What consumers want of 5G - s23370.pcdn.co€¦ · What consumers want of 5G IBM Institute for Business Value Rob van den Dam. 2 The blending of 5G, edge computing and AI represents

What consumers want of 5G

IBM Institute for Business Value

Rob van den Dam

2

The blending of 5G, edge computing and AI represents a unique foundation to support new groundbreaking use cases

eMBB (Enhanced

Mobile Broadband)

mMTC (Massive machine-

type communications)

URLLC (Ultra-reliable

low-latency communications)

Smart factories

Agricultural drones

Robotic surgery

Smart homes

AR/VR shopping

Assistive robots

Collaborative gaming

Smart cities

Autonomous cars

3

Vendors are very enthusiastic

Ericsson eyes $700B 5G growth opportunity for service providersCDXcentral, 11 Oct. 2019

Huawei expecting 5G revenue boostIndependent.ie, 27 Oct 2019

Qualcomm: 5G to Generate $3.5 trillion in Revenue in 2035 TheFastMode, 22 Nov 2017

2019 Global Consumer Survey

18%

16%

13%12%

12%

10%

8%

5%5%

Source: Ericsson,

700USDbn

The 5G-IoT addressable revenue potential for CSPs

4

However many telcos act with caution as there are high risks involved in moving towards ubiquitous 5G networks.

BT chief warns on 5G business models

DT calls for radical changes to meet 5G

challenge

KT unclear on 5G business case

Orange dep CEO: 5G business case still up

for grabs

Telefonica unlikely to launch 5G services

before 2020

Telenor CEO: 5G use cases must come first

Vodafone CTO: 5G industry needs realism

Many Telcos Skeptical

• 5G infrastructure upgrades need around 1

trillion U.S. dollar of CSP investment

• CSP revenue growth is expected to slow

steadily to around 1% to 2025

• Globally CSPs spent well over 1 trillion U.S.

dollar (2010 – 2018) to upgrade their networks to

4G, still to be written off

5

In addition to business models, there is still a significant amount of work to be done on the technology, standards and support systems

16%

22% 22%19%

23%

Considering Evaluating, butnot yet testing

Testingtechnology in

lab environment

Conductingoperational trials

Partly (or fully)implemented,

supporting(current and/ornew) services

All others

The organizations’ stage in adoption of NFV/SDNThe majority of 200

telecom executives

interviewed by IBM stated

there is still much work

to be done to deliver

services to specific

verticals through

• network virtualization

• network slicing

• edge computing


Mobile video traffic forecast to grow ±50% annually through 2023

to account 75% of all mobile traffic Ericsson Mobility Report, November, 2017

Mobile traffic by application

category CAGR 2017 - 2023

Hence, it is widely expected that early 5G services will focus on consumers to support the increasing video traffic


7

To understand the 5G services and experiences consumers crave, IBM surveyed nearly 12,500 consumers in 21 countries

The consumer sample represented 62% of the global population and 77% of global GDP


88

Awareness of 5G

24%

37%

29%

47%

30%

23%

Have NO IDEAwhat 5G is

Have SOME IDEAwhat 5G is

Have GOOD IDEAor very FAMILIAR

with 5G

Emerging countries Mature countriesRespondents in emerging countries

are more aware of what 5G is than

respondents in mature countries

Familiarity with 5G?


9

Respondents in China are more aware of 5G than respondents in the other countries surveyed

Consumers’ awareness of 5G

4%

23%

7% 10% 9%6% 6%

9% 7% 9%6% 5% 6% 7% 6% 7% 8%

4%6% 4% 3% 2%

17%

22%

18%18%

27%

15%20%

19%17%

17%18% 19% 15%

19%15% 16% 11%

12%12%

8%6%

11%

60%

23%

39%36%

28%

40%34% 28%

31% 29% 30% 30%32% 25%

28% 26%

19%23% 20%

25%27% 17%

Ch

ina

Ind

ia

Sou

th K

ore

a

GL

OB

AL

Italy

Ind

one

sia

Ge

rmany

Bra

zil

Spain

US

UK

Ne

therl

and

Austr

alia

Mexic

o

Ca

na

da

Arg

entina

Sou

t A

fric

a

Ken

ya

Phili

ppin

es

Russia

Japan

Nig

eria

Have some idea what 5G is

Have a good idea what 5G is

Very familiar with 5G


10

In context of 5G, respondents are most excited about video and entertainment related applications

5G-related APPLICATIONS seen as most relevant

11%

18%

21%

22%

22%

23%

24%

30%

33%

37%

44%

45%

57%

3D HOLOGRAM CALLING

Smart WEARABLE DEVICES (e.g. fitness trackers)

SMART TRANSPORT (e.g. autonomous driving)

Real-time TRANSLATIONS via smart earphones

AR for LOCATION-BASED SERVICES

Digital HEALTHCARE (e.g. remote health diagnostics)

AR/VR-augmented SHOPPING (purchasing in virtual stores)

SMART HOME applications (e.g. remote home monitoring)

IMMERSIVE VIDEO (360 Video, holograms)

AR (Augmented Reality) ENTERTAINMENT applications

Watching VIDEO/movies in 3D

VR (Virtual Reality) ENTERTAINMENT applications

UHD (Ultra High Definition) VIDEO (4K and 8K)


11

Across all countries, streaming Ultra High Definition (UHD) video to their mobile is indeed one of the most appealing 5G applications

Percentage of respondents stating that streaming Ultra High Definition

video to their mobile is one of the most appealing 5G applications73%71%

68% 66% 66%

61% 59%58% 58% 57%

52%50% 50%

47% 47%43%

39% 39% 38%

34%

30% 29%

Phili

ppin

es

Ind

ia

Bra

zil

Nig

eria

Ken

ya

Sou

t A

fric

a

Ind

one

sia

Arg

entina

Mexic

o

GLO

BA

L

Sou

th K

ore

a

Austr

alia

Ch

ina

Italy

Ru

ssia

Spa

in

US

UK

Ca

na

da

Japan

Ge

rmany

Neth

erl

and


12

Early 5G adopters are willing to pay extra – even switch provider -for a better mobile video experience

13

Most respondents in emerging countries would switch to 5G as soon as it is available or when they are eligible to a phone-upgrade

31%

38%

18%

9%

3%2%

16%

24%

20%21%

7%

12%

As soon aspossible

When I am eligibleto phone-upgrade

When hearing goodthings about it

Eventually If 5G is standardoffering and noother alternative

Don't know

Emerging countries Mature countries

Moment of switching to 5G


14

Particularly in emerging countries, respondents stated they would switch to 5G as soon as it becomes available

Percentage of respondents stating to switch to 5G as soon as possible

47%

40%

30%35%

26%

36%

18%

28%

18% 20%

29%

18%15% 14% 14%

18%14%

17%13% 13% 14% 12%

30%

37%

44% 35%

44%

31%

45%

36%

45% 38%

28%

35%

35%30% 29%

25%28% 24%

23% 22% 19%

11%

Ind

ia

Ken

ya

Ind

one

sia

Nig

eria

Bra

zil

Sou

th A

fric

a

Ch

ina

GL

OB

AL

Mexic

o

Italy

Phili

ppin

es

Arg

entina

Spa

in

Russia

Neth

erl

and

US

UK

Austr

alia

Ca

na

da

Ge

rmany

Sou

th K

ore

a

Japan

As soon as possible when eligible to phone upgrade

As soon as possible, even if not eligible to phone upgrade


15

5G, Cloud and edge computing will be critical to moving Virtual Reality (VR) forward

• Lacking computer power

• Limited graphics quality

• Heavy devices

• Cable connection, limiting mobility

Complex processing

in the cloud

(or on cloud edge)

• Smaller, more practical devices

• More powerful

• Cheaper

• Energy-efficient

16

According to the survey respondents, virtual reality (VR) will bring most value to movies/series, music/concerts and sports events

22%

24%

26%

27%

30%

38%

39%

51%

56%

56%

GAMING, other than eSports

eSPORTS (watching or participating in competitive sport video gaming)

TV-SHOWS / THEATRE productions

SCIENTIFIC & NATURE

THEME PARKS (e.g. sitting in a imaginary rollercoaster)

ARTS & CULTURE (e.g. walking through a historical venue of the past)

NEWS & DOCUMENTARY (e.g. being part of a war scene)

SPORTS events (virtually attending real sporting events)

MUSIC and CONCERTS (e.g. virtually attending a real concert)

MOVIES/SERIES (e.g. creating full sensory experiences)

Kind of immersive VR experiences in media and entertainment seen as bringing most value and willing to pay for.


17

India has the highest percentage of respondents that appreciate Virtual Reality as a new way in which sports can be enjoyed

Consumer excitement on - and willingness to pay for - VR applications in sports68%

61% 60%58%

51%48% 48% 47% 47% 47% 46% 45%

42%

37% 37% 36%34% 33% 32% 32% 31%

27%

Ind

ia

Nig

eria

Ke

nya

Ind

one

sia

GLO

BA

L

Phili

ppin

es

Arg

entina

Bra

zil

RS

A

Sou

th K

ore

a

Chin

a

Mexic

o

Italy

UK

Spa

in

Russia

US

Austr

alia

Ne

therl

and

s

Japan

Ca

na

da

Ge

rman

y


18

Augmented Reality (AR) could hit the mainstream earlier

AR is already embedded in many

frequently used applications

Together with 5G, AI could enable

a whole new wave of deeply

integrated AR experiences

19

According to the survey respondents, augmented reality (AR) will especially bring value to music & concerts

18%

25%

26%

26%

33%

41%

41%

50%

50%

55%

eSPORTS (e.g. adding scores)

GAMING, other than eSports (such as Pokémon Go)

TV-SHOWS / THEATRE productions

SCIENTIFIC & NATURE

THEME PARKS (e.g. adding additional info on a character)

NEWS & DOCUMENTARY (e.g. additional info on a war scene)

ARTS & CULTURE (e.g. additional layer with historic view of venue)

SPORTS events (e.g. adding scores, 3D animations)

MOVIES/SERIES (e.g. pointing mobile to a movie poster and get more info)

MUSIC and CONCERTS (adding virtual objects/content to the show)

Kind of immersive AR experiences in media and entertainment seen as bringing most value and willing to pay for.


20

In the era of elaborate music festivals, AR is seen as an increasingly common feature, fitting the music industry’s exploratory nature

Consumer excitement on - and willingness to pay for - AR applications in music & concerts

66%64% 63% 63% 63% 62%

56% 56% 55% 55% 55% 55%

46% 46% 46% 46% 46% 45%

40% 40% 39% 38%

Nig

eria

Kenya

Mexic

o

Sou

th A

fric

a

Phili

ppin

es

Ind

one

sia

Ind

ia

Arg

entina

Ch

ina

Bra

zil

Sou

th K

ore

a

GL

OB

AL

UK

Ja

pan

Italy

US

Ru

ssia

Spa

in

Austr

alia

Ge

rmany

Ca

na

da

Neth

erl

and

s


21

eSports is exploding. It is evolving at a pace unrivaled in any other sport

Source: https://newzoo.com/insights/articles/newzoo-global-esports-economy-will-top-1-billion-for-the-first-time-in-2019/

https://newzoo.com/insights/articles/newzoo-global-esports-economy-will-top-1-billion-for-the-first-time-in-2019/

22

According to the survey, the world’s most frequent eSports viewers and enthusiasts are found in Asia Pacific and Brazil.

Percentage of respondents watching and/or participating in eSports across countries

27%

35%30%

26% 26% 28% 27% 27%21% 19% 19% 19% 21% 20%

15% 15% 14% 13% 14% 12% 15%

8%

36%15%

19%

21% 19%10% 10%

8%

12%10% 10% 10% 7%

3%7% 6% 7% 7% 6% 7% 4%

3%

Ind

ia

Chin

a

Bra

zil

Ind

one

sia

GL

OB

AL

Ken

ya

Nig

eria

Phili

ppin

es

Mexic

o

Sou

th A

fric

a

Spa

in

Arg

entina

Sou

th K

ore

a

Italy

Ca

na

da

UK

Russia

US

Neth

erl

and

s

Austr

alia

Germ

any

Japan

Frequent viewers/Enthusiasts

Occasional/Regular viewers


23

Who is the eSports enthusiast?


24

eSports enthusiasts understand how important 5G is for them


25

The following questions can help telecom companies prioritize the actions necessary to prepare for the future

• To what extent have you made providing your customers with a high quality video experience central to your content production and delivery strategy?

• Are you investing enough funds in immersive media, such as VR, AR, and 360-degree video? Which use cases and applications do you expect to be most promising, possibly in combination with AI, cloud, and edge computing?

• How will the immersive market opportunity change your business model? What will be your new revenue streams?

• How are you capitalizing on the growth and coverage of the eSports industry that is bound to attract a younger viewership across a global scale?

• To what extent are you partnering in the areas of UHD video streaming, immersive media, and eSports?

Rob van den Dam

Global Industry Leader, Telecom, Media and Entertainment

IBM Institute for Business Value

[email protected]

What consumers want of 5G - s23370.pcdn.co€¦ · What consumers want of 5G IBM Institute for Business Value Rob van den Dam. 2 The blending of 5G, edge computing and AI represents

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