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THE BILLION DOLLAR ROAD TO 5G IS BUILT ON FIBRE
5G is set to change the way we live our lives, bringing unprecedented services and an unparalleled user experience which will filter into every aspect of society. Operators will also benefit, with the technology presenting possibilities to launch new bandwidth-hungry services to generate additional revenue and satisfy consumers’ cravings for the latest and greatest broadband- enabled innovations. But with these great promises comes challenges as operators look at how to deliver up to 1,000 times more bandwidth and latency of less than 1ms, writes Ankit Agarwal , CEO of Telecom Products Business, Sterlite Tech.
T o do this, networks must be brought closer to the end-user. With many mobile operators turning to small cell networks to do so, demand for backhaul is greater than ever, pushing fixed networks to their limit. As the industry works to overcome these challenges and continues towards the 5G era, the route ahead is unclear in places, but strong foundations are already being built – and they’re made of fibre. AN EXPLOSION OF DATA From driverless cars to virtual reality, a whole host of unique applications with individual latency requirements and needs for significantly higher bandwidth rates are quickly exploding onto the scene. Real-time gaming, the wireless cloud office, smart cities and connected homes are also playing a part as we become increasingly connected in an age of more, more, more. There are more users, more devices, more content per device and more gigabits per user – and data transmission is at the core of the transformation.
government is one example, announcing in early 2018 plans to inject £25 million into 5G projects and pave the way for 5G cities as part of its Digital Strategy. UK operators are also beginning 5G trials this year: o2 plans to test 5G technologies in south London, EE will test the technology with five home and five business customers in East London and Vodafone has said it will test 5G in Birmingham, Bristol, Cardiff, Glasgow and Liverpool. Technology giants including Huawei, Intel and China Mobile are also making leaps and bounds as they set their sights on speeding up the commercialisation of 5G systems. It was announced in July that the three industry leaders completed 5G interoperability and development testing to do just that, showcasing how 5G networks and 5G terminals from different vendors can integrate to support enhanced mobile broadband services. One of the latest reports from Ericsson also predicts that there will be more than a billion 5G subscriptions by the end of 2023, highlighting the need for the industry to unify sooner rather than later as we face rapid global adoption.
By 2020, it’s predicted that more than half of the world’s population will be connected, and data will move beyond mobile to a world of connected devices. The revenue 5G is expected to generate is also vast. According to bcc Research, the global 5G technology market – which includes hardware, software and services – is expected to reach approximately US$105.4 billion by 2023, with a 26.6% CAGR between 2018 and 2023. Currently, North America accounts for the largest market share, with the market reaching US$9.7 billion this year. The Asia-Pacific region has also grown exponentially as the consumer base grows and initiatives and developments on 5G technology surge, resulting in a healthy-looking market value of US$10 billion in 2018. In order to prepare for the 5G future, operators must look to upgrade their networks to handle the imminent explosion in demand, particularly as the IoT begins to make an impact. Most leading telecoms operators are committed to investing in fibre while governments are leading the way through policy and regulation as 5G activity continues to grow. The UK
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| ISSUE 14 | Q3 2018
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