Capturing the 5G/IoT industry business potential
June 2018
Ericsson IOT & Emerging Business Julio Echenique Carbonell
© Ericsson AB 2018 | Page 2
1. New mobility models require 5G
2. 5G value capture journey overview
3. Use case examples
Agenda
© Ericsson AB 2018 | Page 3
‘Without 5G & AI fully autonomous vehicles would be impossible’
Source: Intel, Forbes, VentureBeat
VentureBeat
5G wireless will make autonomous cars smarter
Forbes
AI critical to the future of autonomous vehicles
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Would you really trust an autonomous car?
Source: Clippings
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Anatomy of an autonomous vehicle’s accident w/o 5G
Source: Clippings
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Building trustworthy public transportation services enabled by AI and 5G
© Ericsson AB 2018 | Page 8
© Ericsson AB 2018 | Page 9
1. New mobility models require 5G
2. 5G value capture journey overview
3. Use case example
Agenda
© Ericsson AB 2018 | Page 10
With industry digitalization, new fast growing revenue pools emerges
* Digitalization revenues for ICT players from 10 key industriesSource: Ericsson and Arthur D. Little
2016
1.4971.736
1,5%
2026
USDbnCAGR16´-26´
Operator to seize
emerging revenue potential
Challenge: current operator service revenues Opportunity: digitalization revenues*
13,6%
20262016
3.458
968
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5G revenue potential for operators addressing industry digitalization
USDbn, 2026
1 736
619*415
204
Cu
rre
nt
se
rvic
e r
ev
en
ue
s5
G a
dd
ress
ab
le
B2
B2
X
2026
Service enabler and service creator revenue potential
Network developer revenue potential *Total addressable as Service creator operator role
Adding an addressable
revenue growth potential
36%
Manufacturing18%
Energy and utilities16%
Public safety13%Healthcare
12%
Public transport12%
Media and entertainment10%
Automotive8%
Financial services5%
Retail5%
Agriculture1%
619USDbn
© Ericsson AB 2018 | Page 12
The analysis of 5G use case clusters offers a vision on investment optimization.
Agro AutoEnergy & Utilities
Financial Services
Health Mfg.Media & Entmt.
Public Safety
Public Transport
Retail TOTAL
Real-time Automation 100,8
Enhanced video 96,2
Other 77,4
Monitoring & tracking 72,6
Connected vehicle 68,8
Hazard & mnt. sensing 57,0
Smart Surveillance 46,7
Autonomous Robotics 40,5
Remote Ops 35,4
AR/VR 23,6
619,0
Addressable market for telcos (2026, USDbn)
+++ ---
Source: Ericsson
© Ericsson AB 2018 | Page 13
1. New mobility models require 5G
2. 5G value capture journey overview
3. Use case examples
Agenda
© Ericsson AB 2018 | Page 14
5G – One network for multiple industries
10-100xEnd-user data rates
1000xMobile data volumes
5xLower latency
100xMore devices
Low costDevice cost reduction
5xNW energy efficiency
3xSpectral efficiency
Network slicing
eMBB mMTC cMTC Enterprise and Industry
© Ericsson AB 2018 | Page 15
— Hotspots in cars; adding car dealerships, service stations and parking company through platform
— Offers devices to plug into cars, smartphone app and cloud solution to manage devices and data
— App lets drivers know driving behavior, car info and location, lowering insurance premiums
European operator creating value via connected car ecosystem
© Ericsson AB 2018 | Page 16
Real-time location of the train
Remote control of trains
Real-time video surveillance
Gigabit mobile broadband for passengers
A PoC collaboration with Swisscom to test the
applicability of upcoming 5G features like network slicing for future railway communications
Rail application5G Network slicing
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© Ericsson AB 2018 | Page 18
Enterprise IoT adoption stages