monetization 5g is your bss ready? - dtw.tmforum.org · segment perspective for new potential...

Monetization 5GIs your BSS Ready? TM Forum Digital Transformation World Wednesday 16th May 2018 17:00 – 17:30David Fan – VP Product Management

2Huawei Technologies Co., Ltd.

5G is Nowbut with important complexities to work through: Overlapping/complementary G’s, sweat sunk investment, managing migration…

5G brings multiple types of new services with different characteristics (traffic pattern, network QoSrequirements) which presents opportunities for the operators to monetize, especially in the B2B areas

R15, NR Architecture and Sites Resources Ready R16, E2E Competence for Digitalization

eMBB +FWA+ uRLLC + mMTC

NR Improvement

• New Multiple Access

• eMBB Enhancement

• Self-Backhaul

Vertical Digitalization

• uRLLC

• mMTC

• D2D/ V2X

• Unlicensed

Spectrum

• Up to 100GHz

Mid 20182017 2019Now 2020

R15 NSA 100%

R15 SA

R16

75%

45%

CommercialDeployment

eMBB + FWA

NSA Fast Deployment

eMBB Experience Enhancement

SA/NSA Co-Industry


One ViewSegment perspective for New Potential Services from 5G and BSS Impact

Major Impact

to BSS

• QoS Guarantees • QoS Guarantees • Packaging &

Bundling

• Process

Automation

• Configurable

Policy Rules

• Massive Scale

• Very Large

Sharing Pools

• Flexible Pricing

Metrics

• Dynamic Pricing

• Powerful Open

APIs

• API usage based

charging

• Slice Charging

• Charging

Correlation

Across Multiple

Slices

New Services

2C

New Types of Digital Services (e.g. VR / AR)

Next Gen Telco Services (e.g. IMS Services)

Fixed Wireless Access

2B

Devices (SIM cards,

consumer, IoTdevices)

Cloud Services API As OfferingShared Or Dedicated

Slices


Another - better - view‘Outside in’, customer experience focused perspective on BSS implications

Aware

Interact

Choose

Consume

Manage

Pay

Share

BSS Key Areas of Impact• OOTB Beyond Traditional Telco

Offers• Flexible Lifecycle• Need for Automation• Flexible Policy Engine• Comprehensive API• Order of Magnitude Increase In

Performance requirements• System Architectural Changes

• New and innovative commercial offerings based on usage, connections, QoS/SLA, sharing/pooling

• Customer onboarding and management with massive number of devices

• Extended processes to manage the SIM card lifecycle for enterprise IoTcustomers

Impact on Customer Acquisition

• Autonomous self-service to improve customer usage experience and cost control

• Empowerment of service providers and enterprise customers to manage devices and automation rules

Impact on Customer Service

• Conformance to architectural changes to BSS required per the 3GPP charging standards

• New charging models brought on by QoS & Network Slice

• Performance, scalability and automation to support the different use cases such as group sharing size, number of connections per system, number of devices per account,

Impact on Charging


Lets Talk About Money The Top 5G Use Cases

1. Cloud Virtual & Augmented Reality – Real-time Computer Rendering

Gaming/Modeling

2. Connected Automotive – ToD, Platooning, Autonomous Driving

3. Smart Manufacturing – Cloud Based Wireless Robot Control

4. Connected Energy – Feeder Automation

5. Wireless eHealth – Remote Diagnosis With Force-Feedback

6. Wireless Home Entertainment – UHD 8K Video & Cloud Gaming

7. Connected Drones – Professional Inspection & Security

8. Social Networks – UHD/Panoramic Live Broadcasting

9. Personal AI Assistant – AI Assisted Smart Helmet

10. Smart City – AI-enabled Video Surveillance

11. Hologram

12. Wireless eHealth – Remote Surgery

13. Wireless eHealth – Ambulance Communication

14. Smart manufacturing – Industrial Sensors

15. Wearable – UHD Body Camera

16. Drone – Media

17. Smart manufacturing – Cloud Based AGV

18. Home – Service Robotics (Cloud AI Assisted)

19. Drone – Logistics

20. Drone – Fly Taxi

21. Wireless eHealth – Hospital Nursing Robot

22. Home – Home Surveillance

23. Smart Manufacturing – Logistics & Inventory

24. Smart City – Trash Bin, Parking, Lighting,

Traffic Light, Meters

24

20

12

11

23

19

21

22 18

1713

16

1415

5G Technology Relevance

Mar

ket

po

ten

tial

MediumLow High

Smal

lM

ediu

mB

ig

10 Use Cases5G Relevance Prioritized

8

7

6

1

5

4

2

310

9 <20ms

>20MbpsmMTC

>200Mbps

<10ms

<10ms

<10ms

>100Mbps<10ms>200Mbps

100Mbps~9.4Gbps<5ms

<10ms>100Mbps


Lets Talk About Money Looking at Evolution of AR / VR

Cloud VR/AR Evolution and Connectivity Requirements

ConnectivityRequirement

Primarily Wi-FiConnectivity

4G and Wi-FiStreaming to 20 Mbps

50 ms latency

4.5GStreaming to 40 Mbps

20 ms latency

5GStreaming to 100 Mbps

- 9.4 Gbps2-10 ms latency

VRApplications& Technical

Features

Stage 0/1

(motion processing andrendering in a local computer)

Gaming,simulation

PC VR Mobile VR

360° video,education

(panoramic video download andmotion processing in smartphone)

Stage 2

Cloud Assisted VR

Immersive content, interactive simulation, visualization/design

(cloud-based motionprocessing, FOV(+) video streaming)

Stage 3/4

Cloud VR

Gaming / modelingpremium experience

(cloud-based motion processing andreal-time CG rendering, FOV(+) video streaming)

ARApplications& Technical

Features

2D AR

Assembly instructions, gaming, location-based, remote work, visualization for retail/marketing

(Local images and text overlay)

3D AR/Mixed Reality

Holographic visualization with increasing universe size.Highly connected public safety AR applications

(Image upload, cloud-based multimedia response)

Cloud MR

Cloud-based mixed and merged reality applicationsIncreased user density and connectivity

(Image upload, cloud-based image re-rendering)


Lets Talk About Money General Charging Models for VR use cases

Only Applicable after scaling up Only Applicable if enough VR contents Only Applicable if owning the app

Subscription based Payment

Example:

Next VR, Netflix VR ($8.99)

• User pays VR platform, VR platform shares the payment with the content producer

Subscriber

VR Platform/App

VR Content Producer

Pay by subscription

Payment

Usage based payment

Example：Google Play; Oculus Store (30%)

• User pays VR store: PPV/Pay per• download; Platform shares• payment with content producer

Subscriber

VR App Store/platform

VR Content Producer

Pay by usage:Pay per view/download

Payment

Advertisement

Primarily Wi-Fi

Connectivity

• User pays to enjoy VR content• Adv. Company pays VR platform by CPM

Adv. Company

VR Platform

Subscriber

CPM based Payment

Payment

VR ContentProducer

Watch VR


Lets Talk About Money VR Live Events - Use Case Scenarios

Scenario

1 Full Match (live) streaming (2-3 hours)

Korean Baseball Match

2 Moment of Highlights (10 mins)

1) Umpire’s view

• From Cameras on Umpire’s body and around Umpire

• Detailed view seen by the Umpire

2) Batter’s view

• From Cameras on batter’s body and cameras on the goal

• Batter’s view can be chosen to view the highlight

Where?

• Full Match (live) StreamingPub/Café, Home

• Moment of HighlightsAll, Transport and Stadium might be the key

Stadium (events)

Transport (train or bus)

Home

Pub/Café (Dense Urban)

1

2

3

4

First Launch


Lets Talk About Money VR Live at Stadium – Value chain and business model

The value chain of 5G stadium hotspot value chain consists of different player like the government, network, terminal, platform and service providers, whereas the revenue stream comes from stadium operators. The operators can get the subscription fee, managed service and revenue sharing with the stadium operators

GovernmentNetworkProviders

TerminalEquipment

Makers

PlatformProviders(Software)

ServiceIntegrators

OperatorsBroadcasting

CompanyAudience

Ministry of Culture, Sports and Tourism

Huawei, Samsung, Nokia, Ericsson

Samsung, Huawei, Intel, Microsoft

LG CNS, Samsung SDS, ITCEN, KRT, Seol-AK ENC

KBS, JTBC, SBS, MBC, MBN, Channel A, TV Choson, etc.

Hotspot stadium revenue stream analysis

Revenue breakdown Revenue

Revenue from MBB/FBB

Stadium spectators MBB users FBB users Sport data analyticsAdvertisment and

e-commerce

Addition revenue from other channel

1 2 3 4 5


Lets Talk About Money VR Live at Stadium – Sample Business Case

Potential New Incremental Revenue = $126M / year

Incremental B2C Revenue

• Total Customer Base: 50M subs

• Frequency: 4 matches per month

• Uptake Rate Per Match: 0.5%

• Revenue: $10/match

• Total Incremental Revenue: $10M /

month

Incremental B2B Revenue

• Ad Revenue per match person: $0.5

• Total Incremental Revenue: $0.5M /

month

• Price: $10 / match

• Ad sponsors pay $0.5 per “served” ad per user Pricing

Structure

• Per match fee to watch a VR football match of

their favorite club

• Corporate sponsors pay display ads within the

virtual environmentScenario


Putting the Picture Together

Experience

Copyright©2018 Huawei Technologies Co., Ltd. All Rights Reserved.The information in this document may contain predictive statements including, without limitation, statements regarding the future financial and operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied in the predictive statements. Therefore, such information is provided for reference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice.

Thank You.

monetization 5g is your bss ready? - dtw.tmforum.org · segment perspective for new potential...

Documents