Eric Kexin, general manager of Taiwan Ericsson (left) and Yao Dan, technical director (right).
In the past, the industry viewed 5G as a disruptive technology, and now it has become the strategic core for the development of various industries. Ericsson released the latest version of the “5G and the Internet of Things” report at the 2018 World Mobile Communications Conference (MWC), fully exposing 5G to lead the various lines. The huge revenue potential generated by the digitization of various industries, and guiding the operators to the 5G development blueprint.
In addition, Borje Ekholm, president and CEO of Ericsson, pointed out that according to feedback from operators, the core areas that they focus on in the 5G era are: “Improve operational efficiency—reduce gigabytes” Cost, "Improve the user's digital experience, and reduce costs" and "Open up 5G and IoT application cases to create new sources of revenue." These feedbacks form the basis of Ericsson's operational strategy.
According to Ericsson’s previously published report “5G Business Potential”, it is estimated that by 2026, the operator’s revenue will increase by 204 to 619 billion US dollars (a growth of 12% to 36%), and the service revenue is expected to reach 1.7 trillion US dollars. With the help of technologies such as 5G and the Internet of Things, it will be able to assist digital transformation in industries such as automotive and manufacturing, and achieve these growth goals.
In its latest "5G and Internet of Things" report, Ericsson has studied 10 industries and over 400 digital application cases, including energy and public utilities, manufacturing, public safety, healthcare, public transportation, media and entertainment. , Automotive, Financial Services, Retail, and Agriculture. Of the 400 application cases, more than 200 application cases rely on 5G technology support. These application cases are categorized to increase revenue and overcome deployment challenges.
Nine categories with real-time automation and enhanced audio and video services
From 2016 to 2026, the digitalized revenue of ICT industry participants is expected to grow by 13.6% annually, while the existing operator service revenue growth is expected to be 1.5%. 5G is increasingly important to all industries, and operators' 5G revenue is also increasing. It is expected to increase. By 2026, operators expect to obtain 47% of the total value brought by 5G. Through the evolution and classification of application cases, operators have been able to grasp the 5G Internet of Things and industrial digital opportunities to the maximum extent possible. , Fully tap the commercial potential.
Ericsson has identified nine categories, covering nearly 90% of 5G business opportunities, with real-time automation winning the top spot, and revenue before 2026 is expected to reach 1010 billion US dollars; followed by enhanced audio-visual services, revenues before 2026 will reach 960 One hundred million U.S. dollars.
Thomas Noren, Head of 5G Commercialization at Ericsson, stated: “Our application case studies show that operators face challenges through strategic and operational activities to build successful products. Although these are not 5G products, they are moving towards 5G. In the process, such as the listing pipeline, trials and experiments are of equal importance, or even worse."
Mastering the advantages of pioneers is an important strategic goal of the company
Earlier this year, Ericsson published the "5G Industry Impact Report", which shared insights from 900 companies and 10 different industries. According to the report, 5G application cases will be launched in 2018, and related 5G activities will soon begin. More than 70% of companies plan to launch 5G applications in 2021. Among them, manufacturing, energy and utilities, public transportation and financial services are most likely to be the first to introduce 5G application services in 2020.
From a strategic point of view, the main factors driving the 5G development include laying the first-mover advantage (73%), making itself an industrial innovator (54%), making full use of digital transformation support technology (53%), and laying a solid foundation for the Internet of Things. The foundation (46%).