet of Things (IoT) exhibition, and a driving force for social

transformation. Continued as a global showcase for Japan’s growth strategies and

vision of the future known as Society 5.0, the theme for 2018 was “Connecting Society,

Co-Creating the Future” to go beyond the boundaries of the industry by effectively



5G-MiEdge

integrating policies, industries and technologies. The exhibition showcased and

disseminated “the future that will be realized with Society 5.0” where IoT, robots and

Artificial Intelligence (AI) will all play important roles. A total of 725 exhibitors

(exhibitors from overseas: 206 from 19 countries) displayed their technologies at 1,786

booths. The number of visitors over the four-day period was 156,063, with an average

of 39,016 visitors per day representing the fifth largest attendance in CEATEC JAPAN

history.

2.3.3 5G PPP community

In addition to the tight collaborations with the sibling Japanese projects, 5G-miEdge

actively participated also to some of the most important European ecosystem

strengthening ongoing activities. The most important of such activities targets at

synergizing and aligning the work of the several funded projects under the numerous

funding calls of H2020. For that purpose the 5G PPP association, a joint initiative

between the European Commission and European ICT industry [5G PPP], organized

a set of activity groups, focusing on specific aspect of the collaboration among

different projects.

5G-Miedge personnel, especially Intel delegates, regularly attended on behalf of the

project some of the most relevant 5G PPP Work Groups (WG), proposing contribution

and monitoring the activities. Among the 5G PPP WG that 5G-MiEdge interacted with

are:

- COMM WG,

- Vision WG.

The former has the target of aligning and sharing all the relevant dissemination

activities (papers, panels, workshops, special session, etc.) among the research

community. 5G-miEdge took the opportunity to inform the community of most of its

dissemination activities taking part to the monthly telco organized by the WG

coordinator.

The latter is composed of three subgroups and targets to provide a tighter impact on

the forthcoming structure of the European funded projects calls. 5g-MiEdge

contributed in the discussion highlighting some key forthcoming technology enablers

for a more effective 5G deployment, specifically pointing at the needed synergy among

new or enhanced access technologies (mmWave) and edge computing.



5G-MiEdge

3 Business aspects

This section elaborates on some key aspects to analyze and take into consideration

when a new technology is to be launched in an existing market. The three subsections

that this section entails focus on the stakeholder analysis of a forthcoming 5G system,

a SWOT analysis on the proposed use cases of the project and finally on a techno-

economic evaluation of the impact of the 5G-MiEdge proposed technologies on some

selected most important use cases. Finally also a survey of other similar work done by

other research project is provided, so to better frame our work in the bigger context of

the ongoing results in the 5G ecosystem.

3.1 Updated analysis of 5G system stakeholder

In the first study we concluded in deliverable D1.2 on the 5G stakeholder analysis

[D1.2], we assumed that after 18 months an update would have been due, following

the planned launches of commercial services by the end of 2018, as announced in early

2018 by several operators and equipment providers.

In reality, the availability of real 5G mobile terminals, equipment and services is just

starting to happen as of June 2019, in very few countries in the world, as explained

further below.

As a consequence, and as a matter of fact, the mentioned shift of commercial launches

of 5G networks worldwide doesn’t allow for an update of the stakeholder analysis.

Such analyses could have been updated following the first reaction of the users to the

offers in the market, and the appearance of so called ‘newcomers’ (i.e., companies not

involved in previous launches of cellular networks). As that is not yet the case, there’s

no real new material to perform an updated stakeholder analysis on.

In fact so far now (i.e. in June 2019) 5G operators which launched mobile 5G services

are too few, serve a too limited part of the population (in the order of a few hundred

worldwide) to draw any significant impact of the new technology and the most

advanced ones are operating in countries where there are no 5G-Miedge project

partners, e.g. in Korea.

In the following section we provide an updated (till mid of June 2019) survey of the

status of the 5G commercial deployment in all the main countries where 5G-miEdge

partners are based, and then provide a more general overview of the status in all the

other countries in the world.

3.1.1 Current status of 5G commercial networks in countries of interest for

the project partners

We base the data here reported on personal surveys run by project partners and on the

updated and latest info on 5G availability that one can find in the web page “Lifewire”

[Lifewire], a well know blog where in real time the 5G deployments are reported and

analyzed.



5G-MiEdge

3.1.1.1 Germany

In Germany the auction of 5G spectrum has finally just ended on June the 13th 2019

(it started on the 19th of March 2019), bringing to the German state something like 6.6

Billion €. With its almost 500 rounds (actually 497), that has been the longest auction

for mobile spectrum bands in the history of Germany. At the end four companies, i.e.,

Telekom Deutschland GmbH, Vodafone GmbH, Telefónica Germany GmbH & Co.

OHG (O2), and the newcomer Drillisch Netz AG (1&1), have been granted the usage

of 5G spectrum for the two spectrum blocks around 2 Gigahertz and around 3.6

Gigahertz.

Notwithstanding the conclusion of the auction, it does appear realistic to think that real

commercial services will not start before 2020, most probably in the second half of the

year for a significant number of users.

3.1.1.2 USA

The allegedly already started launch of 5G in USA by Verizon in Q4 2018, known

commercially as ‘5GE’ (also known as ‘5G Evolution’), in reality turned out to be

AT&T's branding for its latest set of LTE enhancements, such as 4X4 MIMO, 256

QAM, and three-way carrier aggregation. According to The Verge [VERGE] the 5GE

logo shows up on the iPhone XS, XS Max and iPhone XR, and 5G Evolution

connections can reach "average real-world speeds of around 40Mbps," — which isn't

as fast as the 53.3Mbps rates that Verizon's 4G LTE networks hit in Tom’s HW wireless

network testing [Tom’s HW].

As a matter of fact, real mobile 5G services have only very recently been launched in

USA by Verizon, AT&T and Sprint, for selected customers and in few cities. There’s

also the possibility to subscribe to a 5G fixed wireless broadband network from

Verizon, Starry and C-Spire.

3.1.1.3 Italy

In Italy Vodafone has just launched the first 5G commercial services in June 2019 in

five cities, namely Naples, Bologna, Milan, Turin, and Rome [VDF]. The other Italian

operators plan to lunch 5G services along 2019 in the next months. In particular TIM

plans its launch of 5G between June and July 2019 [TIM].

3.1.1.4 France

According to a survey we conducted of the official statements of the French operators,

apparently no one has yet managed to launch 5G mobile commercial services, which

are never the less expected to be launched before the end of 2019.



5G-MiEdge

3.1.1.5 Japan

In Japan, the MIC has started to allocate spectrum for 5G since Apr. 10th, 2019 [MIC

2]. Four operators, i.e. NTT Docomo, KDDI (KDDI and Okinawa cellular), Softbank,

and Rakuten, were selected to be eligible to start 5G services with strict conditions

such as area penetration rate of more than 50% in 5 years. The allocated spectrum for

each operator i shown in Figure 5. There are three bands for 5G in Japan, namely

3.7GHz, 4.5GHz, and 28GHz bands. Focusing on the 28GHz band, four 400MHz TDD

channels are allocated to the four operators, respectively. The selected operators will

launch the 5G service in Q1 2020 (Rakuten has plan to launch Q2 2020). Based on the

proposal from four operators, the number of base stations to be deployed in 28GHz

band is 5,001 by NTT Docomo, 12,756 by KDDI (project partner of 5G-MiEdge),

3,855 by Softbank, and 7,948 by Rakuten. These numbers are excluding base stations

for indoor purposes.

2020 is the birth year of 5G in Japan, and exciting 5G services will be provided in

Tokyo Olympic Games seasons through mmWave communications enhanced with

edge computations.

Figure 5. 5G spectrum allocation in Japan.

Moreover, the MIC has plan to regulate spectrum for local (unlicensed) 5G as shows

in Figure 6. This band is planned to be used in local operators to provide location

specific services such as e-stadium, remote construction, smart factory, smart

agriculture, etc. As a kick-off of the local 5G, 100MHz band from 28.2GHz to

28.3GHz is planned to be regulated in 2019 for indoor purposes such as Omotenashi

service.

The 5G-MiEdge project members have been contributing to this regulation

participating as committee members of the working group set up by the MIC.



5G-MiEdge

Figure 6. Plan of local 5G in Japan [MIC].

3.1.1.6 Worldwide overview - All other countries

Taking into consideration the worldwide current status of 5G deployment, it appears

that in very few countries a user can pay and have access to a 5G mobile service.

According to the Wikipedia page [WIKIPEDIA], which is an independent entity and

is constantly kept updated following the latest news from operators worldwide, the

only counties that have launched as of June 2019 some sort of a commercial 5G mobile

service, though in very limited areas and for very few people, are:

- Austria,

- Estonia,

- Italy,

- South Korea,

- The Switzerland,

- UK,

- USA,

- Uruguay.

3.1.2 Conclusion

The deployment of 5G network is still in its infancy and the current lack of stable and

numerous 5G commercial networks doesn’t provide any new data compared to what

we elaborated in the previous deliverable [D1.2]. In conclusion we can only re-state

the outcome of the previous analyses, leaving for mid of 2020, when most of the

countries will see an initial deployment of 5G networks, a possible update on the 5G

stakeholders analysis.



5G-MiEdge

3.2 Updated analysis of use cases SWOT

As only a very limited number of 5G services are commercially available in June 2019,

as already explained in the previous Section 3.1, the update to the SWOT analysis

results in just adding some comments to the SWOT analysis reported in Deliverable

D1.2 [D1.2].

3.2.1 2020 Tokyo Olympics Games

When this project was introduced in 2016, the Tokyo Olympic Games in 2020 were

already a very interesting topic, yet difficult to characterize. To better tame the

complexity of the event, we split this very broad use case into two separate sections,

the 5G-MiEdge information shower, which is detailed in Table and the 5G-MiEdge

Stadium, shown in Table 3.

The tables below show the analysis we conducted at the time this project was started

(2016) and were updated with a few added points we were able to identify during the

runtime of the project. According to these tables, we developed ideas and strategies to

satisfy the upcoming demands in data rate, edge computing and increased carrier cell

density.

Table 2: SWOT analysis of 5G-MiEdge information shower

Strengths Weaknesses

Compatible with the target data rate

mmWave technology enables to focus

the data transmission to a single user

passing the gate

MEC enable customized content

delivery

Data transmission transparent to the

user

High expertise in antenna design with

strong beam-forming characteristics

Optimal deployment is still challenging

Sensitive to blockage due to obstacles such

as human body

Opportunities Threats

Reducing the stress for the transport

network

Customized content may include

advertising, promotions, security

messages

Measure developed antennas, deploy in

test installations

mmWave technology needs to be adopted

and broadly integrated in future terminals

The 5G-MiEdge information shower is one of those design concepts, covering narrow

passages like hallways or entrance gates like in stadiums and making use of caching

and pre-fetching techniques to deliver large amounts of data to the users passing

through.

For this, we simulated and developed a highly focused antenna with almost 40 dBi

gain that can provide the necessary coverage and throughput in those areas. During the



5G-MiEdge

project duration we were able to perform sophisticated measurements to confirm this,

see [D4.2] for more details.

Therefore, we believe that our simulations and development of this antenna greatly

benefited the project.

Table 3: 5G-MiEdge Stadium



mmWave technology enables to focus

the data transmission to a single user

passing the gate

MEC enable customized content

delivery

High expertise in antenna design with

strong beam-forming characteristics

Simulation of scenarios, investigating

specified KPIs



as human body

Highly dynamic and unpredictable

movement of users


Reducing the stress for the transport

network

Customized content may include

advertising, promotions, security

messages

Making use of high data rate and low

latency communication for live

transmission in all possible angles

mmWave technology needs to be adopted

and broadly integrated in future terminals

Another use case in the stadium is the viewing area. There are huge crowds of people

standing or sitting in the arena, all focusing on the activities there. With the currently

used High Definition (HD) cameras, static, movable and even mounted on drones,

there is a huge amount of data available from the event that can be made accessible to

the user, to e.g. replay scenes from another angle. This can be enabled by using multi

access edge computing for data caching, video transcoding and high data rate mmWave

links.

However, due to the architecture of a stadium and the dynamics of such events, there

is a lot of fluctuation in the viewing area. People stand up, fetch a drink or wave flags.

Camera posts are often movable. Therefore, there will be random blockage of links,

ranging from milliseconds to minutes. While very short interruptions can be mitigated

with, e.g., transmit buffers, the longer ones need to be addressed differently. After

conducting extensive simulations on multi-link communication with different numbers

of links and different blocking timeouts, we believe that multi-link communication is

a promising way to avoid link blockage in such use cases.



5G-MiEdge

3.2.2 Automated driving

Table 4 here below reports the SWOT analysis for the Automated Driving use case.

Table 4: SWOT analysis of automated driving in 5G



mmWave technology enables a dense

deployment

MEC can improve the quality and

reliability of collected sensor data

Low latency times enable a real-time

collection of sensor data coming from

all vehicles in the area



as human body


Huge market opportunities in the

automotive market

Being able to develop a reliable technology

for the automotive market

Adoption of vehicle manufacturers of the

V2X technology

The automated driving use case has recently attracted a lot of attention within 3GPP,

which was no foreseeable at the beginning of the project. We believe that at an early

stage we provided very valuable ideas and concepts, which are now also reflected and

concretized in the standardization. Furthermore, we conducted measurements on V2X

communication with multi-access edge computing to aggregate sensor data and

transfer it to the vehicle, as described in more details in [D4.3].

3.2.3 Omotenashi services

Table 5 here below reports the SWOT analysis for the Omotenashi use case.

Table 5: SWOT analysis of contents delivery with mmWave and MEC


Less than 1/10 download time

Low cost deployment by mmWave

mesh backhaul

Capability of site specific target

marketing and advertising

Narrow area coverage of mmWave access


as human body


Continuous increase of data size (such

as 4K/8K videos)

Limited throughput in existing wireless

solutions (Wi-Fi, LTE etc.) especially in high user density area

Emergence of new wireless standards (such

as IEEE 802.11ax), which may achieve

significant throughput improvement even

in high user density area



5G-MiEdge

Omotenashi services are designed to deliver high amounts of data to each individual

user. They take into account a high density of users as well as APs. The services can

largely take advantage from mmWave backhaul technology to transfer data between

those APs, MEC to cache/pre-fetch and compute user data and, similar to the stadium

use-case, multi-link communication to reduce the risk of blockage. Table 5 reflects

these aspects, and we have strongly benefited from this analysis at the beginning of

the project.

3.3 Techno-economic evaluation

This section is composed of two main parts. In the first one an overview of techno-

economic analysis of other research projects, working on areas related to 5G-MiEdge,

is provided. In the second part a business model analysis, with CAPEX/OPEX

discussion is performed on some most promising use cases, as identified by the 5G-

MiEdge consortium.

3.3.1 Survey of other research projects’ techno-economic analysis

This section reports a summary of the activities on techno-economics carried out by

other 5G PPP Phase 2 projects. The considered projects are a subset of those that have

some correlation with the topics dealt by 5G-MiEdge and reported in section 2.2.3.2

of deliverable D2.1. The choice of the projects has been driven by the availability of

public documents on techno-economics aspects.

3.3.1.1 5G-CORAL

The 5G-CORAL (a 5G convergent virtualized radio access network living at the

edge) project [5G-CORAL] aims at delivering a convergent 5G multi-RAT access

through an integrated virtualized edge and fog solution that is flexible, scalable, and

interoperable with other domains including transport (fronthaul, backhaul), core and

clouds. Among the several KPIs that can be achieved through the 5G-CORAL solution,

it has to be highlighted the ultra-low E2E latency in the order of milliseconds. This

low latency target, obtained also through Edge computing, represents the main contact

point with 5G-MiEdge.

According to 5G-CORAL it is foreseen that a big investment for deploying and

managing the Edge and Fog infrastructure is needed to realize the expected

performance improvement. In order to understand if the Edge and Fog services could

be a great business or not, the project started providing an overview of the cloud

computing and the key business models based on the Anything as a Service (XaaS1).

This because the Edge computing is complementary to cloud computing (Edge

1 This acronym include the three fundamental service model of cloud computing: IaaS – Infrastructure

as a Service, SaaS – Software as a Service and PaaS- Platform as a service.



5G-MiEdge

computing pushes some computations and storage capabilities, at smaller scale than in

Cloud Data Centers, to the Edge of the network). The focus has been on two relevant

stakeholders of Edge computing: Cloud providers and telecom operators, who have

shown great interest in running Edge computing related businesses in different ways,

also focusing on different areas. Cloud providers are mainly addressing the emerging

IoT area and intend to provide extensions to their Cloud services by providing Edge

software stacks, while telecom operators want to reuse their base station and central

office sites to host Edge Cloud services both for internal Virtual Network Functions

(VNFs) and 3rd-party applications based on a Platform-as-a-Service (PaaS) model.

Cloud providers take Edge as an extension of their Cloud services, especially targeting

IoT applications. Unlike the Cloud case where they own data centers, Cloud providers

typically don’t have access to edge premises and have no intention to pay for that either.

Instead, they focus on developing software stacks (e.g. AWS Greengrass and

Microsoft Azure IoT edge) and let other players install the software at the Edge

infrastructure. The PaaS model is used to run edge services. Such software stacks at

the edge are also integrated with their Cloud services, which would help to grow their

Cloud business. As an example, a detailed analysis of AWS Greengrass is provided.

Telecom providers take Edge as an opportunity to enrich their services, not only

providing connectivity services but also high-value services such as Augmented

Reality (AR), Virtual Reality (VR), Connected Cars etc., which are enabled by

providing the services at the Edge. In addition, telecom operators can reuse their base

station sites and Central Offices (CO) sites to provide IaaS and PaaS to host the

services of other players at their edge infrastructure. All these will bring new revenue

streams which may significantly contribute to operators’ growth, while the revenue

from connectivity services may get flattened in the future.

After this introductory part, a new ecosystem of Edge and Fog has been analyzed

for a single-domain scenario, identifying nine roles and their relationship. Nine roles

(Edge & Fog system provider, Edge & Fog site owner, Edge & Fog hw vendor,

connectivity provider, Edge & Fog system sw vendor, Edge & Fog application service

sw developer, Edge & Fog application service end-user, cloud provider) and their

relationships are presented. In the ecosystem, the Edge and Fog system provider takes

the central role of the 5G-CORAL.

To understand the business case for the Edge and Fog system provider, the business

model Canvas was applied for the analysis. It shows the business feasibility of the

Edge and Fog system provider to run the Edge and Fog system (i.e. the 5G-CORAL

system) providing PaaS (and/or IaaS). The value proposition is definitely strong with

the features of low latency, traffic offload etc. where the Edge and Fog system can

offer services that Cloud can’t provide and enhance the existing services while keeping

the advantages of PaaS and IaaS, e.g. pay for usage.

After these investigations, the project provided the business model analysis for the

seven 5G-CORAL use cases: Multi RAT IoT, Cloud Robotics, Connected Cars, High

Speed Train, Augmented Reality navigation, Software Designed WAN, Virtual Reality.

The analysis has been performed from the service provider’s perspective using the tool

of the business model Canvas. The service provider runs SaaS on top of the Edge and

Fog platform provided by the Edge and Fog system provider.



5G-MiEdge

Such analysis highlights the business feasibility of each use cases, which reflects the

fact that there will be a lot of Edge and Fog services which can find their business

cases, like today’s cloud application and services.

The main conclusion of the 5G-CORAL analysis is that Edge and Fog systems bring

advantages that give the potential to establish a new business ecosystem that can be

shaped for different use cases such as multi-RAT IoT, Software-Defined Wide Area

Networks (SD-WAN), Connected cars, high-speed train, AR Navigation, VR and

Cloud robotics. The Edge and Fog system provider will be one of the most important

roles to foster these ecosystems. It is likely that they will use a PaaS based business

model and they will have contacts with hardware vendors, site owners and connectivity

providers to set up the infrastructure and with system software vendors to establish the

platform for applications. They will also have a close connection to the

application/service providers who utilize the platform to get applications from

application/service software developers and who can offer the application and services

to the end-users. It will be possible for different players to take on the role of a system

provider. It is also possible that one player takes on several roles. Looking at the

business landscape as of today the two most likely players to take on the role as a 5G-

CORAL system provider is a Cloud provider or a telecom operator. The Cloud

provider can leverage on their expertise of Cloud platforms and software but they lack

the locations close to the customers. Therefore, it is likely that they will focus on

delivering platform software and let another player run the infrastructure and local

installation/maintenance. The operator on the other hand can leverage on their network

that covers many sites and locations where they are close to the end-users. By

extending existing sites with Edge capabilities that can host a 5G-CORAL system they

have the possibility to take an important part of the business potential. For more

information one may consult [5G-CORAL D1.2].

3.3.1.2 ONE-5G

The ONE5G (E2E-aware Optimizations and advancements for the Network edge

of 5G New radio) project [ONE5G] has the overall goal to design the evolution of the

5G system and build consensus in 3GPP on the proposed promising extensions beyond

Release 15, in order to meet the demands of megacities and underserved areas in a

performance and cost efficient manner. In order to meet the requirements of such

scenarios, the project proposes advanced link technologies and enhancements beyond

Release 15 to enable multi-service operation and practical implementation of ’5G

advanced (pro)’, with future-proof access schemes, advanced massive MIMO enablers

and link management. Highly performance optimization schemes are investigated also

with respect to the E2E user experienced performance. Both the high E2E user

experience and the massive MIMO are topics touched by 5G-MiEdge.

In ONE5G, the aim of developing a flexible air-interface able to be efficient in both

megacities and underserved areas scenarios comes with the objective of identifying

the cost driving elements for the roll-out and operation of systems in such scenarios.

Business considerations and techno-economic analysis of such unique and complex

networks is of greatest importance, as it assesses the economic viability of new

services, not provided by previous cellular networks. ONE5G performed then a

preliminary qualitative analysis of a selected set of use cases considering a



5G-MiEdge

representative set of 5G vertical applications and services while balancing the

coverage of both megacities and underserved areas scenarios.

The selected four use cases are: Assisted, cooperative and tele-operated driving, Smart

cities, Long range connectivity in remote areas, Ad-hoc airborne platforms for

disasters and emergencies. The selection of the use cases to be studied in the techno-

economic analysis was realized considering the need to keep a strong emphasis on 5G

vertical applications while properly balancing between megacities and underserved

areas scenarios. The representation of the three categories of services targeted by 5G

(e.g. eMBB, URLLC, mMTC) was taken into account. The general guidelines for C-

RAN deployments are noted as per the 3GPP recommendation and the related

Fronthaul and Backhaul cost models are developed in line with the work done in

mmMAGIC project. The Automotive and Drone based D&E communications use case

studies indicate how the C-RAN options are utilized in their respective analyses. The

overall costs of including the proposed MEC servers in the Automotive use case and

the Fronthaul and Backhaul costs in relaying the Drone RRH traffic are directly

impacted by the C-RAN options. The Smart city and Long range connectivity use cases

detail the overall deployment models and options they investigate and the plans to

align with the suggested C-RAN options.

Even if only qualitative techno-economic assessments are available, we report

hereunder the results concerning the use case closer to those analyzed by 5G-MiEdge

that is “Assisted, cooperative and tele-operated driving”, characterized by strict delay

requirements. The capital needed to invest (CAPEX) in both C-RAN and D-RAN

deployments will be directly dependent on the number of sectors aggregated by either

the MEC node or the CU, besides the number of sectors per site. Therefore, the capital

invested will be amortized to a greater extent as the number of sectors increases.

In addition, for C-RAN deployments, the split option performed in the protocol stack,

will affect CAPEX since a higher level of centralization will allow reducing the costs

derived from dedicated hardware equipment. So that, comparing the CAPEX costs of

a centralized versus distributed network, these will be more similar as the split option

becomes higher. So C-RAN scenarios with high-layer split will have similar costs as

a fully distributed scenario since they share a lot of similarities as just the PDCP layer

is centralized.

In C-RAN deployments, the operating cost (OPEX) will increase slightly compared to

a distributed topology since a new connection is required to connect the RRHs/RUs

with the CU. This connection, named as fronthaul network, will be based on fibre of

greater or lesser capacity depending on whether the split is lower-layer or higher-layer,

respectively. On the other hand, there is an OPEX reduction related to hardware

footprint reduction in the site, compared to D-RAN deployments, especially in leased

rooftops. Moreover, site maintenance expenses should be reduced since the majority

of hardware’s failures are the BBU, i.e. better failure detection and less outage time

occurs in C-RAN deployments. The MIMO order and the bandwidth considered in

both scenarios will affect just the operating costs (OPEX). High MIMO orders and

bandwidth would increase fronthaul (C-RAN) and backhaul capacity (C-RAN, D-

RAN), producing an increase of the fibre costs.

Finally, in rural areas where robustness and availability are sought before increasing

capacity since no high orders of modulation and/or MIMO are envisioned, the costs

derived from these technologies will not have much weight on OPEX total. However,



5G-MiEdge

these areas have the disadvantage of the smaller number of aggregated sectors by the

CU and sectors per site to amortize expenses.

The qualitative techno-economic studies will be extended to quantitative assessments,

which can demonstrate the likely costs with more realistic deployment assumptions.

[ONE5G D2.2].

3.3.1.3 5G-CAR

The 5G-CAR (Fifth Generation Communication Automotive Research and

innovation) project [5G-CARhttps://5gcar.eu/] develops an overall 5G system

architecture providing optimized E2E Vehicle-to-X (V2X) network connectivity for

highly reliable and low-latency V2X services, which supports security and privacy,

manages quality of service (QoS) and provides traffic flow management in a multi-

RAT and multi-link V2X communication system. Also the demonstration and

validations of the developed concepts and evaluation of the quantitative benefits of 5G

V2X solutions using automated driving scenarios in test sites are foreseen.

5G-CAR is focused on automotive and, as a consequence, is investigating low

latency solutions for V2X communications. Since also one of the use cases considered

in D1.1 by 5G-MiEdge is the “Automated driving”, the results of 5G-CAR could be

of interest for 5G-MiEdge.

The results of the investigations of 5G-CAR on business model are summarized here.

The business models study analyses how 5G could enable new business models, based

on new technologies and features of 5G.

Three main areas of services have been used as a base for the investigation:

- Existing services,

- Autonomous driving features,

- Convenience services.

The study has found that for most of the services under these three categories, 5G will

provide enhanced functionality that could contribute to an increased service value.

That value could be generated by, e.g., a guaranteed QoS, more efficient delivery of

high data volumes, lower latency – enabling new types of services.

Technological components new in 5G have been analyzed and evaluated in how they

could impact the business models. The study has found that some new 5G technologies

have the capacity to disrupt current eco-systems and value chains while other

technologies will enhance existing business models. Other aspects not immediately

related to 5G, but necessary to understand to get a complete picture of the total value

chain, have also been investigated (e.g., roaming and inter-operator cooperation,

profile and SIM card provisioning). Elements such us the provision of the connectivity,

the continuity of the service in roaming and coverage availability are crucial and may

lay on the line any new business. It is evident that 5G in itself will not generate new

business model opportunities without the surrounding connectivity service eco-system

and technologies also being developed to support new service delivery models.

https://5gcar.eu/



5G-MiEdge

Finally, in order to highlight the impact from a business model perspective of the

arrival of 5G into the vertical Automotive, two representative applications have been

selected, namely:

- Over the air updates,

- Autonomous driving.

The applications study considers a number of actors and describes how the actors’

relationships may evolve over time. Both services have been used as models to analyze

how the value chain and business model could develop over time as services and

technologies evolve. It is clear that 5G could have a major impact in enabling new

features in these services, and also enable new value chains. The study finds that value

chains will change from being fairly linear with traditional customer/supplier roles, to

being more dynamic and network oriented. An effort to explore the financial business

cases has been performed in the analysis of 5G V2X deployment costs. This analysis

indicates that a positive business case for CAD (HD map services) can be found, even

if penetration of CAD enabled vehicles and infrastructure grows slowly over time [5G-

CAR D2.2].

3.3.2 Business model analysis with CAPEX / OPEX discussion

In this subsection we perform a business model analyses and a CAPEX/OPEX

discussion for the three selected scenarios Omotenashi services, Stadium, and

Automated driving.

To analyze business perspectives, we use the methodology known as Business Model

Canvas (BMC), shown in Figure 7, which visualizes business model elements and their

interrelationships. The BMC method consists of nine building blocks, as better

explained here below.

1. Customer Segments: Who are the customers? What do they think? See? Feel?

2. Value Propositions: What’s compelling about the proposition? Why do customers

buy, use?

3. Channels: How are these propositions promoted, sold and delivered? Why? Is it

working?

4. Customer Relationships: How do you interact with the customer through their

‘journey’?

5. Revenue Streams: How does the business earn revenue from the value

propositions?

6. Key Activities: What uniquely strategic things does the business do to deliver its

proposition?

7. Key Resources: What unique strategic assets must the business have to compete?

8. Key Partnerships: What can the company not do so it can focus on its Key

Activities?

9. Cost Structure: What are the business’ major cost drivers? How are they linked

to revenue?



5G-MiEdge

Figure 7. Business Model Canvas [BMC].

3.3.2.1 Omotenashi services

The goal of Omotenashi services is to make the customers satisfied by providing ultra-

high-speed content download and/or massive video streaming, which are adjusted to

customer needs. In project Deliverable D1.1 [D1.1], we selected three locations

(airport, train station and food court) as typical scenarios wherein achieving high-speed

wireless access is very challenging due to high user density.

Figure 8 shows the overall system architecture we take into consideration in this

analysis, assuming an airport scenario. The MiEdge RAN consists of MEC servers,

local storages and WiGig signages. To achieve ultra-high throughput, the system

combines mmWave access with MEC, which enables to pre-fetch the most popular or

requested contents to the local Edge server. Running analytics on the MEC servers

makes it possible to learn, locally, which are the most popular contents across time, in

order to optimize the pre-fetching step. The MEC analytics can also be utilized for

target marketing and advertising, which can be an additional revenue stream obtained

from stores/retails in the specific location.



5G-MiEdge

Figure 8. Overall system architecture [D1.3].

Since multiple stakeholders are involved in the ecosystem, there are many possible

business models. Here we assume that the MiEdge RAN is owned by a non-3GPP local

operator. The local operator interworks with the 3GPP network operator to exchange

context information as explained our previous Deliverable [D1.3]. In the following, a

business analysis is performed from the view point of the local operator, which takes

the central role of the MiEdge RAN platform.

Business model canvas

As explained earlier, the BMC is analyzed from the local operator point of view. The

result comes out of a brainstorming session among all the project partners during a

consortium meeting general assembly and is shown in Figure 9. Further explanations

for each building block are provided in the following.

Clou d

Liqu id-RAN

Edge cloud CDN(Data pre-fetch ing )

Airp o rt

Ga te-A

M iEd g e RAN

MEC (MEH)

MEC (MEH) MEC (MEH)

m m W ave access

Ga te-BW iGigSig n a g e



5G-MiEdge

Figure 9. Business Model Canvas for Omotenashi services.

1. Customer Segments: The content delivery service provider (such as Netflix,

Amazon, Hulu, etc.) is the main customer, since it obtains full benefit of high-

speed access to expand its business.

2. Value Propositions: Ultra-high-speed content download and/or massive video

streaming are the main value propositions, especially for content delivery service

providers.

3. Channels: the value propositions are delivered mainly through the Edge could

network using APIs, Apps, and websites.

4. Customer Relationships: The customer relationships are maintained through

direct sales and online/offline support. The management data and the context

information can be used to improve quality of customer support, by providing

quick feedbacks. Some of the data can be accessed by the service providers, a

feature that helps early detection of problems to improve their service quality.

5. Revenue Streams: Main source of revenue will be from service providers, who

make profit by providing content delivery services to end users.

6. Key Activities: System integration requires both hardware and software

development. Network maintenance and service provisioning are main activities

to maintain and update the service based on the feedbacks from customers.

7. Key Resources: Software developers and system integrators develop the overall

platform, which includes infrastructure and software as key assets. Patents are

essential to protect own business from competitors.

8. Key Partnerships: Hardware venders develop the hardware that meet the

specifications based on the system integrators’ requirements. The content delivery

Key Partners Key Activities Value Propositions Customer Relationships

Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

• Ultra-high speed contents download

• Massive video streaming

Apps/Service providers• Content sales (revenue share)

• APIs

• Apps/service providers(Netflix, Amazon, Hulu etc.)

• Direct sales• Customer support

(online and offline)

• Provide accessibility to some of the database (ex. Apps/service providers are allowed to access to some of the context info)

• System integration (hardware and software development)

• Network maintenance• Service provisioning• Marketing

• Software developers• System integrators• Infrastructure• Software• Patents

• Hardware vendors• CDN (content delivery

network) providers• ISPs• Apps/service

providers

• Infrastructure (hardware and software development, system integration, initial hardware installation)

• Platform maintenance



5G-MiEdge

network (CDN) providers and internet service providers (ISPs) will be the key

partners to realize an efficient content distribution from the cloud to the Edge.

Apps and service providers develop and offer services to end users.

9. Cost Structure: Main costs comprise the infrastructure deployment and platform

maintenance.

Key Players

To better visualize the business model, Figure 10 shows the service and cash flow

among key players. We assume the local operator runs the MiEdge RAN platform.

APIs and context information are provided to application/service providers who offer

the content delivery service to end users. In addition to their original contents, the

application/service providers may purchase contents from content owners to expand

their content lineup. The revenue will be shared among the local operator,

application/service providers and content owners.

The local operator interworks with the Mobile Network Operator (MNO) as a partner

to seamlessly transfer the context information. The local operator may pay for CDN

providers and ISPs, which are not shown in the figure for simplicity.

There are two possibilities for cash flow with location owners:

- In Case 1, the location owners simply rent a space for installing the hardware,

like a vending machine business model,

- In Case 2, the location owners invest part of installation cost to provide high

quality services to their location visitors.

This is justified for the location owners since increasing visitors’ satisfaction and

obtaining high ratings (for example the SKYTRAX [SKYTRAX] application for

airport rating) are essential for location owners. Improving visitors’ satisfaction is also

attractive for shops/retails who are renting space form the location owners. The

application/service providers can also provide target marketing and advertising for

shops/retails to increase their revenue.



5G-MiEdge

Figure 10. Key players of the Omotenashi services use case.

CAPEX/OPEX

We estimate CAPEX/OPEX expenditures taking into consideration two cases, one

assuming 10 sites and the other one assuming 50 sites. The following Table 6

summarizes the derived results. CAPEX is assumed as €30k per site, including a

WiGig signage, a MEC server and a local storage. The fiber installation cost is not

taken into consideration as the existing fiber network is supposed to be already

available and ready to be used in most locations (which is more and more often the

case in major Japanese, Korean and Chinese cities). In order to create an estimation as

close as possible to a real case, we took the real number of gates at Haneda

international airport and Narita international airport, which are 46 and 68, respectively.

Therefore, 10 sites will be sufficient for initial service introduction, which would then

cost about €300k CAPEX and €3k/month OPEX.

Table 6 CAPEX/OPEX analysis

Number of Sites

Comments 10 50

CAPEX (Euro) 300k 1,500k

- €30k / site (WiGig signage, MEC server, storage, etc)

- Fiber network installation cost excluded

Application/Service

Providers

MNO

Location Owner

Content

Owner

MiEdge RAN

(mmWave RAN +MEC)

Local OperatorHardware

Vendors

Shops

/Retails

$

Hardware

$

Space

$

$Service$

Case2

Space

Case1

Contents

$

End Users

Contents

$

$

Contextinfo

Contextinfo

APIs,Context info

Mobile NWaccess

$

Target Ads



5G-MiEdge

OPEX (Euro)

3k / month

5k / month

- Service provisioning, maintenance, etc.

- Application and service providers’ cost excluded

Cash flow

Now we briefly analyze the sustainability of the proposed business model. In Table 7,

we assume that the content price is €4 and 50 contents are downloaded per site in one

day on average. Then, the total content sales is estimated as €60k/month for 10 sites

and €300k/month for 50 sites. This revenue can be shared with content owners,

applications and service providers, and the local operator. If the revenue share rate is

assumed to be 50% for content owners, 25% for applications and service providers,

and 25% for the local operator (which are reasonable rates and splits for the digital

content industry), the revenue of the local operator is estimated as €15k/month for 10

sites and €75k/month for 50 sites. Thus, it will be possible to return CAPEX within

three years.

It is worth mentioning that the number of daily visitors to international airports are

238,000 for Haneda and 116,000 for Narita. Therefore, the assumption of content sales

may be too conservative. In addition, CAPEX/OPEX calculated here is only for one

location. In reality, the service can be expanded to other locations (other airports, train

stations, shopping malls, etc.), which significantly lowers CAPEX/OPEX thanks to

scale effects.

In conclusion, the proposed business model does not look very attractive if we target

for only one location, but it will generate reasonable profit by extending the service to

multiple locations.

Table 7 Cash flow analysis

Number of Sites

Assumption 10 50

Amount of content delivery 500/day 2500/day

50 contents are delivered per site in one day

Content sales in total (Euro) 60k/month 300k/month €4 per content

Revenue (Euro)

Content owners 30k/month 150k/month Revenue share = 50%

Apps/Service providers 15k/month 75k/month Revenue share = 25%

Local operator 15k/month 75k/month Revenue share = 25%



5G-MiEdge

3.3.2.2 2020 Tokyo Olympics

The goal of 2020 Tokyo Olympics use case is to provide attractive event specific

applications or services to visitors at the event by using ultra-high speed and low

latency wireless communication. As shown in [D1.1], this use case requires very high

bit rate per single user, very high user density and very low latency assumed for

stadium gates, stands, and sports arena.

The system architecture for this use case was identified in [D1.3] and is reported in

Figure 11. For the analysis of this use case, small cell deployment by MNO is not

considered, so to simplify the analysis. All mmWave accesses to the edge servers are

assumed via non-3GPP based APs of the local operator in the stadium area. The macro

cells of the MNOs are located outside and cover the whole stadium. User context

information is exchanged between MEHs of the local operator and MNO. Then, users

(or better said user devices) are directed to access venue specific applications/services

provided by the MEHs at the stadium. Data communications between each AP and the

media center in which MEHs are installed are assumed to be delivered through a 10G-

Ethernet on optical fiber.

As previously done for the Omotenashi services use case, business analysis is

performed from the view point of the local operator.

Figure 11. Overall Tokyo 2020 Olympics system architecture [D1.3].


The result is shown in Figure 12, followed by further explanations for each building

block.



5G-MiEdge

Figure 12. Business Model Canvas for 2020 Tokyo Olympics.

1. Customer Segments: The event organizers for the Olympic game, a professional

soccer league and concert events are the main customers. They utilize high-speed

access to expand the attractiveness of their events. However, their utilization of

the system is time-limited, i.e. just during the event period.

2. Value Propositions: Event specific content provisioning and massive SNS

sharing are the main value propositions, especially for the event organizer. SNS

services are not provided by the event organizer. But spreading the news of the

event through SNS sharing will promote the event.

3. Channels: The value propositions are delivered mainly through the Edge could

network using APIs.




quick feedbacks.

5. Revenue Streams: Main source of revenue will be from event organizers, who

make profit by selling event tickets to end users. The ticket price may include costs

for event specific contents/services provided by the MiEdge platform. However,

utilization of the system is time-limited for an event. Therefore, initial payment

and grant from stadium owners and the government plays an important role in

order to be able to make a profit.



to maintain and update the service based on the feedbacks from customers.






5G-MiEdge

8. Key Partnerships: Hardware venders develop the hardware that meet the

specifications based on the system integrators’ requirements.


maintenance.

Key Players

Key players and cash flows are shown in Figure 13.

Figure 13. Key players in the Tokyo 2020 Olympics.

CAPEX/OPEX

CAPEX/OPEX are identified for the 2020 Tokyo Olympics use case in Table 8.

Table 8 CAPEX/OPEX analysis for the 2020 Tokyo Olympics

Stadium Comments

CAPEX (Euro) 2,700k

- 3 types of AP are assumed. (375 APs in total)

- Exclude application/service/software cost

OPEX (Euro) 100k/year - Infra provisioning, maintenance, etc.



5G-MiEdge

- Exclude application/service providers’ cost

Assumptions for the CAPEX/OPEX analysis are detailed in the following.

1) MmWave APs

Three types of mmWave APs are assumed, based on the use case definition performed

in [D1.1].

- The first one is the AP for the mmWave shower at the stadium gates. In terms

of use case definition, 20 ports are assumed for each gates. The new Tokyo

stadium will have 6 gates. Then, the number of required APs is 120 in total.

Capacity of 8 Gbps is necessary at the peak time for data downloading, when

customers are leaving from the stadium. A special antenna is also necessary to

be equipped for differentiating radio communications among ones at

neighboring ports. Therefore, a unit price of mmWave AP is assumed being at

€5k, including installation cost. This cost excludes the cost of the gate itself.

- The second one is the mmWave AP for stands and sports arena to serve stadium

visitors. The aggregated peak data rate is expected to reach the value 500 Gbps.

Assuming an AP capacity of 2Gbps, 250 APs are therefore required to satisfy

the traffic demand at peak time. €3k is assumed to be the AP cost, including

installation cost.

- The third one is the mmWave AP for 4k video camera. Here, compressed 4k

video is assumed for data traffic and the same type of mmWave APs for stands

will be used for this purpose too. 5 APs are installed and serve as aggregation

points for cameras. A camera is connected to a selected AP according to the

position of the camera. Costs are estimated as €3k and €1k for an AP and a

transmitter on the camera side respectively.

2) Optical fiber cable

Optical fiber connections are assumed between each AP and the media center.

Construction cost is not considered for cable ducts and racks. An optic-to-electric

media convertor is assumed on both sides of the optical fiber. Optical fiber cables

themselves are assumed as maintenance free.

3) Network equipment

10Gbits router and L2 switches are assumed to be installed in the media center and are

meant to be able to concentrate APs.



5G-MiEdge

4) Edge servers

Edge servers are assumed in the media center. However at this stage no details are

available nor specified. In any case some sort of redundancy should be considered in

order to properly cope with failures. Applications, Services, potentially required

software and related licenses are not considered as well.

5) Facilities of the MNOs

Any MNO’s facilities are not assumed to be installed in the stadium area for the sake

of simplifying the analysis. The stadium will be fully covered by macro cells, deployed

outside of the stadium.

Taking into consideration the assumptions above, the estimated CAPEX/OPEX are

described in the following Table 9.

Table 9 CAPEX/OPEX breakdown for the 2020 Tokyo Olympics use case.

Facility CAPEX

(€k) OPEX

(€k/year)

AP

Stadium gate 600 30

Stands and arena 750 37.5

4k video aggregator 15 0.8

4k video transmitter 50 2.5

Optical fiber

Optical fiber cable 750 0

10G media converter (O/E) 375 18.8

Network equipment

10G-router 5 0.3

10G-L2SW (48 ports) 32 1.6

Edge server (no details) 100 5

Grand total 2,677 96.5

Cash flow

We briefly analyze the sustainability of the proposed business model. When the local

operator charges €10k per day, annual OPEX can be returned by 10 days events. When

we assume event frequency as 50 days a year (about once a week), the local operator

will obtain €500k per year and its revenue will be €400k more than the annual OPEX.

Therefore, CAPEX can be returned within 7 years. (2,677 / 400 = 6.75) If initial

payment or grant is expected from the stadium owners or the government, CAPEX

will be compensated in even a shorter duration.

However, this estimation does not include APP/Services development costs. When the

average number of visitors is assumed to be 10k, and all visitors pay €3 for utilizing

the proposed MiEdge platform, then the total amount of payment is €3 x 10k = €30k.



5G-MiEdge

Such amount already pays off for the utilization of the MiEdge platform. Event

organizer can include development costs in the ticket price for applications/services

development. If more visitors are expected for an event, more development cost can

be assumed to be in charge of the event organizer.

3.3.2.3 Automated driving

Target scenarios for the Automated driving use case considered in 5G-MiEdge are

complex urban city environments, where many invisible hidden objects exist behind

buildings, tracks, etc. As shown in Figure 14, mmWave based Vehicle-to-Vehicle (V2V)

and Vehicle-to-Everything (V2X) communications are established among Road Side

Units (RSU) and On Board Units (OBUs), which realizes cooperative perception in

order to detect hidden obstacles by sharing data from sensing devices such as cameras

and LiDAR (Light Detection And Ranging) in real-time. The mmWave based Vehicle-

to-Infrastructure (V2I) is also utilized to deliver HD dynamic maps to assist automated

driving in a complex urban area.

Figure 14. mmWave based V2V/V2X for cooperative perception [D1.3].


The BMC is analyzed from the view point of the local operator, whom we call the RSU

operator, who operates the RSU infrastructure. The BMC and details of building blocks

are shown in Figure 15 and are detailed further below.



5G-MiEdge

Figure 15. Business Model Canvas for the Automated driving use case.

1. Customer Segments: The main customer will be the Apps/service providers, who

provide map service, road safety service, etc. The second main customer will be

OEMs who sell vehicles equipped with OBUs. They may want to access a

database to collect context information from OBUs for improving their products.

The government can also be a customer, who may want to access to the database

to provide improved public services.

2. Value Propositions: HD dynamic map download and cooperative perception are

the main value propositions. The infrastructure can also be utilized for collecting

bulk data from the vehicles for big data analytics.

3. Channels: The value propositions are delivered mainly through the Edge cloud

network using APIs, Apps, and websites.




quick feedbacks. Some of the data can also be accessed by the service providers

for early detection of problems, in order to improve their service quality.

5. Revenue Streams: One of the main revenue streams will be the revenue shared

with Apps/service providers, who provide services to end users. Another revenue

stream will be the operation fee from OEMs and governments who access the

database.



to maintain and update the service, based on the feedbacks from customers.

Key Partners Key Activities Value Propositions Customer Relationships

Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

• HD dynamic map download

• Cooperative perception

Apps/Service providers• Revenue share

• APIs

• Apps/service providers(map service provider, road safety service, etc.)

• OEMs (car manufacturers)

• Government (big data for improved public services in the smart city)

• Direct sales• Customer support

(online and offline)

• Provide accessibility to some of the database (ex. Apps/service providers are allowed to access to some of the context info)

• System integration (hardware and software development)

• Network maintenance• Service provisioning• Marketing

• Software developers• System integrators• Infrastructure• Software• Patents

• Hardware vendors• CDN (content delivery

network) providers• ISPs• Apps/service

providers

• Infrastructure (hardware and software development, system integration, initial hardware installation)

• Platform maintenanceOEMs• Operation fee

Government• Operation fee

• Bulk data upload for big data analytics



5G-MiEdge




8. Key Partnerships: Hardware vendors develop the hardware that is supposed to

meet the specifications based on the system integrators’ requirements. The CDN

providers and ISPs will be key partners to realize the efficient content distribution

from the cloud to the Edge. Apps/service providers develop and offer services,

such as safety services and HD map provisioning, to end users.


maintenance.

Key Players

Key players and cash flows are illustrated in Figure 16. The RSU operator owns the

MiEdge RAN, which interworks with the MNO to seamlessly exchange the context

information. The RSU operator provides APIs and context information to the

application/service providers for running their services to end users. The government

provide space for infrastructure and also covers part of the investment. The OEMs may

cover part of operation fee of the RSU operator, in order to access the database of the

MiEdge RAN.

Figure 16. Key players for the Automated driving use case.

CAPEX/OPEX

Table 10 summarizes the results of the CAPEX/OPEX analysis. The CAPEX is

assumed as €30k per intersection, which includes RSUs, a MEC server and a local

storage. As a starting point, the total CAPEX is calculated for 2000 intersections,

which is the number of high collision intersections based on the report from the

Application/Service

Providers

RSU Operator

MiEdge RAN

(mmWave RAN +MEC)

Hardware

Vendors

$

RSU, etc.

$

APIs,Context info

OEMs

(Car manufacturers)$

Car, OBU $

Service

$, Space

Data

Government,

Business Partners

$ Data

MNO

Contextinfo

Contextinfo

End Users

$Mobile NWaccess



5G-MiEdge

Ministry of Land, Infrastructure and Transport in Japan. This accounts for €60 million

of CAPEX.

OPEX is assumed to be €1k/year per intersection, which results in €2 million/year in

total.

Table 10 CAPEX/OPEX analysis

2k Intersections Assumption

CAPEX (Euro) 60 mil

- €30k per intersection (RSUs, MEC server, storage, etc.)

- Exclude fiber network installation cost

OPEX (Euro) 2 mil/year

- €1k per intersection (Infra provisioning, maintenance, etc.)

- Exclude application/service providers’ cost

Cash flow

We assume 1% penetration rate as the initial target of the service. The operation fee

payed by the end user is assumed as €4 per month, which is quite competitive if

compared to the existing LTE-based services like OnStar, which costs about $20 per

month. Then, the total revenue is estimated as €39 million/year. Therefore, it is

reasonable to say that the CAPEX will be returned within 2-3 years. The main results

are reported in Table 11.

Table 11 Cash flow analysis

Estimated Assumption

Number of vehicles 82 mil Registered vehicle in Japan (2018)

OBU equipped vehicles 820k 1% penetration rate

Total revenue per year (Euro) 39 mil €4 per month, i.e. €48 per year



5G-MiEdge

4 Conclusions

This Deliverable has provided a techno-economic analysis on some of the most

promising technologies worked on by the 5G-MiEdge project, w.r.t. some most

interesting use cases as developed by the project.

This Deliverable elaborates on the 5G-MiEdge project vision, considering the final

project results, on the collaboration between the project and other relevant actions at

the international level, and finally on the broader ecosystem impact provided by the

actions of the 5G-MiEdge consortium.

It finally provides a very short update on the Stakeholder analysis and on the SWOT

analysis of the use cases elaborated by the project, concentrating its main efforts in a

BPC analysis done on some most important use cases, thus elaborating on the CAPEX

and OPEX aspects, on the possible return of investment and on the assumptions made

to get the analysis results.

The next steps of the work done will be conducted by each partner singularly after the

project end. Such steps will go into the direction of leveraging on the project results to

have a much better understanding of the potential of some of the key technologies for

the forthcoming 5G system, i.e., the synergy between Edge computing and mmWave

access, the technologies worked on in the lifetime of the 5G-MiEdge project.



5G-MiEdge

5 References

[5G-CAR] 5G CAR project Website. Available online at: https://5gcar.eu.

[5G-CAR D2.2] Deliverable D2.2 Intermediate Report on V2X Business Models and Spectrum. Available online at: https://5gcar.eu.

[5G-CORAL] 5G-CORAL project Website. Available online at: http://5g-coral.eu.

[5G-CORAL D1.2] Deliverable D1.2 - 5G-CORAL -Business Perspectives. Available online at: http://5g-coral.eu.

[5G-MiEdge] 5G-MiEdge project website. Available online at: 5g-miedge.eu.

[3GPP] 3GPP website. Available online at: www.3gpp.org.

[5G PPP] The joint initiative between the European Commission and European ICT industry. Available at: https://5g-ppp.eu.

[D1.1] 5G-MiEdge Deliverable D1.1 “Use Cases and Scenario Definition”. Available online at 5g-miedge.eu.

[D1.2] 5G-MiEdge Deliverable D1.2 “Mid-term report on joint EU/JP vision, business models and eco-system impact”. Available online at 5g-miedge.eu.

[D1.3] 5G-MiEdge Deliverable D1.3 “System Architecture and Requirements”. Available online at 5g-miedge.eu.

[D4.3] 5G-MiEdge Deliverable D4.3 “MiEdge field trials integrated in 5G-Berlin Testbed toward Tokyo Olympic 2020”. Available online at 5g-miedge.eu.

[D5.3] 5G-MiEdge Deliverable D5.3 “Final report on dissemination, standards, regulation and exploitation”. Available online at 5g-miedge.eu.

[3GPP-Phases] 3GPP Phase 1 and 2 use cases timetable. Available online at: www.3gpp.org/specifications/releases.

[BMC] “Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers”, Alexander Osterwalder, Yves Pigneur, Wiley, 2010.

[Lifewire] Available online at: https://www.lifewire.com/5g-availability-world-4156244.

[MIC] Available online at: http://www.soumu.go.jp/main_content/000607542.pdf.

[MIC 2] Available online at: http://www.soumu.go.jp/main_content/000613734.pdf.

[ONE5G] The ONE5G project Website. Available online at: https://one5g.eu.

[ONE5G D2.2] ONE5G Deliverable D2.2 Preliminary simulation results for the validation and evaluation of the developed solutions and techno-economic analysis. Available online at: https://one5g.eu.

[SKYTRAX] Available online at: https://www.airlinequality.com.

[Tom’s HW] Available online at: https://www.tomsguide.com/us/best-mobile-network,review-2942.html.

[VERGE] Available online at: https://www.theverge.com/2019/2/4/18211044/apple-att-5g-e-network-icon-iphones-misleading-ios-software-update-beta?_ga=2.34192225.1371462330.1560281719-1505388479.1560281719.

[VDF] Available online at: https://twitter.com/VodafoneIT/status/1136234868919164935.

[TIM] Available online at: https://www.corrierecomunicazioni.it/telco/tim-gubitosi-lanciamo-il-5g-tra-giugno-e-luglio.

[Wikipedia] Available online at: https://en.wikipedia.org/wiki/List_of_5G_NR_networks.

https://www.lifewire.com/5g-availability-world-4156244

5g-miedge · section 3 starts by providing an update on the 5g system stakeholder analysis and on...

Documents